An example in the real business situation was cited with the issue of the human rights of people, where there are specific legal regulations on child labor. No matter how a minor may exhibit strong abilities to undertake certain roles, companies have to decide between bridging legal rights and face the law or just doing with the legal provisions. The fact that there are several legal rights that protect the interest of workers and other stakeholders within the organization has also been mentioned by the writers as an important variable for ensuring fairness, privacy, and equity.
Examples of such rights are cited to include workers’ right, salary issues and whistleblowing (p. 28). In effect, Crane and Matten (2010) see theories of rights, particularly legal rights as important ethical standards that come to benefit and protect the interest of stakeholders. The writers, therefore, lamented that in most developing countries, there is no regard for human rights such as the protection of the rights of children against child labor. In its ethical form, however, the level of adherence by companies makes it possible to distinguish good businesses from bad ones.
In the decisions of investors, therefore, they would always want to be mindful of the legal rights record of a particular company. 6) Shareholder VS stakeholder viewAccording to Crane and Matten (2010), shareholders are seen as the owners of the cooperation and so the cooperation owns its greatest obligation to them. This is however according to the typical traditional management model. In other models such as the continental European model, even though the shareholder is recognized as an important figure within the business setting, the greatest obligation is not held to the shareholder.
Rather than focusing on the shareholder, the continental European model focuses on the stakeholder, part of which is the shareholder (Jean-Philippe, 2009). As issues of ethical concerns continue to become instrumental in the business setting, Crane and Matten agree that the perspective to viewership where consideration is given to stakeholders ahead of shareholders is the best.
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