Question 1

Who decides the ethical guidelines and standards for which company decisions should be based?

Accepted Answer

In most cases, a founder or CEO of an organization sets the tone of ethical standards that employees, and even additional stakeholders, are expected to follow when making decisions or fulfilling employment tasks and responsibilities.

Question 2

Today, many firms perceive the government to be involved in business decisions solely based on the fact that the government expects laws to the followed and

Accepted Answer

Governments for the most part are hands-off when it comes to business operations as long as taxes are paid and laws are followed.

Question 3

Costco treating employees well, which leads to higher profits and productivity, can be viewed as caring about what type of stakeholders and using which model?

Accepted Answer

Employees are direct stakeholders and treating them well is an example of using the instrumental stakeholder model.

Question 4

Which one of the following choices best describes how C-Corps communicate with investors and demonstrate shareholder primacy?

Accepted Answer

C-Corps communicate firm goals and how profits will be maximized through business practices within the annual report. This is further demonstrated by profits being maximized, which leads to greater profits for investors.

Question 5

Even if a firm does not follow the intrinsic stakeholder model for doing what is morally right and societally good, stakeholders still have rights. Which of the following choices are examples of stakeholder rights?

Accepted Answer

While it is a benefit to offer four weeks of vacation to employees, it is not an employee right to be given four weeks paid vacation each year.

Question 6

What are two specific benefits of the instrumental stakeholder model?

Accepted Answer

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Question 7

What are two specific advantages of the intrinsic stakeholder model?

Accepted Answer

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Question 8

Describe the main difference between C-Corps and B-Corporations.

Accepted Answer

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Question 9

Discuss the process that the B-Lab requires if an organization wishes to become certified and how this compares to forming a C-Corp.

Accepted Answer

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Question 10

In your opinion, what is more important to focus on when businesses make decisions: profit maximization or stakeholders' interests? Explain your reasoning.

Accepted Answer

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Question 11

What are three important differences between the shareholder model and the stakeholder model?

Accepted Answer

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Question 12

Explain the difference between a dormant stakeholder, discretionary stakeholder, and demanding stakeholder. In your opinion, which stakeholder does an organization give more concern about their needs? Explain.

Accepted Answer

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Question 13

Why would an organization be formed as a philanthropic enterprise? What is the intention of the individual(s) who form such a business?

Accepted Answer

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Question 14

Discuss the stakeholder model and the difference between direct and indirect stakeholders. Why should organizations care about both indirect and direct stakeholders?

Accepted Answer

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Quiz 4: Corporate Organization and the Role of Stakeholders