Podcast
Questions and Answers
What is the primary focus of learning reflections in the context of the provided materials?
What is the primary focus of learning reflections in the context of the provided materials?
- Providing baseless statements to initiate class discussions.
- Summarizing assigned readings and videos.
- Building on assigned readings/videos, information covered in sessions, and personal participation. (correct)
- Focusing solely on personal opinions without considering external information.
According to the material, what is the primary objective of the shareholder theory of the firm?
According to the material, what is the primary objective of the shareholder theory of the firm?
- To balance the needs of all stakeholders equally.
- To prioritize social responsibility over profit.
- To focus on short-term gains for immediate financial success.
- To maximize the firm's long-term market value and shareholder wealth. (correct)
Which of the following is a key tenet of the stakeholder theory of the firm?
Which of the following is a key tenet of the stakeholder theory of the firm?
- Corporations should only focus on generating profit.
- Corporations should prioritize short-term gains over long-term sustainability.
- Corporations have a singular obligation to maximize shareholder value at all costs.
- Corporations should consider the needs of all stakeholders, not just shareholders. (correct)
In the context of business, what distinguishes a stakeholder from a stockholder (or shareholder)?
In the context of business, what distinguishes a stakeholder from a stockholder (or shareholder)?
What is the main difference between market and nonmarket stakeholders?
What is the main difference between market and nonmarket stakeholders?
Which of the following best describes the concept of 'General Systems Theory' (GST) in the context of business and society?
Which of the following best describes the concept of 'General Systems Theory' (GST) in the context of business and society?
How does identifying stakeholders' interests and power contribute to stakeholder analysis?
How does identifying stakeholders' interests and power contribute to stakeholder analysis?
What role do employees play as internal stakeholders of a company?
What role do employees play as internal stakeholders of a company?
Consider the relationship between a business and its stakeholders. Which factor most accurately describes a dynamic element that continually reshapes this relationship?
Consider the relationship between a business and its stakeholders. Which factor most accurately describes a dynamic element that continually reshapes this relationship?
What does stakeholder analysis primarily involve?
What does stakeholder analysis primarily involve?
What is an instrumental argument in support of stakeholder theory?
What is an instrumental argument in support of stakeholder theory?
How do the shareholder and stakeholder theories differ in their definitions of business success?
How do the shareholder and stakeholder theories differ in their definitions of business success?
What is the role of corporate communications in managing a company’s environmental impact?
What is the role of corporate communications in managing a company’s environmental impact?
Why is understanding the 'stake' that different groups have in a business important?
Why is understanding the 'stake' that different groups have in a business important?
Which of the following is an example of an external non-market stakeholder?
Which of the following is an example of an external non-market stakeholder?
How does the stakeholder map organize stakeholders?
How does the stakeholder map organize stakeholders?
What is the purpose of the modern corporation, under stakeholder theory?
What is the purpose of the modern corporation, under stakeholder theory?
How do coalitions relate to stakeholders?
How do coalitions relate to stakeholders?
What is ethical value most related to?
What is ethical value most related to?
Under shareholder theory, whose needs are paramount?
Under shareholder theory, whose needs are paramount?
What is the role of external affairs department related to corporate citizenship?
What is the role of external affairs department related to corporate citizenship?
What kind of stakeholder is someone from an NGO?
What kind of stakeholder is someone from an NGO?
How are non-market stakeholders generally different from market stakeholders?
How are non-market stakeholders generally different from market stakeholders?
How do internal stakeholders relate to a film?
How do internal stakeholders relate to a film?
What is the role of communications in the labor relations?
What is the role of communications in the labor relations?
Which situation would be categorized as a market stakeholder interacting with a company?
Which situation would be categorized as a market stakeholder interacting with a company?
In the framework of business and society, what factors are primary drivers of growing emphasis on ethical values?
In the framework of business and society, what factors are primary drivers of growing emphasis on ethical values?
When analyzing stakeholders, what does assessing their 'power' typically involve?
When analyzing stakeholders, what does assessing their 'power' typically involve?
Which department inside a corporation typically manages internal and external audits to ensure SEC compliance?
Which department inside a corporation typically manages internal and external audits to ensure SEC compliance?
Which event best exemplifies a business addressing its social responsibilities, aligning with stakeholder theory?
Which event best exemplifies a business addressing its social responsibilities, aligning with stakeholder theory?
Which corporate role is most directly involved with addressing and managing crisis communications?
Which corporate role is most directly involved with addressing and managing crisis communications?
How do modern corporations typically organize internally to engage with stakeholders effectively?
How do modern corporations typically organize internally to engage with stakeholders effectively?
A company faced with public criticism after a safety incident decides to increase its investment in safety training and equipment. Which stakeholder theory argument does this decision best exemplify?
A company faced with public criticism after a safety incident decides to increase its investment in safety training and equipment. Which stakeholder theory argument does this decision best exemplify?
Flashcards
Learning Reflections
Learning Reflections
Learning reflections consist of active participation in sessions, building on assigned readings/videos, session information, and your contributions.
Mid-Semester Quiz
Mid-Semester Quiz
An assessment consisting of multiple-choice questions covering material from sessions 1-5.
Final Examination
Final Examination
A comprehensive assessment with multiple-choice questions covering sessions 1-12.
