Preview

BLE 215 Midterm

Powerful Essays
Open Document
Open Document
2051 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
BLE 215 Midterm
BLE-215
March 18, 2013
BLE 215: Midterm
Question 1
The difference between shareholder and stakeholder is that shareholders are individuals who own stock in a company in hopes of making a profit. On the other hand, stakeholders are individuals who have an interest in a company, or any organization and are affected by what happens within the institution based on rules. In this article, Joseph Johnston argues, “Stakeholder theory sounds good in social theory but will not work in practice.” In other words, the theory is saying that the “shareholder” is more crucial and important than the “stakeholder”, and I agree with the theory that Joseph Johnston has said. Shareholder in other words means the CEO of the company, and stakeholder are the one whoever is involved with the company. However, the shareholder doesn’t have to be participating inside of the company, it can be people from different industry or corporations. In the nowadays society, the shareholder plays a more important role than the stakeholder. They have to get along with the society, and what I mean by that is they have to have contact with financing, operations, government, control aspects, and consideration. This is what it has to include in order taking the company to success. Therefore, the main point that Joseph Johnston is trying to say is in the realities nowadays, you can’t just focus on one people anymore, you have to play as a team, you have to notice the society.
Question 2
In this case, I agree with Steven Kellman’s analysis with cost/benefit, you can’t really apply this theory in the environment. The environment isn’t like any computer software where it follows the steps one by one. The society/environment may change every minute or it may not change for years, but you or I do not decide it. I believe that in some circumstances, even if the cost and benefit doesn’t weigh the same, the certain decision may still be right. For instance, in the analysis, it stated in an example that because they

You May Also Find These Documents Helpful

  • Better Essays

    GBL 295 EXAM 2

    • 1533 Words
    • 4 Pages

    Tort: A “Civil Wrong” Torts refer to a general classification covering civil causes of action…

    • 1533 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Stakeholder is a person or groups who have interest in the success of the organization. A stakeholder is mainly concerned with an organization delivering better results and meeting its financial objectives. There are two types of stakeholder.…

    • 1865 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Eco 372 Week 4 Paper

    • 1367 Words
    • 6 Pages

    The Shareholders(Correct) The stakeholder theory acknowledges the importance of shareholders and that maximizing shareholder value is one of the company's primary purposes. However, it is important to remember that shareholders should not be considered the only stakeholders of any consequence.…

    • 1367 Words
    • 6 Pages
    Good Essays
  • Good Essays

    MIS 320 Midterm

    • 3629 Words
    • 12 Pages

    Authentication refers to the ability to know that a person is who he or she claims to be. Passwords known only to the authorized users. Token is a physical device that is designed to provide the identity of a single use. Smart card is a device that contains a chip formatted with access permission and other data.Biometrics is based on the measurement of a physical or behavioral trait that makes each individual unique.…

    • 3629 Words
    • 12 Pages
    Good Essays
  • Good Essays

    P2/M1 Unit 37

    • 1285 Words
    • 6 Pages

    Stakeholder is anyone with an interest in a business. Stakeholder can be individuals, groups or even organisations that are affected by the activity of the business, they include:…

    • 1285 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Math 302 Mid Term

    • 469 Words
    • 2 Pages

    A multiple choice quiz consists of 6 questions, each with 4 possible answers. If a student guesses at the answer to each question, then the mean number of correct answers is…

    • 469 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    205 Math Exam

    • 266 Words
    • 2 Pages

    How could you use Descartes' rule and the Fundamental Theorem of Algebra to predict the number of complex roots to a polynomial as well as find the number of possible positive and negative real roots to a polynomial? |…

    • 266 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    201 Sample Midterm1

    • 2283 Words
    • 9 Pages

    3. Which of the following product classifications is likely to have a demand curve with the highest price elasticity?…

    • 2283 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    A stakeholder is anyone who is interested in the success of an organisation, and often the stakeholders have a large influence on the business’s aims and objectives. In this assignment I will be explaining why stakeholders would be interested in a company’s aims and objectives and why each stakeholder would be interested in my two chosen organisations joining together.There are many explanations as to why a stakeholder might be interested in a company’s aims and objectives, some for financial reasons in order to make a profit and others for employment reasons. Two different stakeholders may often have contrasting interests when relating to the aims and purposes of an organisation. For example owners generally seek high profits and so may be hesitant to see the business pay high wages to staff. A business decision to move production overseas may reduce staff costs. It will therefore benefit owners however work against the interests of existing staff who will lose their jobs. Customers may also feel negatively towards the aim to move business abroad as they will suffer if they receive a poorer service. Customers want to see good quality products.…

    • 1272 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    bus 682 sfsu

    • 438 Words
    • 2 Pages

    The terms stakeholder refers to persons and groups that affect, or are affected by, an organization’s decisions, policies and operations. This is the definition of stakeholder; however, I think the most important part is not the definition of stakeholder, and the real important is that what the power of stakeholder is.…

    • 438 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Nonprofit Transparency

    • 4524 Words
    • 19 Pages

    This paper will discuss the emerging management trends developing as a result of the increasing incidents of financial misappropriation and the associated reputation destruction resulting from recent scandals in nonprofit entities. Discussion will include the many possible considerations associated with increased fraud incidents in charitable nonprofits, including inconsistent statutory requirements based on the state of incorporation as well as outdated federal oversight requirements over 501(c)(3) organizations. The paper will research three key management theories and will draw a conclusion regarding the next evolution of management theory in nonprofit entities. This paper will summarize how one of the largest charities is handling this evolving area and will present a theory that one of the biggest areas of focus and awareness should be the expectation that nonprofits demonstrate to stakeholders, explicitly and measurably, that they are being effective and transparent in fulfilling their missions.…

    • 4524 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    50. Clarkson, The Corporation and its Stakeholders, 1. For a clear antidote to these sorts…

    • 13247 Words
    • 53 Pages
    Powerful Essays
  • Powerful Essays

    Mattel Toy Recalls

    • 840 Words
    • 4 Pages

    The stakeholder approach believes that managers should take into account the views of all the organisations stakeholders and not just the shareholders when making decisions. The hope is that by doing…

    • 840 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Business and Society

    • 1788 Words
    • 8 Pages

    General Motors has been called a "template for 21st century capitalism." True False A business is any organization that is engaged in making a product or providing a service for a profit. True False Businesses and society are independent of one another. True False The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders. True False The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society. True False The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work. True False Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. True False Market stakeholders include nongovernmental organizations and the media. True False Each stakeholder group has only one source of power in relation to a firm. True False…

    • 1788 Words
    • 8 Pages
    Satisfactory Essays
  • Powerful Essays

    The opinion expressed here is not regarded by economists as being valid in general. It suggests that resources should be devoted without limit to cleaning up (or preventing) environmental pollution or degradation, irrespective of the magnitude of the benefits that this would bring. Economic efficiency requires a balancing of benefits and costs at the margin. However, the statement would be consistent with economic efficiency if clean up/prevention costs were always zero, or damages were always infinitely large, or more generally if long run marginal benefits of abatement were greater than the long run marginal costs of abatement over all levels of abatement up to the point where pollution is entirely eliminated.…

    • 1552 Words
    • 6 Pages
    Powerful Essays