The Role of the Corporation
One of the most significant debates about corporate governance centers on whether the organization owes a greater responsibility to the shareholder who has invested in the company or to the stakeholders and those who are most affected by its actions—namely, the employees, suppliers, creditors, and customers. For this week’s discussion, consider your perspective on this debate. Do you believe that the goal of the firm should be to maximize the wealth of its shareholders? Or, should the goal of the firm take into consideration the other social elements (e.g., the environment, the welfare of the community, and so forth)?
As you prepare your response, begin by identifying the significant differences between a corporation and all other types of firms. Be sure also to address strategies that are available to shareholders to ensure that management is motivated to act in the best interest of the firm.
Your Discussion posts must contain the three elements of a scholarly response in order to receive full credit. These include:
Element 1: Comprehensive, In-Depth, and Focused Writing Please provide comprehensive responses and keep comments focused on the topic under discussion. To count as participation, postings need to be thoughtful; that is, they need to refer to the week’s readings, relevant issues in the news, information obtained from other sources, or ideas expressed in the postings of other colleagues. Comments such as “I agree” or ” nice job” do not count as graduate-level postings.
Element 2: APA Style and Citations You are to include information from course resources and outside resources to support or complement your posting. Walden uses American Psychological Association (APA) citation and style guidelines to maintain a high standard of scholarship and to facilitate participation by all course participants; you are expected to follow these guidelines as a student in the course. The guidelines for each Discussion post include the following: 1. Reference any works from which ideas or quotations are drawn. 2. Follow APA format. 3. Use and appropriately reference outside sources. Each student’s originality, critical thinking, and analysis are expected to be evidenced in every posting. 4. Reference the comments of other class members. 5. State questions and comments as clearly, logically, cohesively, and concisely as possible.
Element 3: Relevance of the Topic Give examples that complement your postings using personal or work experiences or something you have read or heard in the media. Present this element in a separate paragraph within your post. Your grade on the Discussion activity will be assessed according to your contribution to both the flow and quality of online Discussions. Effective participation shows both a concern for maintenance of the logical thread of the Discussion and for contributing appropriate and useful ideas. Quantity is far less important than quality. The Instructor reserves the right to determine the quality of the postings.
Berk, J., & DeMarzo, P. (2014). Corporate finance (3rd ed.). Boston, MA: Prentice Hall.
Chapter 1, “The Corporation,” pp. 2-20
The Role of the Corporation