Learning Objectives
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Presentation Transcript
Learning Objectives • To know what stakeholders are and their roles in the affairs of a corporation. • To know the issues, problems, and possible remedies to corporate governance issues. • To know the purposes of business ethics.
Stakeholders and Corporate Performance • Stakeholder impact analysis • The unique role of stockholders • Profit, growth, and stakeholder claims
Agency Theory • Principal-agent relationships • The agency problem
Governance Mechanisms • The board of directors • Stock-based compensation • Financial statements & auditors • The takeover constraint • Governance mechanisms inside a company
Ethics and Strategy • Ethical issues in strategy • Self-dealing • Information manipulation • Anticompetitive behavior • Opportunistic exploitation • Substandard working conditions • Environmental problems • Corruption • The roots of unethical behavior
Ethics and Strategy (cont) • Behaving Ethically • Hiring and promotion • Organizational culture and leadership • Decision-making processes • Ethics officers • Strong corporate governance • Codes of ethics • Ethics officers