Question

5) Considering "Who Rules the Corporation?", (i) provide an account of why the authors view most corporations as undemocratic and attempt to spell out what they seem to view as "undemocratic", (ii) outline their view for a more properly democratic model of corporate governance, (iii) elucidate three arguments, not found in the article, for why a more democratic model of corporate governance is more ethical than one which is less democratic, and (iv) elucidate three arguments, not found in the article, for why democratic models of corporate governance may not be the best models (explain for whom or in terms of what) to which we should aim.

Answer 1

i. It is said that most of the corporation are undemocratic. It is because the corporations are led by the private ownership. Besides, in the big sectors the major share holder has great power nd influence. Therefore, most of the attempts are undemocratic in the corporate sectors.

ii. In the corporate governance there should be a board of members. In the board of members the representatives from all the sectors should be selected. They should be efficient in various fields. When a policy is taken, there goes a fair discussion and all the members review the matter very seriously. Then with the approval of the members the decision is taken and implemented.

iii. It is ethical because:

• All are paid proper respect.
• All are imparted in the work and all are credited for success.
• A sense of responsibility grows in all

iv. It may not be the best policy because:

• Democratic model may delay the plan and program.
• For the democratic model, secret plan may be leaked out.
• There may appear more conflict among the members.