BLE 215: Midterm--- Due in class on March 7, 2013 This is not a group project . Each question must be answered separately. Use course materials to elaborate on your answers. The examination must be...

Exam
Midterm exam
Answer 1
1. Joseph Johnston argues, in his article, Natural Law and the Fiduciary Duties of
Business Managers that…” Simply put, stakeholder theory sounds good in social theory but will
not work in practice.” The reasoning provided by Johnston for refuting the stakeholder theory in
practice is that there is no legal or statutory requirement which may lead to companies
implementing the appropriate policies and direct their efforts towards corporate social
esponsibility.
The article explains that as there are so many scandals in the corporate world and elite
companies involved in it, that it is clear that even though companies adopt a corporate social
esponsibility policy on paper, it is not necessary that they are implementing them in spirit. It is
quite possible that it is just another stakeholder theory which has been included for the purpose
of making stakeholders be more confident about the organization. In reality it is quite possible
that these firms are not even ethical.
2. I do not agree to the author completely because of the reason that corporate social
esponsibility is an essential element of present day businesses since it forms a guideline for the
firm to repay the society in several ways. Corporate social responsibility is very beneficial for the
usinesses as it involves lot of factors which help businesses to grow and innovate efficiently.
CSR leads to value creation incorporated into business strategy and developing human capital
and integrates business into the community.
Exam
Moreover it is essential that there be the utilization of CSR in order to help the society
and ethics or shareholders are not the only focus of this concept. CSR is advantageous in case of
isk management with the purpose of compliance and mitigates operational impact and risks.
Contribution in CSR leads to healthier external relationship which helps in developing good
elations with stakeholders and increasing their interest in the company.
In this way it is extremely crucial that a business does operate as an important element of
the society and does not focus only on profits. Profits is truly an important element in a business
ut ethics and corporate social responsibility should not be ignored for the purpose of achieving
success in business. It is meant for the purpose of ensuring welfare and so should be applied in
companies.
Answer 2
1. Steven Kellman provides a critique of the cost
enefit analysis and whether it leads to
a flawed ethical result.” I completely agree to this opinion because cost benefit analysis results
in firms losing focus on welfare of the society. They would harness the society resources in order
to gain profits but not return to the society in order to reduce costs.
Social performance, corporate conscience and sustainable responsible business. The
major goal of Corporate Social Responsibility is to grip responsibility for the company’s actions
and also encourage powerful impact through its activities on different types of environment,
consumers, employees, communities, stakeholders and many other people of...