Law, Business, And Society

Question 1The modern blood line environment is characterized by yearning competitiveness and this means that businesses get down to change their internal traffic operations on a continuing basis in to variant and take a competitive edge . that this is not an easy task for macroscopical state-supportedly held corporations because they are devotee out to semipublic scrutiny and also because they have a roomy range of internal and outside stakeholders whose needs mustiness be met . Therefore , when it comes to change forethought in a enceinte publicly held corporation , stakeholder centering is a vituperative out . Internally , the some important stakeholders for a publicly held large corporation are the owners /investors . Equally important in wrong of their contribution to organizational productivity are the emp loyees . When it comes to the external stakeholders , the most important group consists of consumers whose satis situationion is related to the very natural selection of the organization . Therefore , publicly held corporations must take into term the needs of these three groups of stakeholdersOwners and investors have provided the capital based on which organizations conduct their operations . In this respect , the ultimate material object of these operations is the maximisation of earns . This is the reason why cultivable large corporations like General Electric and Microsoft have oft reengineered their internal operations in to build and disc over a competitive edge which will allow them to maintain the highest train of market share and therefore maximize gains . In this respect , the role of the politics is particularly important because the management of a publicly held organization is accountable to different disposal agencies that ensure that the organizational practices are not breaking environmental an! d social laws As a result , the owners and the investors have to maintain good relations with the government in to meet their goals and objectives of profit maximizationAs mentioned before , large publicly held corporations are open to public scrutiny . Therefore unless public needs crowd out be met satisfactorily , the corporations will not be successful .

To this choose , the owners and the investors engage in extensive public relations activities in to develop a positive image in this pack . However as illustrated in the Enron scandal , the relations amid the business owners and their agents , the business m anagers , can lead to unscrupulous practices which caller-out insiders can conceal behind hard-to-understand balance sheet items . The motive for agreeable in unscrupulous practices stems from the objective of profit maximization . In the case of Enron , business managers signed up contracts without applying the congruous lay on the line management models . When these contracts did not produce the desired returns , the managers created untried partnerships in to write off the losses .Practices such as in a higher place result from the principal-agent relationship which probably describes the relationship between owners /investors and the influential most effectively . This is an example of conflict of interests which arises from the fact that the owners of the unfaltering and the managers that they employ to run the day-to-day operations of the firm have different motives for their actions . For example , the owners will want...If you want to work over a full essay, order it on our website: OrderCustomPaper.com

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