Assessment Questions (700 words)

Based on a review of their available and the companies (IKEA) 2022 Annual Sustainability Report.

Key knowledge:

aware of stakeholder theory and the development.

Development of sustainability

Look at sustainability report

Understand company sustainability and stakeholder interests.

1) Why do directors have an obligation to maximise shareholder value? Please explain your answer. (5 marks)

Hints:

1.1 Look to the meaning of a corporation.

1.2 To understand what is the meant by shareholder value?

1.3 How corporate behave? Means there are the basic obligations of corporation.

1.4 Why Directors have an obligation to maximize shareholders value? (refer The Milton Friedman vs Edward Freeman),

1.5 shareholders value has begun to change from past profit, value, dividends to now a date social, ethical behaviour. Shareholders demand better standards other than money from corporation (refer to Rio Tinto case)

1.6 The relationship between shareholders and directors

1.7 Why directors have obligation to shareholders?

1.8 What is shareholders do for a company?

2) Does the company incorporate sustainability considerations and stakeholders interests into its values, mission, or purpose statement? Please elaborate. (5 marks)

Hints:

2.1 mainly focus on sustainability and stakeholder interest. So link sustainability with stakeholder interest.

2.2 Thats perhaps true, based on corporate history.

2.3 Edward freeman: stakeholder theory.

3) What types of stakeholders interests does the company address via its public disclosure?(5 marks)

Hints:

3.1 Public disclosure (look to Company Website, sustainability report, annual report)

3.2 mission statement (Purpose, value)

provide 5 referencing.