discussion paper 3 2

The paper must be at least two pages in length (double-spaced, 12-inch Times New Roman font, 1-inch margins). I do expect your paper to be at least that length. Do NOT write less than this or use bigger margins or fonts. You are certainly welcome to write more than two pages.

I also want to emphasize this is NOT a research paper. You should not use any outside sources or attempt to do research for this paper. Simply review the assigned readings and PowerPoint notes, reflect on the questions below, and write a paper that responds to those questions.

Last summer, in August 2019, the Business Roundtable issued a new statement on corporate governance. The Business Roundtable is an association of the CEO’s of America’s leading corporations, including Jeff Bezos (Amazon), Tim Cook (Apple), and Mary Bara (General Motors), among many others. The August 2019 statement was signed by nearly 200 CEO’s and commits to managing their corporations for the benefit of all stakeholders, including customers, employees, suppliers, communities, and stockholders. In other words, the statement is an endorsement of Stakeholder Theory, and represents a shift from the Roundtable’s previous endorsement of Stockholder Theory (a position it had endorsed for many years).

You can read about the Business Rountable statement here:
https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans

And you can read news coverage of this statement in the New York Times:
https://www.nytimes.com/2019/08/19/business/business-roundtable-ceos-corporations.html


Next, read Employee Relations at EDS and freeman stakeholder theory (I upload it down in the file ).

For the discussion paper, please address the following questions (in the order given):
1) Contrast Stockholder Theory and Stakeholder Theory: How does each theory say a corporation should be managed? What is the goal of corporate governance according to each theory?
2) Which theory of corporate governance do you think is better? Why? Was the Business Roundtable correct to support Stakeholder Theory (and reject their previous endorsement of Stockholder Theory)? Why or why not?
3) Consider the EDS case study. According to your preferred view of corporate governance (Stockholder Theory or Stakeholder Theory), were the company’s actions ethically acceptable in this case? Why or why not? (Here you need to analyze the company’s actions in terms of your preferred theory of corporate governance.)