ROCRASTINATION LAGIERISM & Plagiarism Today’s Economic Challenges 2017 Today’s Economic ChallengesBitcoinMinimum WageCapital Gains TaxOffshore BankingCorporate TaxOnline Sales TaxEconomic StimulusOvertime PayEqual PayPaid Sick LeaveEstate TaxPension ReformFarm SubsidiesProperty TaxesFederal ReservePuerto Rico BailoutGovernment PensionsWall Street AccountabilityGovernment SpendingWelfareLabor UnionsWelfare Drug Testing Oh, the morality: why ethics matters in economics is because “Economic Challenges” are ethical Issues 5 The U.S. trade deficit: America today imports almost twice as much merchandise as it exports. Our relentlessly growing trade deficit is now over $700 billion annually, translates to almost 300,000 lost American jobs. With this deficit the country’s reliance on foreign borrowing has increased, and foreign creditors now provide two-thirds of America’s net domestic investment. Today we owe the rest of the world about $4 trillion—over twice what we owed in 2000. Today’s Economic Challenges 6 Changing attitudes toward work: Americans now work 20 percent more than in 1970. But the American work ethic is disappearing: Only one in three persons believes that hard work pays off in the end. People are less interested in work than in looking out for themselves. With increased education, we are rearranging our ideas about what we want from life. People want meaningful and challenging work that offers us autonomy and self-development. Today’s Economic Challenges 7 Chapter Five: Corporations 8 8 The Corporation A corporation is a three-part organization made up of: Stockholders, who provide the capital, own the corporation, and enjoy liability limited to the amount of their investments Managers, who run the business operations Employees, who produce the goods and services 9 The Corporation A corporation is an independent legal entity, separate from the people who own, control, and manage it. In other words, corporation and tax laws view the corporation as a legal "person" that can enter into contracts, incur debts, and pay taxes apart from its owners. A corporation does not dissolve when its owners (shareholders) change or die, and the owners of a corporation have limited liability -- that is, they are not personally responsible for the corporation's debts. 10 The Limited Liability Company The concept of limited liability: Members of a corporation are financially responsible for the debts of the organization only up to the extent of their investments. 11 Kinds of corporations: For-profit, nonprofit; privately owned or owned wholly or in part by the government; privately or publicly held. Evolution of the corporation: The corporate form developed during the Middle Ages. The first corporations were towns, universities and religious orders, chartered by government and regulated by public statute. The Limite ...

1. ROCRASTINATION
LAGIERISM
&
Plagiarism
Today’s Economic Challenges 2017
Today’s Economic ChallengesBitcoinMinimum WageCapital
Gains TaxOffshore BankingCorporate TaxOnline Sales
TaxEconomic StimulusOvertime PayEqual PayPaid Sick
LeaveEstate TaxPension ReformFarm SubsidiesProperty
TaxesFederal ReservePuerto Rico BailoutGovernment
PensionsWall Street AccountabilityGovernment
SpendingWelfareLabor UnionsWelfare Drug Testing
Oh, the morality: why ethics matters in economics is because
“Economic Challenges” are ethical Issues

2. 5
The U.S. trade deficit: America today imports almost twice as
much merchandise as it exports.
Our relentlessly growing trade deficit is now over $700 billion
annually, translates to almost 300,000 lost American jobs.
With this deficit the country’s reliance on foreign borrowing
has increased, and foreign creditors now provide two-thirds of
America’s net domestic investment.
Today we owe the rest of the world about $4 trillion—over
twice what we owed in 2000.
Today’s Economic Challenges
6

3. Changing attitudes toward work: Americans now work 20
percent more than in 1970.
But the American work ethic is disappearing:
Only one in three persons believes that hard work pays off in
the end.
People are less interested in work than in looking out for
themselves.
With increased education, we are rearranging our ideas about
what we want from life.
People want meaningful and challenging work that offers us
autonomy and self-development.
Today’s Economic Challenges
7

4. Chapter Five: Corporations
8
8
The Corporation
A corporation is a three-part organization made up of:
Stockholders, who provide the capital, own the corporation, and
enjoy liability limited to the amount of their investments
Managers, who run the business operations
Employees, who produce the goods and services
9

5. The Corporation
A corporation is an independent legal entity, separate from the
people who own, control, and manage it. In other words,
corporation and tax laws view the corporation as a legal
"person" that can enter into contracts, incur debts, and pay taxes
apart from its owners.
A corporation does not dissolve when its owners (shareholders)
change or die, and the owners of a corporation have limited
liability -- that is, they are not personally responsible for the
corporation's debts.
10
The Limited Liability Company

6. The concept of limited liability: Members of a corporation are
financially responsible for the debts of the organization only up
to the extent of their investments.
11
Kinds of corporations: For-profit, nonprofit; privately owned or
owned wholly or in part by the government; privately or
publicly held.
Evolution of the corporation:
The corporate form developed during the Middle Ages.
The first corporations were towns, universities and religious
orders, chartered by government and regulated by public statute.
The Limited Liability Company
12

