Final answer:
Phillips identifies derivative stakeholders as those to whom an organization has an ethical obligation. This acknowledges the moral commitments that extend beyond legal and financial duties, focusing on the broader impacts on various individuals and groups affected by the organization's actions.
Step-by-step explanation:
Phillips categorizes derivative stakeholders as those to whom an organization has an ethical obligation. Unlike legal or financial obligations dictated by contracts or debts, ethical obligations encompass duties recognized as morally significant but not necessarily enforceable by law.
Organizations operate within a societal context, and the behavior of these organizations can influence or affect various individuals and groups, who are considered stakeholders. While shareholders primarily have financial interests in a corporation, stakeholders can include anyone impacted by the organization's activities, such as employees, customers, and the community, among others. An ethical obligation suggests the importance of deliberating actions not just from a legal or financial perspective but also in terms of moral commitments to these stakeholders.
It's important to recognize that the concept of ethical obligation involves considering the balancing of various interests, which includes those of derivative stakeholders. Addressing ethical obligations may align with broader concepts of corporate social responsibility and stakeholder theory, advocating for managerial decisions that consider the wider impact beyond just shareholder returns.