Stakeholders are in an exchange relationship with an organization and include individuals (employees, customers, suppliers, distributors, shareholders, and creditors), institutions (government and local communities), or communities (general public) that are affected by the operations of an organization.

Some of the common types of ethical issues managers confront include personal financial gain, distorting or hiding information for personal gain, monopolizing or harming potential competitors, opportunistic exploitation, allowing unsafe and unethical working conditions, allowing pollution of the environment, and allowing corruption (bribes).

Managers can incorporate ethical decision making by hiring and promoting ethical people, structuring an ethical organizational culture, acting with moral courage, developing ethical governance processes, and leading ethically.

Social responsibility is the obligation that an organization has to protect and enhance society (stakeholders, natural environment, and general social welfare) in which it functions. Arguments for social responsibility beyond just "doing what is right," include giving back to a community that has helped the organization flourish, recognizing social and economic consequences of an organization's actions, and retaining the support of stakeholders and community. The main argument against social responsibility is an organization's responsibility to shareholders and profits.

Managers can insure social responsibility through legal and ethical compliance, philanthropic endeavors, and leadership example because doing so, improves stakeholder and community relations, which benefits all parties involved. Thus, by giving back to society, social investments improve human well-being.