Executive Pay: A Cause for Concern - Case Study Example

That is why, issues like sustainable development have become a major concern in the contemporary age unlike past, when bringing the industrial revolution was more important that keeping environment healthy with a compromise upon development of technology.... Social Responsibility of a Business: Introduction: Some of the most fundamental questions that have been the focus of discussion since the industrial revolution has started to show its impact upon the world in general and the environment in particular are; what are the responsibilities of business towards the society?...

A case study of executive Life Insurance Company Your name March 2013 Why do businesses fail?... The case of executive Life Insurance Co.... In our case study, grounds for failure of the executive Life Insurance are not purely economic, but some go beyond.... I will take up the case of executive Life Insurance Co.... Source: Campbell, Anita (2002) Background In 1991, The executive Life Insurance Co.... People demanded more of the junk bonds offered by the executive Life before the market collapsed....

The other issue of concern is that the indigenous workers live in primitive huts that do not have electricity or running water.... 1.... Stakeholders are those individuals or groups who have an interest in and are affected by the goals, operations or activities of the organization (Mullins, 2010)....

Reform or Bust This article points out that since executives are not punished when their corporation faces loss, but given rewards when their decisions cause short term profits, it facilitates excessive risk taking on part of the executives.... On average, American companies pay their executives multiple times more than other countries.... Furthermore, the article argues that shortage of good executives would drive pay up even further in the future....

The author of the current paper states that The mining and FTSE plan at RTZ is an employee reward plan based on employee share ownership.... It allows for participation in enterprise results in an indirect way viz.... by receiving dividends or by an appreciation of employee-owned capital or a mix of both....

If the directors run the company for their own benefit, this can cause significant problems since they may end up awarding themselves large pay packages as well as benefits.... When this code was published in 1995, it specifically dealt with the question of directors' pay and the bulk of its recommendations were made from the earlier Cadbury Report.... The Greenbury Report has recommended that directors' pay should be linked to the company's performance....

Additionally, some organizations are willing to first identify the cause for the termination and whether it really matters to the company.... uestion 4An executive is fired for cause when he or she is guilty or perpetrates serious offences that affect the progress of the company.... On the other hand, an executive is fired without cause when he or she is fired without having done any serious offence that affects the company progress or without any reasons or forced to resign by the company....

nbsp;… When he/she becomes successful in addressing the social concern without reducing the business's profit margin, the success is fundamentally owned by the company.... That is why, issues like sustainable development have become a major concern in the contemporary age, unlike past, when bringing the industrial revolution was more important than keeping the environment healthy with a compromise upon the development of technology....