Comm 101 5.2 Tutorial

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1. Who are the stakeholders in the James Hardie asbestos case? A stakeholder is defined as “any group or individual who can affect or is affected by the achievement of the organization’s objectives” (Freeman 1984, p25). The stakeholders involved in this case are the employees and their employees and customers that were affected by exposure to the asbestos in the products, neighbors of the mines and manufacturing plants and demolition contractors (Shaw, Barry & Sansbury 2009, p263). The other shareholders are parties like the government agencies (ASIC, MRCF), directors and the shareholders. (72 words) 2. What do you think of the way in which the board of James Hardie have managed the asbestos compensation issue? The board of James Hardie Industries handled the asbestos compensation issue with egoist principles. Shaw, Barry & Sansbury (2009, p59) states that egoism believes that a behavior is morally right only if it benefits oneself in the long-run. James Hardie attempted to avoid paying compensation by delaying and exploiting legal loopholes to avoid liability (Shaw, Barry & Sansbury 2009, p263). According to Kantian Ethics, humans should never be used as a means to an end and instead they should be treated with respect due to their inherent worth (Shaw, Barry & Sansbury 2009, p75). James Hardie Industries’ decision to continuously use asbestos as raw material for its products has breached moral rights because they were already aware of the hazardous properties asbestos possess (Shaw, Barry & Sansbury 2009, p263). Instead of stopping the usage of asbestos when its potential hazards were discovered in 1939, they continued using asbestos for the next 20 years at the expense of the health of employees and consumers (Shaw, Barry & Sansbury 2009, p263). This shows a total disregard of human lives and welfare. Utilitarianism
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