CHAPTER 2 QUIZ 1 | Which of the following best describes a company that follows the inherence theory of social responsibility? | a. | Managers are responsible to shareholders, but serve them best by being responsible to larger society. | | | b. | Managers answer only to shareholders and act only with shareholders interests in mind.
An example of this could be social security benefits. These motivations help the company recruit top level employees and increase their overall productivity. But this can be a trade-off as these benefits and rewards can be costly. Takeaway 2 - Corporate Culture, Human Resources, and Ethics Zappos is a great example of a company that has created a lively atmosphere for their workers through their casual working environment. But another takeaway is that this type of culture is not compatible with many companies.
Kant says that people in business should act out of duty alone, not self-interest or desire to earn huge amounts of money. For example motivating bankers through huge bonuses would be wrong. Kant would also apply the categorical imperative, to derive the duty of a businessman. However, whether Kantian ethics is the best approach in comparison to theories such as utilitarianism is debatable. One issue surrounding business is the relationship of the business to the consumers.
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.
These days the way managers operate and strategize their business policies has taken a stance against the previous operational strategy that a business exists only to make profit without any consideration or regards to anything else in the world as said by the economist Milton Friedman in his essay “deriding the idea that a business had any responsibility other than to maximise its profits within legally and ethically acceptable margins, arguing that ‘a corporate executive is an employee of the owners of the business. A few new theories were introduced in the famous essay written
Federal subsidies are a contentious point in public economics. They are supposed to benefit small businesses in theory but in reality large corporations are usually the ones that gain the most. This paper seeks to determine if there is any advantage to granting federal subsidies. An analysis of the impact federal subsidies (independent variable) have on the amount of corporate taxes paid (dependent variable) will determine the extent of the social benefits of subsidies. Subsidies in effect lower the cost of production which implies that, other things equal, profits should increase for a given quantity of output.
May 4, 2012 Social Business vs. Profit-Making Business The fragile status of this world and its people has made it increasingly evident that there is a necessity for the reformation of our currently established, profit-based business model. It is has become impossible to depend and secure for the well-being of our future generations without doing so. The more-conscious model of social business must be adapted to ensure the sustainable development of humanity since it is superior to the solely profit-seeking model in meeting the needs and eradicating the problems of the modern world. The most basic difference between social business and for-profit organizations is their reason for existence.
The problem with this scheme is that it works by stifling innovation and competition. The wealthy stay wealthy by extracting value instead of creating it. The more value they extract, the more laws they write protecting the rights and privileges of the extractors. As companies like General Electric realized, it was better to sell off productive assets and become more like a bank. The system was created for people who have money to make money.
In this regard, Downs criticized economist who had concluded that bureaucrats and politicians were “perfect altruist” whose goal is to maximize social welfare. Contrary to Downs’ opinion, I believe that it is necessary to transit from the old perspective of government as a profit company to a non-profit organization, understanding the opportunistic characteristic of the bureaucrats and politicians. The social contract born as a pact to institutionalize non-profit organizations named governments in order to achieve specific goals as was already mentioned before. The same ideology is used when some citizens constitute non-governmental organizations (NGO). It is necessary here to clarify exactly what is meant by NGO.
The premise of this paper is to illustrate how public policy comes in when the government failed to be able to manage the people, culture, markets, social structures, and other aspects of issue. Policies are created to ensure when governments are placed in the tension between managing fiscal and monetary policy, are still able generate growth and resources to sustain the economy as well as to protect the citizen rights. Furthermore, policy boosts the efficiency into economic management. Policies are specially designed to balance out between private businesses' and government businesses' interests to generate enough profit to benefit for the public good. This paper studied how Singapore faced issues with Domestic Workers mistreatments from employers, and how introducing new regulation in order to protect domestic workers rights mitigated the issue.