Interdisciplinary Approach In The Business World

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INTRODUCTION This report is going to consider the interdisciplinary approach as a solution to the problems facing the business world. The business world is competitive, full of uncertainty and is ever changing. Therefore, for a business to penetrate through the market or to come out as successful, it cannot focus or divert its strategy or solution to using one discipline to be successful. It is very essential that a business consider a variety of disciplines to make it in the business world. FACTORS THAT IMPACTS ON THE BUSINESS COMPETITION Every business has its rival. The nature of the business arena comprise of competition in which established businesses are fighting and eager to penetrate through the market.…show more content…
According to Jensen and Meckling (1976), they defined it as an issue on the relationship between ownership and the conflict between owners and managers. The assumption is that those in control or who have been handed the responsibility of overseeing the organizations activities, initiating decision do not make best decision. That is to say, they are being more subjective rather than being objective and their choices are not in accord with the interest of principals and managers but are more of maximizing personal benefits therefore implying that the outcomes on the firm is not considered. An example is that of the Lehman Brothers, one of the biggest corporate scandals that took place in 2008 that is widely known. It was a financial service firm that hid over $50 billion in of loans and boosted them as sales or their revenue. The Lehman executives and the company’s auditors Ernst and Young were the main players in this deliberate misrepresentation of the accounting information9The 10 Worst Accounting Scandals of all Times, no date). This is an indication of abuse or misuse of power among executives. The agency problem calls for more caution among corporate executives about boosting their accounts and as such it is very vital to introduce and implement business ethics among business people. According to (Grane and Matten 2004), they explain business ethics as the study of business situations, activities and decisions where issues of right and wrong are addressed. When someone in authority makes a decision, he has to first analyze the impact it is going to have on every individual involved and not focus on his interests only. To deal with issues of differences in the business or the agency issue, Post, Lawrence and Weber (2001) point out the importance of ethics as being concerned of improving the business relations and productivity. Every
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