Author Question: Is there any merit to AIG's claim that some of the apparently lavish activities in which it had been ... (Read 26 times)

joblessjake · **on:** Aug 11, 2018

Is there any merit to AIG's claim that some of the apparently lavish activities in which it had been engaged were standard industry practice?

It is difficult to cling to usual business practices when the act of receiving a massive federal
government bailout suggests that those practices are flawed. A new business environment required
new business sensibilities. In accepting the bailout, the company failed to realize that it was dealing
with powerful new stakeholders, taxpayers, and politicians.

Question 2

What benefits, if any, does Honeywell receive from the Got 2B Safe program?

What will be an ideal response?

mbcrismon · **Reply #1 on:** Aug 11, 2018

Answer to Question 1

It is difficult to cling to usual business practices when the act of receiving a massive federal
government bailout suggests that those practices are flawed. A new business environment required
new business sensibilities. In accepting the bailout, the company failed to realize that it was dealing
with powerful new stakeholders, taxpayers, and politicians.

Answer to Question 2

Businesses such as Honeywell depend on having good relationships with their stakeholders,
including consumers and investors. How well an organization conforms with accepted social
standards can and often does influence those relationships. Many consumers and investors are
attracted to companies with a strong record of social responsibility. According to the Reflective
Paradigm, good corporate citizenship helps organizations establish social legitimacy.