General Systems Theory (GST)
General Systems Theory (GST)
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Business & Social Environment
Business & Social Environment
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Shareholder Theory
Shareholder Theory
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Stakeholder Theory
Stakeholder Theory
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Stakeholder
Stakeholder
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Market Stakeholders
Market Stakeholders
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Nonmarket Stakeholders
Nonmarket Stakeholders
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Internal Stakeholders
Internal Stakeholders
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External Stakeholders
External Stakeholders
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Stakeholder Analysis
Stakeholder Analysis
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Stakeholder Map
Stakeholder Map
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Forces Shaping Business
Forces Shaping Business
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Study Notes
Assessments
- Assessment 1 involves two learning reflections, each worth 15%, totaling 30% of the overall grade
- Active participation should be evident in reflections, building upon assigned readings, videos, session content, and personal contributions
- Reflections should showcase consistent, informed, and thoughtful discussion contributions, while baseless statements are disregarded
- The word count for each of the two learning reflections, should be 1400-1500 words
- The deadline for reflection 1 is March 21 at 4 pm, and reflection 2 is due by May 9 at 4 pm
- Assessment 2 is a mid-semester quiz, accounting for 35% of the total grade
- The mid-semester quiz is scheduled for Week 6: March 26
- The quiz will be held in class, from 2:30 PM to 3:30 PM
- Arriving on time for the regular session at 1 PM is necessary, as doors close at 2:20 PM, preventing late entry
- The quiz will cover material from sessions 1-5
- The quiz consists of 35 multiple-choice questions and has a time limit of 40 minutes
- Assessment 3 is a final examination, contributing 35% to the overall grade
- The Final Examination date and time to be announced later on Week 13
- The final examination includes all material covered in sessions 1-12
- The format consists of 35 multiple-choice questions within a 40-minute timeframe
Key Learning Objectives
- Understanding the interactive relationship between business and society
- Understanding the purpose of the modern corporation
- Identifying stakeholders, including market, nonmarket, internal, and external stakeholders of a corporation
- Understanding the basis of stakeholder interests and power
- Recognizing the diverse ways modern corporations organize internally to interact with stakeholders
- Analyzing the forces of change that continually reshape the business and society relationship
Amazon as a Corporation: Economic Perspective
- Amazon is the "Planet's biggest store", increasing shareholders’ value
- Amazon is the second-biggest private employer, with 1.5 million employees
- Amazon showcases technological innovation in logistics, cloud computing (AWS), and e-commerce
- Amazon provides competitive pricing through scale and operational efficiency
- Amazon faces market dominance and anti-competitive concerns, potentially stifling competition
- The company has a negative impact on local retailers (brick-and-mortar stores), reducing local economic diversity
- Amazon faces labour cost pressures, marked by low wages and intense productivity pressure
Amazon as a Corporation: Social Perspective
- Amazon enhances consumer experience through access, range, and convenience
- Amazon offers flexibility and remote work opportunities (Amazon Mechanical Turk)
- Amazon provides training programs and skill development for workers and communities
- Amazon raises social and ethical concerns over worker wellbeing in challenging working conditions
- There is concern over privacy issues related to consumer data handling
- Increased traffic and strain on local infrastructure are caused by aggressive expansion that can lead to disruptions in local communities
Amazon as a Corporation: Environmental Perspective
- Amazon offers efficiency in supply chain and logistics, reducing per-unit transportation emissions
- Investments have been made into renewable energy sources and powering data centers with green energy with the goal of net-zero carbon emissions
- Amazon has a high carbon footprint and packaging waste, resulting in significant greenhouse gas emissions
- Resource-intensive infrastructure demands vast amounts of energy and water
- The supply chain involves high environmental impact, with producers potentially cutting corners due to competitive pricing
General Systems Theory (GST)
- Organisms are interconnected with their surroundings, meaning they cannot be understood in isolation
- Businesses operate within a broader social environment with constant interaction
Purpose of Business
- A key question is determining the purpose of a corporation
- Determining to whom or what a corporation should be responsible to
Shareholder Theory of the Firm
- The firm belongs to its owners, the shareholders
- Owners' interests take precedence
- The purpose of the firm is to maximize long-term market value and shareholder money
Stakeholder Theory of the Firm
- Corporations serve a public purpose by creating value for society
- Profit is necessary for survival, but not the only purpose
- Corporations have multiple obligations and should consider all stakeholders
Contrasting Shareholder and Stakeholder Purpose
- Shareholder theory is focused on Owners' Needs and Wants and Share Value
- Stakeholder theory is focused on Stakeholders' Needs and Wants
Stakeholder Theory of the Firm: Three Arguments
- Descriptive: Stakeholder's realistic description show how companies really work
- Normative: Using Stakeholder management is the right thing to do
- Instrumental: Stakeholder consideration is key for effective corporate strategy
Defining Stakeholders
- Stakeholders are people or groups affected by a firm’s decisions, policies, and operations
- A stake represents an interest in or claim on a business
- A stakeholder is not the same as a stockholder
- Shareholders are one kind of stakeholder
Market Stakeholders
- Market stakeholders include shareholders, suppliers, and employees
- Market Stakeholders Engage in economic transactions as the company provides society with goods and services
Nonmarket Stakeholders
- Nonmarket stakeholders include community, government, and business support groups
- Nonmarket Stakeholders do not engage in direct economic exchange
Stakeholder Division
- Internal stakeholders are employed by the firm, while external stakeholders are not
Stakeholder Analysis
- Stakeholder analysis identifies relevant stakeholders, their interests, and their power
- In a stakeholder analysis you should ask the important questions:
- Who are the relevant stakeholders?
- What are the interests of each stakeholder?
- What is the power of each stakeholder?
- How are coalitions likely to form?
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