SBU LESSSON 3- PLEASE FOLLOW DIRECTIONS – PLEASE FOLLOW EXACT FORMAT -ESSAY
PART 1 –WATCH VIDEO ON YOUTUBE -(Watch Corporate Governance & Ethics Insights(11:12) about studying corporate governance and ethics.)
- Access the Web site of any corporation you choose that this lesson or Chapter 3 has not already discussed, and answer the questions below in an essay format.
- Your essay must include an introduction paragraph, a main section consisting of two or more paragraphs, and a conclusion paragraph. You must address all relevant parts of each question.
Your essay must include citedmaterials from the textbook at a minimum. You may use additional resources. Make sure to cite any references you use. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number. Be sure to review the grading matrix before you submit your essay.
Essay Questions
- 1.Name three values the company promotes on its Web site. How does the company market these to you as a consumer?
- 2.Identify another stakeholder for this company. How does the company describe its relationship with this stakeholder? Be specific in your example and in how the needs of this stakeholder are met.
- 3. Make one constructive suggestion on how the company can improve its Web page to reflect its stakeholder orientation.
PART 2 10 QUESTIONS MULTIPLE CHOICE –
QUESTION 1 OF 1 – In response to the collapse of the U.S. financial system in late 2008, the federal government has become involved in corporate governance to a degree not seen since
| the Great Depression. |
| the Sarbanes-Oxley Act. |
| the late 1800s and early 1900s. |
| the New York Stock Exchange reforms. |
| the mid 1950s. |
Question 2 of 10 Which of the following is a definition of accountability?
| The process of auditing and improving organizational decisions and actions |
| A formal system of oversight and control for organizational decisions and resources |
| The decentralization of organizational decision making |
| The degree of organizational control a board of directors has over an organization |
| How well the content of workplace decisions is aligned with a firm’s stated strategic direction |
Question 3 of 10 What is the primary concern of a board of directors?
| To make decisions about how to run the day-to-day affairs of the business |
| To monitor the decisions made by managers on behalf of the company |
| To determine whether or not to pay dividends to stockholders |
| To watch out for the interests of the employees |
| To develop short-term goals for the company |
Question 4 of 10 The duty of loyalty means that ________________________________.
| leadership needs to make informed and prudent decisions that benefit the firm |
| no decisions should be made according to a shareholder orientation |
| businesses are embracing more of a stakeholder model of corporate governance |
| all decisions should be made in the interests of the corporation and its stakeholders |
| fiduciaries placed in a position of trust will be penalized for unethical decision making |
Question 5 of 10 Under the social responsibility philosophy, which of the followingbest describes what the government’s role in corporate governance should be?
| Governments should dictate how businesses run their corporate governance systems to ensure equality and fair competition. |
| Governments need to be actively engaged in affording both protection and accountability for corporate power and decisions. |
| Governments should take a hands-off approach to regulating corporate governance and let the corporations take care of it. |
| Governments should wait until after a crisis, such as the Asian economic crisis, before intervening with corporate governance procedures. |
| Governments have influence on neither corporate governance nor the overall success of corporations on a global level. |
Question 6 of 10 _______________ is the linchpin between risk, control, and corporate governance.
| Proxy |
| Board independence |
| Shareholder resolution |
| Auditing |
| Shareholder activism |
Question 7 of 10 Many boards of directors believe that the United States has a problem in that executive pay _____________________________________.
| is too low |
| is not necessary |
| does not highlight the executive’s ability |
| is too limited by government regulation |
| is not in line with performance |
Question 8 of 10 Which of the following statements best describes the current trends in corporate governance?
| Most companies are already using a shareholder orientation with formal governance. |
| Businesses are moving towards a stakeholder orientation with looser corporate governance. |
| Forces are driving businesses toward the stakeholder orientation and more formal governance. |
| Companies are turning to a shareholder orientation with a more informal corporate governance system. |
| Businesses are gravitating toward the stakeholder orientation because the costs involved are decreasing. |
Question 9 of 10 Corporate governance requires a system of _________ similar to the distribution of power between the executive, legislative, and judiciary branches of the U.S. government.
| decision-making authorities |
| division of labor |
| checks and balances |
| priorities and divisions |
| goals and values |
Question 10 of 10 How is corporate governancebest defined?
| The extent to which the content of workplace decisions is aligned with a firm’s stated strategic direction |
| The formal system of oversight, accountability, and control for organizational decisions and resources |
| The philosophy that a board or CEO holds regarding accounting methods |
| The exercise of control and authority by those in mid-management positions |
| A system of decentralized mechanisms that assists a firm in meeting its goals |
