Pros and cons of ranking shareholders over employees and other stakeholder

Ge Case Study

This legislation empowered the Federal Authority to act on companies or individuals who releases hazardous substances that may affect public health or damage the environment.

Morgan took over and organized the now named General Electric business. A standard that arises over time and is enforces by social sanction or law. Analysts felt that where most top executives lost their effectiveness in 10 years or less, Jack Welch was an exception, staying on the job and driving GE to elevated levels of accomplishment for 20 years.

Therefore, many companies focus on profits for shareholders at the expense of employees. Service principle is the belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.

Financial results for GE show that Welch was very effective In directing a highly profitable company, but he did so at the expense of many of the employees of the business. According to the stakeholder model, which of these stakeholder groups in each case study would be considered primary stakeholders?

What facts specific to each case study are consistent with the stakeholder model of competitive markets? Did GE in the Welch era fulfill this duty?

Corporate social responsibility

Civil regulation is regulation by nonstate actors based on social norms or standards enforced by social or market sanctions. Everyone hinders through life and sets goals. What specific role, if any, did the government play in each case study? Payment of wages to small, marginal agricultural producers in developing nations sufficient to allow sustainable farming and labor practices.

Did GE in the Welch era fulfill this duty? To employees all they have is the work they get out of working at the company so to them it is not as important. What should it have done? I think otherwise GE under Welch was a well brought out organization. They will have their rough areas and then they get stronger as they proceed.

With a couple of changes, Welch could have made GE even more comfortable than it was at the end of his management era.Nevertheless, he lacked the responsibility to his employees and environmental society.

4. What are the pros and cons of ranking shareholders over employees and other stakeholders? Is it wrong to see employees as costs of production? By ranking the shareholder ahead of the other stakeholder they are maximizing profits and shares.

Stakeholder mapping is a collaborative process of research, debate, and discussion that draws from multiple perspectives to determine a key list of stakeholders across the entire stakeholder spectrum.

A stakeholder is a person or group that has an interest in the success and choices a company makes. Stakeholders can be internal, with a "vested" or financial interest in the company such as a shareholder, partner or investor.

Solutions for Chapter 5 Problem 4Q.

Corporate Governance, and the Stakeholder vs. Shareholder Model

Problem 4Q: What are the pros and cons of ranking shareholders over employees and other stakeholders? Is it wrong to see employees as costs of production? Should GE have rebalanced its priorities?

89 step-by-step solutions; Solved by professors &.

Social Responsiblity-Jack Welch

The Pros and Cons of Forced Ranking. Managers may have previously smoothed over the problems these employees had or worked to justify them. With forced ranking, they couldn’t make accommodations any longer.

Consistency and fairness are better achieved using other options. For example, with methods like the degree appraisal, anyone.

manner (Diara, Alilo, and McGuire ). There is a growing expectation that companies will adopt a business approach that illustrates responsibility to society above and beyond the economic function and legal performance of the firm (Gibbs ).

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Pros and cons of ranking shareholders over employees and other stakeholder
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