Institutionalized abuses enable companies to meet stock market profit expectations, and their own.
Profit-related executive pay has grown from 60 times that of the average worker to almost 180 times since the 1990s.
1. Discuss the claim that “We rely on shareholders to impose morality in the global marketplace” in the context of alternative theories of corporate governance.
2. Identify one or more solutions to this problem of relying on shareholders to impose morality in the marketplace.
3. Assess the advantages and disadvantages of each of the solutions that you identify.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.1. Corporate governance is referring to the system by which the organization is directed and controlled, which also outlines the distribution of responsibilities, rights, rules and procedures for making decisions among shareholders and managers. In a broader sense, the term corporate governance includes the relationships with company’s stakeholders and could be defined as the design of institutions that induce or force management to internalize the welfare of stakeholders, as defined by Tirole (2001)....
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