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Economics
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26 Nov 2019

How does the philosophy of economist Milton Friedman influence the employees, executives/managers of the company and corporate decision? Discuss Ford or Lee Iacocca moral responsibilities to stakeholders and to the safety of customers. What ethical framework other than Free Market Ethics that applies to the corporate decision? How it may have influenced the executives of the company?

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Bunny Greenfelder
Bunny GreenfelderLv2
19 Sep 2019
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Related questions

1) There exists a universally agreed definition of Corporate Governance:

T

F

2) The two primary competing views of corporate governance are:

Shareholder vs Agent

Principle vs Agent

Shareholder vs Stakeholder

3) European companies tend to adopt the stakeholder view of governance, while Anglo-American companies tend to focus on the shareholder view

T

F

4) Shareholders appoint the management board

T

F

5) Corporate governance is best understood as a set of fiduciary and managerial responsibilities

T

F

6) Shareholders elect ______________, who appoint ______________, to run corporations

Directors, Mangers

Managers, Directors

Agents, Principles

Chairman, CEO’s

7) The principle/agent problem involves aligning management interests with those of the shareholders

T

F

8) Shareholders get their return on investment from the residual (profits) only after all other stakeholders have been paid:

T

F

9) Large shareholders (those owning more shares) have more influence over a company than smaller ones

T

F

10) The term “institutional investor” includes:

Banks, trust funds, pension funds

Employee representatives, government representatives, unions

Company management and employees that own shares

11) According to the text, auditors, bankers, credit rating agencies and analysts are often referred to as:

Consultants

Gatekeepers

Advisors

None of the above

12) Agency theory:

Explains the relationship between management and employees

Explains the relationship between principles and agents

Explains how sports stars make huge amounts of money

13) The “German model” of governance in large companies includes:

A “two-tier” governance/board structure

A “single-tier” governance/board structure

A combined board consisting of management, shareholder representatives and other stakeholders

None of the above

14) In a two tiered board structure:

The management board appoints the supervisory board

The supervisory board appoints the management board

The CEO reports to shareholders

The Chairperson reports to the CEO

15) Japanese board structures are unique in that:

The boards consist of a large number of “insiders” such as management

Banks often have representatives sit on the boards of their customers

Both A and B

Comment this discuss in few paragraph ?

Cultural Differences and Ethical Standards

Should you pay the 10 percent commission? Justify your response.

The type of country in which this scenario takes place. As Hill (2009) points out there are high and low context countries. Asian, Latin American, and Middle Eastern countries are high context countries where the message must be interpreted based on not only what was said, but the person's social status, and other cultural indicators present (Hill, 2009). In low context countries, what is said is the message and there is no need for further interpretations (Hill, 2009). Therefore, it would depend on where this interaction is occurring and who is asking for the commission (status, rank, business title, etc). These commissions may be a normal part of doing business in a certain region of the country. However, there are strict laws governing bribes (Mestre, 2015) and if I suspected that this commission was a bribe for business or personal advantage, then I would not pay the commission. This would eventually have a detrimental effect on my business and go against my ethics.

Does it make a difference if your competitors routinely pay such commissions? Explain why this may or may not have an impact on your decision.

As Mestre (2015) explains, bribes are so wide spread that the fundamental alter the business landscape in certain markets. As he states, there is a, "barrage of extortionate demands for bribes in foreign markets (p.2)." Unfortunately, bribes reward the corrupt and not eh efficient which a free market should award the most competitive and efficient company (Mestre, 2015). So these types of "commissions" are frequent around the world and should be calculated in to a SWOT (strengths, weaknesses, opportunities, and threats) analysis when deciding to enter a certain foreign market. A company needs to decide what risks they are willing to take to enter into a new market. Will they pay bribes furthering the decline of a market and risk large legal penalties? Or will they not pay the bribes knowing that this will make it harder for them to do business in that market?

Do you think there should be more or fewer attempt to regulate international ethics? Why? Justify your answer using the research you have done in preparation for this assignment.

The United Nations (UN) and the World Trade Organization (WTO) both have areas that monitor and regulate ethics (websites, ND). Additionally, the United States and other countries have, for example, anti-bribery laws that penalize both the bribe giver and taker (Mestre, 2015). Given all of the regulation, there is still wide spread corruption in the global marketplace (Mestre, 2015). Additionally, new technologies far exceed the pace of legislating new laws and policies (Herther, 2018). Therefore, it seems like a combination of corporate ethic policies, government intervention, and international trade agreements can help to combat unethical behavior in international business. It is important to have multiple areas of regulation as ethical behavior varies by country. For example, what Americans consider unethical may not be unethical in another country.

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