Chapter 1, Problem 7.2EC

Do you agree or disagree, "some companies only use Corporate Social Responsibility for them to gain publicity and profit"? Defend your answer.

39) In Canada, the main advantage of incorporating federally is:    A. your organization does not have to make public their financial statements.  B. it is the least costly form of business organization.  C. the ability to operate anywhere in Canada and to use the same company name.  D. the ease of access to private venture capital funds.  E. the ease of access to government grants.

In 1970, the great American economist and a Nobel laureate Milton Friedman argued that “the social responsibility of business is to increase its profits”. He wrote that a company has no social responsibility to the public or society, and its only responsibility is to its shareholders. Critically evaluate his statement. Do you agree or disagree? Why?

ON ETHICS: Undertaking FDI, by definition, means not investing in the MNE's home country (see the Closing Case). What are the ethical dilemmas here? What are your recommendations as (1) MNE executives, (2) labor union leaders of your domestic (home-country) labor forces, (3) host-country officials, and (4) home-country officials?

Please provide your thoughts on corporate ethics by answering the question "why is it good (or bad) for a corporation to exercise (or not to exercise) social responsibility?" !

The CSR is a concept whereby companies integrate social & environmental concerns into their business operations and in their interaction with their shareholders on a voluntary basis (European Commission, 2001). Required: Based on your view, discuss FOUR (4) benefits of CSR.    A study conducted by Thompson & Zakaria (2004) addressed that 209 out of 257 companies in Malaysia have made some form of CSR disclosure. Required: Based on the findings in the above articles, justify FOUR (4) reasons of some companies for NOT reporting the CSR.

Firms often involve themselves in projects that do not result directly in profits. For example, Microsoft corporation donated $10 million to Stanford University hospitals and another $40 million to the African aid organization (Product) RED, a charity fighting against AIDS, tuberculosis, and malaria. Do these projects contradict the goal of maximization of shareholder wealth? Why or why not?     What is the agency problem, and how might it impact the goal of maximization of shareholder wealth?     What is corporate governance? What role does a corporation’s board of directors play in corporate governance?   The manager of Golden Ray Corporation receives a bonus if company profits exceed $1,000,000 this year. During the final week of the year, the manager changes an accounting policy that will increase reported profits from $950,000 to $1,025,000, triggering his bonus. The change in profits of $75,000 will reverse itself in the next year, and the accounting change has no impact on…

Do you think we have an agency problem in big businesses and organizations (such as Eskom) in South Africa?

which type of organization should be formed. Sharif, Henry, and Korb want to start a tech firm. They are deciding between an S corporation and a C corporation. The founders want limited liability, but they also want to avoid paying corporate income taxes.