Business Ethics & Corporate Governance

SUMMARY: The chapter provides an overview of corporate responsibility towards its stakeholder's i.e. internal and external stakeholders. Internal stakeholders are shareholders, employees and management. External stakeholders include consumers, suppliers, creditors competitors and community. Shareholders are important to the business, because they have a primary stake in the business. Organization's responsibilities towards the stakeholders are:

To provide professional management, fair returns on their investment, disclose relevant information, protect shareholders assets etc. The organizations responsibility towards employees are improving working conditions, maintaining open and honest communications, welcoming suggestions/complaints, providing equal opportunity etc. Management plays a key role in balancing the multiple claims of stakeholders.