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
5-Question
Evaluate each alternative on:
Profitability (shareholders)
Legality (society at large)
Fairness
Impact on the rights of stakeholders
Impact on sustainable development (environment)
The 5-question approach would be most useful when there is an orderly consideration of problems without many externalities and where a specific focus is desired.
Moral Standards Approach
Is the decision:
Of net benefit to society
Fair to all stakeholders (fair distribution of benefits and burdens)
Consistent with each person’s rights
The moral standards approach would be most useful when the decision maker needs to make a more broadly based analysis of net benefit rather than just profitability as a first challenge of proposed decisions.
Pastin’s approach
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)
The Pastin approach would be most useful when either an individual's rules, an overall goal of good for a company, or individual boundaries and removal of boundaries are an issue