chap4 - Business Ethics CHAPTER 4 5 THE CORPORATION AND...

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CHAPTER 4 & 5 THE CORPORATION AND EXTERNAL STAKEHOLDERS: FROM THE BOARDROOM TO THE MARKETPLACE Business Ethics Dr. Truong Thi Nam Thang
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Managing CR in the marketplace: Crises and Opportunities Managing legal and ethical responsibility in the marketplace can be a significant part of a corporation’s activities Corporate Social Responsibility refers to a business’s attention to and promotion of the welfare and goodwill of stakeholders. Evidence supports that corporations that are socially responsible have a competitive advantage in the following areas: Reputation Successful social investment portfolios Ability to attract quality employees Dr. Truong Thi Nam Thang
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Dr. Truong Thi Nam Thang Corporations (profits, brandname(s), reputation, trust, collaboration from stockholders, stakeholders Customers/consum ers (safe, reliable products, services; honest info; fair treatment; protection from product, service harm) Environment (protect & respect; improve & sustain; prevent waste; promote natural growth) Governments (law abiding; cooperation with fair standards; procedures; promote societal and community safety and health) Competitors (promote open markets; follow laws and rights of all stakeholders; act ethically in all business transactions) Communities, Society (respects laws, rights, values of ppl, cultures; support and promote economic, physical, social health, human development; be a good citizen) Suppliers, distributors (fairness, truthfulness in all transactions, contracts; mutual respects; honest info sharing; timely payment) External Stakeholders, Moral Stakes, and Corporate Responsibilities
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What is CG? “Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment”, The Journal of Finance , Shleifer and Vishny [1997, page 737] "Corporate governance is about promoting corporate fairness, transparency and accountability" J. Wolfensohn, President of the Word Bank , as quoted by an article in Financial Times , June 21, 1999.
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Modern Firm AGM BOD Management F1 SB F2 F2 F2 MANAGEMENT LEVEL GOVERNANCEL EVEL
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Why CG? : problem exists whenever owners themselves do not engage in the direct management of the firm. Self- interest before enterprise’ interest : when some owners or managers view their self-interest before the interest of the enterprise, all shareholders and stakeholders.
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Determinants of Level of CSR Multiple Organisational Goals Stakeholder Interest Management Philosophy- Corp Culture Corporate governance
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This note was uploaded on 09/05/2011 for the course ECO 103 taught by Professor Mary during the Spring '11 term at FH Joanneum.

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chap4 - Business Ethics CHAPTER 4 5 THE CORPORATION AND...

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