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.
Scottish Power – Good Ethics Is Good Business The world has really changed, particularly the way business is conducted globally, with new economic and new technologies shaping the globalization environment. One of the main reasons for global success is found is due to cultural diversity. Companies are constantly faced with dilemmas, as in international cultures versus corporate cultures, the bottom line being social and environmental impacts. It is imperative that companies must first address the facts that constrain business values in order to be successful. The Director of IBE, Philippa Foster Black, stated: "Not only is ethical behavior in business life the right thing to do in principle, we have shown that it pays off in financial returns.” (Foster-Black, P. 2006) Companies are continually presented with challenges and opportunities formed by concerns about their environmental and social impact.
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.
DQ 1: Should maximizing stock holder wealth always be the top goal of a company? How does this lead to unethical decisions? DQ 2: Explain how ethics affect company goals. Do you think that ethics always guide management’s decisions? Why?
Although there was talk about the contract, there was no contract drawn up and signed by both parties. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? 1- No, the communication by email had no impact on my analysis. The email did not contain a contract to be signed by both parties; therefore there was no legal agreement.
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. This approach would seem to benefit stockholders, as well as stakeholders, as the stockholder is going to benefit from the profit made by the company and will gain something back from the company, however problems can occur when the businesses and companies do not balance their ethical responsibility, as they can therefore be perceived as greed and unable to balance their corporate social responsibility, and will cause a bad name for a business. So although the stockholder may also be gaining profit by doing this (what the company sees as doing the right thing) is not necessarily the right thing to do in terms of stakeholders. However, Friedman would argue that as long as the business is maximising its profit, that is the main point and so the loss of the stakeholders is less important. This argument can be deemed as weak as Friedman’s approach does not mean that stakeholders can be benefited alongside stockholders, and so disagrees with
QBT Task 4 – Final Version 2 Robb Farrell Western Governors University Student ID# 000242903 THE REAL BOTTOM-LINE OF TODAY’S BUSINESS Research reveals that companies that focus on adhering to ethical standards and investing in socially responsible practices to the benefit of all stakeholders have a significant business advantage it today’s market place. Socially and ethically conscious originations have compelling business results in related to employee loyalty, company profits and consumer affinity. There was a time in our capitalist society that an organization’s number one priority and predominant focus was profits and shareholder interest. Indeed things have and are changing. In today’s market climate, companies have had to increase their consciousness as to what really matters.
So to be able to have a productive and successful business, business owners may want to look into maximizing their profits by way of the profit maximization concept. Profit maximization is when a company comes to a conclusion on the price and output level that will turn the maximum profit by using this particular process (Wikipedia). Granted there are many different approaches to this problem; however in this essay we will be considering the TR to TC method and the MR MC method. Tiffany C Wright expressed that the total revenue to total cost method is dependent on the fact that profit equals revenue minus cost. Total revenue equals price time’s quantity.
6 Social Responsibility within Company Q Social Responsibility within Company Q Daniel R. Beckerman Western Governors University WGU Student #000322976 For any given business, the greatest potential for revenue growth can be found through a mix of focusing on providing for the shareholders, as well as thinking of the stakeholders as a whole. This means focusing past short term profits and creating a plan that demonstrates a measure of social responsibility. Business reputation goes a long way towards creating how large a company’s customer base is going to be, and giving the appearance of not caring about the community can lead to a loss of customers and a loss of additional revenue in the long run.
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.