Hosmer and ethics (reader)

The basic gist of the long Hosmer article is

• that the trust and commitment of all stakeholders in the firm is needed.
• the strategic decisions of [firms] result in benefits and harms. Harms include job losses, terminations of supplier contracts, deterioration of environments etc. They can't be avoided but until recently have been ignored
• It is the responsibility of managers to distribute the harms and benefits amongst the stakeholders of the company. This can be done arbritrarily or thoughtfully. If it is done thoughtfully then it is ethics in action.
• Ethical means offer the only means of taking into account the interests and rights of each stakeholder and compare them through the use of known principles
• Stakeholders who [see ethics in action] develop trust in the direction of the firm
• Stakeholders who develop trust in the direction of the firm will show commitment to its future...leading to competitive and economic success for that firm.

The argument is that the industry position (porter) and the leveraging of resources (RBV, Prahalad and Hamel) is not enough without trust, commitment and effort, and that can be achieved through ethical behaviour and strategic planning.