Keenun Holder
MGMT 436
June 11, 2016
2.3 - Module Review Questions
1. Discuss the differences between the “agency theory” and the “stewardship theory”. Explain which of these theories applies to your strategic audit firm and why?
The agency theory concerns challenges that occur when one party does business on behalf of the other. The agency theory is properly elaborated in the case of management of an organisation representing or doing business in the name of the shareholders. The agency theory explains that there is the possibility of managers acting on their interest at the expense of the shareholder’s interest. On the other hand, stewardship theory holds that managers if left on their own could act responsibly or without self-interest
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Explain the strategic roles Board of Directors have in conjunction with senior management and the running of an organisation. Which Degree of Involvement in Strategic Management describes the Board of Directors for your strategic audit firm, and why?
The board of directors together with the senior management of a business entity is the major decision makers. They play crucial roles in steering the organisation towards achieving a strategic position in line with its course of business. These roles include controlling and monitoring the entity assets and hiring of top personnel’s in the entity. The Board of Directors in the strategic audit firm has a significant degree of involvement which is to offer the direction of the firm. It has significant control in influencing the attainment of the audit firm strategic goals.
3. Discuss in detail the ramifications the Sarbanes-Oxley Act has had on business in the United
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There is deontological, consequential and virtue ethics. The deontological ethics concerns the information on the decisions questioning whether an individual course of action is right or wrong. In the case of consequential ethics, it questions the impact of a particular behaviour. It is an appropriate way to evaluate the goodness or harm of individual behaviour. Then he virtue ethics concerns the upholding character traits that are acceptable. They include prudence, self-control, integrity, compassion and honesty among others. In my opinion virtue ethics is more significant since it forms the basis of the course of action an individual may opt to uphold.
5. Describe Friedman’s view on the responsibilities of business. Do you agree or disagree with Friedman’s views and why?
According to Friedman’s view on the responsibilities of business, it is supposed to increase the shareholders profit. In his opinion, the entity should maximally use the resources at its access to increase its profits which would in turn lead to more wealth for the stockholders. I do not agree with Friedman’s view that maximisation of wealth is a core social responsibility. It is because such aspects as child labor and work safety are undeniable elements of social significance. Moreover, environment sustainability and avoidance of pollution have been left behind as core aspects of social
How does the federal government regulate the economy for the benefit of the public? Discuss specific policies and programs, including their effects. The federal government has many programs and abilities to regulate the United States economy. On of which is the fiscal policy which allows government to raise and spend money.
Deontology which is derived from the Greek words Deon (meaning obligation/duty) and logia (science/study) combined to be also known as duty or rule-based ethics or the study of duties or obligations. It is a branch of ethical theories that deals with ethics of conduct, which theories are based on the sort of actions people must perform. It is based on non-consequentialism where the ends do not justify the means and thus deontology is an approach to ethics in which a sense of duty or principle prescribes the ethical decision (Preston, 2007). Deontology affirms duties must be obeyed regardless of the consequences. The theory of Deontology has its flaws as well and this essay will present three criticisms of deontology namely that deontology relies on moral absolutes, allows acts that make the world a worse place, two permissible duties that are right can conflict with each other and will demonstrate these flaws with relevant case studies and dilemmas.
A limitation of Deontology stems from the fact that it is so strict on how one should or should not act, but yet humans need clearly defined laws to serve as guides. Although laws are not followed one hundred percent of the time, the mere fact that there are laws telling us what is right or wrong result in a higher success of people acting morally good because there is a strict guide of how to act and how not to act. Yet Deontology provides a strong ethical framework that enables moral agents to act in such a way that is towards good will and ethically correct
Once the environment is perceived as an equal part of an individual’s community, the human ethical spirit will respect the environment, cherish its benefits and beauty, and be obligated to preserve it. If future generations are taught to create harmony between the three pillars of society: economic, social, and environmental, further damage to the environment can be
Fiduciary duty: A fiduciary duty is a legal obligation to act in the best interest of a client or broader corporate entity. It sets the expectation that directors and officers place the interests of the firm over their personal interests. Business judgment rule: The business judgment rule lays out two requirements for directors and officers: that they uphold the duty of care and the duty of loyalty.
