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Question
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.Discuss the role of shareholder democracy in corporate governance.
Answer
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The principal internal stakeholders of a corporation are its customers and employees.
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Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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Provide a short answer to each of these questions. Be sure to fully explain your answer.
List the reasons that good candidates for corporate board positions are hard to find.
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A shareholder rights plan aimed at discouraging or preventing a hostile takeover is known as
A.a poison pill.
B.golden handcuffs.
C.a golden parachute.
D.insider trading.
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The board's compensation committee has responsibility for
A.setting directors' pay scales.
B.making sure that all employees are paid a fair wage.
C.evaluating executive performance and recommending terms and conditions of employment.
D.determining what bonuses should be paid and to whom.
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Compensation recovery mechanisms that enable a company to recoup compensation funds is called ____.
A.proxy process.
B.risk arbitrage.
C.golden parachutes.
D.clawback provisions.
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The method by which shareholders elect boards of directors is known as
A.distributive voting.
B.cumulative voting.
C.the proxy process.
D.direct balloting.
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Employees are the people hired by the company to
A.oversee management.
B.work with the board to keep management in line.
C.do the actual work of operating the company.
D.set the course for the company to follow.
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The people hired by the board to run the company and operate it on a daily basis is
A.the employee council.
B.management.
C.administration.
D.headquarters.
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The group that is elected by shareholders to govern and oversee management is the
A.investment council.
B.board of directors.
C.board of trustees.
D.governing council.
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Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Stakeholder management, with its normative content, holds out the promise of positive outcomes to the firms that use it. Discuss some of these expected outcomes and evaluate their likelihood of occurrence and their importance to the firm.
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Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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Explain what the concept of tapping the expertise of stakeholders means.
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The perceived validity or appropriateness of a stakeholder's claim is referred to as
A.power.
B.legitimacy.
C.urgency.
D.coercion.
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Provide a short answer to each of these questions. Be sure to fully explain your answer.
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Provide a short answer to each of these questions. Be sure to fully explain your answer.
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Consider an anecdote of a woman renting a car in California and being charged a large penalty because she drove out of state. The rental car company had tracked her locales through a global positioning system (GPS), allegedly without telling the woman that they would be doing so. Apparently the woman was upset because she was not told about the GPS. Is the failure to tell her the main issue?
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A.non-profit collaboration of manufacturers, retailers, processors, distributors, farmers, seed companies and consumers
B.mission driven to ensure the lack of non-GMO choices
C.about everyone having limited availability of non-GMO choices
D.about genetically modified foods
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The primary argument for corporate social responsibility states that for business to have a healthy climate in which to operate in the future, it must take current action to assure its long-term viability. Is this long-range self-interest argument valid? Does it encompass all that society wants from business?
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A group of people who is able to influence the firm, but does not hold a direct stake in is known as
A.primary social stakeholders.
B.secondary social stakeholders.
C.primary nonsocial stakeholders.
D.secondary nonsocial stakeholders.
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Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
The Generous Corporation argues that corporations began their philanthropic activities primarily out of self-interest. By doing so, they are able to keep government from intervening in their business activities and imposing more regulations on them. Assuming that this argument is valid, and the firms' motives are primarily self interested, evaluate whether or not the motives are important. That is, are firms' philanthropic activities less valuable because they are motivated by self interest? Explain your answer.
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A group of people who holds a direct stake in the firm is known as
A.primary social stakeholders.
B.secondary social stakeholders.
C.primary nonsocial stakeholders.
D.secondary nonsocial stakeholders.
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Provide a short answer to each of these questions. Be sure to fully explain your answer.
Explain the concept of "multiple bottom lines." Why do advocates of this approach prefer it over the traditional method of measuring the firm's financial performance?