PHIL 2600 Lecture Notes - Lecture 9: Puffery, Industrial Espionage, Predatory Pricing
1 Apr 2017
School
Department
Course
Professor
Document Summary
Stakeholder of a corporation is an individual or a group that either is harmed by or benefits from the corporation or whose rights can be violated, or have to be respect, by the corporation. Organizations and their suppliers can be seen as mutually dependent. So, businesses should not be seen as isolated islands of economic activity, but as actors operating within a web of other businesses, bound by mutual interests and interlinked flows of resources and rewards. Firms thus best understood as part of industrial network. Supplier relationship as part of an industrial network. Resource dependence theory can help understand relative power of buyer and seller. Doesn"t fit easily with economic view of firm, but can create mutually beneficial outcomes. A conflict of interest occurs when a person or organization"s obligation to act in the interests of another is interfered with by a competing interest that may obstruct the fulfilment of that obligation.
