What effect does a stakeholder orientation have on business ethics and social responsibility?

In general,
any firm that truly pursues a stakeholder orientation will be much more likely to act ethically
and it will be more likely to act in ways consistent with the idea of corporate social
responsibility. 

A stakeholder orientation exists in a firm when the firm
cares about all of its stakeholders.  It does not just care about its owners and stockholders. 
Instead, it cares about everyone from its customers to its employees to its suppliers.  It even
cares about the community in which it operates.

Such a firm will be much more
likely to act ethically and responsibly.  For example, let us imagine that a firm could increase
profits by cutting benefits to its employees.  This would not be consistent with corporate
social responsibility.  If a firm truly practices a stakeholder orientation, it will be less
likely to take this step.  Instead, it will treat its employees as if they are important.  It
will balance their needs against the need of ownership to make a higher profit.  The needs of
the workers will be just as important rather than being something that is considered to be a
mere afterthought.

Thus, a stakeholder orientation is more likely to lead to
ethical behavior and to a concern for corporate social responsibility.