BUS 101 1st Edition Lecture 5Outline of Previous Lecture - Section 4: Adopting Stakeholder Theory & Case 1 Rights in Americao What are happening to rights? o Greater individual libertieso Freedom to fail Stakeholder Theoryo Stakeholders don’t impose standards, they change themo Second reason to adopt stakeholder theory: self interesto Two most dominant reasons to adopt Stakeholdero Stakeholder theory: legal and moneyo Third reason to adopt stakeholder theory: Social Contracto Fourth reason to adopt stakeholder theory: Fundamental Fairness Case: Inland Banko Must close one of two branches of bankCurrent Lecture- Section 5: Democracy and Business Democracy and the marketo Corporate problems being solved by the market itself o Speaker – localize government and promote democracyo Democratizationo Influence of business on society Proprietary rightso Private people have private property to do with what they wanto Additional Questions, Inland Bank Case- Section 5: Democracy Democracy and the marketo Corporate problems being solved by the market itselfo People speak their opinions based on where they shopThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Don’t like Hobby Lobby’s philosophy with not giving employees birth control, don’t shop there; If enough don’t buy, they will either change or leave the marketo Constitution and rules for people to follow- People will buy what is cheaper and more efficient – will not take to certain products just for American prideo Talk is only effective and relative in the short term – not sustainableo Local government is more corrupt than federal governmento Speaker – Localize government and promote democracyo Framing question correctly, but his proposals are not representative of democracy - Corporation should not have due process or free speech- BUS 101 is inside out from his prospectiveo Commonality between speaker and stakeholder theory: Democracy- Including everyone in decisions and considerations, similar to stakeholder- Stakeholder is a democratization toolo Democratization o Ethics – value system that we implement - Society must recognize their value system- Our society values and promotes:o Equality, money, power, and happinesso Having opportunities and hard work leads to successo America is very individualistic – think about personal needs before societalo Personal responsibility, autonomy, determination and freewill. - Equal opportunity – allowed to achieve, but up to you to do soo Is free will still here? Do we choose to be poor? If not, where is free will? Determining and legal issues come into questiono Tend to believe we still have free will- Self governance – we get to determine our own future, America stands for democracy- Inundate – more money, you will wino In an election, candidate with the most money will win, because they have the funds to be able to campaign so people will recognize their names and vote for them in the ballots- People should have influence in what they doo Education – mandated by governmento Religion – told what to believe – take it or leave ito Business – some negotiation but not enough to be equalso Home – parents generally not democratic, “Because I said so” No practice in democracyo Influence of business on societyo 4 reasons (market reasons) to adopt stakeholder theory- 5th reason to adopt stakeholder theoryo Shouldn’t we adapt practices that will enhance democracy?  Health care had gone into a democratic system: rather than thedoctor telling you exactly what to do, then you doing it, you areworking with the doctor, getting data, explanations, second opinions Get to participate in what happens, ultimately the decision is left up to you Proprietary rightso Private people have private property to do with what they wanto Dilemma in America today- Contradiction: people’s business is their property, so should be able to do what they wanto Sphere of influence- Right to life, liberty and propertyo Jefferson deliberately changed property to pursuit of happiness- Some things are purely within the private sectoro Families telling children whom they can and cannot date – no druggies, stay within religion, ect.o Cannot prohibit families for creating these rules, as they are within the private sectoro Allowed to be racist at home and with friends- Problems arise when private spheres influence public sphereso Antidiscrimination laws If you employ 15 or fewer workers, considered the private sphere, and can discriminate in hiring practices Only problems arise is if people find out you are discriminating, and choose not to support your company; you may fail When you get 16 or more employees, considered part of society in the public sector, no longer private, so antidiscrimination laws apply to youo Some believe business has a right to act as society in marketplace Is business a vend-diagram with society? Separate with society?The same with society?o Additional questions, Inland Bank Case:- Those most affected by the inland bank case:o Investors and society- Investors are always primarily affected by business decisionso Decisions affect the bottom line- Decisions generally don’t affect all stakeholders at once, usually 1-5 are mainly affectedo Seldom affect only