Stakeholders & Interrelationships.

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Part A

In order to understand the main theories and terminologies involved, the activities being done were considered to be a great form of practice. Most of the times it is not an easy task to comprehensively understand some terminology by simply one statement or definition. Even by providing a single example may not be enough to understand the concept.

This is where activities come into play. Practically practicing a concept makes me see it in many different ways. In addition by performing many activities related to some theory or terminology, I can really grasp what I am trying to get since first I am not a native English speaker and second a single example is not enough for me to completely get through the meaning of the terminology under question. Having many examples regarding a certain concept helps me check as well as cross-check all the related activity examples.

 

Among the many examples that I will use, the first example will be from Module 1 (Activity 1-1); the example I used when we sketched the diagram of the stakeholder relationships. The point I am trying to make is that using a diagram helped me greatly to find out the exact relationships between each stakeholder and the firm. I benefited from the Activity 1-1 which made me realize to understand the relationship between market and non-market stakeholders. Furthermore, the diagram I mentioned was also beneficial in the sense that it made me think over the role of the government. Now I will refer to Assignment no.1 where I was of the view that government can be both a market and a non-market stakeholder. The two positions depend on the relationship that exists within. The government would be considered a market stakeholder if the relationship was monetary which includes taxation and subsidies etc. On the contrary the government would be considered a non-market stakeholder if the relationship was purely oversight which includes laws and regulations etc. So the point I am trying to make here is that by using a diagram that demonstrated both relationships side by side helped me to realize how a stake holder would be considered market or non-market. In addition the diagram also assisted in visualizing how the different types of stakeholders are linked. So activities help a lot. One of which is using visual information like graphs and diagrams.

 

Another such activity i.e. Activity 2-1 from Module 2 also assisted me in spotting the clear difference between the terminologies “unethical” and “illegal”. The main emphasis of this activity revolved on certain real life examples such as the activities which were unethical but still legal. What this activity did is question my ability to understand ethics. Moreover the activity made me question my own self about the previous question of Part B if we could follow or perform an unethical deed if it was better for the business. One time I heard ‘USA drama or movie’ say that it is ‘OK’ to use unethical means in business because. USA drama is of the view that treating public unethically is acceptable in business because it is not personal – it’s all about the business and hence money. To me, well, it seems silly because in any business there are always at least two parties involved and in my point of view, it really is personal to both the parties. It makes no sense to me if someone, for his own benefit, separates business from personal.

 

China is a country known for its corruption and bad ethical practices. Apart from that people in China usually interact in an indirect way since being direct, unlike America’s culture, is considered impolite. Despite the fact that they are too indirect in their conversations and dealings, the people out there are still very honest regarding unethical conduct. The culture admits whenever an unethical practice is ethical. So the thing is that I could not understand exactly why famous people in American movies say that hurting someone in business is just OKAY!

 

In order for me to understand the scenario the activity was very helpful. Through the activity I started looking thoroughly through the news I read and wrote them down in my journal. My procedure was to first think about the news that whether it was legal or not and secondly whether it can be considered ethical or not. Most of the news I read was related to accounting. The company reported the profits, made in one country, in other countries with a lower tax rate so that they would pay less tax. From my or any other sensible human being’s perspective this act is unethical. Though the company is using certain tricks to make their reports look legal they are still executing an unethical action. We have read about Utilitarian and the Justice theories in ethics. From the utilitarian theory’s point of view, the above action is not benefiting the greater good of the nation and then according to the Justice theory’s point of view, it is even battering the rules. One another theory of ethics is the ‘Human rights or Social Justice Theory’ according to which the using of such abusive tricks is only viable by the rich parties and as all else is not feasible for the general masses for instance the average Canadian or Chinese. So the reason I gave this example to review the benefits of the Activity 2-1 which undeniably was useful to differentiate between what’s legal and ethical  and also if we can consider an unethical practice or act as OK if is proved to be legal.

 

The third Activity 3-5 in Module 3, we were asked to take into consideration three technological changes. We were specifically asked how these changes affect (1) me, (2) other stakeholders and (3) their ethicalness. I considered the Chinese apps. Chinese apps are most used as well as most interesting. On the contrary Canada’s perspective on copyright is very different from that of China. Unlike Canada whose citizens always pay for something like movies or music they buy from the internet, China never even thinks of paying. What china does is to accept much of the advertisements on the internet to pay which compensates for their not paying. On the other hand Canada dislikes this way of payment. The point is that the approach both nations follow is different for the appreciation and respect for art and creativity. This is what I thought while doing activity 3-5 because the three technologies I considered include a freeware music app on my cell phone and a similar free app for dramas and movies on my laptop. The apps I installed haven’t really impacted or changed my life to a great deal because since the day I own my own personal computer, this technology has always appeared. I always use my computer to watch American drama. Although it will not be problem in China, but in countries like America and Canada where copyright laws are not taken for granted, this way will have a huge effect. Most of the entertainment providers have switch from T.V. subscriptions to online pay per views and seasons. In America and Canada, it will be unethical if the artists who make music don’t get paid for their hard work. However, on the contrary in China, the entertainment people like movie and drama stars are still wealthy despite the wide spread culture of adopting the free internet model.

