Part 4: Duties and Stakeholder Theory
57 Can we integrate stakeholder and ethical analysis?
Stakeholder and ethical analysis can be combined by focusing on stakeholder concerns as part of an ethical analysis.
As we saw in Part 3, the unifying core of many ethical theories is considering the effects one’s actions have on others. Stakeholder analysis provides a way to think of the “others” in that sentence. The following step-by-step process builds on our integration of ethical frameworks in Part 3 by adding in elements of stakeholder analysis.
- State the challenge being faced, and gather the information needed to proceed.
- Identify stakeholders (those who influence the organization, and who are influenced by it) and their wishes.
- Categorize those stakeholders as low or high interest, considering whether their issues are emerging, consolidating, or institutionalized. Then, classify the stakeholder as low or high power, based on their ability to influence the organization.
- Identify alternative solutions to the problem, using stakeholder priority models as a guide.
- Apply an ethical framework to those alternative solutions.
(a) Choose an ethical framework
(b) State what that framework entails
(c) Apply the framework to the facts, considering long-term stakeholder priorities
(d) Reach a conclusion for that framework - Repeat (3) for alternative ethical frameworks
- Discuss differences between framework outcomes. Do they disagree? First, look for problems in the analysis (e.g., did you account for long-term costs and benefits in utilitarianism?). Second, analyze why they disagree. This may bring insight into the problem, and may lead to re-examining the assumptions behind the analysis. Third, consider harmonizing potential solutions to take advantage of insights from multiple frameworks.
- Reach an overall conclusion to the problem that reconciles differences in ethical approaches, and considers stakeholders, the law, and economic concerns.
Finally, note that this is merely one of many approaches that could be taken to integrate ethics and stakeholder analysis. This process is meant to be instructive, not prescriptive.
Exercises
- For the company you have been considering, find an ethical issue they currently face, have faced, or could hypothetically face. Follow the steps above and consider how the company might approach this issue.
