Assignment Question: Stakeholder Theory and Business Ethics Framework Background: Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests. Objective: Your task is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework. The chosen scenario is the incident of Proton X90 fire risk. Business Scenario: The Proton X90, a popular model from the Malaysian automobile manufacturer Proton, faced a significant issue when several units were reported to have caught fire. This incident raised serious concerns about the safety of the vehicle and the ethical responsibilities of the company. The company was criticized for its handling of the situation, particularly its initial response, which was perceived as dismissive of the severity of the issue. Instructions: 1. Apply Ethical Rules: a. Utilitarian Rule: Assess the benefits and costs associated to the conduct. Does the company been ethical in their action? b. Moral Rights: Evaluate the actions of the company. Are all the rights of stakeholders been fulfilled? Were they intrinsically right or wrong, regardless of the outcomes? c. Justice Rules: Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly? d. Practical Rule: Review the action of the company on practical rule. Do they openly discuss the action to public?
Assignment Question: Stakeholder Theory and
Background:
Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests.
Objective:
Your task is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework. The chosen scenario is the incident of Proton X90 fire risk.
Business Scenario:
The Proton X90, a popular model from the Malaysian automobile manufacturer Proton, faced a significant issue when several units were reported to have caught fire. This incident raised serious concerns about the safety of the vehicle and the ethical responsibilities of the company. The company was criticized for its handling of the situation, particularly its initial response, which was perceived as dismissive of the severity of the issue.
Instructions:
1. Apply Ethical Rules:
a. Utilitarian Rule: Assess the benefits and costs associated to the conduct. Does the company been ethical in their action?
b. Moral Rights: Evaluate the actions of the company. Are all the rights of stakeholders been fulfilled? Were they intrinsically right or wrong, regardless of the outcomes?
c. Justice Rules: Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly?
d. Practical Rule: Review the action of the company on practical rule. Do they openly discuss the action to public?
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