Activity 3-Stakeholders, Categories & Responsibilities of Organizations
Describe the basic features that distinguish the four basic forms of business ownership: sole proprietorships, general partnerships, C corporations, and limited liability companies.
Ownership of C corporation is represented by shares of the stock, or shareholders, it is the most common type of the business, where ownership to the shareholders offers a limited liability to all its owners. Limited liability companies are those companies who have the form of the partnership, in which all the partners have the right to participate in management and have the limited liability for company debts. A general partnership is a partnership (with 2 partners more often), where they enter into a voluntary partnership agreement. Basically there are such things as a financial contribution each partner will make, special responsibilities, the share of the profit/loss. The agreement can be oral, but the best way is to have everything on paper, in a written form. And, finally, the sole proprietorship, are the businesses, that are owned and usually managed by an individual. To say in other words it s the extension of the owner. That means that if there is a profit in the company, it is defined as an owner’s profit, and if something goes wrong all the responsibility goes to the owner as well
Describe the relationship between a corporation’s common stockholders, its board of directors, and its chief executive officer (CEO).
The CEO is responsible for day to day operations and identifies and manages corporate risk., the board of directors oversees the management ( where CEO is related to), they also have particular functions, such as audit, compensation, corporate governance. The main responsibility of the board of directors is to decide in the interest of shareholders. Shareholders are people who voluntarily invest by buying stock. That is the reason why they can be defined as owners. Their right is to elect the board of directors, approve mergers and accuisitions.
Video Case: Starbucks Coffee: Shared Planet and C.A.F.E. Practices (access this video on the CourseMate website click on Video for Chapter 4.) Using information from the case and the video, answer the following critical thinking questions:
What is the Starbucks Shared Planet program, and what caused Starbucks to initiate this program?
What is sustainability and how do the C.A.F.E. Practices guidelines help promote sustainability in the coffee industry?
Why is sustainability important to businesses?
What is the difference between corporate philanthropy and corporate responsibility to the community? Which do you think is better? Why? The difference between the corporate philanthropy and the corporate responsibility to the community s the following: the corporate philanthropy includes all donations to the non-profit groups ( including money and physical products); employees time donations- some organizations pay their companies for working for the non-profits. The corporate responsibility is related to the corporate philanthropy but is focused on the actions for business itself, rather than donations of money, products and time. In my opinion, both corporate responsibility and corporate philanthropy are good for the society, but from the ethical point of view, corporate responsibility is better because not everyone is interested in donations and non profits are not a large economy sector. Though Cisco Systems have developed a program for different branches of society- military and disabled. This can help them to develop and to feel better, not a thrown away part of the society.
A growing number of businesses—including videogame developers, cigarette companies, soft drink producers, liquor marketers, and fast food chains—are feeling the heat from government, the press, and society at large for encouraging harmful consumer habits. But in our...
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