Podcast
Questions and Answers
Which of the following represents a common conflict between company management and employees?
Which of the following represents a common conflict between company management and employees?
- Employees want to reduce their working hours.
- Management seeks to maximize profits by limiting salary increases. (correct)
- Employees seek to reduce costs for the company.
- Management aims to increase benefits for employees.
Shareholders typically prioritize environmental sustainability over maximizing profits.
Shareholders typically prioritize environmental sustainability over maximizing profits.
False (B)
What is a key obligation of employees outlined in an employment contract?
What is a key obligation of employees outlined in an employment contract?
to cooperate with management in all reasonable requests
The primary conflict between shareholders and environmental groups arises from the desire to maximize short-term profits while _____ environmental impact.
The primary conflict between shareholders and environmental groups arises from the desire to maximize short-term profits while _____ environmental impact.
Match the stakeholders with their primary objectives:
Match the stakeholders with their primary objectives:
What is one way to increase returns to shareholders?
What is one way to increase returns to shareholders?
Corporate social responsibility primarily focuses on maximizing profits only.
Corporate social responsibility primarily focuses on maximizing profits only.
Name one objective that social enterprises aim to achieve.
Name one objective that social enterprises aim to achieve.
A business might change its objective due to economic __________.
A business might change its objective due to economic __________.
Match the following objectives with their corresponding sectors:
Match the following objectives with their corresponding sectors:
Which of these is a possible objective change for a business?
Which of these is a possible objective change for a business?
The main goal of public sector businesses is to maximize profit for shareholders.
The main goal of public sector businesses is to maximize profit for shareholders.
What is a primary goal of external stakeholders in a business?
What is a primary goal of external stakeholders in a business?
What is one primary responsibility of lenders in relation to businesses?
What is one primary responsibility of lenders in relation to businesses?
The government is responsible for providing jobs for the working population.
The government is responsible for providing jobs for the working population.
What must suppliers receive on time according to their responsibilities to the business?
What must suppliers receive on time according to their responsibilities to the business?
Customers expect _____ products and services.
Customers expect _____ products and services.
Which of the following is NOT a responsibility of employees?
Which of the following is NOT a responsibility of employees?
Match stakeholders with their primary objective:
Match stakeholders with their primary objective:
It is the responsibility of the local community to provide the labor services required by the business.
It is the responsibility of the local community to provide the labor services required by the business.
What is a responsibility of managers within a business?
What is a responsibility of managers within a business?
Owners/shareholders expect to receive _____ reports on business performance.
Owners/shareholders expect to receive _____ reports on business performance.
Which stakeholder is responsible for establishing good trading links with other countries?
Which stakeholder is responsible for establishing good trading links with other countries?
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Study Notes
Conflict Between Management and Employees
- A common conflict between company management and employees is the differing priorities of maximizing profits and ensuring employee well-being.
Shareholder Prioritization
- Shareholders do not typically prioritize environmental sustainability over maximizing profits.
Employee Obligations
- A key obligation of employees outlined in an employment contract is to perform the duties assigned to them.
Shareholder/Environmental Conflict
- The primary conflict between shareholders and environmental groups arises from the desire to maximize short-term profits while minimizing environmental impact.
Stakeholders and Objectives
- Shareholders: Maximize profits and returns on investment
- Employees: Fair wages, good working conditions, job security
- Customers: High-quality products and services at competitive prices
- Suppliers: Timely payments and fair contracts
- Government: Compliance with regulations, ethical business practices
- Community: Positive social and environmental impact
- Environmental Groups: Protection of the environment
Increasing Shareholder Returns
- One way to increase returns to shareholders is to increase profitability through strategic business decisions.
- This can be achieved by reducing costs, expanding into new markets, or developing new products and services.
Corporate Social Responsibility (CSR)
- Corporate social responsibility (CSR) focuses on integrating social and environmental concerns into business operations.
- It is not solely about maximizing profit, but also considers the impact of business practices on stakeholders.
Social Enterprise Objectives
- Social enterprises aim to achieve both social and economic objectives.
- These objectives often include providing employment opportunities, improving the environment, or addressing social issues.
Business Objective Changes
- A business might change its objective due to economic recessions, increased competition, or changes in consumer demand.
Public Sector Objective
- The main goal of public sector businesses is to provide services to the public, not necessarily to maximize profit for shareholders.
External Stakeholder Goal
- External stakeholders, such as customers, suppliers, and the government, prioritize fair and ethical business practices.
Lender Responsibility
- Lenders are primarily responsible for providing financial resources to businesses while monitoring their financial performance to mitigate risk.
Government Responsibility
- The government is responsible for creating a supportive business environment and enforcing regulations that promote fair competition and ethical practices.
Supplier Requirement
- Suppliers must receive timely payments according to their responsibilities to the business.
Customer Expectations
- Customers expect reliable and high-quality products and services.
Employee Responsibilities
- The following are NOT responsibilities of employees: Establishing the business's mission or vision, determining market strategies, or making financial decisions.
Stakeholder-Objective Matching
- Shareholders: Maximize financial return
- Community: Positive social and environmental impact
- Customers: High-quality products and services
- Employees: Fair wages and working conditions
- Government: Compliance with regulations and ethical practices
- Suppliers: Timely payments and fair contracts
Local Community Responsibilities
- It is not the responsibility of the local community to provide the labor services required by the business. However, they might be involved in providing training programs or community development initiatives.
Manager Responsibilities
- One responsibility of managers within a business is to effectively lead and motivate employees towards achieving organizational goals.
Owner/Shareholder Expectations
- Owners/shareholders expect to receive regular and transparent reports on business performance.
Global Trade Links
- The government is primarily responsible for establishing good trading links with other countries through trade agreements and policies.
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