Pros and Cons of Ranking Shareholders over Employees and Other Stakeholders - Case Study Example

Human beings do have a duty toward animals, and that is to make sure that they are in an environment where they are well cared for. Although animals may not be at the same level intellectually as humans, there are still basic norms that must be followed. Some of these include a safe living environment, adequate amounts of food, and humane treatment in general. I feel that KFC does protect animal welfare at an acceptable level because it is always trying to make sure that action groups like PETA are comfortable with its treatment of the animals.

2. Prepare a written response to question #4 on page 156.
What are the pros and cons of ranking shareholders over employees and other stakeholders? Is it wrong to see employees as costs of production? Should GE have rebalanced its priorities?

One of the benefits of ranking shareholders over employees and other stakeholders is that they can invest more money into the firm, which will eventually benefit everyone. Shareholders need to feel like they are wanted and giving them special privileges can help them by making them feel appreciated. On the downside, employees and other stakeholders may feel like they are less important to the firm than shareholders even though they are the ones who work on the front lines every day.

I think it is wrong to view employees only as costs of production because they have feelings too. Although the employees are being compensated for their hard work, this is not enough sometimes. Employee morale, or a lack of it, has a huge bearing on the success of an organization, so it is important that the needs of employees are put first. As for GE, I think the company should have rebalanced its priorities, and ideally, everyone in the organization should feel like they are part of the team.

3. Prepare a written response to question #1 on page 193.
What responsibility does Nike have for conditions of work at foreign factories making its products?
Nike does have a huge responsibility for the working conditions at foreign factories that make its products. The main reason is that although the company does not have a direct influence over the process, any negative press or publicity will hurt the value of the brand. It is up to Nike to make sure that the working conditions for its foreign employees meet basic health and safety requirements. These may differ from country to country, but Nike ultimately has the responsibility to make sure that its workers are in a safe and productive environment.

Most corporations like Nike choose to outsource work overseas because they can take advantage of lower wages to ensure a large profit is made. However, as a result of this, Nike should be investing some of these immense profits into improving the working conditions in foreign factories because it may even have the knock-on effect of increasing production, which will ultimately benefit Nike anyway. It is up to Nike to be proactive rather than reactive and instead try to identify some of these problems before they occur and put measures in place to make sure that they don't happen. Read More