(Schlesinger) Stakeholder can be outer or inner to the commerce or the organization. For the victorious execution of the commerce and for the correct or utilized use of invested money, stakeholders rely on the CEO. Therefore, pay of the CEOs is vital for the stakeholders of the John Deere and Caterpillar. b. Literature
Ethics Paper MGT498 Ethics Paper One of the biggest things that big named organizations sometimes tend to forget is that when difficult decisions must be made, they affect everyone within that organization. Whether it be budget cuts leading to loss of hours or layoffs, lower stocks percentages for the shareholders or it can even change things positively, and require more production of hiring. Either way, when issues come up and things change, it is important to keep everyone involved well informed and made in the best interest of those directly affected. In the business world, corporations have a responsibility to the employees as well as the stakeholders to be ethical in their decision making by staying true to their beliefs and behavior to society. When unethical decisions are made, everyone involved in the corporation and its well being are affected in a negative way and will jeopardize the well being of the business.
The partners should be of like mind and have a contract that states the percentage of profits, losses, debts and day to day duties that each partner is responsible for. The contract should also state what happens if one of the partners dies or retires. In a partnership you are legally responsible for your partner's actions and can be held labile for these actions. Partnerships report their earnings, losses and deduction for the business operations, but the business itself doesn't pay taxes. The business "passes through" it's earnings or losses to its partners.
Bonuses must be accounted for and properly publicized to shareholders. The business is usually located in the state that it does business. It can be registered in another state and do business elsewhere as long as business laws for the originating state are properly followed. A disadvantage of a C-Corporation is it requires attorneys and accountants to properly conduct business. Profits must be legally and accurately accounted for.
In addition, if a CEO/ CFO do not meet these requirements they can be criminally sanctions; which could include jail time reach up to 20 years if found guilty of willful neglect. Furthermore, a CEO/ CFO must understand the implications of section 303 in that improper influence or misleading of auditors can also render finical statements misleading, it is therefore to the CEO/CFO’s advantage to hire and retain highly capable and ethical auditors to ensure the company’s accuracy financial reporting, it is the CEO/CFO’s responsibility to set up “internal control over financial reporting” (White & Case LLP, 2003). The auditors responsible must ensure the internal controls
Managing a Profit vs. Non for Profit Organization ReBecca L. Stockwell Columbia College Abstract There are many facets to management of an organization. Two types of legal corporations; a for profit organization and a not for profit organization. It’s important to understand key differences and similarities from goals to responsibilities of these organizations. Does management of a profitable organization differ from management of a not for profit organization?
Which is the MOST commonly used measure of corporate performance (in terms of profit)? • ROE • ROI • EPS • DPS 4. When a company determines a competency's competitive advantage, Barney refers to this issue as • value • rareness • imitability • organization Final Exam Answers just a click away MGT 498 Final Exam 5. If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must • change the strategic management model. • know about it so that they can correct the employee activity.
On the other hand, because corporations are considered legal persons, courts use the same principles to determine whether it is fair to exercise jurisdiction over a corporation. A corporation normally is subject to personal jurisdiction in the state in which it is incorporated, has its principal office, and/or is doing business. Courts apply the minimum-contacts test to determine if they can exercise jurisdiction over out-of-state corporations. The minimum-contacts requirement is usually met if the corporation advertises or sells its products within the state, or places its goods into the “stream of commerce” with the intent that the goods
Within business ethics, an important factor is the relationship within a business – in all aspects. Whether it be the company itself, the employees, employers, shareholders, stakeholders, they all are influenced by one another and have a strong role dedicated to them within a business. Stakeholders are those that hold an interest in the company, but do not own it, and stockholders have actual shares within the company – they own a part of it. This can just be a small fraction that they share with many other people, or they can own a large fraction of a company. Scholars such as Friedman suggest that treating the economic responsibility as the most important responsibility of a business, is called a profit-maximising view, and “the social responsibility of a business is to increase its profits.” This kind of view states that a company should be operated on a profit-orientated basis, with its sole mission being to increase profits.
As a C-corporation the business, not the owner, would be held liable for any financial damages. Any accidents involving employees or customers would be the responsibility of the corporation to settle. Financially speaking incorporating is the best option because as a sole proprietorship the owner is currently paying a much higher tax rate versus the corporate tax rate. With the tax code being different for corporations there is better profit retention and security. The client also mentioned the issue of partnership and the selling of stock in order to expand the company.