Social Irresponsibility in Management



Appendix D: Description of the Roles for the Democratic Board

The roles for the Chairman, President, and Stockholder are exactly the same as in Appendix C. The
four new roles are as follows.

Public Representative You have been selected by the Mayor to represent the community interests.
The Mayor had to find someone who would represent all groups in the local community and your
decisions are reported in the local papers. Prior to the meeting, you had not been able to think of any
major impact which the ban on Panalba might have. True, there will be some impact upon the
employment level but the community is so large that this would be very minor. You hold no shares of
Upjohn stock.

Suppliers’ Representative You represent the organizations that sell goods and services to Upjohn.
Upjohn, of course, represents only a small part of each supplier’s sales. And if the purchase were
instead made by a competitor of Upjohn, the firm would also obtain its supplies from the firms which
you represent. Your job is to try to make sure that the suppliers receive fair treatment. Whether or not
Panalba will stay on the market is of little importance to the suppliers. You hold no shares of Upjohn
stock.

Consumer Representative You are elected by a consumer’s group. Your job is to ensure that the
interests of the consumer are protected. Your decisions are widely reported by the press and by such
groups as Consumer’s Union. You have reviewed the evidence behind the Panalba case and you feel
that the background information which was sent to the members provides a fair picture of the effect of
Panalba upon consumers. You hold no shares of Upjohn stock.

Employee Representative You have been elected by the employees and they expect you to
represent their interests. You have been a director since 1969. You’ve given some thought as to what
would happen if Panalba were to be banned from the market. Approximately 200 jobs would be
eliminated (out of the roughly 5,000 jobs at Upjohn). Naturally, your constituents won’t be too happy
about this. You hold no shares of Upjohn stock.

23



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