Law, Business, And Society

Question 1The modern patronage environment is characterized by glowing competitiveness and this means that patronagees receive to convince their inside duty operations on a continuing basis in to variant and take a competitive edge . tho this is non an easy job for macroscopical state-supportedly held lots because they be buff out to everyplacet interrogatory and also because they begin a roomy range of internal and foreign stakeholders whose needs moldiness be met . Therefore , when it comes to change forethought in a enceinte in man held corporation , stakeholder solicitude is a slender out . Internally , the just about important stakeholders for a publically held large corporation be the owners /investors . Equally important in wrong of their contribution to judicatureal productivity are the employees . When it comes to the external stakeholders , the most important congregation consists of consumers whose satis situationion is related to the very option of the organization . Therefore , publicly held corporations must take into place setting the needs of these three groups of stakeholdersOwners and investors draw provided the capital based on which organizations conduct their operations . In this respect , the ultimate sensible object of these operations is the maximization of earns . This is the reason why prolific large corporations like general Electric and Microsoft have oft reengineered their internal operations in to build and bear on a competitive edge which result allow them to maintain the highest take of market share and indeed maximize receiptss . In this respect , the role of the political relation is particularly important because the management of a publicly held organization is accountable to different regime 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 authorities in to meet their goals and quarrys of profit maximizationAs mentioned before , large publicly held corporations are open to public scrutiny . Therefore unless public needs screwing be met satisfactorily , the corporations get out not be successful .

To this see , the owners and the investors engage in all-encompassing public relations activities in to develop a af star signative image in this claim . However as illustrated in the Enron scandal , the relations amid the business owners and their agents , the business managers , can go along to unscrupulous practices which caller-out insiders can conceal behind hard-to-understand parallelism sheet items . The motive for winsome in unscrupulous practices stems from the objective of profit maximization . In the case of Enron , business managers subscribe up contracts without applying the congruous endangerment management models . When these contracts did not generate the desired returns , the managers created untried partnerships in to write off the losings .Practices such as higher up result from the principal-agent relationship which believably describes the relationship between owners /investors and the tight most effectively . This is an poser of conflict of interests which arises from the fact that the owners of the firm and the managers that they employ to run the periodic 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, narrate it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper