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. In brief, they must conduct reasonable research before making corporate decisions, and must not prioritize private interests.
Key fiduciary obligations of corporate directors:
Corporate directors must pursue the best interests of the “corporate person,” serving as “trustees” of the stockholders. This requires the fulfillment traditional duties …show more content…
Furthermore, the arbitrary and capricious use of corporate funds amounts to mismanagement and waste of corporate assets. The board had an obligation to deny these practices, but instead negligently allowed them. This comports with laws governing fiduciary duties of directors in Delaware (where Fred’s Foods, Inc. is incorporated).
C. Pertinent Standards and Rules:
The General Incorporation Law of the State of Delaware applies in this case. Wheeler v. The Pullman Iron & Steel Co. provides the particular evaluation standard. It establishes that “The majority of shares of its stock… must be permitted to control the business of the corporation in their discretion,” so long as it does not violate the law or corruptly subvert the rights of a shareholder.” Moreover, since it is “not [the courts’] function to resolve for corporations questions of policy and business management,” they must carefully pinpoint the breaking of law or corruption.
For the rest of the board, gross negligence must be proven. Such a standard requires evidence of “reckless indifference to or a deliberate disregard of the whole body of stockholders or actions which are without the bounds of reason.” They must also comply with the relevant parts of the business judgment rule. “Duty of care” and “duty of loyalty” must be adhered
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Legal Brief for Andrew Carnegie As the prosecutor of Andrew Carnegie, I would like to state the reasons of why Carnegie should be found guilty of being a robber baron. Carnegie’s refusal to raise worker’s pay by 30% after the company’s profited have increased nearly sixty percent lead to one of the most serious strike in the United States history, the Homestead Strike. Carnegie was also a member of the South Fork Fishing and Hunting Club, which was blamed for the Johnstown flood that killed over two thousand people. Lastly, Carnegie was one of the many companies that utilized the vertical integration strategy which drove many smaller companies out of business with marketing tactics that were considered unlawful.
Crosby v. Beam: There is "a heightened fiduciary duty between majority and minority shareholders in a close corporation. Where a controlling majority shareholder in a close corporation breaches their heightened fiduciary duty to minority shareholders by utilizing their majority control of the corporation to their own advantage, without providing minority shareholders with an equal opportunity to benefit, such breach, absent a legitimate business purpose, is actionable. Where such a breach occurs, the minority shareholder is individually harmed. When such harm can be construed to be individual in nature, then a suit by a minority shareholder against the offending majority or controlling shareholders may proceed as a direct action (not derivative).
Also, companies should be careful with margining with others and achieving too much power. Second, a company should be careful from working secretly with other companies (conspiracy) to not prevent and limit transporting, producing, manufacturing, etc., from others. Third, a business should be careful when dealing with consumers. The business must see its costumers as even and give them the same deals and offers as it gives to other consumers. The business must see his competitors as even and not prevent their mutual clients from not buying goods from them.
‘’When person, and the interests of a person should be at the centre of all relationships. People and where appropriate their carers, must be recognized as partners in the planning of services which should be integrated and based on collaborative working across all sectors’’ (Health, Social Services and Public Safety) Multi-agency working involved a number of professionals from different medical services all working together to provide the best holistic care for the individuals using the health and social care services. Multi-agency working within the health and social care setting is very important for both the professionals and the patients because it can provide an overall quick and accurate procedure of care.
