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23 Cards in this Set
- Front
- Back
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Types of stockholders - stockholders directly own shares of stock issued by companies – “Main Street” investors |
Individual |
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Types of stockholders - such as pension funds, mutual funds, insurance companies, and university endowments (and the US government itself during the Great Recession) – “Wall Street” investors |
Institutions |
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In 2010, what accounted for 63% of the value of all U.S. stocks, worth $15 trillion – eight times the value of institutional holdings two decade earlier |
Institutions |
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Committees: Compensation, Executive, Nominating, Audit |
Board of Director Committees |
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Vary in size, composition, and structure to best serve the interests of the corporation and shareholders |
Board of Directors |
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Elected by shareholders at the annual meeting, where absent owners vote by proxy |
Board members |
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Represents 34 nations, issued revised principles of corporate governance to serve as a benchmark for companies and policy makers worldwide |
OECD |
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An OECD 2009 report concluded that the financial crisis affecting its member states had been caused by failures of |
Corporate Governance |
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The use of stock ownership as strategy for promoting social objectives – social responsibility investment |
Social investment |
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What is it called when stock purchasers choose stocks based on social or environmental criteria, |
Social screens |
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An issue of corporate social responsibility placed before stockholders for a vote at company’s annual meeting |
Social responsibility shareholder resolutions |
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Government agency (est. 1934) charged with protection of stockholder interests by ensuring that stock markets are run fairly and that investment information is disclosed |
SEC |
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Occurs when a person gains access to confidential information about a company’s financial condition and then uses that information, before it becomes public knowledge, to buy or sell the company’s stock |
Insider Trading |
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Right: Protection against misleading advertising, labeling; given facts to make an informed purchasing decision |
The right to be informed |
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Right: Protection against goods hazardous to health or life |
The right to safety |
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Right: Access to a variety of products and services at competitive prices |
The right to choose |
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Right: Assurance that consumer interests will receive fair consideration in government policy and courts |
The right to be heard |
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Right: Assurance that information disclosed in a commercial transaction is not shared with others |
The right to privacy |
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Doctrine under which the U.S. courts hold manufacturers responsible for injuries resulting from use of their products, whether or not they were negligent or breached warranty |
Strict liability |
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Passed in 1970, this act gives workers the right to job “free from recognized hazards that are causing or likely to cause death or serious physical harm” |
Occupational Safety and Health Act |
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When an employee believes employer has done something wrong or harmful to the public, and reports the alleged misconduct to the media, government, or high-level company officials |
Whistle-blowing |
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1. Organization is engaged in something of serious harm to others2.Employee has tried and failed to resolve the problem internally3.Reporting the problem publicly will probably prevent the harm4.The harm is serious enough to justify the probable costs of disclosure to the whistle-blower |
Conditions that typically justify whistle-blowing |
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Govern world-wide operations for child labor, maximum work hours, wage standards – voluntary compliance (conduct codes and NGOs) |
Fair Labor Standards |
