Key Topics Ch 3 & 4 © 2015 Cengage Learning

Transcript:Key Topics Ch 3 & 4 © 2015 Cengage Learning:
Key Topics Ch 3 & 4 © 2015 Cengage Learning 1 Today’s class… Chapter 3 and 4 Stakeholder Corporate governance First group meeting Group discussion of Ethics in Practice Case Walmart Case Study © 2015 Cengage Learning 2 Key Topics Stakeholder Type of stake and stakeholders Sustainability as stakeholder Progress of stakeholder involvement based on three views of the firm Corporate Engagement Corporate Governance Board of directors Sarbanes-Oxley Act (SOX) of 2002 for improving governance Alternative Model of Corporate Governance Walmart Case Study © 2015 Cengage Learning 3 Paradigm change of Stakeholder Who own the corporation? Old paradigm: only shareholders and very few stakeholders New paradigm: shareholders and various stakeholders Importance of stakeholder… Increasing due to CSR Boundary  expanding E.g., nonhuman stakeholder © 2015 Cengage Learning 4 Origins of the Stakeholder Concept Stake - An interest or a share in an undertaking. Example: Financially, Mr. John Doe holds a 20% stake in the company. Parents have a large stake in their children's education. Stake can be categorized as: © 2015 Cengage Learning 5 5 5 Legal Right Moral Right An interest When a person or group will be affected by a decision, it has an interest in that decision. The plant closing will affect people in the community. This TV commercial demeans women. A Citizen's interest in a national issue E.g., US citizens' interest in NAFTA (North American Free Trade Agreement) negotiation: especially, many business people in California is affected © 2015 Cengage Learning 6 A Right A moral right or a legal right It is fair to share equal amount of work among team members and keep the noise down in the office while working. Employment Rights Act 1996, as amended, against suffering any harm because of any reasonable actions they take on health and safety grounds. Consumer rights when you buy goods and services © 2015 Cengage Learning 7 Ownership When a person or group has a legal title to an asset or a property This company is almost mine because I have more than 50% of stocks. I own 1,000 stocks out of 10,000 of this corporation. So, I can claim at least 10% of ownership. © 2015 Cengage Learning 8 Stakeholders Stakeholder - Any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization. Introduction of Stakeholder (1:26) © 2015 Cengage Learning 9 Shareholder vs.