Response to Posts

1. Use the concepts learned from the text

Website for online book

https://bc.vitalsource.com/tenants/205054/books/97…

2. Reply to the (2) post explaining why you agree or disagree with their comments on the question

3. Responses are at least a paragraph

4. Cite the sources used in the responses

POST: 1

1.) From Chapter 2: When does a corporation need a board of directors?

Answer: A corporation is a mechanism established to allow different parties to contribute capital, expertise, and labor for their mutual benefit. The investor/shareholder participates in the profits (in the form of dividends and stock price increases) of the enterprise without taking responsibility for the operations. Management runs the company without being responsible for personally providing the funds. To make this possible, laws have been passed that give shareholders limited liability and, correspondingly, limited involvement in a corporation’s activities. That involvement does include, however, the right to elect directors who have a legal duty to represent the shareholders and protect their interests. As representatives of the shareholders, directors have both the authority and the responsibility to establish basic corporate policies and to ensure that they are followed.

The board of directors, therefore, has an obligation to approve all decisions that might affect the long-term performance of the corporation. This means that the corporation is fundamentally governed by the board of directors overseeing top management, with the concurrence of the shareholder (Wheelen, Hunger, Hoffman, & Bamford, 2018, p. 43).

POST: 2

2. From Chapter 3: 3-3. What is the relationship between corporate governance and social responsibility?

The corporate governance of a corporation is to follow the rules by providing stockholders with accurate and available information. The corporation needs to be fully transparent to the outside world.

The social responsibility of a corporation is a voluntary action to obtain a profit while also maintaining good relationships with stockholder and thinking about the environment at the same time.

It's almost as if the social responsibility contradicts the corporate governance of a corporation. Profit comes into play. Being socially responsible can hinder that profit when you start to think about helping the environment. At the same time, thinking about the environment can increase profits. Especially in today's world where "going green" is super popular.

I read this article about a fast food chain in Swedin, Max Burgers. They received a complaint about how throwing the kid's meal burger box straight into the recycle bin was a waste. The box was not even needed. The company took action.

"Max didn't just get rid of its kids'-meal boxes, though. Since 2006, the chain has reassessed its entire enterprise, searching for ways to reduce its environmental footprint. It has installed energy-efficient grass roofs on 12 new restaurants and cut energy consumption by 20% company-wide. The chain buys only wind power and offsets all its carbon emissions by planting trees in Uganda" (Van Gilder Cooke, 2012). All these changes that helped the environment boosted sales for Max Burgers.

References

Kowitt, B. (2016, April 13). Fortune – Fortune 500 Daily & Breaking Business News. Chipotle Board Needs A Shake Up and More Diversity, Say Shareholders | Fortune. Retrieved from http://fortune.com/2016/04/13/chipotle-board-shareholders/ (Links to an external site.)Links to an external site.

Van Gilder Cooke, S. (2012, April 9). TIME | Current & Breaking News | National & World Updates. Why Going Green Can Mean Big Money for Fast-Food Chains – TIME. Retrieved from http://content.time.com/time/world/article/0,8599,2111372,00.html (Links to an external site.)Links to an external site.

Wheelen, T. (2018). Strategic management and business policy. New York: Pearson.