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Importance of Ethics in Corporate governance
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there are variables that take place at a macro scale that no average business man has any place trying to dictate. Things don't work the same at a macro level as they do at a micro level, even if you're an international oil giant you don't even hold a candle to the economy of the U.S. at large, and all the potentially destructive roads that it can go down. Pure libertarian ideals work at a smaller scale but they've been shown in multiple instances to cause massive inequality and instability in money markets. An overpowered government is dangerous, but a corporation that is allowed to operate with impunity with no incentive for social good (for which of course no profit can be derived i.e. helping a hopelessly poor person gain financial mobility through schooling or allowing them to receive medical care without strapping them down with crippling debt and destroying their credit, creating a vicious cycle and, morals aside, …show more content…
This promotes sustainable business practices and prevents debt bubbles that cause financial collapse. While om paper businesses in a free market are supposed to act in their own best interests, in American corporations, the corporate veil creates huge potential for fraudulent practices, the most notable being that major players, directors, and CEO's aren't obligated to make the most money for shareholders, they're obligated to make the most money for shareholders during that specific year, with no real incentive to worry what happens five to ten years down the road when they and the current board of directors have sold their stock and waved goodbye to a company that has plummetted, gone bankrupt from the millions in loans that they knew the company could never pay off, and left outsider middle class shareholders and employees to
With the libertarian model, it’s a free market built for you to compete and win. Some find this unfair; because of people can be at a disadvantage. For example, race, sex, family success, etc. The egalitarian model is a model which states that “Since we can’t undo the inequities of the natural lottery, he writes, we must find a way to address the differences in the rewards that result from them.” (Arora 88). In other words, if a child was born into a rich family, a family with fame, then that child doesn’t deserve the rewards that he/she may receive. Some may find this unfair, because some believe if you work hard for it you should deserve your rewards. However, you can make a case that these rich kids has an easier path to reaping their rewards than a child born in poverty, perhaps. Most people tend to favor the United States current economic model, the meritocratic model. With this model, it focuses more on the equality of opportunity, and an effort to decrease socioeconomic disadvantages. So even if you were born in poverty, you can still make it to the top, you can
Based on the Gilded Age, literally meaning a layer of gold is displayed on the outside and once you look deeper past through the top layer of gold, you can identify that the robber barons are the culprit of the corruption in the government who monopolized the corporate America. Although, there is a great transition from the agricultural economy towards the rapid growth of the urban and industrial society, the robber barons created a lot of problems for much of the working class poor in America. The robber barons use the power they obtain through their wealth for their own advantage and try to repress any form of the spread of democracy and the regulation in the marketplace, its work safety, the labor laws, and the certain amount of work hours which followed thereafter witnessing of the homestead strikes that touched on the major issues of the American nation. Both Carnegie and John D. Rockefeller dominated giant corporations, but they dictated much of the employees and greatly tried to divide out the employees from desperately trying to organize the reforms that would essentially stop the robber barons from taking advantage of them. The robber barons insisted that if you cannot work the day you are supposed to other than the Fourth of July, some other person will be a willing participant to come and take your job.
Money makes the world go around so that people could either become rich or poor. The whole issue with businesses came up in the 18th-19th century and was created by two factions in US history, the Robber Barons and the Captains of Industry. These two are what made the way America’s economy it is today. The Robber Barons and the Captains of industry were both very similar but completely different with how they operated in the economic world. Robber Barons made wealth in a variety of ways but still maintained the sense of thieves from the way they attained their wealth and treated their people hence forth their name. The Robber Barons were considered a unlikable form of business because of the effect they had a negative effect on the community. The Robber Barons whole idea and purpose was to make money for themselves by means of which is immoral to society. Most of the money collected by Robber Barons were taken from the people and their community further proving that they had gained a lot if not most of their wealth from the people without giving back to their town. The Robber Barons would also have their workers working in extremely harsh conditions that were harmful to their health and mental state, only to be made worse by the wages they were getting paid. These businesses refused to see their workers as people; instead they saw their workers as parts of a machine that can always be replaced. This was partially the fault of 'Social Darwinism'. This meant that the most fit would succeed to become rich while others would not. This idea was created by Andrew Carnegie, a businessman of the steel industry, although the first intention was to make sure that government would stay out of the affairs of big businesses. Carnegie, a Capta...
A corporation was originally designed to allow for the forming of a group to get a single project done, after which it would be disbanded. At the end of the Civil War, the 14th amendment was passed in order to protect the rights of former slaves. At this point, corporate lawyers worked to define a corporation as a “person,” granting them the right to life, liberty and property. Ever since this distinction was made, corporations have become bigger and bigger, controlling many aspects of the economy and the lives of Americans. Corporations are not good for America because they outsource jobs, they lie and deceive, and they knowingly make and sell products that can harm people and animals, all in order to raise profits.
