Free

Business ethics and environment - Assignment Example

Comments (0) Cite this document
Summary
It suggested that in the presence of perfect competition and complete markets, eventually the result will be that producers and other stakeholders will pursue…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
Business ethics and environment
Read TextPreview

Extract of sample "Business ethics and environment"

Business Ethics and Environment Business Ethics and Environment Q1 The Shareholder Value Maximization began (SVM) in the late 50’s and early 60’s as an idea founded by Arrow-Debreu. It suggested that in the presence of perfect competition and complete markets, eventually the result will be that producers and other stakeholders will pursue their interests (Montier, 2014). The SVM view was based on the theory by Adam Smith that the rational market was an invisible hand. It claimed that one could predict the future income of cash through the current share price in the market. This was a very bold assumption because it is very difficult to predict the future market expectations. It also strongly advocated for the principle that companies should embark on fair pricing so as to improve the economy and attract investment. In addition, it advocated for employees by stating that they should be respected and treated with high regard. It believed that by doing this then one would increase employee output and reliability. This would in return amount to better quality work done. Subsequently, the company will make returns. The prime problem of this assumption is that the employee may fail to deliver when they feel that respect for them lacks.
Q2
Indeed, Shareholder Value Management and Stakeholder value management are quite different in aspect. Shareholder Value Management stresses more on the principle of profitability over responsibility, and the organizations are seen as tools that are to rake in profits. On the other hand, Stakeholder Value Management believes in the principles of responsibility for profitability (Denning, 2014). While Shareholder Value Management deals more with issues targeting at how a corporation can manage to rake in more profit, Stakeholder Value Management seek to deal with the main issues, which hamper effective productivity. Additionally, it offers to bring solutions, which can improve the overall situation. Focusing on profitability seeks to look for short-term solutions that will ensure quick profits. The prime focus of the former is to concentrate on profit margins, while the latter digs deeper and seeks to offer practical solutions to these issues at hand (Carroll, & Buchholtz, 2015). The satisfaction of the employees and the clients as well is the priority of the latter while the former seeks to please the bigwigs with impressive figures.
Q3
The major issues leading to failure of the Shareholder Value Maximization were that the emphasis was placed on returns, and this resulted in a workforce, which was not producing results as per the expected outcomes. Employee output was affected, and the workers were not able to “think outside the box.” Basically, this means that they ran short of innovative ideas. Apart from that, there was a sudden drop in profits, which led to questioning of the loyalty of the customer base. Another major issue was the sudden drop in the rate of return on assets that caused turmoil within the corporation (Montier, 2014). These issues caused mass panic, and the Shareholder Value Maximization principle came under much scrutiny because it was more focused on profit making and failed to pin down the core issues affecting corporations.
References
Carroll, A., & Buchholtz, A., (2015). Business and society: ethics, sustainability, and stakeholder management (9th Ed). Boston, MA: Cengage Learning.
Denning, S. (2014). Why the world’s dumbest idea is (finally) dying. Forbes. Retrieved April 28, 2015 from http://www.forbes.com/sites/stevedenning/2014/06/17/why-the-worlds-dumbest-idea-is-finally-dying/
Montier, J. (2014). The world’s dumbest idea. GMO. Retrieved from http://www.valuewalk.com/wp-content/uploads/2014/12/JM_TheWorldsDumbestIdea_1214.pdf Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business ethics and environment Assignment Example | Topics and Well Written Essays - 500 words - 1”, n.d.)
Business ethics and environment Assignment Example | Topics and Well Written Essays - 500 words - 1. Retrieved from https://studentshare.org/business/1691954-business-ethics-and-environment
(Business Ethics and Environment Assignment Example | Topics and Well Written Essays - 500 Words - 1)
Business Ethics and Environment Assignment Example | Topics and Well Written Essays - 500 Words - 1. https://studentshare.org/business/1691954-business-ethics-and-environment.
“Business Ethics and Environment Assignment Example | Topics and Well Written Essays - 500 Words - 1”, n.d. https://studentshare.org/business/1691954-business-ethics-and-environment.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business ethics and environment

Ethics & Leadership in the Business Environment

...needs. Speaking strictly from a fiscal standpoint, businesses could certainly benefit from the use of slave labor. The cost of construction in a desert environment can quickly become astronomical when taking into account the sheer number of workers needed, special accommodations to deal with the extreme heat, and so forth. Regardless of where a business establishes itself the phrase “time is money” abounds. The same truth applies in Dubai, particularly considering that a large portion of the local economy has sprung up over the last 30 years. In order for a business to capitalize on the economic boom, they must be able to establish themselves quickly. The trend of using...
3 Pages(750 words)Essay

