Question

In a for-profit organization, it is the primary objective of the to oversee the organization's business activities and management for the benefit of shareholders, employees, customers, suppliers, and the community. a. negotiator b. board of directors c. corporate ethics officer d. corporate compliance officer

Answer 1

The primary objective of the board of directors in a for-profit organization is to supervise the company's management and business affairs for the benefit of shareholders and other stakeholders. Corporate governance involves the board, auditing firms, and large investors. However, potential conflicts of interest between executives and board members can compromise this governance, as exemplified by Lehman Brothers' failure.

Step-by-step explanation:

Role of the Board of Directors in For-Profit Organizations

In a for-profit organization, the primary objective of the board of directors is to oversee the organization's business activities and management for the benefit of various stakeholders, including shareholders, employees, customers, suppliers, and the community. The board of directors, which is elected by the shareholders, serves as the first line of corporate governance and oversight for top executives. Additionally, auditing firms and outside investors, particularly those with substantial holdings like mutual funds and pension funds, also play key roles in corporate governance.

However, there can be conflicts of interest since top executives often have significant influence over the selection of board members, potentially leading to cases where corporate governance does not function effectively, as seen in the downfall of Lehman Brothers.

Apart from the board of directors, the roles of a corporate ethics officer and a corporate compliance officer are to ensure that the organization adheres to ethical codes and complies with legal and regulatory standards, respectively. These positions are crucial for maintaining corporate integrity and trustworthiness.

Answer 2

The correct answer is:

b. Board of directors

Here's an explanation of why the board of directors is the correct answer:

The board of directors is a group of individuals elected by shareholders to oversee the management and operations of a for-profit organization. The primary objective of the board of directors is to act in the best interests of various stakeholders, which include:

1. Shareholders: The board is responsible for making decisions that enhance shareholder value and protect their interests. This includes making strategic decisions, appointing executives, and ensuring that the company operates efficiently and profitably.

2. Employees: The board plays a role in setting policies related to employee welfare, compensation, and overall workplace conditions. It ensures that the organization provides fair and safe working environments.

3. Customers: The board oversees the company's strategic direction, including product and service offerings, to meet the needs and satisfaction of customers.

4. Suppliers: The board ensures that the organization maintains ethical and fair relationships with suppliers and that the supply chain operates smoothly.

5. Community: The board considers the social and environmental impact of the organization's activities on the community and makes decisions that align with corporate social responsibility (CSR) goals.

While negotiators, corporate ethics officers, and corporate compliance officers play important roles in various aspects of a for-profit organization's operations, the primary responsibility for overseeing and governing the organization for the benefit of all stakeholders falls on the board of directors.