While this may be true, they are nonetheless harming themselves, staining their character with immorality. On the other hand, there are huge corporations, like Apple Inc., who become ignorant to morality and put the poor in unhealthy and dangerous working conditions in order to keep amassing wealth. Opulence and all of its empty promises is much more destructive in a time when the economy is thriving, in a time when we have everything but cannot set limits. In a time like this, we should focus on uniting our society and stabilizing its morals, but instead we allow greed to consume our lives. One thing Steinbeck and Fitzgerald can agree on is that money has a detrimental effect on humanity.
Mills and Marx would look at today’s American capitalist corporations the same way they did years ago. Unfortunately,
When the topic of American economics arises, the infamous Robber Barons of the 19th Century often springs to mind. They are often glorified as "Captains of Industry" for their money making strategies and enterprising methods. Those who hold this view probably do not know the evils of the laissez-faire capitalism in which the Robber Barons believed and participated. They wanted an unrestricted system of economics so that they could amass as much money as they could to out do each other and control the power in society. They were not as glorious and generous as some people make them out to have been.
Corporations are thought to have utmost power on shaping how the United States is ran, whether economically, environmentally, or socially. Business dictates in this country how we live, where we live, and unfortunately, if the people of this country are to face good times or bad times. If the economy falters in the United States, which is the foundation of business, then this country will also falter. With this knowledge by big business, the corporations have corporate hegemony; the ability to wield power and the mold making influence on Congress to shape laws and design loopholes for these massive corporations to jump through just in case.
According with the textbook and other internet sources, Milton Friedman described in his thesis that the main goal of a business is to generate gains or profits. As a result, several business have been using such thesis as a justification for some of the decisions they made. In the case of “A Civil Action” we had the two companies contaminating the little town water with chemicals used during the elaboration of their products. The use of trichloroethylene was apparently causing some of the children of the place to developed respiratory and other cancerous diseases such as leukemia. After the death of several children, people on town began to worry about the situation and everything pointed out ...
In the twentieth century, the United States of America has transitioned into a more diverse nation. Immigrants arriving from around the globe combined with African Americans to challenge the American identity. As a result, prominent figures including Theodore Roosevelt believed every American should indeed be Americanized. Throughout the twentieth century, Americanization, which means to sacrifice an old culture in favor of American culture, remains an issue amongst authors in particular. Authors in the twentieth century expressed their stance on the battle between cultural heritage and American assimilation. Some authors such as Langston Hughes supported diversity and pride in their culture. On the other end of the spectrum, others like Booker
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil
Transparency has broad and narrow meaning. A broader transparency definiton implies openness, communication, and accountabilitywhich are not precise enough to be applied in concrete cases. .Transparency does not only cover availibility of informations but also requires them to be clear and understandable. This latter point distinguishes ‘transparency’ from ‘openness’ Also, transparency has a dimension with regard to access to documents. İt is a part of the freedom of expression in the sense that people have right to receive information.Therefore, right to access to information is recognised as a human right. EU Charter of Fundemantal Rights( thereafter EU Charter) recognises access to documents as a fundamental right .”This right is both a fundamental right of individuals and an institutional principle. “ Article 8 of the Charter codifies right to access to personal data, article 41(2) gives the parties in administratif procedures right to access to file and article 42 codifies it with regard to documents of EU institutions. On the other hand , right to access to informations is not an absolute right. Hovewer, exceptions should be interpreted restrictively in order not to undermine the purpose of the right.
...s that core logic of ever-expanding desires that is unsustainable on a global scale. Yes, there are winners and losers in capitalism. The winners are those who are honest, industrious, thoughtful, prudent, frugal, responsible, disciplined, and efficient. The losers are those who are shiftless, lazy, imprudent, extravagant, negligent, impractical, and inefficient. (Thomson) By relying primarily on voluntary co-operation and private enterprise, In both economic and other activities, we can insure that the private sector is a check on the powers of governmental sector and effective protection of freedom of speech, of religion, and of thought. (Friedman 3) Capitalism is the only moral system because it requires human beings to deal with one another as traders--that is, as free moral agents trading and selling goods and services on the basis of mutual consent. (Thomson)
When the problem became serious two main views formed: the “narrow” view and the “broader” view, based on different ideas. The “narrow” view is based on the proposition that corporations have no social responsibility and they have only one main purpose, to make a profit (Friedman, 1970). So corporations should remain socially independent and all conflicts must be solved through the individual responsibility concept. On the contrary the “broader” view states that corporations have social obligations as all existing participants of market, persons and entities are tied together and are mutually dependent. So corporations cannot ignore some serious events or problems, which take place, and must help society, as profit is not their single purpose.
It seems obvious that large corporations have a tendency to ignore the negative effects of their actions in favor of profit. This example, although sensationalized, still says to me that with power comes responsibility. It affirmed my belief that a corporation’s goal cannot be just to provide profit to shareholders, but there must also be an element of social responsibility.