Explain the emergence of the Stakeholder Theory using Carroll’s four-part model. Elucidate your answer with possible problems of the Stakeholder Theory, including your own reflective account.

QUESTIONS:

SECTION 1 (45 points)

1.1 Explain the emergence of the Stakeholder Theory using Carroll’s four-part model. Elucidate your answer with possible problems of the Stakeholder Theory, including your own reflective account. (15 points)

1.2 Briefly explain Duties, and Rights (separately) of employees as stakeholder of the firm; and provide your own view on employee related ethical issues (15 points).

1.3 Critically evaluate the reasons why an organisation should care for the environment and explain the main stages in developing an environmental management system (EMS). (15 Points)

SECTION 2 (55 points)

CASE:

(Please read the following case and answer the questions below.)

Alex is the personnel manager of a London-based finance company, XYZ Investment. Recently there have been a number of high-profile reports in the media concerning finance executives who have been sacked fallowing the discovery that they had been using illicit drugs out of office hours.

The report indicate that UK businesses lose around £3bn every year to drink-and-drug-related illness, whilst in the USA, drug use is estimated to cost employers $75-100bn annually in lost time, accidents, healthcare, and workers’ compensation costs. Sixty-five percent of all accidents on the job in the USA are said to be directly related to drugs and/or alcohol. Therefore, drug testing become very common in the USA with around 80 percent of firms currently using some kind of test. Testing is not nearly so common in the UK but is apparently on the increase following the introduction of extensive programmes at companies such as Railtrack and London Transport. The hectic, fast-living lifestyle of the London financial district is thought to make traders and other city finance executives increasingly prone to use drugs and consume alcohol excessively. The government provides no particular restriction for alcohol consumption for out of working hours.

Assuming that using drug or consuming alcohol excessively can affect employees’ work performance negatively. Mr Osborne, the managing director, has decided to ask Alex to consider the case for instituting a programme of drug testing for XYZ-Investments’ employees. Additionally, he also requested Alex to prepare a questionnaire related to alcohol and drug use for the future recruitments of the company.

After a while, as a personnel manager, Alex had to evaluate three shortlisted candidates for an internship position in the company. Although he had chance to observe these candidates’ performance during the interviews, Alex felt unstable among the three good profile candidates. Alex’s assistant George who is an intern too, comes up with an idea suggesting that checking social media profiles of these candidates might be helpful for making decision. Once Alex realizes that two of the shortlisted candidates are George’s friends on Facebook, Alex asks George to log in Facebook using his username and password, so he can see two of the candidates’ pictures shared with friends only.

Alex feels strong pressure on his shoulder for hiring new people who are not involved in drug use or alcohol problems

Questions:

2.1 Read the above case carefully and identify the main stakeholders and ethical issues around them. (10 points)

2.2 Critically evaluate the case using TWO of the following ethical theories: Utilitarianism, Kantianism, Rights and Justice, Virtue ethics. (30 points)

If you were in Alex’s position, what would you do? Justify your answer