PHIL 118 Lecture 10: Power & Accountability
28 Jun 2018
School
Department
Course
Professor
System is sound, just needs adjustment
Corporations should remain free
Nader's checks and balances system > too limiting for economic focused business (p.225)
Change in business perception
1. Growth in large corporation
2. Decline in owner management
3. Social expectations
oPublic pressure on particular actions
Higher expectations for bigger business (p.227)
3 more expectations:
1. Mass deliverance of product/goods
2. Watch social consequences of actions
3. Not waste resources
Businesses should be free but must remain flexible to social demands
Shapiro's solution to Board of Directors:
BoD has 5 roles-
1. Determine board policies and direction
2. Performance criteria
3. Select executive management
4. Review management performance
5. Communicate with shareholders
BoD needs extensive management and business knowledge
Some members will originate from the company but some members should be external
BoD must be invested in corporation
Cannot be fully external because qualifications are strict
Most experienced people likely from company
Suggestion: BoD formed of delegates from groups in company
Shapiro disagrees
Delegates interested in own group and not overall company
Only want to benefit to own group and not entire company
Cannot set universal standards for BoD --> up to situation
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