Certified B-Corporations: Stakeholder Model Versus Economic Model

While creating the Stakeholder Analysis Matrix for Anheuser-Busch (AB), I found that the major external and internal stakeholders fell into either the Keep Satisfied or the Manage Closely categories, and only a few were in the Keep Informed and Monitor categories. I felt this way because when you are dealing with a product such as alcohol, the company has many risks involved which require close continuous analysis of certain stakeholders.

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint

A corporations structure is designed to be financially profitable while presenting value to its share holders. The Cheif Financial Officer of a corporations job is to represent the shareholders and to increase current value in the corporation's stock. This corporate mentality will force a CFO to cut down on working conditions, workers' pay, and workers' benefits if the corporation is not as profitable as the shareholders' desire. This poor treatment of workers peaked during the Progressive

Picture the face of a student receiving a research paper, not to thrilling, some will start sooner than others but everyone must start their research papers somehow and some way. Google means “to search” and now in days it can be used for browsing, personal computing, email, and broadband networking (Krazit). Years ago when internet and Google did not exist students actually went to the library to not only study but to get and look through books. That is how students got their research for papers, while students today use the internet and mostly Google. Now when students go to the library they use it for a study area and internet access. Walking into the library

“Corporations are said to be “creatures of statute;” they exist because state laws allow human beings to organize themselves into entities that separate ownership and management functions as the outline above delineates. The business rule is there a presumption that making a business decision, the offices act in good faith with the belief that their actions is what is best for the company (Halbert/Ingulli, 2012 pg. 31).”

Michelle Goodman’s article “Make It Good—Officially” discusses in detail about the process of becoming a B Corporation along with certification advantages. In the introduction, she sets up the rest of the article by pointing out that Ben & Jerry’s, a company that manufactures ice cream, became the “first wholly owned subsidiary to get certified as a B Corporation” (86). A Certified B Corporation is a for-profit business that is committed to providing positive effects on society, environment, community, and its customers, employees, and shareholders. A Benefit Corporation—not to be confused with a B Corp—requires business owners to consider the well-being of employees, community, and the environment before making any decisions simply driven by profits. Some standards include paying workers living wages along with health insurance and vacation.

In large corporations the success or failure of the company is the responsibility of the board of directors. According to Richard DeGeorge, “The members of the board are responsible to the shareholders for the selection of honest, effective managers, and especially for the selection for the CEO and of the president of the corporation.” (p. 202). The board members have a moral responsibility to ensure the corporation is run honestly, in respect to its major policies, and to ensure the interests of the shareholders are satisfied. The next responsibility within a corporation is the responsibility management has to its board of directors. DeGeorge writes, “It must inform the board of its actions, the decisions it makes or the decisions to be made, the financial condition of the firm, its successes and failures, and the like.” (p. 202). The management of the corporation is morally obligated to

The success of a company will depend on the principles of moral and ethical behaviors in society. Social media platforms such as Facebook, Twitter, and Reddit are making it more difficult for companies to get away with unethical behavior. In the future companies that will remain profitable have to look at putting profit on equal levels with people and social responsibility. Benefit Corporation (B Corporation) is a corporate form designed specifically for that kind of entities. It encourages innovative ways to bring humanity back into business and redefine what it means to be successful (Lam,

To produce a set of recommendations in a written document about how McDonalds PLC, can reduce its carbon footprint through the management of key stakeholder relationships.

For this outcome, the group has chosen three possible options for alternatives (1) Public Benefit Corporation (PBC), (2) B Corp Certification or (3) remain as a private corporation. As the above-mentioned list, the team examined their values alongside the connections of sustainability. The group analyzed them with three criteria in mind. First, social perspective; then environmental perspective; lastly the economic perspective.

In order for an informed decision to be made in regards to appropriate business structure for any business it is necessary to understand each business structure separately and any attempt to understand business structure must consider the C-corporation as a baseline against which to compare subsequent business structures. A C-corporation is a business organized as a separate entity from the owner or owners of the business that requires the observation of certain formalities. In Texas these formalities include adopting bylaws, maintaining a record of accounts, issuance of stock, recording the issuance and transference of stock, recording minutes of board of director and shareholder meetings, as well as maintaining a record of current and past shareholders (Tex. BOC § 21). It is important to remember that corporate formalities will require time and expense to maintain and every attempt should be made to comply with these requirements to protect the liability limitation of the corporation’s shareholders, officers, and owners.

Stakeholder analysis is an integral part of what determines a business’ success. Within every business, there are various stakeholder groups that have individual specific needs. Each stakeholder group has to be consistently considered by the company when it makes decisions. Over the course of five weeks, students made decisions to help guide K-Tai, Inc. with its stakeholder analysis and corporate social responsibility (CSR) efforts. Several conflicting decisions were considered and a thorough analysis helped the CREO office come up with the best possible solutions to the company’s problems. The CSR simulation was an excellent tool to help students understand the importance of ethics in business and how to address the common issues that businesses face in today’s society.

Question: Taking into account Figure 3.4 on page 45 of your textbook (Stakeholder Typology: One, Two, or Three Attributes Present) discuss the ‘Ethics in Practice case’ on page 46 (Are Plants and Flowers Stakeholders? Do they have rights?)

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the