Stakeholder Input

Once stakeholder impacts have been identified, managers should decide whether stakeholder input
should be invited into the discussion of the strategic alternatives. In the case of Maytags decision to
close its Galesburg, Illinois, refrigeration plant, the community was not a part of the decision. The
management decided to inform the local community of its decision three years in advance of the closing
instead of the 60 days required by law. A company may have some stakeholders of which it is only
marginally aware. For example, when Ford Motor Company extended its advertising to magazines read
by gay and lesbian readers in 2005, management had no idea that the American Family Association
(AFA) would argue that this was tantamount to promoting a homosexual agenda and call for a boycott
of all Ford products. In response, Ford pulled its ads. Gay and lesbian groups then protested Fords
backpedaling. Ford then placed corporate ads in many of the same publications, which gays saw as
clumsy and the AFA saw as backsliding, so before making a strategic decision, strategic managers should
consider how each alternative will affect various stakeholder groups. In the Strategy Highlight 3.1
JOHNSON & JOHNSON CREDO the companies must responsible to their employees and respect
employees dignity and recognize their emit.

Unethical Behaviour

The lack of ethical, it is easy to understand why some could run into trouble if they obtained a job at a
corporation having an unethical culture. Relationship-based countries tend to be less transparent and
have a higher degree of corruption than do rule-based countries. Another possible reason for what is
often perceived to be unethical behavior lies in differences in values between business people and key
stakeholders. Some business people may believe profit maximization is the key goal of their firm,
whereas concerned interest groups may have other priorities, such as the hiring of minorities and
women or the safety of their neighborhoods. The lack of people try to understand about ethical and
unethical is like where people working in the tobacco industry, some people dont agree with the
tobacco because can cause cancer, cough, and so on but for the people working that company can also
asking whether it is ethical for people who dont smoke, drink, or gamble to reject another persons
right to do so. Engaged in unethical and illegal actions is used the frogs in boiling water analogy. If one
were to toss a frog into a pan of boiling water, according to the folk tale, the frog would quickly jump
out. It might be burned, but the frog would survive. e. However, if one put a frog in a pan of cold water
and turned up the heat very slowly, the frog would not sense the increasing heat until it was too
lethargic to jump out and would be boiled.