1. What are responsibilities of a corporation and the corporate executives running? Based upon the law, the corporate charter and public policy, why is this so?
Corporate executives as the employees of the company owners’, has to run the organization according to the owners’ desires. The man objective of the business owners is to increase their market share hence the executive will be required to do so while adhering to the set rules (Charan p12). Recall that a corporation is an artificial person and can be sued if it breaks the government rule and regulations.
The corporate executive should also be socially responsible to the society even though it reduces the shareholder’s money (Conrad p.123). This will serve in promoting the good relationship between the company and the people hence increasing its market share in the long run.
2. Why the corporate social responsibility (CSR) nothing more than a version of socialism? When and how, if ever, can CSR be justified?
It is well known by firms that, people will only buy from the organizations that care for their needs. With the current competition to control the market, organizations are forced to contribute towards the development in the societies where they operate (Charan 14). This is viewed as socialism because businesses have to take care of the society in order to sell their products to them.
3. What are responsibilities of a corporation of the Board of Directors and the corporate management group running the corporation? Based upon the state law, the corporate charter and public policy, why is this so?
Both the management and Directors of the company has to observe legal, economic, social and ethical aspects when delegating their duties. They have to operate in accordance with the law that pay taxes and fulfill all the government requirements (Conrad p254). Secondly, they have to fulfill the objective of the shareholders while at the same time satisfying the needs of the consumers and the employees. Through the engaging in social and ethical responsibility, the management will ensure that the organization sells more of its products to the immediate community.
4. Why are the essential interests of each of the stakeholder groups in the stakeholder model of the corporation? How can they be heard by management and then reconciled?
Stakeholders are the core pillars for any firm to operate. They have the right to air their grievances and question the actions of the management (Conrad p263). For example, shareholders have a right to know how their money if being spent by the management. In the case of misunderstanding, they can sue the management. The management is also protected by the law to operate as per the guidelines of the directors and the rules of the company. In most cases, management has been blamed for giving personal interests priority as compared to business responsibility. This may result to a conflict. Any misunderstanding between the two parties can be solved through law courts and corporate laws (Conrad p272).