Learning Objectives

1
Learning Objectives

• To know what stakeholders are and their roles in
  the affairs of a corporation.
• To know the issues, problems, and possible
  remedies to corporate governance issues.
• To know the purposes of business ethics.

2
Stakeholders and Corporate Performance

• Stakeholder impact analysis
• The unique role of stockholders
• Profit, growth, and stakeholder claims

3
Agency Theory

• Principal-agent relationships
• The agency problem

4
Governance Mechanisms

• The board of directors
• Stock-based compensation
• Financial statements auditors
• The takeover constraint
• Governance mechanisms inside a company

5
Ethics and Strategy

• Ethical issues in strategy
• Self-dealing
• Information manipulation
• Anticompetitive behavior
• Opportunistic exploitation
• Substandard working conditions
• Environmental problems
• Corruption
• The roots of unethical behavior

6
Ethics and Strategy (cont)

• Behaving Ethically
• Hiring and promotion
• Organizational culture and leadership
• Decision-making processes
• Ethics officers
• Strong corporate governance
• Codes of ethics
• Ethics officers