Hence, a police officer’s duty then is to do the right act as approved by moral standards. Therefore, deontological ethics are duty based. Non-consequentialist ethics are divided into two standpoints; act non-consequentialism and rule non-consequentialism. Act non-consequentialism or intuitionism is described as the act of following one’s intuition in order to determine the morality in a particular situation. However, rule non-consequentialism explains that people should follow the rules that are the basis of morality where the consequences are given less importance.
Social responsibility of business has been a debated topic for years. The ideas of different businessmen have had effects on the direction of business in this period. This essay analyses two texts, which have Milton Friedman’s arguments about social responsibility of business and John Friedman’s ideas about Milton Friedman’s, by comparison and contrast method and includes this writer’s evaluation. Milton Friedman’s text is about the effects of the name of social responsibility on a private property system including executives, stockholders, employees and customers. He gives us some assumptions and examples of their potential results and impacts on corporations to express his ideas clearly.
Utilitarianism focuses on the consequences of an action. Deontological approaches focus on the morality of an action on an individual basis. Utilitarian approaches attempt to achieve the greatest good for the greatest amount of
Consequential Ethical theory It is a part of normative ethical theories and it means that the consequence of ones behavior is an ultimate mean for anyone to judge the rightness or wrongness of that behavior. So, from the perspective of a consequentialist an ethically right act is the one that will inherit good outcome or consequence. It usually explains the saying “the end justifies the means” which means that in order to achieve a goal, take any route which leads to achieving it.
The divine command theory, utilitarianism, Kant’s duty defined morality, natural law theory, and Aristotle’s virtue ethics are the five types of ethical theories. The divine command theory states that what is morally right and wrong will be decided by God. Utilitarianism states that “Action “A” is morally right if and only if it produces the greatest amount of overall happiness. Kant’s duty defined morality states that what is important is acting for the sake of producing good consequences, no matter what the act is. Natural law theory states that people should focus on the good and avoid any evil.
JB Hi-Fi Limited (JBH) 1. Macro economic factors and Industry Analysis a. Describe the firms economic environment and evaluate how this has impacted historic firm performance and is likely relevant to future performance. b. Perform an industry analysis and evaluate the level of competition in the industry/ies that your firm operates 2. Business Strategy Analysis Identify the key success factors and risks of the firm 's strategy and the sustainability of profits generated by the strategy given the threat of competition.
Corporate social responsibility means that businesses have wider responsibilities than simply to their shareholders – they also have responsibilities towards other stakeholders, as well as the environment. Scholars such as Robert Solomon believe that businesses should take on these responsibilities, as they have a duty to behave ethically. Solomon believed that a person should follow their own personal values and attempt to stay ethical no matter whether they are at home or at work. Others, such as Milton Friedman and former British Prime Minister Margaret Thatcher, argue against the idea of corporate social responsibility, believing that the only responsibility of a business is to increase its profits for its shareholders. Friedman went on to argue that for a business to take money from their profits to fund corporate social responsibility projects is equivalent to stealing money from shareholders and is therefore unethical.
The theory of deontology states we are morally obligated to act in accordance with obvious set of principles and rules regardless of results. Deontological ethics focuses on duties, and rights. The term deontological was coined by the utilitarian philosopher Jeremy Bentham, who described it as “knowledge of what is right or proper” Bentham thought that deontology points in the direction of principle of utility. But contemporary philosophers use the term deontological to indicate a contrast with the utilitarian focus on the consequences of action. Instead of focusing on consequences, deontological ethics focus on duties and obligation: things we ought to do regardless of the consequences.
Stakeholder theory gained momentum and increased in significance during the mid-1980s. According to Freeman (as cited by Appiah, 2016) stakeholder theory contributed to reconceptualizing the fundamental manner through which firms operated, and leaders behaved, with the focus shifting toward external stakeholders. Foster & Jonker stated that the introduction of the stakeholder theory helped change the way in which organizations operated when the emphasis had historically been on internal stakeholders, in which the stakeholder theory altered this operation and implied relevance to external groups and communities (as cited by Appiah, 2016) Simmons said that with the advent of the stakeholder theory, organizations were compelled to assume greater
A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that