Business policies and Strategies Corporate governance and social Responsibility Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Business Policies and Strategies Corporate Governance and Social Responsibility
Corporation a mechanism established to allow different parties to contribute capital, expertise, and labor for their mutual benefit Corporate governance refers to the relationship among these groups in determining the direction and performance of the corporation Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Corporation • A mechanism established to allow different parties to contribute capital, expertise, and labor for their mutual benefit • Corporate governance refers to the relationship among these groups in determining the direction and performance of the corporation
Social responsibility a private corporation has responsibilities to society that extend beyond making a profit Carrolls Four responsibilities Economic-must do Legal -have to do Ethical -should do Discretionary -might do Dr. Jerry L. huxell
Dr. Jerry L. Huxell Social Responsibility • A private corporation has responsibilities to society that extend beyond making a profit • Carroll’s Four Responsibilities – Economic – must do – Legal – have to do – Ethical – should do – Discretionary – might do
Milton friedman There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say. engages in open and free competition without deception or fraud Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Milton Friedman • “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud
Parties Involved in governance Board of directors CEO and cfo Managers and employees Auditing agencies Standard setting bodies Institutional investors Banks Individual investors Dr. Jerry L. huxell
Dr. Jerry L. Huxell Parties Involved in Governance • Board of Directors • CEO and CFO • Managers and employees • Auditing agencies • Standard setting bodies • Institutional investors • Banks • Individual investors