Can someone please help me with this because I am lost.
In what circumstances would each approach to stakeholder impact analysis (moral standards, 5-question, and Pastin’s approach) be most useful? Generalize about the approaches and describe when each would be most or least useful.
Five Question
Evaluate each alternative on:
Profitability (shareholders)
Legality (society at large)
Fairness
Impact on the rights of stakeholders
Impact on sustainable development (environment)
Moral Standards Approach (Velasquez)
Is the decision:
Of net benefit to society
Fair to all stakeholders (fair distribution of benefits and burdens)
Consistent with each person’s rights
Pastin’s approach (Pastin)
Ground rule ethics (organization/individual rules and values)
End-point ethics (greatest net good for all concerned)
Rule ethics (determine ethical boundaries to take into account – impingement of rights)
Social contract ethics (how to move boundaries)
Source:
CSun
Sure! Let's break down each approach to stakeholder impact analysis and discuss when they would be most useful.
1. Moral Standards Approach:
This approach involves evaluating stakeholder impacts based on predefined moral standards or principles, such as fairness, justice, or equality. It focuses on ethical considerations and can be useful in situations where there are clear and widely accepted moral guidelines. The moral standards approach is most effective when dealing with stakeholders who share similar moral values and when there is a well-established ethical framework to guide decision-making.
2. 5-Question Approach:
The 5-question approach, also known as the Clarkson Principles, is based on five key questions developed by Professor Thomas Donaldson and Thomas W. Dunfee. These questions help assess the potential impact of a decision on stakeholders:
a. Is the action legal?
b. Does it violate company policies?
c. Does it meet the stakeholder norms and expectations?
d. Does it respect the stakeholders' rights?
e. Is it consistent with ethical principles?
This approach is useful in a variety of situations as it provides a systematic way of evaluating stakeholder impacts. It is particularly helpful when legal and compliance considerations, along with ethical principles, are critical to decision-making. The 5-question approach allows organizations to consider both internal policies and external stakeholder perspectives.
3. Pastin's Approach:
The Pastin's approach, developed by Professor Mark Pastin, involves assessing stakeholder interests and determining the best course of action to balance those interests. It focuses on identifying options that align with the interests of different stakeholders. This approach is particularly useful when there are conflicting stakeholder interests or when stakeholders have diverse and complex needs. By considering the interests of all stakeholders, organizations can make decisions that maximize overall value and minimize potential conflicts.
To summarize, the moral standards approach is most useful when there are clear moral guidelines and shared values among stakeholders. The 5-question approach is valuable in situations where legal compliance and ethical considerations are essential. Pastin's approach is beneficial in addressing conflicting stakeholder interests and finding a balance among diverse needs. However, it's important to note that the usefulness of each approach may vary depending on the specific context and the nature of stakeholders involved.