Shareholder Wealth Maximization And Corporate Social...

Examining Globalization From The Viewpoints Of Shareholder Wealth maximization And Corporate Social Responsibility Theories â€Å"Sell a stock rather than try to change the company’s policy.† Introduction Are the goals of globalization, the primary driving force for international economic and financial development, best supported by the paradigms of shareholder wealth maximization or do they match the ideas of corporate social welfare as exemplified by Catholic social teaching? Globalization in the modern day is impacting each and every aspect of today’s society, from poverty to corporate riches. Can the theory of corporate social responsibility solve some of the defects with globalization, or on the contrary, is it possibly illegal? Without globalization, society would not be capable of advancing and bestowing on its inhabitants the luxuries and security that we live with today. Due to its mass importance, is the corporate world held accountable to provide for the less fortunate or do they have a responsibility to their corporation and to nobody else. This essay will address the apparent dichotomy between shareholder wealth maximization using Milton Friedman’s classic defense of it (‘The Social Responsibility of Business is to Increase Its Profits’, by Milton Friedman, The New York Times Magazine, September 13, 1970) and catholic social thought, which argues for a stakeholders view (‘A Decade after Economic Justice for All: Continuing Principles, ChangingShow MoreRelatedMaximizing the Corporate Objective with the Stakeholder Theory1039 Words   |  4 Pagesmain contender to value maximization as the corporate objective is stakeholder theory, which argues that managers should make decisions so as to take account of the interests of all stakeholders in a firm, including not only financial claimants, but also employees, customers, communities, and governmental officials. Because the advocates of stakeholder theory refuse to specify how to make the necessary tradeoffs among these competing interests, they le ave managers with a theory that makes it impossibleRead MoreArgument For And Against Profit And Wealth Maximization1421 Words   |  6 Pages ARGUMENT FOR AND AGAINST PROFIT AND WEALTH MAXIMIZATION GOALS IN LIGHT OF CORPORATE FINANCE Every individual firm in any market segment has well set goals that it aims to achieve. These goals may be set by the owners or shareholders who must collaborate closely with the agents whom they have given the responsibility to manage the firm. The agents are basically the managers who through the agency theory must ensure that the firm is meeting its strategic goals. A firm with noRead MoreThe only legitimate objective of any firm is Maximization of Shareholder Wealth2220 Words   |  9 Pages 1. Introduction â€Å"Corporate finance theory, teaching and the typically recommended practice at least in the US are all built on the premise that the primary goal of a corporation should be the maximization of shareholder value.† (Krishnan, 2009) One often stumbles upon such statements while reading about shareholders value or maximization of shareholders wealth. This is also a typical answer to questions such as â€Å"what is the best and primary objective of a company in a competitive market†Read MoreStakeholder4051 Words   |  17 PagesStakeholders, Shareholders and Wealth Maximization V. Sivarama Krishnan, University of Central Oklahoma ABSTRACT This paper attempts reconciliation between the two somewhat extreme views espoused by the shareholder wealth maximization paradigm and the stakeholder theory. The stakeholder theory challenges the basic premise built into corporate finance theory, teaching and practice. Corporate finance theory, teaching and the typically recommended practice are all built on the premise that theRead MoreStakeholder Theory and Competing Concept1707 Words   |  7 PagesIntroduction Stakeholder theory was given by R. Edward Freeman, which was expressed many ways to represent the stakeholder as an important part of the corporate responsibility. According to Stenberg (1996), this stakeholder theory, is basically not capable to provide better corporate governance. He also stated that, this theory is unable to provide a better view of business performance (Edward Reed, 1983). Currently, the stakeholder theory has been grown up from its origin and seen as the conceptRead MoreTransparency Is Key Aspect of Corporate Governance1331 Words   |  6 Pagescompany reporting. Transparency is key aspect of corporate governance because of implementing corporate governance this will allow stakeholders and shareholders to review and evaluate performance of management and the company this ensures that the board of directors and the executive directors of corporations act in the best interest of shareholders and the corporations. It is implemented like a form of company law it is put in place so shareholders are protected and also so that the company is runRead MoreShareholder Value14482 Words   |  58 PagesThe purpose of the corporation: Shareholder-value maximization? Finance Working Paper N °. 95/2005 Revised version: February 2006 Petra Joerg Institut fà ¼r Finanzmanagement, Università ¤t Bern Claudio Loderer Institut fà ¼r Finanzmanagement, Università ¤t Bern Lukas Roth The Pennsylvania State University Urs Waelchli Institut fà ¼r Finanzmanagement, Università ¤t Bern  © Petra Joerg, Claudio Loderer, Lukas Roth and Urs Waelchli 2006. All rights reserved. Short sections of text, not toRead MoreTheories for Profit Maximization for Corporate Directors Essay650 Words   |  3 PagesCorporate directors have an important job of representing interests of stakeholders ranging from profit maximization in interest of shareholders, to a broader set of stakeholder interests such as creditors, employees and customers. These are governance systems with competing interests because you cannot focus on profit maximization for shareholders whilst keeping in mind stakeholders needs for employment and stability. The answer perhaps is found in â€Å"enlightened shareholder value† approach that providesRead MoreAnalysis Of William Allen s The Dodge Brothers 1896 Words   |  8 Pagesprovide increasing employment at good wages and to only incidentally make money.† (Allen 38) In contrast, the Dodge brothers, (the Founders of the Dodge division of Fiat) who owned roughly ten percent of the equity in Ford’s company, argued that the shareholders owned the enterprise and were entitled to force the directors, in this case Ford, to distribute some of the firm’s accumulated profit. The Justices of the Supreme Court ultimately ruled that Ford must pay the Dodge brothers dividends and not useRead MoreProfit Maximization vs Wealth Maximization5736 Words   |  23 PagesA PROJECT REPORT ON â€Å"PROFIT MAXIMIZATION V/S WEALTH MAXIMIZATION† Submitted to In requirement of partial fulfillment of Master of Business Administration (MBA) Submitted on Submitted by PREFACE As a part of the curriculum of the MBA Program of the _________________, the students are required to undergo project work in addition to their theoretical study so as to enable them to have the knowledge of theoretical aspects taught in the class room with its practical application. As students of management

