3.1 Out of Crisis: Innovations in the 1980s and Beyond

3.1 Out of Crisis: Innovations in the 1980s and Beyond

We saw in the last video the 1980s was a decade of profound shifts, many of which are still felt in today’s economy. Another shift that has occurred pertains to the very nature of the corporation: to whom should corporations be responsible? Should corporations be responsible only to their shareholders, or to employees and society as well? This question is highly controversial and, interestingly, ideas about it have fundamentally changed over time.

After watching the video and answering the questions below, move on to the next video, in which Professor Kochan interviews former executive John Reed for his view on these important and timely questions.

Video: The Purpose of the Corporation

Attentiveness Question 1

 Maximizing shareholder value at all costs  close
 Meeting needs of multiple stakeholders  check

Attentiveness Question 2

 Duty to stockholders  check
 Duty to employees  close
 Duty to customers  close
 All of the above  close

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