Unethical 'Best Practices' One of the key aspects of moral leadership is to balance between creating positive relationships with followers and ensuring that they do exactly what is expected of them so that stakeholder value is not compromised. In this case, for instance, given the massive power and authority granted to management and the company's CFO, the executive board ought not…
Corporate Governance Case Study: Enron
Enron, the seventh-largest American corporation, collapsed in December 2001 in what most people refer to as the 'New Economy's first major failure'. Following its collapse, Congressional committees immediately embarked on inquiries to determine the cause(s) of its bankruptcy. Once investigations were complete, it was evident that the corporate governance mechanisms employed by the company had contributed to its downfall. The company employed the Anglo-American model of corporate governance, which places substantial emphasis on shareholder rights as opposed to stakeholder rights, and which, in addition, is management-dominated and has a unitary board structure with a single powerful leader. Driven by an urge to keep shareholders appeased by paying them more even when the company's resources were strained, Enron's managers employed off-balance sheet transactions with SPEs, and were able to hide huge amounts of debt that was often collaterized with the company's stock. The CFO, Andrew Fastow, was left to solely manage transactions between the company and its smaller partners. The executive board, which is supposed to be driven by the goal of maximizing shareholder wealth, chose instead to be driven by their ' ...
One of the key aspects of moral leadership is to balance between creating positive relationships with followers and ensuring that they do exactly what is expected of them so that stakeholder value is not compromised. In this case, for instance, given the massive power and authority granted to management and the company's CFO, the executive board ought not…
There are a couple of reasons for this. One is that outcomes are what the public sees. Therefore, it is the potential outcomes that should be the guiding ethical principles. Ethics are mainly a problem in business when a company is perceived as unethical. Monsanto is a great example - few people have any ethical problems with this company, so their lack of ethics does not impact their business
Deontological theory might criticize Guido's choice if the initial assumptions included the rule prohibiting lying. However, deontological analysis is only as useful as the underlying rules with respect to which it is applied. Therefore, the solution to the deontological issues raised by the issue presented by the movie is simply to reformulate a less restrictive rule that is incapable of being applied to every situation. Instead of proposing the rule
These benefit the local company as well as the entire region. Leverage financial and other investments in the community. Because nonprofit organizations mobilize vast reserves of goodwill, corporate investment in the community can have tremendous reach in building a better corporate profile and in strengthening public support of the private sector. (Kanaga, 1998) The work of Nae and Grigore (nd) entitled: "An Overview of European Multinational Corporations" the social and political
Ethics, Morality, Values, And Beliefs According to "the ethics site," an Internet resource for college instructors regarding the teaching of different ethical systems, ethics may be defined as "the explicit, philosophical reflection on moral beliefs and practices. The difference between ethics and morality is similar to the difference between musicology and music. Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music."
Therefore, corporations have had to change their viewpoints and start looking at the long-term consequences of their behavior, as well as looking at the bottom line. Businesses also have to be concerned because consumers have also become aware of environmental concerns, and many consumers are demanding earth-friendly products and have shown a willingness to pay more money to competitors who observe environmentally-friendly practices. Interestingly enough, this demand has given rise
Their primary duty is that of guiding the spiritual and religious aspects of the lives of their community members. They should give the highest priority to their duties towards the community including church service, counseling and other ceremonial functions required by their profession. As part of their professional and ethical duties, pastors are also required to show an interest in community development and increase their participation in community activities.