The Fight Or Flight Response - 1656 Words

Every day there are people who struggle to survive and there are those who wish for nothing more than to die. It seems uncanny that someone would rather die than to live but under certain circumstance death would seem the best option. When there are wars in countries, incurable illnesses, financial or familial troubles people can’t seem to fix, or the insufferable bullying from peers, death to some is an escape, it is the only way out. But to so many others the many struggles humans face are just hurdles they must overcome to survive. What would lead a person to want to survive despite unfavorable circumstances, such as oppression, racism, a bad government? Maybe it is because they have hope for a better future or they find their purpose†¦show more content†¦There is more to it than just our natural instincts to survive. Big Boy’s Fight for Survival During the time of racial segregation in the United States, African Americans were perceived as a threat to the white mans power â€Å"one Southern State after another raised the cry against ‘negro domination’ and proclaimed there was an ‘unwritten law’ that justified any means to resist it† (Wells) this law had many people killed. As a prominent opponent of lynching in the United States, Ida B. Wells wrote a speech entitled â€Å"Lynch Law in America†. As an African American woman herself, Wells saw the true brutality her people faced because of the unwritten law. The lynchings caused by the unwritten law â€Å"represents the cool, calculating deliberation of intelligent people who openly avow that there is an ‘unwritten law’ that justifies them in putting human beings to death without complaint under oath, without trial by jury, without opportunity to make defense, and without right of appeal. † (Wells). White people committing the killings saw their acts as justifiable because they were white and more powerful than Blacks. During the Jim Crow era when racial segregation was enforced in the South, there were numerous lynchings happening to Black men, women and children. African Americans have had a though life here in America between trying to survive during slavery and trying to survive as free people. Their struggles are no secret, the amount of heartache and

