Stakeholder Ethics: Defining The Ethical Responsibilities of Stakeholders to and for Companies

Because business ethics focuses on the ethical responsibilities of compa nies to and for their stakeholders, the impression that companies have only duties and stakeholders have only rights can arise. To prevent stakeholders from becoming passive as a result, this article explores the ethical respon sibilities of stakeholders to and for the companies whose stakeholders they are. Using contract theory, which holds that all contracting parties have ethical responsibilities, five principles are identified as the ethical respon sibilities of stakeholders to their companies: empathy, fairness, solidarity, reliability, and openness. Contract theory also allows the identification of five grounds comprising the extent to which stakeholders are responsible for their companies: endorsement, enablement, influence, profit, and own ership. This article therefore opens the door more widely to study and prac tice stakeholder ethics.