Question 1Match each of the director’s viewpoints in the case study with the corresponding academic below who advocated for that viewpoint as per Business Ethics 6th Edition, Chapter 7: Milton FriedmanChristopher StonePeter FrenchEdward FreemanKenneth GoodpasterStructure your answer as follows: With whom of the 5 academics in 1.1. above about the role of the modern corporation in society do you agree with most? I.e. whose viewpoint do you support most or aligns the best with your own stance about the role of the modern corporation? Select one person only and explain your answer in detail. Note that this question does not require you to agree 100% with any of the academics: only the one you agree with most.Question continues on next page…Explain why potential problems could arise if Dithaba were to implement the views of Mr Bryan Butan, and thereby run the company according to his stance of treating all stakeholders exactly equally. Include reference to the needs and expectations of the following stakeholders in your answer: shareholders, employees, customers, tax authorities.Create arguments as to why companies themselves should be held morally liable for the decisions taken by individuals in the company, instead of holding only the human decision-makers liable.State possible consequences for Dithaba Construction if the conflicting views of the directors about the strategic direction of the company are not resolved.Question 2Imagine you are a shareholder with a significant shareholding in a large company listed on the JSE. Assume you are invested for long-term gains (say, five years plus) and NOT for short-term gains (say, less than one year). Describe, for each of the following stakeholders, why it could be in your best long-term financial interest if the company you have invested in ensures that the legitimate needs of each of these stakeholders are met. Assume no conflict of needs between these stakeholders. Structure your answer as follows:In your personal opinion, do you think South African companies, in general, care about the legitimate needs of society (customers, communities, etc.) and the natural environment (habitat protection, wildlife protection, minimising pollution and waste, etc.)? Elaborate on your answe

Question

Question 1Match each of the director’s viewpoints in the case study with the corresponding academic below who advocated for that viewpoint as per Business Ethics 6th Edition, Chapter 7: Milton FriedmanChristopher StonePeter FrenchEdward FreemanKenneth GoodpasterStructure your answer as follows: With whom of the 5 academics in 1.1. above about the role of the modern corporation in society do you agree with most? I.e. whose viewpoint do you support most or aligns the best with your own stance about the role of the modern corporation? Select one person only and explain your answer in detail. Note that this question does not require you to agree 100% with any of the academics: only the one you agree with most.Question continues on next page…Explain why potential problems could arise if Dithaba were to implement the views of Mr Bryan Butan, and thereby run the company according to his stance of treating all stakeholders exactly equally. Include reference to the needs and expectations of the following stakeholders in your answer: shareholders, employees, customers, tax authorities.Create arguments as to why companies themselves should be held morally liable for the decisions taken by individuals in the company, instead of holding only the human decision-makers liable.State possible consequences for Dithaba Construction if the conflicting views of the directors about the strategic direction of the company are not resolved.Question 2Imagine you are a shareholder with a significant shareholding in a large company listed on the JSE. Assume you are invested for long-term gains (say, five years plus) and NOT for short-term gains (say, less than one year). Describe, for each of the following stakeholders, why it could be in your best long-term financial interest if the company you have invested in ensures that the legitimate needs of each of these stakeholders are met. Assume no conflict of needs between these stakeholders. Structure your answer as follows:In your personal opinion, do you think South African companies, in general, care about the legitimate needs of society (customers, communities, etc.) and the natural environment (habitat protection, wildlife protection, minimising pollution and waste, etc.)? Elaborate on your answe

Answer 1

Question 1

- Milton Friedman: Kenneth Goodpaster
- Christopher Stone: Peter French
- Peter French: Edward Freeman
- Edward Freeman: Christopher Stone
- Kenneth Goodpaster: Milton Friedman

With whom of the 5 academics in 1.1. above about the role of the modern corporation in society do you agree with most? I support the viewpoint of Edward Freeman the most. Edward Freeman's stakeholder theory advocates for companies to consider the interests of all stakeholders, not just shareholders, in their decision-making process. I believe that businesses have a responsibility to not only create value for shareholders but also to consider the impact of their actions on employees, customers, suppliers, and the community at large. By taking into account the needs and expectations of all stakeholders, companies can create long-term sustainable value and contribute positively to society.

Potential problems could arise if Dithaba were to implement the views of Mr. Bryan Butan and treat all stakeholders exactly equally. Shareholders may be concerned that their returns on investment could be negatively impacted if resources are allocated evenly among all stakeholders, rather than prioritizing profit maximization. Employees may feel undervalued if their needs are not given appropriate consideration, leading to decreased morale and productivity. Customers may also be dissatisfied if the quality of products or services is compromised in an attempt to please all stakeholders equally. Additionally, tax authorities may question the company's financial management practices if they perceive a lack of focus on profitability.

Companies should be held morally liable for the decisions taken by individuals in the company because ultimately, it is the company as a collective entity that benefits from the actions of its employees. By holding the company accountable for the decisions made by its employees, there is an incentive for the organization to promote ethical behavior and ensure that all actions align with the company's values and principles. This can help prevent unethical behavior and protect the company's reputation in the long run.

Possible consequences for Dithaba Construction if the conflicting views of the directors about the strategic direction of the company are not resolved include internal discord and inefficiencies. If the directors are unable to come to a consensus on the company's direction, it may lead to confusion among employees and hinder effective decision-making. This could result in decreased performance, loss of competitive advantage, and ultimately, harm the company's bottom line.

Question 2

- Employees: Ensuring that employees are satisfied and well taken care of can lead to higher productivity, lower turnover rates, and a positive work culture, ultimately benefiting the company's financial performance in the long run.
- Customers: Meeting the legitimate needs of customers, such as providing high-quality products and excellent customer service, can lead to customer loyalty, repeat business, and positive word-of-mouth referrals, driving revenue growth and long-term profitability.
- Communities: Building strong relationships with communities through corporate social responsibility initiatives, environmental stewardship, and community engagement can enhance the company's reputation, attract top talent, and create a positive brand image, which can lead to increased market share and competitive advantage.

In my personal opinion, I believe that some South African companies do care about the legitimate needs of society and the natural environment. However, there is still room for improvement in terms of corporate social responsibility practices, environmental sustainability, and ethical business conduct. It is important for companies to prioritize the well-being of all stakeholders and demonstrate a commitment to social and environmental responsibility in order to build trust, enhance their reputation, and create long-term value for both the company and society.