National University of Modern

Languages
Presented To:
Sir Col Ijaz Ahmed
Group Member's:
Abdullah Awan
Aleem Ullah
Ali Murtaza
Adnan Ali
Ali shahroz
Talha Turab

Stake Holder Approaches

Ethics:
A code of moral standards or conduct for what is good and right as
opposed to what is bad or wrong.
What is Stake?
A Stake is any interest, share or claim that a group or individual has in
the outcome of a Corporations policies, procedures or actions towards
others.

Stake Holder Approaches

What is Stakeholder?
A person, group or organization that has interest or concern in an
organization.
Stakeholders can affect or be affected by the organization's actions,
objectives and policies. Some examples of key stakeholders are
creditors, directors, employees, government (and its agencies), owners
(shareholders), suppliers, unions, and the community from which the
business draws its resources.

Primary vs Secondary Stakeholder Groups

Stakeholder Management Approach

The stakeholder management approach is a way of understanding the effects of environmental
forces and groups on specific issues that affect real-time stakeholders and their welfare.
This approach attempts to enable individuals and groups to articulate collaborative win-win
strategies: based on:
Identifying and prioritizing issues, threats, or opportunities
Mapping who the stakeholders are
Identifying their stakes, interests, and power sources
Showing who the members of coalitions are or may become
Showing what each stakeholders ethics are and should be
Developing collaborative strategies and dialogue from a higher ground perspective to move
plans and interactions to the desired closure for all parties

Stakeholder Management Approach (conti..

Utilitarian Approach:
Moral behaviors produce the greatest good for the greatest number.
Individualism Approach:
Acts are moral when they promote the individual's best long-term interests (e.g., the golden rule).
Factors Affecting Ethical Choices
The Manager:
Level or stage of moral development
Learned Ethics
The Organization Systems
Social Responsibility
An Organization taking actions that contribute to society
Being a good corporate citizen.

Stakeholder Model
The belief that a business should be operated for the benefit of all who are
concerned with it (all stakeholders not just the owners).
The foundation of Social Responsibility.
1-Organizational Stakeholders

5-Customers

2-Owners, Investors

6-Government

3-Employees

7-Society

4-Suppliers

Views of Responsibilities of Business

1- Economic Responsibilities
The only Social Responsibility = Profit-Maximizing.
2- Legal Responsibilities
Social Responsibility = Obeying the Law (as well as making a profit)
3- Ethical Responsibilities
To be ethical, an organization should seek a higher standard than merely obeying the
law:
Act with equity, fairness, and impartiality
Respect the rights of individuals
Act for the common good

Arguments Against Social Responsibility

Social expenditures amount to theft of business owners equity.
Business lacks the ability to pursue social goals.
Business would gain too much power if involved in the social
domain. (Social issues should be left to those accountable to the
voters.)

Ethical Leadership By Example

Senior managers must be strongly committed to ethical conduct.

Whistle-Blowing
Definition: The disclosure by an employee of illegal, immoral, or illegitimate
practices by the organization.

Guidelines:
Be sure you are right (keep accurate records)
Try to resolve the situation in-house first
Consult an attorney before contacting the media, etc.
Realize you could be fired.
Dont expect to profit

Abbott company
Vision, Mission, Objectives

Trust, innovation, and quality are what stand out in Abbotts for the
company. Abbott prides itself in being the leading innovator in health care
products including their development in HIV detection and diabetes care.
Their number one concern is for their customers, making sure that their
products are both efficient and profitable. Finally, Abbott maintains a
Commitment to its history and to the future (vision, mission and
Objectives,2007.

Abbott Company Stakeholder Approaches

Abbotts stakeholders not only include its shareholders but also its
employees. Everyone from research and development to those who
work in the plant are stakeholders. They also include Don Patton, the
CEO, and all the managers the support of the CEO. The decisions and
progress Abbott makes in its discoveries and development contribute
to the wealth of the company and its employees.

Evaluation and Contingency Approach

Their largest source of revenue comes from pharmaceutical sales. Other than
research and development, marketing and sales play an enormous role in the
performance of the company and achieving their goals. According to an article
written by pharmaceutical field, Abbott implements what is known company wide
as class A , which integrates business processes, tools and people with their
behaviors (2008). In other words, each sales force meets monthly with the
marketing team and presents qualitative and quantitative information from their
territory. The marketing team than incorporate the feedback into their forecasting
and marketing plans. This process allows marketing and sales teams to come
together, be on the same page, and successfully sell and market products.

Recommendations
In conclusion, despite economic hardships, Abbott will thrive as they have been
continuing to develop new and beneficial products that are innovative and ahead of
the curve. In order to maintain a competitive edge, the company must develop
patents before their competition does. They will do this by continuing in encourage
employees to succeed and excel, and by increasing flow of hands in research and
development.
In the past year, medical products accounted for $ 3.5 billion, or 4.7% of the
companys revenue. Additionally, Economy heart diseases is the number one death
emergency in the United States.