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 Covering Key Topics… …need more time than expected Because importance of each topic is different That is why “Discussions” for each group on the Blackboard was created. It can be used for any group things…. © 2015 Cengage Learning 2 Focus of the Book: three themes based on view point of managerial approach Sustainability © 2015 Cengage Learning 3 Not technical but based on business perspective 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 4 Origins of the Stakeholder Concept Stake - An interest or a share in an undertaking. Stake of student: grade, tuition, etc. © 2015 Cengage Learning 5 5 5 An interest The plant closing will affect our 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. Reform or not?? © 2015 Cengage Learning 6 Moral Right Respectful or fair treatment Respect your co-worker, subordinate, etc. A sense of fairness E.g., It is fair to share equal amount of work among team members and keep the noise down in the office while working. © 2015 Cengage Learning 7 Legal Right Maternity rights Maternity leave for husband Right to legal advice (from lawyer) if arrested Consumer rights when you buy goods and services © 2015 Cengage Learning 8 Ownership When a person or group has a legal title to an asset or a property This company is almost mine. 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 9 Stakeholders Stakeholder - Any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization. Stakeholder is a variant of the concept of stockholder (or shareholder) – an investor/owner of businesses. © 2015 Cengage Learning 10 Shareholder vs. Stakeholder ….is any person, company or other institution that owns at least one share of a company’s stock. Shareholders are stakeholders in a corporation Shareholders are usually not personally liable for the company's