7. The birth of the corporation: These enterprises began in 1600,
when Queen Elizabeth I granted a group of merchants the right
to be “one body corporate” and hold a trading monopoly to the
East Indies.
The pooling of capital: Members of the earliest corporations
financed voyages and absorbed the losses individually if vessels
sank – since ships became larger and more expensive, buyers
had to pool capital and share the losses.
The Limited Liability Company
13
Corporate Moral Agency

8. Corporations as legal persons: In the eyes of the law,
corporations are legal persons.
This means they enjoy rights and protections that any ordinary
individuals do.
These include the right to free speech, due process, against
unreasonable searches and seizures, jury trial, and freedom from
double jeopardy.
14
Can corporations make moral decisions? Many argue that only
the individuals within the structure can act morally or
immorally, and can be consequently held morally responsible
for their actions.
Others disagree as to whether the structure as a whole can be
liable for criminal offenses and punishable by the law.
Not every form of punishment can be applied to corporations.
Corporate Moral Agency

9. 15
Reflection
Questions ?
This week
Management Ethics
Reflection Questions
1. Are corporations moral agents? Do they have moral
responsibilities? Or, in your view, do only human beings have
moral agency and moral obligations?
Chap 5 – Corporations
Vanishing individual responsibility: One response to the
tendency of vanishing individual responsibility is to attribute
moral agency to the corporation itself.
Another response is to refuse to let individuals duck their
personal responsibility.

10. Corporate Moral Agency
18
Rival Views of Corporate Responsibility
Rival views of corporate responsibility: The debate over
corporate responsibility involves several elements:
Whether it should be construed narrowly to cover only profit
maximization
Whether it should be considered more broadly to include acting
morally, refraining from socially undesirable behavior, and
contributing actively and directly to the public good
19

11. The narrow view: profit maximization: In his book Capitalism
and Freedom, economist Milton Friedman (1912–2006) argues
that diverting corporations from the pursuit of profit makes our
economic system less efficient.
Business’s only social responsibility is to make money within
the rules of the game.
Private enterprise should not be forced to undertake public
responsibilities that properly belong to government.
Rival Views of Corporate Responsibility
20
Milton Friedman (7/31/1912-11/16/06) American Economist

12. Broader view – corporate social responsibility:
Says that a corporation has obligations not only to its
stockholders, but to all other constituencies that affect, or are
affected by, its behavior
This includes all parties that have a stake in what the
corporation does or doesn’t do – employees, customers, and the
public at large
It is sometimes called the social entity model or the stakeholder
model
Rival Views of Corporate Responsibility
22
Broader view – corporate social responsibility:
The relationship between business and society is seen as an
implicit social contract that requires business to operate in
socially beneficial ways.
Corporations must take responsibility for the unintended side

13. effects of their business transactions (externalities) and weigh
the full social costs of their activities.
Rival Views of Corporate Responsibility
23
…………..“However, the workers assembling iPhones, iPads
and other devices often labor in harsh conditions, according to
employees inside those plants, worker advocates and documents
published by companies themselves. Problems are as varied as
onerous work environments and serious — sometimes deadly —
safety problems.”
“Employees work excessive overtime, in some cases seven days
a week, and live in crowded dorms. Some say they stand so long
that their legs swell until they can hardly walk. Under-age
workers have helped build Apple’s products, and the company’s
suppliers have improperly disposed of hazardous waste and
falsified records, according to company reports and advocacy
groups that, within China, are often considered reliable,
independent monitors.”…………………..
In China, Human Costs Are Built Into an iPad
By CHARLES DUHIGG and DAVID BARBOZA
Published: January 25, 2012

14. Apple – made in China 2012 New York Times
Proponents of the narrow view argue that management’s
fiduciary responsibility to maximize shareholder wealth
outweighs any other obligations.
Proponents of the broader view argue that management has
responsibilities to other constituencies as well (to employees,
bondholders, and consumers).
Rival Views of Corporate Responsibility
26
Debating Corporate Responsibility
The let-government-do-it argument: The corporation has a
natural and insatiable appetite for profit and should be
controlled through a government imposed system of laws and
incentives.

