İŞLETME ETİĞİ

As the organization grows, the distance between the operation and the principal’s position will enlarge, thus putting them in an even more disadvantaged situation. This situation is called the principal agent problem.

According to Jones (2013) the top management hierarchy from the most to least is as follows: Shareholders, chair of the board, Chief executive officer, general manager and Functional managers.

According to Jones the reasons behind the interaction of corporation and stakeholder groups are the inducement and the contributions. Inducements are rewards such as money, power, and organizational status. Contributions can be in the form of skills, knowledge, and expertise that organizations require of their members during task performance. With respect to this classification, workforce provides skills and expertise and expects wages, bonuses, stable employment, and promotion.

Inside stakeholders have the strongest or the most direct claim on organizational resources. Shareholders, managers, and the workforce are among the inside stakeholders. Customers, suppliers, government and community are the outside stakeholders.

Carroll (1979: 499-500) argues that ethical and philanthropic responsibilities, in other words, non-economic responsibilities, should also be considered in addition to economic and legal responsibilities.

In proactive stands, which means, as can be guessed from its name, businesses actively try to search for opportunities to contribute to society’s well-being. For instance, a business foundation formed to increase the literacy of girls in society will proactively and continuously look for opportunities for fulfilling its founding mission.

Corporate transparency is a measure that refers to the degree to which corporate decisions, policies, activities, and impacts are acknowledged and made visible to relevant stakeholders. The quality of corporate transparency depends on three factors, namely, disclosure, clarity, and accuracy.

Corporate accountability is a concept that refers to whether a corporation is answerable in some way for the consequences of its actions.

Businesses should continuously innovate, and serendipitously, they may come across better alternative solutions. A roadmap for becoming a sustainable business is as follows (Certo and Certo, 2014: 87-89): Determining focused sustainability goals, employing people who are wholeheartedly committed to sustainable development, employees who contributed to the sustainable development goals of the organization should be rewarded and the results should be closely monitored and shared with the stakeholders.

Energy productivity is one of the key performance indicators for Corporate Knights, a media, research, and financial information products company based in Toronto, Canada, ranks corporations based on their sustainability performance. The other choices are sustainable development goals.

The right answer is  A) The Stakeholder Theory

The answer is B)   

I. “an individual or a group that, in the context of a specific situation, is either harmed by, or benefit from, the corporation, or whose rights the corporation should respect.”
II. "puts too much emphasis on the role of the managers.
III. “a stakeholder approach to business is about creating as much value as possible for stakeholders, without resorting to trade-offs.”

Number IV. is related to Agency Theory

Right answer is B)

Right answer is C )  The Moral Hazard problem

D) Unions is the right answer.

A) Revenue from input procurement (suppliars)
B) Fair and free competition ( Governments)
C) Equitable share of inducements ( Unions)
D) Good quality and better price ( Customers)
E) Salaries, bonuses, status, and power.
The Right answer is E)

The Right answer is  D) Fair competition 

A) Adhering legal requirements / Government
B) Long-term partnership / Suppliers
C) On-time payment Banks/Creditors
E) Safety, fair treatment, Employees and Unions

The right answer is B)

 V. Government  is not covered by social responsibility concept

The right answer is A)

The right answer is A ) I. II. III  

I. Determining focused sustainability goals,
II. Employing people who are wholeheartedly committed to sustainable development,
III. Employees who contributed to the sustainable development goals of the organization should be rewarded

IV and V are not included :
IV . The results should be closely monitored and shared with the stakeholders not government
V. Employing highly competitive people