Why Do Investors Expect a Firm to Act Ethically and Exhibit

question 57

Essay

Why do investors expect a firm to act ethically and exhibit social responsibility?

Understand the basic concepts of organizational structure and its impact on organizational behavior and effectiveness.

Identify and describe the main characteristics of different organizational forms such as bureaucracy, adhocracy, and professional bureaucracy.

Analyze the effects of organizational size, complexity, and life cycle on structure and design.

Distinguish between mechanistic and organic structures and their applicability in various organizational settings.

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Definitions:

State Law

Legislation enacted by individual states that governs within the state's boundaries, as opposed to federal law which governs at the national level.

Franchise Relationships

Legal and commercial bonds formed between a franchisor and franchisee, where the franchisor licenses its trade name and operations model to the franchisee.

Federal Trade Commission's Franchise Rule

A regulation established by the FTC that requires franchisors to provide all potential franchisees with a disclosure document containing important information about the franchise.

Material Facts

Important information that could influence decisions or outcomes in legal, financial, or other professional contexts.