Engineering Leadership and Change Resistance- myassignmenthelp

Question: Discuss about theEngineering Leadership and Change Resistance for Customers. Answer: Engineering is an important field because it helps the engineers to build and design items or structures that meet the expectations of the beneficiaries and customers. The engineers should use relevant leadership skills to persuade the team to adopt the changes. Based on the case study, engineering projects remain challenging [1]. In fact, even a simple project may need new technical approaches and creativity to achieve the results. Importantly, the engineering leaders are at the center of these projects so that the projects can run smoothly. The team and end-users expect quality work thus meet their expectations. Nonetheless, it is critical to differentiate between management and leadership. According to Leopold and Kaltenecker [1], management is a reactive behavior because it involves addressing the daily issues through coordinating, organizing, and planning. The manager must understand the context and constraints associated with the project. On the hand, a scholar Monson [2] found that leadership is a proactive development and innovation. The leader rarely values the limited resources but focuses on improving the available and assumed resources. Importantly, the leader must communicate the expected potential, ethics, and behaviors. This implies leaders do the right thing while managers do things right. Therefore, leadership is essential in creating a culture that maintains stability and predictability. Background Based on the case, change will improve the effectiveness and life of the organization. Since change is never an easy task, the leaders have the personality that can shape the culture. It is important to identify the challenges that have affected the change process. These could include the internal integration and external adaptation [3]. The engineering leadership must respond to the external environment related to demands. The leadership should also blend the individual efforts to create coherent behaviors among the team members. The anticipated change can occur when the engineering leadership identifies the catalysts [4]. For instance, the new technologies and aggressive market competition could be pushing the firm to seek new avenues. The failure by an organization to respond can lead to losses or poor productivity. Indisputably, if the management fails to consider change, the organization would be exposed to different dangers including going out of business, lose connections, mar ket share, and experience restrictive and barriers to its operations. The company will also experience the personal impact such as losing influence and images [5]. The leaders need to inform the employees that stand to lose their jobs for failing to adopt the changes. Roles of the Engineer The engineer is a technical manager whose work revolves around humans. As a leader, the manager needs to understand that shaping the experience of others would be prudent because this will help them to meet their needs and goals. This involves the use of transactional and democratic leadership qualities [6]. The leadership approach will ensure everyone remains happy, engaged, and productive. The leader should organize regular meetings with members to review their performance and address any roadblocks or issues affecting their operations. Monson [2] demonstrates that the project leader has to simplify the project to make it understandable. The leader needs to must be experts who behaviors are actionable. The engineers must establish a strong relationship with team members because they have relevant skills and experience to address the situation. Overcoming resistance to change The leader should consider creating a clear vision of the change as the first step. Upon determining the reason for these changes, the project can be effective. In fact, this step can involve risk analysis, because even the team are risks as they work against the success of the project [6]. The engineer or team leader should be persuasive in allowing others to buy-in the idea. Resistance to change requires the input of transactional and transformational leaders who have the skills to reduce uncertainty and fear among the employees thus boosting their morale [7]. Transformational and transactional leaders are expected to embrace participative and collaborative leadership skills [8]. Therefore, designing a vision for this project will promote understanding thus visualize the impact. Additionally, the leader should consider getting feedback always. For instance, before the leader makes any drastic announcement regarding the change, it is important to consult experts and get the relevant feedback. This involves the use of strategic thinkers among the team members so that their inputs can be considered. The conversation and feedback should continue throughout the project [9]. The leader needs to consider conducting audits and post-mortem sessions to highlight the problems. The third stage involves making the announcement about the change and plan. Importantly, scholars Radzi and Othman [10] affirmed that changes must be motivational-driven. Based on the vision, the leader must focus on communicating thus make it meaningful and help people to accept change. Although the employee will go through the stages of grief, the team will accept it at last. In the first stage, the employees were in denial of the change [6]. However, upon realizing the reality of these changes, they gained anger to resist because of misunderstanding. With the transactional and democratic leadership, it is possible to persuade them thus allowing them to bargain. The signs of depression will be evident as they slowly accept the reality. In conclusion, resistance to change appears to be the anticipated response of human beings. Employees and teams always try to translate these changes to personal feelings or context leading to fear. The leaders must address these fears to win the confidence of the followers. Importantly, it is prudent for the leader to involve the workforce in finding solutions to the issues. Continued engagement helps the workforce to generate new ideas and prevent bad ideas. Therefore, the company should establish communication plan and coach to ensure that every stakeholder is brought on board thus reduce their resistance. The managers need to use the best leadership approach including transactional and democratic where the team members are involved in the decision-making. Works Cited Leopold S. Kaltenecker, Kanban Change Leadership: Creating a Culture of Continuous Improvement. Hoboken, New Jersey: John Wiley Sons, 2015. J. Monson, Engineering Leadership: How to Create an Effective Engineering Organization. Golden Valley, Minn.: RJM, 2017. E. McCleary, G.M. Crow, and J. L. Matthews, Leadership: A Relevant and Realistic Role for Principals. New York: Routledge, 2014.. T. S. Harvey, The best leaders take calculated risks, learning from failure as they go, The Telegraph, May 12, 2017. [Online]. Available: https://www.telegraph.co.uk/connect/better-business/leadership/best-leaders-take-risks-learning-from-failure/ Berube, Are your employees resisting change? It may be a good thing, Life Cycle Engineering, 2016. [Online]. Available: https://www.lce.com/Are-Your-Employees-Resisting-Change-It-May-Be-a-Good-Thing-1291.html 6. McCauley, Essentials of Engineering Leadership and Innovation. Boca Raton, Florida: CRC Press, 2017. Thuijsman, Leadership styles and their influence on employees regarding the acceptance of organizational change, IBA Bach. thesis, Fucul. of Behav., Mgnt, and Soc. Sci. July 2, 2015. [Online]. Available: https://essay.utwente.nl/67385/1/Thuijsman_BA_BMS.pdf R. Mills, This is what impactful engineering leadership looks like, First-round, n.d. [Online]. Available: https://firstround.com/review/this-is-what-impactful-engineering-leadership-looks-like/ Matsudaira and K. Stull, Combating resistance to change: how to get other people on board with new ideas, Safari, July 1, 2014. [Online]. Available: https://www.safaribooksonline.com/blog/2014/07/01/resistance-to-change/ I. M. Radzi and R. Othman, Resistance to change: The moderating effects of leader-member exchange and role breadth self-efficacy, Journal of Advanced Management Science, vol. 4, no. 1, pp. 72-76, Jan. 2016.