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Chapter 15 - Ethical Dilemma

Organizational Behavior (14th Edition)

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Evgeniy Bukatin Pr. Adou-Dy BUS 308 November 26, 2011 Chapter 15 – Ethical Dilemma 1. How active do you think boards should be? I think it depends on the situation and the case. Just like the book states – boards defer to the CEO and advise more than direct – I think board's responsibility is to guide and advise more than direct. CEOs are there to direct the organization. However, I believe that in a case of crisis, like financial meltdowns of 2008-2009, the board should take an action and not just leave all the decisions to CEOs. Boards do guide, but in critical situation they should support their CEOs and, also, take action. 2. Should directors mix with employees to obtain company information from the ranks? Why or why not? I suppose it would be useful for directors to mix with employees to obtain company
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Unformatted text preview: information, as it is the only way to realize what is going on inside the organization on different levels. After getting familiar with the process and work on different levels, it is easier to improve organization’s overall performance. 3. Where is the line between representing shareholder's interests and micromanaging or second-guessing the CEO? To define this line, it is important to consider the interests of shareholders and CEO, as both are important for any company to succeed. In this case, an understanding of where the company wants to end up being is crucial because this approach will lead to a necessary negotiation between all the parties, which, eventually, should benefit the company....
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