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Ferrell7e Student Ch02

Ferrell7e Student Ch02






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    Ferrell7e Student Ch02 Ferrell7e Student Ch02 Presentation Transcript

    • Business Ethics: Ethical Decision Making and Cases, Seventh Edition
      • O.C. Ferrell
        • University of New Mexico
      • John Fraedrich
        • University of Wyoming
      • Linda Ferrell
        • University of New Mexico
      For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
    • Chapter 2 Stakeholder Relationships, Social Responsibility, and Corporate Governance
    • Stakeholders Define Business Ethical Issues
      • Stakeholders
        • Customers
        • Investors
        • Employees
        • Suppliers
        • Government agencies
        • Communities
    • Stakeholder Types: Primary
      • Absolutely necessary for survival
        • Employees
        • Customers
        • Investors
        • Shareholders
    • Stakeholder Types: Secondary
      • Do not typically engage in transactions or title to the goods
        • Media
        • Trade associations
        • Special interest groups
    • Stakeholder Orientation
      • The degree to which a firm understands and addresses stakeholder demands.
      • Consists of three activities:
        • Generation of data about stakeholder groups
        • Distribution of this information throughout the firm
        • The firm’s response to this intelligence
    • Relationship Between Social Responsibility and Profitability
      • Social responsibility is the organization’s obligation to maximize its positive impact and minimize its negative impact on stakeholders.
      • Four levels of social responsibility:
        • Economic
        • Legal
        • Ethical
        • Philanthropic
    • Corporate Governance
      • Consists of the formal systems of accountability, oversight, and control.
      • Accountability
        • Alignment of decisions with strategic direction
      • Oversight
        • System of checks and balances
      • Control
        • Auditing and improvement
    • Corporate Governance
      • Shareholder model
        • Maximize wealth for owners and investors
      • Stakeholder model
        • Concerns of employees, owners, suppliers, government regulators, and communities taken into consideration
    • Corporate Governance
      • Fiduciaries
        • Persons placed in positions of trust to act in the best interest of the organization
        • Both directors and officers of corporations are fiduciaries for the shareholders
    • The Role of Boards of Directors
      • Ultimate responsibility for their firms’ success or failure, as well as their ethics and actions
      • Increased demands for accountability and transparency
      • Issues of executive compensation
    • Implementing a Stakeholder Perspective
      • Step 1: Assessing the corporate culture
      • Step 2: Identifying stakeholder groups
      • Step 3: Identifying stakeholder issues
      • Step 4: Assessing organizational commitment to social responsibility
      • Step 5: Identifying resources and determining urgency
      • Step 6: Gaining stakeholder feedback