This document discusses stakeholder theory and the responsibilities of corporations towards their various stakeholders. It defines stakeholder theory as a framework that addresses moral and ethical values in business management. A corporation has responsibilities towards both internal stakeholders like shareholders, employees, and management as well as external stakeholders like customers, suppliers, creditors, competitors, society, and the government. The document provides examples of specific responsibilities towards each stakeholder group and concludes that an ethical organization recognizes its duties towards all stakeholders.

1. STAKEHOLDER THEORY
PROFIT MAKING AND ETHICS

2. GROUP MEMBERS
• Arya Rajeev 7705
• Pratik Botra 7715
• Ajinkya Dingankar 7725
• Jagruti Godambe 7735
• Shivraj kakade 7745
• Riddhi Lakhani 7755

3. FLOW OF PRESENTATION
• Introduction to
stakeholder theory
• Internal stakeholders
• External stakeholders

4. INTRODUCTION TO
STAKEHOLDER THEORY

5. STAKEHOLDER THEORY
DEFINITION:
 Stakeholder theory is a
“ A conceptual framework of business
ethics and organizational management
which addresses moral and ethical
values in the management of a business
or other organization. ”

6.  Corporations are not simply managed in
the interests of their shareholders
alone, but that there are a whole range of
stakeholders.
 It identifies and models the
groups, which are stakeholders of a
corporation and both describes and
recommends various methods to satisfy
them.
 Ethical organization recognizes its
responsibilities towards all stakeholders.

7. There are two types
of stakeholders :
 INTERNAL STAKEHOLDERS.
 EXTERNAL STAKEHOLDERS.

8. stakeholders
Shareholders
Employees
management
Customers
Suppliers
Creditors
Competitors
Government
society
internal external

9. INTERNAL
STAKEHOLDERS

10. RESPONSIBILITY TOWARDS
OWNERS/SHAREHOLDERS
1. Proper use of capital
2. To manage business effectively
3. To provide accurate and timely information
4. Ensure growth and appreciation of owner’s
capital
5. Provide regular and fair return on owners
capital

11. RESPONSIBILITY TOWARDS
EMPLOYEES
• Fair compensation for service provided
• Timely and regular payments
• Provision of proper working and welfare conditions
• Job security
• Provision of security benefits and better living conditions
• Training and development opportunities
• To recognize and honor individual worker’s right
• Fair and unbiased treatment to all

12. RESPONSIBILITY TOWARDS
MANAGEMENT
•Management decisions have impact
•Shareholder’s expects higher
returns
•Management has a fine balance

13. EXTERNAL
STAKEHOLDERS

14. RESPONSIBILITY TOWARDS CUSTOMERS
(Mitsubishi Electric’s)
• Ensuring consistent quality
• Providing ease-to-use products
• Increasing customer satisfaction
• Responding to product-related issues

15. Responsibilities
towards
Suppliers

16. RESPONSIBILITIES TOWARDS
SUPPLIERS
• Giving regular orders
• Dealing with suppliers on fair terms
and conditions
• Availing reasonable terms of credit
• Timely payment of dues
• Helping suppliers in improving or
upgrading the quality

17. Responsibilities taken up by Casio
Worldwide towards its Vendors
• Casio has established Procurement Policies in order
to execute its social responsibility to conduct fair
and equitable transactions throughout the supply
chain.The policies cover matters including legal
compliance, respecting human
rights, labor, safety, and health, as well as
environmental protection such as biodiversity
preservation and risk control of chemical contents
and information security

18. Casio strives to achieve the following
• Fair & equitable transactions
• Compliance with laws and social norms
• Environment Protection
• Strengthening partnerships with suppliers
• Policies of Supplier selection & transaction
continuation
• Securing right place & quality
• Prohibition of personal-interest relationships

19. Responsibilities
towards
Investors/Creditors

20. RESPONSIBILITIES TOWARDS
INVESTORS/CREDITORS
• To provide fair returns on capital invested
• To supply complete and accurate information
• To ensure that the value of investment doesn’t
fall in the long term
• To raise public image of the company
• To improve prestige of the company

21. RESPONSIBILITIES TOWARDS
INVESTORS/CREDITORS
• To undertake R&D activities for diversification
• To build up financial stability and ensure safety
of investment
• To ensure timely payment of interests and
principal
• To not participate in unethical practices and
bring disrepute to the company

22. Responsibilities
towards
competitors

24. RESPONSIBILITIES TOWARDS
COMPETITORS
• Not to claim exceptionally high
commissions to agents and
distributors
• Not to offer too high discounts
to the consumers
• Not to defame competitors
directly or indirectly

25. Responsibility towards
society and government

26. RESPONSIBILITIES TOWARDS
SOCIETY
• Business morality
• Development of backward
areas
• Efficient use of resources
• Financial assistance
• Protection of environment

27. MILK ADULTERATION

28. MARUTI SUZUKI

29. RESPONSIBILITIES TOWARDS
GOVERNMENT
• Payment of taxes
• Obeying rules and regulations
• Giving suggestions
• Financial help during
emergency
• Earn foreign exchange

30. HELP TO UTTARAKHAND
FLOOD VICTIMS

32. Profit Making-An Objective with
Ethical Dimension
Profit making and Ethics is very hard to be
distinguished.
UnitarianView-Morality & Ethics are related to
business
SeparatistView-Business should concentrate on
profits and ethics & business doesn’t form a part of
it.
IntegrationView-Ethical Behaviour and Business
Integrated

33. Consumers are becoming more and more aware of the
unethical practices of the orgainzation
You can't make a profit without customers, and
customers won't use your business if you outrage them
too much.
 BodyShop was one of the first businesses to build on
this trend.
Most immoral business practices are actively illegal, at
least in Europe and North America

34. SOME OF WORLD’S ETHICAL PROFIT
MAKING ORGANIZATIONS

35. CONCLUSION
Thus , ethical organization
is the one that recognizes
its responsibilities towards
all stakeholders and
considers their interest

36. Webliography
• http://www.forbes.com/sites/jacquelynsmith/2013/
03/06/the-worlds-most-ethical-companies-in-2013/
• www.managementparadise.com
• www.moneycontrol.com
• http://essayinfo.com/sample/essay/884/16/
• www.wisegeek.org/what-is-cwww.

37. Thank you