Beruflich Dokumente
Kultur Dokumente
13TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Corporation: a mechanism established to allow different
parties to contribute capital, expertise and labor for
their mutual benefit
• Evaluating Governance
– Rating agencies
– S&P Corporate Governance Scoring System
• Avoiding Governance Improvements
– Multiple classes of stock
– Public to private ownership
– Controlled companies
Characteristics include:
Entrepreneurship Partnership
High Management Management
Broader responsibility:
Employees Investors
Local
Communities
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Social Responsibility
• It refers to the way in which a business tries to balance its
commitments to certain groups and individuals in its social
environment.
• Customers: Treat customers fairly and honestly (Examples
of companies with excellent reputations in this area: L.L.
Bean, Nordstrom, Dell Computer Corporation)
• Employees: Treat employees fairly, with respect for their
dignity and basic human needs (Examples of companies with
excellent reputations in this area: 3M, Southwest Airlines)
• Investors: Manage financial resources honestly and openly
• Suppliers: Seek mutually beneficial partnerships
• Local Communities: Minimize damage and maximize
contributions to local communities
– Preconventional Level
– Concern for self
– Conventional\conservative Level
– Consideration of laws and norms
– Principled Level
– Adherence to internal moral code
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Social Responsibility
Code of Ethics:
– Specifies how an organization
expects its employees to behave
while on the job.
• Categorical imperatives\crucial
“golden rules”
Not restrict others behavior
Unfair Pricing
Ethics in Advertising
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Responsibility Toward Customers
– Involves providing quality products and pricing
products fairly
• Consumerism
– Social activism dedicated to protecting the
rights of consumers in their dealings with
businesses
• Basic Consumer Bill of Rights
1. To possess safe products
2. To be informed about all relevant aspects of a
product
3. To be heard
4. To choose what to buy
5. To be educated about purchases
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6. To receive courteous/considerable service
Areas of Social Responsibility
(cont’d)
• Unfair Pricing
– Collusion/agreement: When two or more
firms agree to collaborate on such
wrongful acts as price fixing.
– Price gouging/scoring: Responding to
increased demand with overly steep (and
often unwarranted) price increases
• Ethics in Advertising
– Truth in advertising
– Morally objectionable/offensive
advertising, e.g., using naked woman
picture in ads.
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Responsibility Toward
Employees
• Legal and social commitments: Legally,
companies are required to refrain from
discrimination against any worker based
on race, gender, religion, nationality or
other irrelevant factors. Ethically, many
people feel that companies should ensure
that the workplace is physically and
socially safe.
• How far should companies extend
themselves to help employees who are
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Responsibility Toward Investors