Ethics and Firm's Goals
Agency Problems: The shareholders of a corporation are its owners, and these oweners control management by electing a board (with most smaller shareholders voting "by proxy" or not really voting at all) that oversees the executive positions in the corporation, who in turn oversee the operations and management of the firm. An agency relationship exists to separate the personal liabilities of the shareholders/owners and the actions/resources of the corporation, which can create significant problems of accountability -- namely, the lack of people that can be held accountable for the corporation.
Goal of the Firm: It is true that managers of a corporation should not focus solely on stock price, as current prices reflect only short-term assessments and do not adequately take into account long-term goals and potentials, but stock price is...
158). These five life cycles are described further in Table 1 below. Table 1 Five Life Cycle Model for Reviewing and Improving Ethics Programs in NPO Consultancies Life Cycle Stage Description Entrepreneurial This stage is primarily concerned with identifying the goals and the means. Key components of this stage are identifying needs and intended uses for outcomes assessment results, identifying key audiences and obtaining their support, shifting modes of thinking from input measures to output
Ethics in Contracting Government is full of many hundreds and thousands of people earning their living through service. It is important that this idea of service is kept in mind as the collective purpose should supersede that of the individual who has chosen to work for the government. The idealism behind organized governments warrant an ethical code to help ensure the sanctity of government is preserved. This moral imperative is stressed
Accepting Client Assignments Outstanding client service begins with a full understanding of the client organization, its business needs and the position to be filled. An AESC member should: Accept only those assignments that a member is qualified to undertake on the basis of the member's knowledge of the client's needs and the member's ability to perform the specific assignment. Disclose promptly conflicts of interest known to the AESC member and accept assignments only
Contemporary agency theory dictates that managers only act in the interest of maximizing shareholder (owner) wealth (Roberts, 2004). This standard can be reasonably viewed as the minimum ethical standard that the president of a company should have. Taking this view, Thomas Koltun is essentially in damage control mode. Because of the mistakes of the company in the past, Koltun is faced with significant downside risk from mishandling this situation. It
Ethics Review Committee -- Crisis Management Ethics Review Committee Relative Values of Proactive and Reactive Thinking in Determining an Action Plan The first consideration is to limit immediate and future damages to the firm. Two courses of action must be undertaken: Crisis communications and client relationship management. Both action plans will require consultation with the Legal Department and the Compliance Department. Crisis Communications A position of managing the company's reputation and ensuring it survival must
In the former approach, tradable goods, money or services are exchanged between buyers and sellers at a rate that is agreeable to all parties. This approach assumes both the buyers and sellers have enough money, services or goods to have their needs met. The latter approach, public provision, is when all is available to those on an as-needed basis. The Pharmaceutical and Manufacturing Association warns that whenever there is government
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