Do you think it can be accomplished within corporate policy

Assignment Help Business Law and Ethics
Reference no: EM133675607

Assignment:

After reading the WSJ article (linked below), respond to the question(s) that follow. The required length for responses is a minimum of 200 words per question.

1. Discuss the reasons why emphasizing corporate social responsibility could end badly for a CEO. Feel free to explore the position of stakeholders, employees, or customers. Could there be some confusion here as to whether the individual CEO or the corporation is the responsible party?

2. Re-read the last sentence in this article, and imagine yourself in a position to provide protection for a CEO. What might you do, what are your motivations, and how do you think it can be accomplished within corporate policy?

When Doing Good Ends Badly for CEOs

Social responsibility can protect executives during prosperity, endanger them when profits fall

Paul Polman, CEO of Unilever, at a speech in New York in September.

CEOs beware: Being a do-gooder could get you fired.

Many corporate chieftains argue that companies shouldn't only seek to be money-making enterprises; they should also be good corporate citizens.

From Starbucks Corp. SBUX 1.10%increase; green up pointing triangle.

Chairman Howard Schultz to Unilever PLC Chief Executive Paul Polman, leaders variously promote efforts to reduce their company's carbon footprints, work with sustainable suppliers and produce healthier or more eco-friendly products-both as a marketing tool and business model.

"My personal mission is to galvanize our company to be an effective force for good," Mr. Polman says on his LinkedIn page.

But a new study shows that socially responsible initiatives can be a double-edged sword for CEOs, helping to shield them from being ousted during more prosperous times but increasing the likelihood they would be fired in bad times.

Examining the exits of Fortune 500 company bosses over several years, researchers found that those who heavily invested company resources in good corporate citizenry were 84% more likely to be fired amid sluggish financial results than CEOs at poor-performing companies that spent less on do-good initiatives.

On the flip side, spending on corporate social responsibility acted as a protective buffer for company chiefs who presided over robust profitability. They were 53% less likely to be ousted than other leaders of high-performing companies that didn't invest so much in measures to bolster social welfare, according to the study, publish in the November issue of Strategic Management Journal.

Timothy Hubbard, an assistant professor at the University of Notre Dame's Mendoza College of Business and one of the study's authors, says the findings suggest that CEOs who pull off strong profits in a seemingly socially responsible way build up goodwill with their boards because they have managed to achieve two goals at once.

Yet, he adds, when a social-welfare-minded CEO achieves only lackluster results, investors are likely to conclude that such investments are a distraction and a waste of money-in large part because the research remains mixed as to whether such efforts boost the bottom line.

The upshot, Mr. Hubbard says, is that shareholders should realize that CEOs face risks in making such investments.

"If boards and investors want CEOs to make big investments in corporate social responsibility," he says, "we need to think about how to protect those CEOs when they make those decisions."

Reference no: EM133675607

Questions Cloud

Developing an application or managing an interview : You have the task of developing an application or managing an interview. List and explain the questions you generally are not legally allowed to ask.
Identify the actions that caused the breach of the standard : Identify the action(s) that caused the breach of the Standards. Identify the Rule(s) of Conduct that was/were breached.
Develop a marketing campaign : As a sales director write a report reviewing the company's information to improve the sales, develop a marketing campaign, while targeting new customers.
Are you able to understand the job responsibilities of job : Are you able to understand the job responsibilities of the job? Was it clear what the applicant requirements were?
Do you think it can be accomplished within corporate policy : What might you do, what are your motivations, and how do you think it can be accomplished within corporate policy?
What are upsides to working with company like general mills : For an inventor or entrepreneur, what are the upsides to working with a company like General Mills or Stanley Black & Decker? what, if any are the downsides?
How might downstream distribution centers be viewed : In the context of postponement, how might downstream distribution centers be viewed as value-adding?
What is m&a transactions are highly complex : What is M&A transactions are highly complex? ( Reference less more than 5 years) What is Unrealistic optimism catalyzes many M&A strategic decisions?
Role of a travel agent encompasses various responsibilities : The role of a travel agent encompasses various responsibilities, primarily centered around assisting clients in planning and booking travel arrangements.

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  Legal environment of business caselet

The assignment in Law deals with the topic "Legal Environment of Business". A case study about Mary, a newly joined employee who is working in the USA and Europe. She faces few issues at her work place in Europe and tries to talk to her manager who s..

  Business ethics & legal issues caselet

This assignment is about the concept of Business Ethics & Legal Issues. The laws relating to these can be found in Antitrust laws. These laws are concerned with those large corporations which have a majority of market share, mergers and acquisitions.

  Questions on business law and ethics

Examples of securities that are exempted from the registration provisions of the 1933 Act and involving misstatement of material facts in a prospectus.

  Discuss the doctrine of ratification of pre-incorporation

With the aid of a decided cases, discuss the doctrine of ratification of pre-incorporation contract.

  Discuss the extent of phoenixing activity

It has been estimated that about 6,000 phoenix companies operate in Australia, costing government and the community hundreds of millions of dollars per year and impacting on individuals.

  Application of law to facts

Company Law, Application of Law to Facts and Conclusion.

  Question on business law and ethics

This assignment related to business law.

  Questions on business law

Answer all the questions under business law.

  Iidentify the issue raised by the facts

Iidentify the issue(s) raised by the facts, identify the relevant legal principles, apply the relevant legal principles to the facts, reach a conclusion.

  Evaluation of software development

Prepare a report and present an evaluation of the subsequent methodologies for software development in terms of cost, resources and time.

  Business value and ethics

Business value and ethics,  Bart agrees to put Sam's Super Bowl champion-ship autographed football in his sports store to sell for $1,500. Sam agrees to pay Bart a 15% commission for selling the ball. If Joe comes in the sports store and offers Bart ..

  Explain what is meant by income by ordinary concepts

Advise what tax consequences arise in respect of the payments.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd