Johnson and Scholes ethical stances

Johnson and Scholes illustrate the range of possible ethical stances by giving four illustrations:
• Short-term shareholder interest:
Limit ethical stance to taking responsibility for short-term shareholder interest on the grounds that it is for government alone to impose wider constraints on corporate governance. It is a minimalist approach to respond to the demands of the law but would not undertake to comply with any less substantial rules of conduct. The ground here would be that going beyond it can challenge government authority.
• Long-term shareholder interest:
Wider view of ethical responsibilities. Enhances the organization’s image. The cost of undertaking such responsibilities may be justified as essentially promotional expenditure. Can prevent a build-up of social and political pressure for legal regulation.
• Multiple stakeholder obligations:
Accepts the legitimacy of stakeholders other than shareholders and build those expectations into its stated purpose.
• Shaper of society:
Largely the concern of public sector organizations and charities. Accepts a wide responsibility to stakeholders.