Out of three technologies, the third is the chatting app I have installed on my mobile phone. This app uses the Wi-Fi to connect to the internet. The scenario that fits on using this app is, in my opinion, not an ethical issue. Use of this app has made my life much more easier since I can call or text anyone anywhere in the world. Though certainly it has a significant effect on the stakeholders of the phone company I am using, it is not an unethical issue since this app is surely benefiting the consumers.

 

The last but not the least activity is Activity 4-4 from Module 4. This activity is related to the privacy at work while using internet. I consider myself in consensus with most of the rules and companies enunciated in this activity. This activity actually makes me put myself in the employer or employee’s shoes. If I were an employee somewhere, I would definitely offended or harmed emotionally if my online privacy is breached. On the part of the employer, he/she should not also sneak in to some employee’s privacy on the internet. Even if an employee is paid for a job, it does not mean that the employer has the right to interfere in to the employee’s privacy.

 

What really had a positive impact on my understanding and know-how of the theories and terminologies was ‘online discussions’. I learned, through the discussions, in a more practical way. I am of the view that good people, mostly, are idealistic. But at the time when we come face to face with applying those theories in the real world, we have to think in a realistic way. Therefore in such manner we have to reconsider our values and beliefs on which we base our ethical decisions. People usually want to be good and fair and therefore the ethics that applies there is often simple and easy. The only time people deviate from the good is when they start considering the gray areas of ethical standards as well. Their ethical sense is challenged when their families, friends or country are bought into consideration when assessing the benefits of certain task. Moreover you also start judging other’s ethics as well rather than just assessing yours. It seems much easier while judging the CEOs and other top officials of a big business. The same ethical judgment becomes much more difficult when you start your own business and your family’s wellbeing depend on you. You have to know about all the different ways a company manages its business ethically. Your ability might be judge different from others or at least your judgment pace is not so fast as compared to that of others.

 

2

 

As far as my mind is concerned, the example that I consider the best is from Activity 1-1, Module 1. The activity was about market and non-market stakeholders. For instance the taxation department is a market stakeholder since a firm or company is required to meet the government’s needs which are taxation, subsidies and rules and regulations.  This makes a confusing environment which revolves around needs, wants, expectations and perspectives. Therefore taxation is considered a market stakeholder since it acquires money from the firm. It need the money as part of its revenue.

 

This whole scenario develops an environment of conflict because the government may provide subsidies to the same firm which has been labeled as a sign of risk for the economic stability. So what this scenario creates is a ‘conflict of interests’. Therefore the subsidy government group wants the firm to succeed and hence creates a taxation conflict as well.

 

A whole atmosphere of confusion builds up. The taxation department first cuts out the taxes from the income of the firm and on the other hand the government provide subsidies on its products and hence reduces the expenses of the firm to let it succeed. The real conflict of interest arises when the same government both make regulations as well as decide the taxes.

 

Even if two different government groups are made to handle the two cases separately, they will still be connected with each other because of the leader of the country which becomes the link between the two groups. I generally read USA and Canada news in which the general public – the stakeholders, blame the countries’ leaders for the issues between the government and the stakeholders. This can be one of the examples of the case mentioned in the main statement of this paragraph.

 

Both business activities and sustainable development are important here. Once again conflict of interest arises. Let’s take an example of an energy company who uses solar power to generate electricity. The same government might be providing subsidies to the energy firm on one hand, and on the other it may be regulating the other oil companies which are considered competitors in the oil industry. The problem is when the same stakeholder is both market and non-market. The corresponding needs, wants and expectations are changed immensely. As a consequence it becomes very difficult for the government groups (subsidiary and taxation) to keep each stakeholder separate from each other.

 

3

 

One of the methods called the circles of reflection method is useful because it affects both the way how you perceive your own life and the life of those who are beyond your reach. I felt really good about Module 4 and the topics of globalization and environment, included in the first and 3rd topics, also intrigued me. I believe that the circles of reflection method affected me a lot since I now know that China, being a country very important to globalization, has problems regarding environment and social life and how industrialization did grew with such a pace from globalization.

 

While looking at the example of globalization, it affected my circles in China. But since my family gets benefit from my profitable factory, my first circle may be benefited. Then my second circle gets hurt because they are paid with poor wages by Canadian standard and they usually live a life full of stress. But on the other hand, my third circle is benefited because my third circle is the government itself which has a growing economy, trade and GDP. The fourth circle, the world, now benefits from the cheap prices of products at Wal-Mart. The point is that the condition of the second circle would be so bad that it outweighs the other three circles’ benefits. There are two perspectives. From utilitarian perspective, which accounts for the net good overall, the case would be considered ethical. But from the Human rights Theory it would be very unethical to allow the three circles to benefit while the other one circle suffers with poor wages. Therefore this activity was very helpful to map the different circles to judge ethically.

 

The example concerning the environment works as well since a risky oil project may cause the company benefits, but the lower oil price may indirectly cause the contamination of water resources. Temporarily the government may get monetary benefits, but will eventually grow potential unhappy voters. Last but not the least, I will talk about the overall benefits the world (the 4th circle) will gain from the surplus oil supply but if this causes an increase in the overall temperature and hence global warming, then I am afraid it might outweigh the positive gains and will be the worst risk. This assignment has let me view different aspects of ethical considerations.



About the author

usama-khan-7047

student, future computer scientist
paki, suni, paktoon for life
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