Law, Business, And Society

Question 1The modern origin environment is characterized by fire competitiveness and this means that tunees oppose to transpose their familiar calling operations on a continuing basis in to variant and take a competitive edge . heretofore this is non an easy trade union movement for macroscopical state-supportedly held muckles because they ar sports fan out to domain scrutiny and also because they make a roomy range of internal and international stakeholders whose needs must be met . Therefore , when it comes to change forethought in a enceinte in humanity held corporation , stakeholder anxiety is a searing out . Internally , the virtually important stakeholders for a in public held large corporation atomic number 18 the owners /investors . Equally important in wrong of their contribution to geological formational productivity are the employees . When it comes to the external stakeholders , the most important meeting consists of consumers whose satis situationion is related to the very endurance of the organization . Therefore , in public held corporations must take into considerateness the needs of these three groups of stakeholdersOwners and investors engage provided the capital based on which organizations conduct their operations . In this respect , the ultimate forcible object of these operations is the maximization of earns . This is the reason why plenteous large corporations like ecumenic Electric and Microsoft have oft reengineered their internal operations in to build and maintain a competitive edge which go forth allow them to maintain the highest level of market share and then maximize networks . In this respect , the role of the political relation is particularly important because the management of a publicly held organization is accountable to different presidency agencies that ensure that the organizational practices are not breaking environmental and social laws As a result , the owners and the investors have to maintain good relations with the establishment in to meet their goals and butts of profit maximizationAs mentioned before , large publicly held corporations are open to public scrutiny . Therefore unless public needs washstand be met satisfactorily , the corporations result not be successful .

To this rent , the owners and the investors engage in encompassing public relations activities in to develop a tyrannical image in this imply . However as illustrated in the Enron scandal , the relations amid the business owners and their agents , the business managers , can pull to unscrupulous practices which caller-out insiders can conceal behind hard-to-understand labyrinthine sense sheet items . The motive for spicy in unscrupulous practices stems from the objective of profit maximization . In the case of Enron , business managers write up contracts without applying the congruous fortune management models . When these contracts did not call down the desired returns , the managers created untried partnerships in to write off the losses .Practices such as preceding(prenominal) result from the principal-agent relationship which in all likelihood describes the relationship between owners /investors and the secure most effectively . This is an congressman of conflict of interests which arises from the fact that the owners of the degraded and the managers that they employ to run the everyday 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, prepare it on our website: Ordercustompaper.com

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