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LEB 320F Midterm -2 Exam Questions and Answers
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LEB 320F Midterm -2 Exam Questions and Answers
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LEB 320F Midterm #2 Exam Questions and Answerscorporation is not a moral agent - Answer -Corporation is like a robot. The Corporation is merely an aggregation of legally binding documents such as a state charter and the corporate bylaws, organizational charts, operating procedures, and customs. The human cogs in this machine are role players. Moreover they are replaceable and often virtually interchangeable. Rule govern activities in impersonal operating procedures prevent the application for even the hint of more responsibility social
only duty is to shareholders
corporation is a moral agent - Answer -corporations must not evade moral responsibility.
Ultimately it arguably makes sense to visit responsibility and accountability upon corporations and other artificial business actors because that will increase the likelihood
that their owners and controllers will take actions to prevent individual employees or groups of employees from making unethical decisions. The organizational form tends to disperse responsibility in such a way that individual employees do not feel personally to blame for illicit conduct. To counteract that effect, society can visit more responsibility and perhaps legal liability upon the firm hoping that its managers will act to minimize wrongdoing that could injure the firm.
Corporate social responsibility (CSR) - Answer -"Doing well by doing good." Sustainable
development - "meets the needs of the present without compromising the ability of future generations to meet its needs."
Agents of capital view = shareholder value
Agents of society view = social contract
International norms
How to get employees to act ethically - Answer -- Hire ethical people - the most important!!!!! Problem - How do you determine who is ethical?
Companies use psychological testing
Example: Whole Foods - 60 day probationary period and team evaluation
- Treating employees well (moral spillover)
- Code of ethics
- Ethics Training
- Whistleblowers - Compensation
Shareholder Theory vs. Stakeholder Theory (Roundtable letter) - Answer -Shareholder -
only focus is to operate within the laws and give your shareholders, those that own the company, the highest rate of return or the highest shareholder value like in that's your focus anything more than that it's outside the bounds for a business manager.
Stakeholder - Need to focus on profitability and shareholder value shareholder return and the shareholders are a very important stakeholder but they're one of many stakeholders that we should focus on. We need to focus on our employees, vendors, community, environment, NGO's, etc. mindfull of all
Business rountable is going to be adopting a stakeholder view to focus on all employees
tort - Answer -- "wrong" in French
- any non contractual civil wrong committed upon the person or property of another.
- any wrong excluding breaches of contract and crimes.
McDonalds coffee tort case - Answer -Woman spilled hot coffee on her lap causing burns.
She admitted she was partially to blame for the injuries.
She wanted her medical bill paid for.
McDonalds offered a small settlement that was rejected.
Court case revealed McDonalds made coffee really hot to ensure coffee was always hot
for customers.
Court awarded women penalties.
Types of torts - Answer -Intentional - not as common
Negligence - most common
Types of intentional torts - Answer -Assault and battery, false imprisonment, defamation, trespass
torts - in order to prove negligence case you have to prove the following: - Answer -1. duty
2. breach
3. causation
4. damages
tort case for negligence - duty - Answer -(can be tricky) - Is there a duty? - general rule: we each owe a duty to every person who we can reasonably foresee might be injured by our carelessness.
See Otis Engineering Corp. v. Clark
Duty of landowners:
invitee vs licensee vs trespassor
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