Business Law Ethics

Case Study Below:

Uber and Lyft driversare classified as independent contractors, rather than employees. Companies are not legally obligated to provide workers who are classified as independent contractors with the benefits owedto regular employees. Therefore, Uber and Lyft drivers are not legally entitled tosick leave.In the current coronavirus pandemic, this may force drivers tomake a choice between driving andnot getting paid. Drivers canhave a range of reasonsthat make them fearful todrivein the current situation. Onedriver isHIV-positive andhas a weakenedimmune system, putting him at higher risk of severe symptoms ordeathif he contracts the virus. Another driverwas recently notified that he has been in contact with someone who tested positivefor coronavirus,and fears he maypose a risk to his passengers. A third driver has started coughing, sneezing, and has a slight temperature, and is worried that she may have the virus and could infect passengers.

Questions to be answered in the paper:

Please address the following questions (in the order given):

1) Contrast Shareholder Theory and Stakeholder Theory: How does each theory claim that a corporation should be managed? What is the goal or objective of corporate governance according to each theory?

2) Consider the brief case study outlined above. What would Shareholder Theory recommendcompanies like Uber and Lyft do in this case? What would Stakeholder recommend these companies do?

3) Was the Business Roundtable rightto issue the August 2019 statement in support of Stakeholder Theory (and rejectingtheir previous endorsement of Shareholder Theory)? Which theory offers the better approach? Why?

4) Which ethical framework (Utilitarianism or Deontology) justifies your view? Explain how theethical framework leads you to support one theory or the other.

Sample Solution