ADM 1301 Study Guide - Profit Maximization, Canadian Business, Canadian Federalism

• School: University of Ottawa
• Department: Administration
• Course: ADM 1301
• Professor: All

Document Summary

Oecd suggests a stakeholder" approach to governance. Who are stakeholders: any group or individual who is affected by or can affect the achievement of an organization"s objectives (freeman: 1984) A stakeholder approach means operating in a socially responsible way in other words, business has a responsibility beyond profit maximization. A condition in which there is diffusion of power among society"s many groups and organizations a wide decentralization and diversity of power concentration. Individuals and groups with a multitude of interests, expectations, and demands as to what business should provide to society. Shareholder viewpoint: a business exists to make money greatest efficiency is achieved through profit maximization, > profits, > taxes paid to government for use in dealing with social issues, property rights theory (corporation owned by shareholders) Management must identify generic stakeholder groups and specific subgroups. Challenges and action on how the firm handles stakeholders.