The relationship between ethical business leaders and the stakeholders in their business is that the ethical business leader treats all stakeholders as if they are important and takes their needs into account. The ethical business leader does not lead simply for the sake of one set of stakeholders while abusing others.
For example, let us look at business leaders in the clothing industry. These leaders have many stakeholders. Among them are their investors, their customers, and their workers. As we have seen from recent events in Bangladesh, it is possible to take care of the investors and the customers while abusing and exploiting the workers. By creating dangerous working conditions, the leaders risked the lives of their workers in order to provide lower costs for their customers and profit for their investors and owners. This is unethical. Ethical leaders would have to take into account the needs of the workers as well as the needs of the other stakeholders. Ethical leaders in this industry would ensure that workers’ lives are not endangered and that the workers are paid a fair wage.
Thus, ethical business leaders pay attention to the needs of all their stakeholders.