Corporate Scandals [11.1 - Luke]
This 1920’s scheme created a vicious cycle of paying returns to current investors with funds from new ones and became a coined phrase for such fraudulent activities.
What is a Ponzi Scheme?
This term refers to measuring the impact of a firm’s actions in regards to corporate social responsibility.
What is Corporate Social Performance?
This is the group of individuals who have the power to hire & fire a CEO.
What is the board of directors?
This nomenclature refers to those who make $10,000USD annually and make up the majority of earth’s population.
What is the Bottom of the Pyramid?
This federal legislation helped provide financial reform in the wake of multiple corporate scandals.
What is the Sarbanes-Oxley Act?
This responsibility of Corporate Social Responsibility includes setting aside funds for social/community projects, like donating to a non-profit.
What is Philanthropy?
This occurs when a publicly traded firm loses value and is purchased by another firm.
What is a takeover?
It is one of the most contentious questions around outsourcing production to other countries. US companies are more strict with foreign third parties on this issue than others.
What is child labor?
CEOs must do this with every tax return to signify no tax fraud is present in their firm.
What is signing the tax return?
This business model is becoming more frequently used by companies, where society’s needs and challenges are addressed as said company prospers when achieving their mission.
What is the Creating Shared Value Model?
A corporation may experience this when the interests of the managing agents do not align with the interests of the owners.
What is an agency problem?
The percentage of people living in this type of poverty has fallen at around 1% per year since 1990.
What is extreme poverty/absolute poverty?
The goal of this is to enhance the success of the business by improving the community in which the organization operates.
What is Corporate Social Responsibility?
This dimension of Corporate Social Performance (CSP) examines factors like union relations, health and safety compliance, and employee benefits.
What is the Employee Relations dimension?
This is the term for the situation in which the CEO is also the chairman of the board of directors.
What is CEO Duality?
There is debate over whether this practice, which could cost millions, is a driver of innovation and job creation or a needless bureaucratic weight.
What is environmentally updating manufacturing?