BUS 101 1st Edition Lecture 11 Outline of Previous Lecture- Section 10: Stakeholder Analysis Net Neutralityo Should there be regulation on the Internet? Stakeholder Analysiso Structure of Stakeholder Analysiso Dichotomyo Additional Questions Customerso Regulatory Schemeo Primary RelationshipsOutline of Current Lecture - Section 11: Liability Case & Customers Big Fat Liability Caseo Primary Stakeholderso The Caseo Customers and Regulationo Pro Regulation PerspectiveCurrent Lecture- Section 11: Liability Case & Customers Big Fat Liability Caseo Primary Stakeholders Primary stakeholders affected by the case were investors and customers- Case revolved around McDonald’s unhealthy foods contributing to obesity in the public. At what point does a company’s obligations end—can you truly blame the company for supplying unhealthy options when customers are the ones choosing to purchase and consume the food?  Management and government- Management represents and speaks for employees- In many cases, despite having fiduciary duties, management acts within self-interest- Government regulations enter marketplace because of lack of market leverageThese 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.- Government acts on the will of the people, not on their own accordo Representative agent for stakeholders lacking market leverageo The case If resolved in favor of the customers, the company will take a hit- Rather than face government regulation, fast food restaurants began putting food labels on their products, as well as offering healthy alternatives- Fear government regulations and lawsuits so the industry self adjusts to avoid this- Often, changes positively affect the bottom line and enhance productivity The fast food industry’s perspective of real value in tension for this case are: Personal accountability v. Paternalism- At what point does the industry stop taking blame for what consumers consume, and to what extent are they liable? - Paternalism – many view as negative, putting restrictions on the freedom of individualso Many have the view that the government is supposed to protect its peopleo In America, we consider paternalism a bad thing, arguing that the government should regulate some things, while having no influence in others- This idea expresses a clear opinion, showing a favorable light from the industry’s perspectiveo Customers and Regulation Almost no customers go unregulated- At what point does the duty to regulate end? o Can anyone honestly say that they did not realize McDonalds was unhealthy while choosing to consume the food? - Customers are both regulatory and contractual stakeholderso Heavily regulated on what they can buyo By purchasing something, automatically take part in a contract with the business operationso Pro Regulation Perspective The issue is one that affects society- If a poverty stricken neighborhood that relies on these fast food restaurants is only containing unhealthy options or loses the restaurant, this will be detrimental for the community, contributing even more to the poverty. o Neighborhoods may fall apart; if neighborhoods fall apart, local businesses may also fail and increase the poverty Businesses ultimately want to help their customers and make them