STRATEGIC MGMT LL CASEBOOK W/CONNECT
4th Edition
ISBN: 9781307485110
Author: Rothaermel
Publisher: MCG/CREATE
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 1DQ
Summary Introduction
To determine: The ways by which a top management can reduce the chances of their key managers pursuing their own self-interest at the cost of stockholders, employees and other stakeholders.
Expert Solution & Answer
Explanation of Solution
Ways by which a top management can reduce the chances of their key managers pursuing their own self-interest at the cost of stockholders, employees and other stakeholders:
A company can use a strict corporate governance mechanism to watch their key managers getting involved in inappropriate actions. Monitor mechanism must be strictly implemented and must be communicated to avoid the unnecessary behavior. Code of conduct policies must be communicated throughout the organization by which unwanted behavior can be avoided.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
* What mechanisms exist for dissatisfied shareholders to prevent what they see as excessive rewards to directors?
In a public company, management acts as agent for the board and shareholders to purse the objective of maximizing shareholder value.
True or Fasle?
given that people rarely use a company’s code of ethics to guide their decision making, what good are the codes?
Chapter 12 Solutions
STRATEGIC MGMT LL CASEBOOK W/CONNECT
Knowledge Booster
Similar questions
- How would a stakeholder approach, if taken by the companys top leaders and board of directors, have possibly prevented the crisis?arrow_forwardHow do management teams prioritize long-term shareholder value to protect investor interests?arrow_forwarda) When is there an enforceable contract? Is it when the parties agree on the business terms or when the legal terms are finalized? Explain highlight an example of a business situation b) Explain why an enterprise which is making profit can still go under? c) What is controlling as a management function and what systems are put in place as control systems? d) What is budgeting and what are the benefits of budgeting?arrow_forward
- Do the stakeholder and shareholder theory contradict each other? Why?arrow_forwardWhat is the board's role in corporate governance , and how does it differ from management's role?arrow_forward"Corporations publish their annual accounts and financial statements in order to inform the public about their financial situation and that information is valuable for many stakeholders." Please express your opinion about who are the main stakeholders and what decisions each one could make based on that information.arrow_forward
- Consider critically how corporate governance is viewed and handled, as well as how significant it is, bearing in mind that trust, stakeholder activism, investor demand, and the social influence of corporations are all necessary components.arrow_forwardAssume that you are the owner of a successful small-to-medium-sized business. You want to grow your business and separate it from your personal finances. What should you do? How will you do it? In regard to dividends and earnings, when and how should you and other owners be rewarded? What are examples of each type of dividend? Why do some large corporations forgo dividends?arrow_forwardWhat is the difference between stakeholders and shareholders? Are all shareholders also stakeholders? Are all stakeholders also shareholders?arrow_forward
- Management accountants must try to implement systems that are acceptable to budget stakeholders to produce positive effects. Now, as a management accountant, choose three (3) negative attitudes, explain them and write your recommendations on how you will address these negative attitudes from a management’s perspective. It could either be a policy that the management will implement or an action that will be undertaken by management to counteract the negative attitude.arrow_forwardIt is! With ethical questions in business, you can weigh different factors and consider: How the decision might affect the common good of society at large and the greatest moral virtues: prudence, temperance, courage, and justice. How the decision might affect our stakeholders and profitability; whether the decision is consistent with our company's values; and how the public would react if they found out about our decision.arrow_forwardDifferentiate between primary and secondary social and nonsocial stakeholders in a business situation. Give examples of each. What are the five key questions that must be answered for stakeholder management to be successful? What are the three levels of stakeholder engagement that a company might use? Explain each.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning