BUS 101 1st Edition Lecture 15 Outline of Previous Lecture- Section 14: Employee discrimination Protected groupso Protected classeso Non-protected classeso Types of discriminationo Affirmative actiono Focus on collaborativeOutline of Current Lecture - Section 15: Exam Review Types of questionso Scenarioso Market Efficiencyo Agencieso 3 relationshipso Reasons to adopt stakeholdero Stakeholdero Good businesso Paternalism and bit fat liability caseCurrent Lecture- Section 15: Exam Review Types of questionso Scenarios Keep business decision in mind, evaluate the primary reason for making this decisiono Market efficiency Result of competitive markets Low price, high quality- Shareholders – if run uninhibited, price down and quality up. Problems with this theory is that it assumes full information and rationaleo Agencies SEC – government agency that protects investors FTC (1914) – government agency that protects customers, buyer protectionThese 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.o 3 relationships Fiduciary – relationship built on trust Contractual – agreement or sales contract (Supply chain = leverage) Regulatory – deals with customers after buying something. Company continues to follow with customer service and product guarantees. o Reasons to adopt stakeholder Social contract- Doing what is best for the community and environment (mutual, give and take, help out) Fundamental fairness- With power comes responsibility; power of executive is to promote and share success. (Have money, power; help out lacking)o Stakeholder Make money? Is it legal? Economically sustainable? Of the qualified solutions, are they ethical? - Employee – regulatory- Investors – fiduciary- Supply chain – contractual- Customers – regulatory and contractualo Good business Transparency, independence, and objectivityo Paternalism and big fat liability Company must protect you; do fast food restaurants have a responsibility to make sure you don’t over consume or become
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