15. Objection: Government can’t anticipate all moral corporate
moral challenges but manifests many of the same structural
characteristics that test moral behavior inside the corporation.
27
The business-can’t-handle-it argument:
Corporations lack the expertise: Corporate executives lack the
moral and social expertise to make other-than-economic
decisions.
Corporations will impose their values on us: Broadening
corporate responsibility will “materialize’’ society rather than
“moralize’’ corporate activity.
Debating Corporate Responsibility
28

16. This week
Management Ethics
Reflection Questions
2. Which view of corporate social responsibility—the narrow
or the broad—do you favor, and why?
Chap 5 – Corporations
Institutionalizing Ethics Within Corporations
To make ethics a priority, corporations should:
Acknowledge the importance of conducting business morally
Make a real effort to encourage their members to take moral
responsibilities seriously
End their defensiveness in the face of criticism, and invite
public discussion and review
30

17. Corporate moral codes: Several steps companies should take to
institutionalize ethics:
Articulate the firm’s values and goals
Adopt a moral code applicable to all members of the company
Set up a high-ranking ethics committee to oversee, develop, and
enforce the code
Incorporate ethics training into all employee-development
programs
Institutionalizing Ethics Within Corporations
31

18. Corporate culture: The set of explicit and implicit values,
beliefs, and behaviors that shape the experiences of the
members of a corporation.
Organizational theorists stress monitoring and managing
corporate culture (and understanding each corporation’s
distinctive culture) to prevent dysfunctional behavior and
processes.
Management must pay attention to the values and behavior
reinforced by its corporate culture.
Institutionalizing Ethics Within Corporations
32
Reflection
Questions ?
This week
Management Ethics

19. Reflection Questions
3. What do you think companies should do to make
themselves more moral organizations? How can they promote a
healthy moral climate inside the company?
Chap 5 – Corporations
Various components of Group Project will be assessed on the
following parameters:
Component
Sophisticated
(Grade A+, A, A-,B+,B)
Competent
(Grade B-,C+,C,C-)
Not Yet Complete
(Grade D+,D,D- or Fail)
Teamwork
The team worked well together to achieve objectives. Each
member contributed in a valuable way to the project. All data
sources indicated a high level of mutual respect and
collaboration.
The team worked well together most of the time, with only a
few occurrences of communication breakdown or failure to
collaborate when appropriate. Members were mostly respectfull
of each other.
Team did not collaborate or communicate well. Some members
would work independently, without regard to objectives or
priorities. A lack of respect and regard was frequently noted.
Contribution

20. All requirements and
objectives are identified, evaluated and competed.
The deliverable offered new information or approach to the
topic under discussion. Likewise, the application is based on
stated criteria, analysis and constraints.
All requirements are identified and evaluated but some
objectives are not completed.
The deliverable offered some new information or approach to
the topic under discussion. The application is reasonable;
further analysis of some of the alternatives or constraints may
have led to a different recommendation.
Many requirements and objectives are not identified, evaluated
and/or completed.
The deliverable offered no new information or approach to the
topic under discussion. Few application considerations are
analysed and other factors were ignored or incompletely
analysed.
Subject Knowledge
The deliverable demonstrated knowledge of the course content
by integrating major and minor concepts into the response. The
deliverable also demonstrated evidence of extensive research
effort and a depth of thinking about the topic.
The deliverable demonstrated knowledge of the course content
by integrating major concepts into the response. The deliverable
also demonstrated evidence of limited research effort and/or
initial of thinking about the topic.
The deliverable did not demonstrate knowledge of the course
content, evidence of the research effort or depth of thinking
about the topic.
Supporting
Material
All relevant information was obtained and information sources

21. were valid. Analysis and design considerations were well
supported by the information.
Sufficient information was obtained and most sources were
valid. Analysis and design considerations were mostly
supported by the information.
Insufficient information was obtained and/or sources lack
validity. Analysis and design considerations were not supported
by the information collected.
Composition
The deliverable was well organized and clearly written. The
underlying logic was clearly articulated and easy to follow.
Words were chosen that precisely expressed the intended
meaning and supported reader comprehension. Diagrams or
analyses enhanced and clarified presentation of ideas. Sentences
were grammatical and free from errors.
The deliverable was organized and clearly written for the most
part. In some areas the logic and/or flow of ideas were difficult
to follow. Words were well chosen with some minor
expectations. Diagrams were consistent with the text. Sentences
were mostly grammatical and /or only a few spelling errors were
present but they did not hinder the reader.
The deliverable lacked overall organization. The reader had to
make considerable effort to understand the underlying logic and
flow of ideas. Diagrams were absent or inconsistent with the
text. Grammatical and spelling errors made it difficult for the
reader to interpret the text in places.
Common guidelines for all submissions:
Your work must be original and fully referenced (using Harvard
Referencing System).
Any kind of plagiarism would lead to severe penalties
amounting to a resubmission or marks reduced to zero.
1

22. RESPOND TO THE “FOR FURTHER REFLECTION”
QUESTIONS FOUND IN THE GREY SHADED
STUDY CORNER SECTION AT THE END OF EACH
CHAPTER.
AN 800 - 1000 WORD Reflection RESPONSE
TO THE QUESTIONS IS NEEDED TO BE
ELIGIBLE FOR FULL CREDIT.
BE PREPARED TO SHARE YOUR VIEWS DURING
CLASS DISCUSSIONS.
MANAGEMENT ETHICS
BUMGT 235 – UW-STOUT