【正文】 ve solutions to existing problems. e. assumes the environment is unresponsive to input. 18B The mode of strategy formulation used when top management has a reasonably clear idea of the corporation39。s task environment and be prepared to juggle priorities in order to negotiate through a maze of conflicting demands. ? Ethical problems in organizations may be resolved by considering the utilitarian, individual rights, and justice approaches to ethical behavior.SUGGESTED ANSWERS TO DISCUSSION QUESTIONS1. When does a corporation need a board of directors?Given that a number of people do not consider the board of directors to have much of a role in a corporation39。s task environment can also provide invaluable information for strategic decisionmaking.2. Who should or should not serve on a corporation’s board of directors? What about environmentalists or union leaders?This is a wideopen question with no simple answer. Some may argue that representatives from each stakeholder group in the corporation39。 Separate the positions of CEO and Chairman so that top management cannot unduly influence the board39。 Nominate to the board those who have knowledge valuable to the board and who have expertise of value to top management. These should be people who will have the respect of top management and who can both advise and criticize top management as needed. iron law of responsibility, Carroll points out that a refusal to consider ethical responsibilities is likely to lead to an increase in a firm39。s mission?As stated in Chapter One, a corporation39。s mission statement typically includes both the corporation39。s philosophy, few people would agree that a business firm should fulfill only its economic and legal responsibilities and pletely ignore ethical ones. The same is not true of discretionary responsibilities, however. Since discretionary responsibilities are defined by Carroll as purely voluntary, there is no pressure by anyone for a business firm to fulfill them. One can argue, nevertheless, that there are three good reasons to undertake these kinds of responsibilities. The first reason is the morality rationale it may be the right thing to do, even though the pany may not benefit and may even be hurt in the short run. The second reason is enlightened selfinterest. If a firm undertakes a discretionary activity, it may gain shortrun advantages in the market place (., a pany offering free day care to its employees may attract more potential workers at lower wages). It may also serve as a role model for government to legislate if and when that responsibility moves from discretionary to ethical and finally to legal (and thus the firm is able to do things its way instead of the government39。 social responsibilities? Although it can be argued that the rights of current users of tobacco should be respected, is it appropriate that firms should try to attract new users who may not be aware of the risks of tobacco? Use the question of outlawing tobacco as a way of getting at the role of government in the relationship of business and society. Do otherwise laissezfaire, free enterpriseoriented students (who happen to be nonsmokers) call for government intervention on this issue? Try to get the students to assess the impact of their personal values and opinions on their social responsibility judgments.A4. Using Carroll39。s operations in terms of products/services offered and markets served. It tells who the pany is and what it currently does. A corporation39。s world?Milton Friedman contends that it is very appropriate. The quote from his classic article, The Social Responsibility of Business Is to Increase its Profits does suggest a certain modification, however, to pure laissez faire. He states that business should work to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free petition without deception or fraud. These rules of the game form the crux of the argument. What should these rules be and who should municate and enforce them? This leads directly into Archie Carroll39。s longterm efficiency? Using Carroll39。s ability to properly evaluate top management.s workforce in terms of race, sex, and age. Agency theory, in contrast, would suggest that these social considerations should not be reflected in board membership. Since, according to agency theory, the board exists to protect the interests of the stockholders, other constituencies (such as employees) should not be represented on the board.3. What remendations would you make to improve corporate governance?The answer to this question is not provided in the text. Some likely suggestions are the following:s quick response to opportunities and threats. Even in a publiclyheld corporation, the board may be posed of nothing but a few insiders who occupy key executive positions and few good old boy outsiders who go along with the CEO on all major issues. Nevertheless, the rationale for the board of directors seems to be changing from simply one of safeguarding stockholder investments to a broader role of buffering the corporation from its task environment and forcing management to manage strategically. If nothing else, the board can do the corporation a great service by simply offering to top management a different point of view. The board39。s strategic direction. ? In addition to fulfilling key roles and managing the strategic planning process, top management is responsible for providing executive leadership. ? The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit. ? Even though a business firm has economic and legal responsibilities (in agreement with Friedman39。s responsibilities. d. A statement of corporate objectives. e. The philosophy of the founder. 9A A goal differs from an objective bec