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Business Ethics

TEAM 5 Jegadeeshwaran Mohamed Ishok Nancy Grace Ragul Dharmaraja Sowmya

Introduction
Shareholders
Legal owners of a business Corporations most important stakeholders They bear the risk

Managers
Employed to manage the firm on their behalf Responsibility to increase shareholders returns

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Common Ethical Issues


Written & Unwritten duties Rights of shareholders

Trade off between managers self interest and that of shareholders

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Shareholders Role
Configure the company as a medium and long-term entity Not compromising its continuity through an interest in short-term enrichment Should always demand ethical behavior from the company
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Contd
Define and defend the mission and values of the company in accordance with its Code of Ethics Should exercise voting rights at the General Shareholders Meetings in a ethical way Configure their company as an instrument of environmentally, socially & legally sound
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Companys Role
Should inform owners or shareholders periodically and accurately as to the situation of and outlook for the company Promote effective participation by shareholders at the General Meetings Should facilitate the exercise of information and voting rights
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Contd
Should facilitate the transparency in the financial statement formulations Should intimate/inform the shareholders about the important decision making process

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Managers Role
Quantify the moral claims of shareholders Apply ethical analysis where legal requirements are unclear

Should not expropriate excessively the shareholders wealth for themselves

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Conclusion
As part of the company or management, they wish to take risks or involve in the unethical activities but consider the shareholders also before taking

decisions

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Reference
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&c d=10&cad=rja&ved=0CIMBEBYwCQ&url=http%3A%2F%2Fwww .ecgi.org%2Fcodes%2Fdocuments%2Fica_coe_en.pdf&ei=y5BZUbv OLY3zrQfWyYGgCA&usg=AFQjCNHvVfgyINoh3KAhhjlwSXQp XZaNxg&sig2=7lV_UNLOQHnd6LAYMvaTKQ&bvm=bv.444420 42,d.bmk www.sagepub.com/upm-data/5872_Chapter_1_Sharp_I_Proof.pdf

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