Management styles, business ethics & the legal environment of business

...Assignment #2: Management styles, business ethics & the legal environment of business Generally speaking, whatare the responsibilities of manager? The responsibilities of a manager are actually being actively involved in four functions: planning, organizing, directing, and controlling of crucial resources (human and assets) assigned under one’s jurisdiction. 2. Do you have the qualities to manage people & projects? Why or why not? The qualities to manage people should focus on the following skills that have been developed through theoretical and practical means: leadership, communication, interpersonal, negotiation, conflict-resolution, problem-solving, time management...
3 Pages(750 words)Essay

Business Ethics Dealing with Poverty and Pollution in the Environment

...?Running Heading: Business Ethics dealing with Poverty and Pollution in the Environment Business Ethics dealing with Poverty and Pollution in the Environment Customer Name University Name Introduction Environmental pollution is turning out to be one of the biggest problems of the world in the 21st century. Businesses are getting pressure from not only environmental groups but also general populace to take steps in order to reduce environmental degradation. The ethical implications of environmental pollution in developing world are also significant. People in large number are affected by toxic industrial...
6 Pages(1500 words)Research Paper

Ethics and Legal Environment

...? Ethics and Legal Environment Using Joseph Badaracco's "right-right" framework the situation facing MegaAbbott as the respected senior vice president of CyberFire Corporation can be handled using the four steps as presented by Professor Joseph (Badaracco, 2002). 1. Which way creates the most amount of happiness for the most amount of people? Megan Abbott though through a fraudulently way gets a job through the right recruitment process at CyberFire Corporation as an assistant project facilitator which according to her papers she was overqualified. Due to her competency at work she raises rightfully through the ranks to a senior managements position, it is a fact from the records of her performance that...
3 Pages(750 words)Assignment

Environment Ethics

...Environment Ethics Environment ethics was ignored in the olden times. But it's only in the recent years that it has become very important and a matter of great concern. We humans should truly believe in environmentethics. The quality of environment is necessary for us to lead a good healthy life. Human life wholly depends on the natural resources of ecology like air, water, soil, climate, etc. All these resources are a matter of life and death. Culture and nature have entwined destinies, similar to the way minds are inseparable from bodies. So ethics needs to be applied to the environment. (Holmes Rolston, pg.1) We must all respect environment... care ...
2 Pages(500 words)Essay

Ethics as an un-necessary consideration to be successful in a competitive business environment

... of the of the Ethics This paper is intended to critically analyze that to be successful in a competitive business environment, ethics is an un-necessary consideration. Companies are bound by legal parameters. Many of the Philosophers do not care about the purpose of ethics for business in society. Some of them give the way that the basic reason for the establishment of a business is to earn maximum returns for the owner, in case of publicly traded concern, for shareholders. Under these views, one can say that only those practices that produce more profit should be encouraged. Many of them has this believe that companies who have this attitude that profit maximization is important than anything else have more chance to survive... down....
8 Pages(2000 words)Essay

Ethics and Environment

...Question No Utilitarianism This important concept of ethics was proposed by Jeremy Bentham, an English philosopher-reformer, in his book ‘Principals of Morals and Legislation” which was later developed by John Stuart Mill, an English philosopher-economist, in his book ‘Utilitarianism’. According to Mill, “actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness.” Mills named this theory as “Greatest Happiness Principle”. It means an action is morally right which will result in the happiness or absence of pain and wrong if it ends in unhappinessi. To make it simpler, it can be said that it is the belief that the value of a thing or an action is determined by...
8 Pages(2000 words)Essay

Environment Ethics

..., bioethics, business ethics, environmental ethics, and Geo-ethics. In this essay, I will discuss some of the environmental actions considered ethical and the challenges that environmental ethics face, and some environmental ethics theories developed over time. I will also incorporate some of the possible changes on environmental ethics in the future. Environmental ethics incorporates the nature of human conduct in attempts to maintain the natural suitability of the environment. The anthropocentric nature of environmental ethics calls out for the...
2 Pages(500 words)Essay

Customer Retention Activities

3 Pages(750 words)Case Study

The role of business ethics in the corporate environment

...to establish self regulation as an integral part of ethics and corporate governance. Despite the corporate entities, academic institutions, researchers, scholars and practitioners all over the world focusing on the aspect of business ethics and highlighting its role in conducting a profitable and sustainable business, the realm of ethical problems continue to persist on the corporate environment and as a result of which a number of unethical activities and incidences in the corporate environment is often identified. As a result of this, questions arise as to how far the ethical aspects of...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Business ethics and environment for FREE!

Contact Us