He mentioned that just individuals have responsibility and a corporation is an artificial person and so it has artificial responsibilities, however the similar situation cannot be obtained for whole business. He says that, firstly, we should ask what it refers for whom to examine the doctrine of social responsibility of business. He believes that a corporate executive is an employee of the business in a private property sys¬tem and his employers are his re¬sponsibility and says “That responsi¬bility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while con¬forming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.” The primary responsibility of corporate executive is as an agent for owners of corporation or individuals who constitute charity
Conflicts of Interest The financial principle “Conflicts of Interest” is a situation arising as a result of incompatibility of the desire of multiple parties; moreover it can be viewed from another angle of perspective as a position in which one derives individual benefits from the preceding acts agreed upon in the official capability. Agency problem being conflict of interest incorporated in any association whereby one partner is to act at the benefit or interest of another, which exists between stakeholder’s company and its management, even though it is to the mangers best of interest ,they intend on maximizing the wealth of the stakeholders by making proper decisions. One of the aims of many organizational conflicts are as a result of pressure between one’s motivation to act in on the basis of their own self gain and effort to authoritative rules of the institution to bring back the social esteem back such as morality and justice. The interaction between ethical motivation and self-interest is
All other functions are underpinned by the economic role of business in society. •Legal responsibilities - Although companies have their economical fundamental role they are expected to comply with the laws and regulations of the country they operate in. The legal expectations apply to companies, as juristic entities that can act as persons, and the employees they employ regardless of their responsibility. •Ethical responsibilities - Companies are also expected to comply with the ethical norms of a society. Because these are normally not written in law and are therefore not a legal requirement it is difficult for companies to behave and follow it.
What is Ethical Leadership some may ask. It is leadership that shows through the actions of having respect for ethical beliefs and values, and for the dignity and rights of others. Ethics is associated with the morals and values an individual finds desirable. It is a philosophical term originating from Greek word “ethos” meaning custom or character. While in the United States Marine Corps, the definition of ethics in an organizational setting was as follows:
The two important values that I have learnt are the independence and the respect. I learnt these two values since my childhood. One of the values is the independence. Independence means that you can support yourself without owning or depending on yourself concerned with livelihood or studying. You can make decision of your life without being controlled by the others.
One of the hardest fought for attributes of a brand is knowing that customers consider that the brand has value. We learned in our lesson that perceived value is a key attribute towards selling a brand. Writing a value proposition and keeping it current could help these business leaders to determine and clarify the unique characteristics their business will need to identify to better market their brand. In this paper, I desire to convey what a value proposition is and how it can help leaders chart a successful course through changing times.
I believe that every family has their own roots, essence, uniqueness, beliefs and thoughts, some families have both parents, some just the mother, just the father, two mothers or two fathers, they might have an only child or two, or maybe 5 or even 10, therefore, those children start learning all these things from their family and surroundings, they ask questions, they imitate each other’s actions and are constantly learning and trying to catch as much information and experiences as possible. Children are growing fast, their parents are their role models, they learn mostly from them; parents have the tremendous job of forming good citizens that provide to society, healthy and happy beings that keep growing as humans in every stage of their
• Ethical Responsibilities Even though economical and legal responsibilities exemplify about fairness and justice, ethical responsibilities cover those activities and practices that are expected or prohibited by members of society even though they are not codified in law. Ethical responsibilities represent those norms, standards or expectations that reflect a jest of what employees, consumers and shareholders regard as just, fair or in keeping the protection or respect of stakeholders’ moral rights. They are important to perform in a manner consistent with expectations of societal and ethical norms. The firms should recognize and respect the ethical moral norms adopted by society from time to time.
Caregivers Who are caregivers? Caregivers are either paid or unpaid individuals who work at hospitals, clinics, age-old homes, and patients ' residence to provide personal care. They perform all sorts of menial job like feeding, bathing, walking, dressing, exercising, laundry, grocery shopping, and transporting home to medial setting and vice versa besides caring. The basic aim of caregiver profession is to care for elderly and all-aged patients, and help them live a normal and healthy life.
A company must make a competitive return for its shareholders and treat its employees fairly. A company also has wider responsibilities. It should minimize any harm to the environment and work in ways that do not damage the communities in which it operates. This is known as corporate social responsibility, CSR (Businesscasestudies.co.uk, 2015).
Merriam-Webster dictionary defines ethics as, “the discipline dealing with what is good and bad and with moral duty and obligation.” Righteousness and virtuous are a few words I would use to define the term ethics. But where do our ethics truly arise from? From birth, we begin to learn things from our homes and community that shapes the way we view things. The cycle of socialization as describe by Bobbie Harro in Readings for Diversity and Social Justice plays a huge role in determining what values and ethics we carry on throughout our lifetime.