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    Sharvil Vora
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    This document discusses the role of businesses in modern society based on different models. It covers: - Corporate governance focused on shareholder supremacy and share price in liberal market economies. - Internal structures concentrate decision-making at the top and market relationships between workers and employers with generally weak unions. - Training focuses on general and certification over industry-specific skills. - Inter-company relations face strict antitrust regulations against collusion. It also discusses the principles of shareholder supremacy and Milton Friedman's view that the only social responsibility of business is to increase profits legally. Finally, it analyzes AstraZeneca and Pfizer's different strategic approaches to developing and pricing COVID vaccines.

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    This document discusses the role of businesses in modern society based on different models. It covers: - Corporate governance focused on shareholder supremacy and share price in liberal market economies. - Internal structures concentrate decision-making at the top and market relationships between workers and employers with generally weak unions. - Training focuses on general and certification over industry-specific skills. - Inter-company relations face strict antitrust regulations against collusion. It also discusses the principles of shareholder supremacy and Milton Friedman's view that the only social responsibility of business is to increase profits legally. Finally, it analyzes AstraZeneca and Pfizer's different strategic approaches to developing and pricing COVID vaccines.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views12 pages

    WS 3 Intro

    Uploaded by

    Sharvil Vora
    This document discusses the role of businesses in modern society based on different models. It covers: - Corporate governance focused on shareholder supremacy and share price in liberal market economies. - Internal structures concentrate decision-making at the top and market relationships between workers and employers with generally weak unions. - Training focuses on general and certification over industry-specific skills. - Inter-company relations face strict antitrust regulations against collusion. It also discusses the principles of shareholder supremacy and Milton Friedman's view that the only social responsibility of business is to increase profits legally. Finally, it analyzes AstraZeneca and Pfizer's different strategic approaches to developing and pricing COVID vaccines.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 12

    Workshop 3

    The role(s) of business in modern society


    LMEs
    • Corporate governance: equity-based financing and “shareholder
    supremacy”, active market for M&As; share price important for the
    access to capital and firm survival; executive compensation largely tied
    to share price
    • Internal structure/employees: decision-making authority is
    concentrated at the top
    • Industrial relations: market relationship between the individual worker
    and employer; hire and fire; trade unions generally weak
    • Training and education: focus on certification rather than
    competencies; general skills, as opposed to more industry-specific
    skills;
    • Inter-company relations: rigorous antitrust regulations against
    collusion and industrial networks
    Principles of “shareholder supremacy” permeate the very
    fabric of management.
    “Shareholder Supremacy”
    “There is one and only one social
    responsibility of business–to use
    its resources and engage in
    activities designed to increase its
    profits so long as it stays within
    the rules of the game, which is to
    say, engages in open and free
    competition without deception or
    fraud.” Milton Friedman

    https://www.aei.org/carpe-diem/ten-classic-milton-friedman-quotes/
    ESG Framework: Environment, Social sphere,
    Governance
    “Who cares wins – “Better consideration of
    connecting financial environment, social and
    markets to a changing governance factors will
    world” ultimately contribute to
    United Nations Global stronger and more resilient
    Compact investment markets as well as
    contribute to the sustainable
    development of societies”
    (UNGC, 2004)
    “S” within the ESG Frameworks

    UN PRI – UN Principles for Responsible Investment;


    SASB – Sustainability Accounting Standards Board;
    GRI- Global Reporting Initiative

    Source: Twentyman, J., A. Jolly, and S. Franklin (2021) “Putting the ‘s’
    into ESG,” Slaughter and May

    https://my.slaughterandmay.com/insights/client-publications/putting-the-s-into-esg
    Case Study: COVID-19 Pandemic
    “Two Frontrunners”: Different Strategic Approaches
    AstraZeneca Pfizer
    • It was selling its Oxford-based • It made nearly $37bn (£27bn) in sales
    vaccine without profit during from its Covid-19 vaccine last year –
    the global pandemic making it one of the most lucrative
    products in history
    • Pascal Soriot (the CEO): “We
    • The group Global Justice Now:
    saved a million lives, and accusations of “pandemic profiteering”
    millions of hospitalisations.
    • Albert Bourla (the CEO): it had
    Mostly we’ve been used in “committed to use all of the resources
    emerging markets.” and expertise we had at our disposal to
    • AZ’s $1.1bn vaccine revenues help protect populations globally
    in the 3rd quarter of 2021 were against this deadly virus”
    far below the sales made by US • R&D is expensive, a need to
    rivals Pfizer ($13bn) and “futureproof” it
    Moderna ($4.8 bn). • A signal to “health entrepreneurs” to
    foster innovation
    • Shareholder revolt
    Sources:
    • Donald W Light and Joel Lexchin. The costs of coronavirus vaccines
    and their pricing. Journal of the Royal Society of Medicine; 2021, Vol.
    114(11) 502–504
    • https://www.bbc.co.uk/news/av/health-59490619
    • https://www.theguardian.com/business/2022/feb/08/pfizer-covid-
    vaccine-pill-profits-sales
    • https://www.theguardian.com/business/2021/nov/12/astrazeneca-
    sells-22bn-of-covid-vaccine-in-first-nine-months
    Discussion

    • Which strategy is more effective from the societal


    perspective?

    • What are the main roles of business organizations in


    the post-COVID19 world?

    9
    Next Week’s Workshop
    ➢Digital revolution and the future of work

    https://network.business.leeds.ac.uk/digitalis
    ation-and-the-future-of-work/#
    Next Week’s Tutorials

    • Embraer
    Thank you!

    Questions?

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