Final answer:
True, ethical and social dilemmas often emerge in business because stakeholders have conflicting perspectives, such as shareholders prioritizing financial returns versus employees valuing job security. Stakeholder theory posits that all stakeholders' interests should be balanced, contrasting with the shareholder primacy belief. Government intervention like OSHA exemplifies the shift from a laissez-faire approach to one that ensures worker safety, reflecting changing ethical perspectives on corporate responsibilities.
Step-by-step explanation:
The statement that ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives is true. Ethical dilemmas often surface when stakeholders have differing perspectives and interests, which can lead to conflicts over what decisions should be made. For instance, shareholders may prioritize financial returns, while employees may value job security and customers may focus on product quality.
Exploring these competing values can enhance mutual understanding among stakeholders and potentially lead to agreement on decisions. However, it's important to note that not all ethical theories demand self-sacrifice, contrary to what some may believe. Rather, the balance between self-interest and the greater good varies depending on the ethical perspective adopted. For instance, the concept of stakeholder theory opposes the idea of shareholder primacy, which is based on deontological grounds and advocates for the prioritization of shareholder interests. Stakeholder theory, on the other hand, argues for a balance in considering the interests of all parties (Moriarty 2021).
Moreover, the history of business shows that concerns over safety and liability, as well as different economic systems, have shaped societal perspectives on corporate responsibilities. For example, OSHA regulations in the United States represent a shift from the laissez-faire attitudes of early classical economists like Adam Smith towards more government intervention to ensure worker safety (Smith 2009). Ultimately, it is clear that varied interests and incentives can lead to collective dilemmas. When individuals or groups come to the decision-making table with different goals and needs, challenging dilemmas can arise, whether it's deciding on a dinner location or setting national policies on complex issues like climate change.