Question 1

The associational unionism model is based on a model of exclusive representation.

Accepted Answer

Associational unionism is based on a model where unions act more as associations providing services and advocacy for their members, rather than operating on the principle of exclusive representation, where a single union represents all employees in a bargaining unit.

Question 2

Employee empowerment unionism uses the solidarity of employee to negotiate explicit wage rates tied to jobs, not individuals.

Accepted Answer

Employee empowerment unionism focuses on giving employees a voice and influence in their work environment, rather than solely negotiating wage rates tied to specific jobs. It emphasizes collective bargaining, workplace democracy, and employee participation in decision-making processes.

Question 3

Associational unions can strike but they also use political pressure and poor publicity to pressure employers to meet their demands.

Accepted Answer

Associational unions have the right to strike, but they also have other tools at their disposal, including political pressure and negative publicity, to try to influence employers to meet their demands.

Question 4

Businesses that adopt the shareholder model must, by definition, pursue short-run profits.

Accepted Answer

The shareholder model focuses on maximizing shareholder value, which can include pursuing long-term growth and sustainability strategies, not just short-run profits.

Question 5

The view that the primary concern of business should be to maximize shareholder wealth is rooted in the belief that property rights should take precedence over other types of rights .

Accepted Answer

The view that the primary concern of business should be to maximize shareholder wealth is based on the idea that shareholders have property rights in the company and should be the primary beneficiaries of business decisions. This perspective assumes that property rights are more important than other types of rights, such as social or environmental concerns.

Question 6

When unions are weak, a willingness to cooperate with management will probably be a very effective way to increase efficiency, equity and voice.

Accepted Answer

When unions are weak, management often has more power and control over the workplace. In this situation, a willingness to cooperate with management may lead to management taking advantage of their power and imposing exploitative or unfair practices on workers. Without a strong union to represent their interests, workers may be less able to negotiate for better wages, benefits, or working conditions. Additionally, a lack of union representation may mean that workers' voices are not heard or considered in workplace decision-making, leading to a less democratic and participatory workplace. Therefore, a willingness to cooperate with management is not necessarily an effective way to increase efficiency, equity, or voice when unions are weak.

Question 7

Executive stock option plans encourage businesses to take a more long run approach to profit maximization.

Accepted Answer

The answer of Executive stock option plans encourage businesses to...

Question 8

Workers with multiple interests often join professional associations to serve their interests, rather than labor unions. Professional associations, however, usually lack the power or an interest in improving the workplace.

Accepted Answer

Professional associations typically focus on providing resources, networking opportunities, and continuing education for their members, rather than negotiating labor contracts or advocating for workplace improvements. This means that while they may serve the interests of workers with multiple interests, they may not be as effective as labor unions in improving the workplace.

Question 9

Union pension funds are prohibited from using their standing as stockholders to influence corporate strategies and governance.

Accepted Answer

Union pension funds are actually allowed to use their standing as stockholders to influence corporate strategies and governance through shareholder activism.

Question 10

Unions are starting to push their agendas by pursing investment strategies that reinforce a broader social agenda rather than just simple short-term profits.

Accepted Answer

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Question 11

In the shareholder model of corporate governance, shareholder satisfaction should be the primary concern of a company.

Accepted Answer

The answer of In the shareholder model of corporate governance,...

Question 12

The model of shareholder value maximization and financialization has resulted in increased capital investment or a "retain and reinvest" strategy.

Accepted Answer

The model of shareholder value maximization and financialization has actually resulted in a "maximize shareholder return" strategy which often involves prioritizing short-term profits and returning excess cash to shareholders through dividends and stock buybacks, rather than reinvesting it back into the company's long-term growth and development. This has led to a decrease in capital investment and a focus on increasing shareholder value instead.

Question 13

Although there are not many ESOPs in the U.S. at the present time, those that exist usually have employee representation on corporate board of directors.

Accepted Answer

While ESOPs (Employee Stock Ownership Plans) are relatively common in the U.S., it is not a standard practice for them to automatically include employee representation on corporate boards of directors. The decision to include employees on the board is up to each individual company and is not a direct consequence of having an ESOP.

Question 14

Financialization is a business strategy that focuses on implement cost-cutting measures followed by leveraged buyouts.

Accepted Answer

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Question 15

A stakeholder perspective argues that while shareholders have important rights, there are other constituents toward whom a company should demonstrate responsibility and concern.

Accepted Answer

A stakeholder perspective takes into account the interests of various groups, such as employees, customers, suppliers, communities, and the environment, in addition to shareholders. It argues that a company should not prioritize the interests of shareholders at the expense of other stakeholders, but rather balance and integrate the diverse expectations and needs of all parties. Therefore, a stakeholder perspective supports the idea that companies have social and ethical responsibilities beyond maximizing profits for shareholders.

Question 16

Financialization is a term used to describe the shareholder models' emphasis on short term profits rather than, say, the delivery of valued or needed goods and services.

Accepted Answer

Financialization refers to the prioritization of financial activities and short-term profit maximization over other factors such as producing valuable goods and services.

Question 17

The union model typically used in professional sports and entertainment is employee empowerment unionism.

Accepted Answer

Employee empowerment unionism, also known as business unionism or company unionism, is a model where the union works collaboratively with management to improve working conditions and productivity. This model is commonly used in professional sports and entertainment industries.

Question 18

Strong, institutionally secure unions are more likely to engage in militant, adversarial and potentially violent acts than weak, insecure unions.

Accepted Answer

Weak, insecure unions are more likely to engage in militant, adversarial and potentially violent acts because they feel they have less to lose and are fighting for survival. Strong, institutionally secure unions have established channels for negotiation and dispute resolution, so they are less likely to resort to extreme measures.

Question 19

The principle of exclusive representation is inconsistent with the associational model of unionism.

Accepted Answer

The principle of exclusive representation limits workers' ability to form and join multiple unions, which goes against the associational model of unionism, which encourages workers to form multiple associations to pursue their interests. Therefore, the principle of exclusive representation is inconsistent with the associational model of unionism.

Question 20

A utilitarian and libertarianism ethics point of view is likely to see business' sole concern as profit generation rather than maximizing stakeholder interests.

Accepted Answer

Utilitarian and libertarianism ethics prioritize the individual's right to pursue their own interests and goals, which in the case of business, is profit generation. They may value stakeholder interests, but only to the extent that it ultimately leads to greater profits.

Quiz 13: What Should Labor Relations Do