- <Video: What Changed in the 1980s and Why Should We Care?
- 3.1.1Video: Week 3 Introduction
- 3.1.2Video: What Changed in the 1980s and Why Should We Care?
- 3.1.3Video: The Purpose of the American Corporation
- 3.1.4Video: The Changing Role of the Corporation
- 3.1.5Video: The Rise and Fall of Saturn
- 3.1.6Video: High Performance Work Systems
- 3.1.7Video: Market Basket Case with Zeynep Ton
- 3.1.8Video: Holding Global Corporations Accountable
- 3.1.9Video: Alternatives to the Traditional Corporation
- 3.1.10Video: High School and College: Necessary but Not Sufficient
- 3.1.11Video: Life Long Learning: Moving from Rhetoric to Reality
- \>Video: The Changing Role of the Corporation
We saw in the last video the 1980s was a decade of profound shifts, many of which are still felt in today’s economy. Another shift that has occurred pertains to the very nature of the corporation: to whom should corporations be responsible? Should corporations be responsible only to their shareholders, or to employees and society as well? This question is highly controversial and, interestingly, ideas about it have fundamentally changed over time.
After watching the video and answering the questions below, move on to the next video, in which Professor Kochan interviews former executive John Reed for his view on these important and timely questions.
Video: The Purpose of the Corporation
Attentiveness Question 1
Is Xerox an example of a firm that focuses solely on maximizing shareholder value or meeting the needs of multiple stakeholders?
Explanation
As discussed in the video, Xerox tries very hard to meet the needs of multiple stakehlders, including its employees.
Exercise 1
Maximizing shareholder value at all costs
Meeting needs of multiple stakeholders
CheckShow Answer
Attentiveness Question 2
In the mid to late 1990s, the view of the purpose of the corporation changed. According to the video, what became the new view of the primary duties of the corporation?
Explanation
Many corporations became primarily interested in providing short-term benefits to their stockholders.
Exercise 2
Duty to stockholders
Duty to employees
Duty to customers
All of the above
CheckShow Answer