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Turds

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Submitted By trschnei
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I would like to break the question down into separate parts, and then bring them back together. First, we ask if managers have an obligation to take into consideration the rights and interests of all legitimate stakeholders. I have learned in previous courses that this is text book definition of a firm’s responsibility. The primary purpose of a firm is to increase stakeholder wealth.

Then we are posed with a very important question, should this obligation to stakeholders come above and beyond legal obligation? A firm also has an obligation to follow legal guidelines. In most cases, obeying the law is in the best interest of stakeholders. However, this is should not be the number one concern to the firm.

The law is not necessarily moral. Lawyers, attorneys, and judges do not determine what is morally correct. They determine what is legal. Therefore: “If something is legal, it is not necessarily moral; if something is illegal, it is not necessarily immoral. To discharge one’s legal obligations is not necessarily to discharge one’s moral obligations” (book). The text has given us the answer to the question.

Laws generally give follow the moral rules of society, however they are not a constant. Morality is more than what is good and what is bad. Moral obligation can only be captured by a theory according to which obligations arise from actual social requirements (yale). A manager is socially required and obligated to act in the interest of the stakeholders above and beyond the law.

References

Arnold, D., Beauchamp, T., & Bowie, N. (2012). Ethical Theory and Business (9th ed.). Pearson.

Wolf, S. (n.d.). Moral Obligations and Social Commands - Yale Law School. Retrieved April 7, 2015, from

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