Business Ethics – Stakeholder Management

Business Ethics – Stakeholder Management

The Clean Power company, which is located in Cincinnati, Ohio has been in business long enough to have several employees to be concerned about in this case. Furthermore, they are concerned about having a power sources in home and businesses, and their main concern is now to be able to extend their operations abroad to Altos de Chavon in the Dominican Republic. In addition, this area is extremely beautiful and it attracts vacations from all over the world. Hence, the plan is to use up five hundred acres of the land to develop their plants. Add to this, the stakeholders are the environment, employees, customers, community and shareholders. Still further, this report will give their interests, responsibilities, and possible decisions the corporation could make for each ethical issue or concern and the effects on the stakeholders.

First, the stakeholder’s interests should be that they are all working together and coming to mutual agreements so that the community is safe by the company providing the proper technical expertise. Since the environment is also a stakeholder, the company needs to test the soil, water and be sure the air is same. The company can be held liable in lawsuits given by the community even if there are no laws in effect with the Environmental Protection Agency. This covers the ethical concept of justice (“PDA”, 2009). Therefore, the obligation to abide by the community laws of a safe environment to prevent lawsuits and litigation down the road. In addition, the interest in regards to the school in being sure it is also safely built and it provides jobs for the community which takes care of the philanthropy in the neighborhood. The company is helping the community bring in jobs (e-Guide, 2009).

Second, the responsibilities of the stakeholders are to follow taking care of each other which is the ethical concept of moral rights (“PDA”, 2009). For example, the company should get approval from their investors before they decide to make such a move. Furthermore, the company is to give notice to the employees at least six months in advance whether it is a law or not. Still further, the employees have the responsibility of communicating openly with top management to discuss any grievances they may have in order to clear things up ahead of time and not wait until the last minute. Therefore, cooperation from the employees will make the transition a lot easier.

Next the responsibility of the community would be to welcome the company and also discuss any concerns by having an open community action meeting. Still further, the customers need to be made aware of the transition so that the company can also make further arrangements for them. Add to this, if they cannot accommodate the customers due to being out of the location, then the company should give referrals to other businesses in the area to take care of the customers. This is the ethical concern of utilitarian of producing the greatest good for the greatest number of people (“PDA”, 2009).

Consequently, in regards to the stock going down the investors will not feel they have been left in the dark if the company takes the responsibility to explain the exact details. Further, the key is not to make promises of extra funding and to give them a comfort level so there are no surprises later on. However, they can give details showing that the income due to past results with other companies have proven to go up.

Finally, the possible decisions the corporation could make for each ethical concern and the effects on the stakeholders are as follows: First, as mentioned above the company can make the ethical decision of giving enough notice to the employees so there are no surprises. Furthermore, the company can provide their own testing of the equipment, soil, air, etc. to morally protect the people and to follow any laws that the community may have even though there may or may not be the Environmental Protection Agency in that country. Still further, the ethical issue economically they need to be sure there is enough investment funds so that when there is a move, they will be able to keep the employees for many years to come. Equally important, the company can provide other community activities like adding a contribution to a park or facility near the school so that parents will have a place for their children to go after school. In other words, to go the extra mile in helping out the community, so the community as stakeholders feels that it made a good move accepting that company into their community (“e-Guide”, 2009).

In conclusion, the effects on the stakeholders will be okay if the company does what it’s supposed to do and that is the have the moral obligation of taking care of the community so that they are safe (“PDA”, 2009). In addition, the economic effects will be good if they add to the community more jobs, incentives to employees, customers are taken care of before they leave to another location, and the shareholders know that at least they will not lose money and it will be mainly advantageous for the move. To this end, the move will be good if all the stakeholders work together with the company to make it work.


Boca Chica Beach, (2009) Retrieved July 12, 2009, from

Professional Development Activity, (2009) Retrieved May 19, 2009, from

The Kaplan e-Guide to ethics and the legal environment. Retrieved June 17, 2009, from

Kaplan University on-line web site.

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