A Long Term Plan And Investor Scrutiny

The challenge they face is that stakeholders may not agree with borderline ethical/legal conduct and not invest in the company. This can lead to image loss and financial downfalls and undermine the entire company.

Dynacorp is a worldwide information systems and communications business. In 1990 the company started to have fewer earnings than in the past, so the CEO tried to change the design of the company to run better. In this paper, I analyze this organization though the political lenses to better understand how changing the structure can help improve revenue and quality. As discussed in the book, the political lens sees the organization in terms of conflicts of interests, power, and goals among individuals and groups within the organization. The way to understand the dynamics of political conflict is to understand who has power, from where that power comes, the basis of the power and how much

Describe the conflict faced by corporate insiders who discover unethical or illegal activities within their organization.

Our assignment is to carry out investigations into two companies from two different sectors; these sectors are the private sector and the public/voluntary sector. The private sector are all about making profit rather than providing a service. The public/voluntary sector on the other hand want to concentrate on providing a good and efficient service for their customers such as the NHS, they provide a medical service for residents of this country, of course this isn’t to make a profit because their service is free, whereas companies in the private sector just want to make money to then develop further and release more products which they hope will make even more profit.

According to my analysis of the Accessline’s proposed term sheet, I do not believe that Apex would serve its own interests, or those of its investing partners, by investing in Accessline according to the terms proposed. By investing at the proposed valuation, according to the proposed control and incentive structure, Apex would be shouldering a disproportionate share of the risk should Accessline fail to meet its performance targets, or require fresh inflows of capital from future investment rounds. Nor can Accessline take the sort of steps necessary to protect its investment in the case of management failure.

So investors should worry that Alibaba wouldn’t be share a significant amount of the value created with them over the time. Actually, lots of global public companies have a large shareholder with a lock on control, but normally controlling shareholders often won a substantial portion of the equity capital that provides them with beneficial incentives. In the case of Alibaba, investors need to worry about the relatively small stake held by the members of the controlling Alibaba Partnership (Bebchuk, 2014). All those factors shows Alibaba’s structure does not provide adequate protections to public investors. So investors expect Alibaba changes its Corporate Governance strategy, for instance Jack Ma need to reduce his stake in Alibaba within 5 years, including by having shares in Alibaba granted to Alibaba employees. It also should give more power to the shareholder’s to guarantee shareholder’s right which will seeks to allay investor concerns. If Alibaba change their strategy, giving its stockholders’ strong confidence, the business success of Alibaba might be large enough to make up for the costs of diversions and give public investors with good returns on their investment in the

Research a specific company that has dealt with public criticism from various stakeholders, and include all

2. Ethical Issues in Business. It seems that every day in the news we are hearing of new company that has acted at least unethically and possibly illegally in the operation and financial reporting of their company's business dealings. There are many ethical issues in business. One major issue that we see is over and under reporting net income. Companies like to show that every quarter the net income of the business has an increase or profit. In order to show this they adopt unethical or illegal means in the operation and financial reporting. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate earnings. With the recent ethical issues we have

There can be a number of reasons for a company to go public or private. There are benefits, as well as disadvantages that go along with either course of action (Exhibit 1 for details). When firms decide to go private, they are no longer listed on any stock exchange market. The pressure of keeping accounting regularity and reporting to the public is no longer an issue. Instead, firms can be more flexible to reorganize the business profile as well as the management team. In many cases, shareholders and board members receive very rewarding financial benefits from this transaction. However, in some situations, public firms do not have a choice in the matter, as is the case in a “hostile takeover”.

Ø Give some specific examples of ethical issues that confront businesses and how these might be addressed.

Business Industry has witnessed the outcomes of bad moral decisions taken by business leaders. Enron’s story is only one example of corporate scandals and cases of bad moral decisions, which has not only shaken the public trust in corporations, but also affected the bank accounts of investors and employees. Before the bankruptcy of Enron; it was included in one of the fortune 500 companies after its fraudulent accounting case the share went down to $1 (Enron scandal, 2010; PBS, 2002; Godwin, 2006; Godwin, 2008).

4. The corporation gives funding to the university and other public institutions because they want to enhance reputation, but it will cause ethical concerns.

The overwhelming facts point to a shady underworld of self-dealing and opportunistic exploitation of the poor and working class, which was until recently, well hidden from the commoner. The executives of WorldCom and Enron provide real world examples of unethical business practices, where the desire to make money for their shareholders transcended into an addiction to greed and self-dealing that were displayed by their, “excessive pay, perks, and golden parachutes”(Carson 392) at the expense of all stakeholders. All is not lost, there are corporations that pride themselves in their sound business model and commitment to ethical business practices. Such companies as Eaton Corporation, and Weyerhaeuser, who according to Ethisphere.com, a business ethics watchdog, are among the “2010 World`s most ethical companies.” (Ethisphere)

Unfortunately, scandals like Enron are not isolated incidents and the last decade has offered Americans a disheartening perspective with comparable scandals like that of WorldCom and Tyco, Sunbeam, Global Crossing and many more. Companies have a concrete responsibility not just to their investors but to society as a whole to have practices which deter corporate greed and looting and which actively and effectively work to prevent such things from happening. This

Public organizations and private organizations experience a significant difference in management incentives. Public managers are more likely to obtain lower and less performance-based benefits that may determine their disposition to take a risk. Studies show that the organizations in the public sector recruit fewer risk-taking entrepreneurs than organizations in the private sector as a result of the expectations of penalties or rewards of entrepreneurial activity (Dixit, 1997). Therefore, the performance of the private organizations’ managers will be better than that of the managers in the public sector. Furthermore, it is likely that private organizations have a higher likelihood of accepting failure than their counterparts in the public sector. Organizations experience failure when their innovation projects do not accomplish the expected objectives. Private organizations may consider failure as an integrated part of the risky enterprise, but employ measures against failures of their businesses (Hee Soun & Feiock, 2007).