Chapter 2 Assignment Questions 1.
Discuss the different obligations that businesses have towards their respective stakeholders (i.e. stockholders want businesses to turn a profit, consumers expect a good product at a fair price, etc.). Businesses have a variety of obligations towards their stakeholders, which can include stockholders, consumers, employees, suppliers, and the broader community. The stockholders are typically expecting businesses to turn a profit and to increase the value of their investments. This can be influence on the business decisions as pricing, the product development, and expansion plans. The consumers expect the businesses to provide a good products and services at a fair price, also to treat them fairly. 2.
As a manager, do the different obligations discussed above sometimes conflict with each other? Explain. The employees expect the businesses to have a fair compensation with benefits, as well as a safe and healthy work environment. Therefore, businesses may also have some legal obligations so they can comply with labor laws and regulations. But suppliers just expect to get paid on time and to have a fair and ethical relationship with the business. The broader community may expect businesses to act in an environmentally responsible manner, to support local charitable causes, and to be good corporate citizens. 3.
What does it mean to be a whistleblower? The whistleblower is a informing in the press and in the government officials about the unethical practices that happens within the organization. 4.
Define social responsibility. Does it cost money to have a social responsibility and/or corporate citizenship program? Social responsibility is the recognition for the business activities that have an impact in or on a business decision. Yes, it does cost to have a social responsibility but it also let you have a good business. 5.
Compare and contrast the two views of social responsibility (economic vs. socioeconomic). The Economic is a model of the social responsibility but I believe that the society is better off with the business when it is left alone but being allowed to produce and the market is able to profit the good that the society needs. In the meanwhile, socioeconomic is also a social responsibility but it focuses on the effect of the business
’
s profits and their decisions of society. They have similar point of views on how a business should be operated.
