Chapter 4 - Business ethics, corporate social responsibility, corporate governance, and critical thinking. The learning objectives for this chapter include: Appreciate strengths & weaknesses of various ethical theories, learn to apply guidelines for ethical decision making, recognize critical thinking errors, be an ethical leader.
The concept of governance is not a new one but nowadays we hear words as corporate governance, organizational governance or good governance frequently. Actually corporate governance or, as defined in ISO FDIS 26000, organizational governance is the system by which an organization makes and implements decisions in pursuit of its objectives. Simply put “governance” means: the process of decision-making and the process by which decisions are implemented (or not implemented).
The ability to recognize and deal with complex business ethics issues has become a
significant priority in twenty-first-century companies. In recent years, a number of
well-publicized scandals resulted in public outrage about deception and fraud in
business and a demand for improved business ethics and greater corporate responsibility.
Corporate governance is about who controls corporations and why. In the United States, the legal ‘‘who’’ is the owners of the corporation’s common stock—the shareholders. However, the reality—even the legal reality—is much more complicated, and the ‘‘why’’ is to be found in historic American concerns about the connections between ownership, social responsibility, economic progress, and the role of markets in fostering a stable pluralistic democracy.
When you finish this chapter, you should: Appreciate strengths & weaknesses of various ethical theories, learn to apply guidelines for ethical decision making, recognize critical thinking errors, be an ethical leader.
Chapter 3 - Corporate social responsibility. Learning objectives of this chapter: Understanding the role of big business and its responsible use of corporate power in a democratic society, knowing when the idea of social responsibility originated and the phases through which it has developed, investigating how a company’s purpose or mission can integrate social objectives with economic objectives,...
Whether you work for a corporation, a nonprofit organization, or for
the government, chances are you’ve considered getting — or have
already obtained — a Masters of Business Administration degree, an MBA.
Why? Because if you want to get ahead in your organization — or just to do
a better job of managing or leading — obtaining an MBA is the best ticket in
town. Studies show that MBA graduates — particularly those from the top
business schools — are offered significantly higher starting salaries than their
counterparts who don’t have MBAs.
There are different ways to describe socially responsible investing (SRI). Reference 1
defines SRI as the integration of environmental, social, and corporate governance
(ESG) considerations into investment management processes and ownership practices
hoping that these factors can have an impact on financial performance. Responsible
investment can be practiced across all asset classes.
Several reasons can be stated, why the field of SRI has gained great public interest
as well as rising economic importance in recent years.
A variety of evidence supports the role of design in enhancing firm
performance. New research undertaken for this study also shows that firms with
higher design intensity have a greater probability of carrying out product
innovation and that design expenditure has a positive association with firm
productivity growth. Nonetheless, the multifaceted nature of design makes it
difficult to isolate from more traditional factors affecting performance, such as
market conditions or investment. Research is also hampered by the lack of
commonly agreed statistical measures.
The most direct power of stock exchanges to enforce compliance obviously
pertains to those standards which are also incorporated in the listing
requirements. For instance, in the Australian model only those recommendations
of the Code which are also part of the listing rules are subject to regular
surveillance and enforcement by the ASX16
, whereas others recommendations
are to be observed on the CoE basis.
This edition continues the theme that runs throughout all 12 chapters: global environmental
sustainability. This strategic issue will become even more important in the years ahead, as all
of us struggle to deal with the consequences of climate change, global warming, and energy
availability. We continue to be the most comprehensive strategy book on the market, with
chapters ranging from corporate governance and social responsibility to competitive strategy,
functional strategy, and strategic alliances.
State of Israel Bonds. State of Israel bonds are securities issued by
the Israeli government through the Development Corporation of Israel
that are marketed to the Israeli diaspora in particular to help build the
nation’s infrastructure. Sixty years after David Ben-Gurion established
the program in 1951, State of Israel bonds have raised over $33 billion.
Today, Israel considers the issuance of these bonds as a stable source of
overseas borrowing and an important mechanism for maintaining ties
with its diaspora.
Of course, in practice the doctrine of social responsibility is frequently a cloak for actions that
are justified on other grounds rather than a reason for those actions.
To illustrate, it may well be in the long-run interest of a corporation that is a major employer
in a small community to devote resources to providing amenities to that community or to
improving its government. That may make it easier to attract desirable employees, it may
reduce the wage bill or lessen losses from pilferage and sabotage or have other worthwhile
effects. Or it may be that, given the laws...