04 Aug What does it mean to say that managers should maximize shareholder wealth “subject to ethical constraints
Module 1 Discussion Topic:
What does it mean to say that managers should maximize shareholder wealth “subject to ethical constraints”? What ethical considerations might enter into decisions that result in cash flow and stock price effects that are less than they might otherwise have been?
When you respond to DQ1, make sure you respond to it in two parts, as there are two questions included in this DQ, and please be specific in your responses to each part of the two parts of the DQ.
It may not seem so important or relevant, but managers often:
-know the future (especially budgets, business plans, business strategies, the date of the release for new products, the status of important litigation, just to name a few important items….);
-managers, often time, have a vested interest in the performance of the firm, in the form of short-term items (for example bonuses); and long-term items (such as ownership of shares of stock in the firm or stock options, which the manager can exercise in the future, especially if they are in ‘the money’ and can provide the manager with a profit on a sale).
So, I hope at this point that you understand that the ethical constraints faced by managers are becoming increasingly clear………..it is not so simple, not so easy, but the manager must pick which road they will travel on, and if ethics come into question, the ramifications of not doing the right thing.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.