Every business firm has a unique culture. Its culture is made up of the cumulative knowledge,... ... Understanding and improving its culture could be very valuable to a business firm. Stakeholder trust might be the most illuminating window into the ethicality of its culture... ... Governance: The International Journal of Business in Society, 5(4), 43-55; Forte. A. (2004). Business ethics: a study of the moral reasoning of selected business managers and the...
... generating stakeholder trust. In particular: - A buyer’s/investor’s economic decisions are not solely based on financial considerations; trust also plays a significant role.[6] - Businesses do not have to choose between financial value and stakeholder trust. Companies that earn trust also have better financial results. This means that rather than creating costs and interfering with business, as some believe, business ethics and trust are in fact a profitable strategy. - Stakeholder voices, thanks to the internet and social media, are an increasingly influential source of information for the public. An organization’s future success will depend more than ...
... discerning and agreeing on globally appropriate rules for business behavior has been a formidable and contentious discussion among business leaders and academics.
While acknowledging all of the contentiousness, we now offer a proposal for a unifying global business ethics principle:
A basic duty of every organization is to earn stakeholder trust.
This principle is meant to replace a more familiar but flawed imperative: that the basic duty of each business leader is to “maximize shareholder value.” [2] Such a duty has never been explicitly written into corporate law, yet is often practiced by CEOs as a way of avoiding dissatisfied shareholders and being replaced by a similarly dissatisfied ...
