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(1,1) | Description (1,2) | Theory of Human Nature (1,3) | Owner Role (1,4) | Manager Role (1,5) | Corporate Ethics Focus (1,6) |
Agency Theory (2,1) | Managers act as agents of the corporation fulfilling the goals established by the owners / directors(2,2) | Managers are rational, but self-interested beings who must be controlled from the outside(2,3) | Owners are principals, that is, they originate the action and bear primary moral responsibility.(2,4) | Managers are agents, that is, responsible for acting in the interest of the principals who hire them. Faithful agency implies avoiding conflicts of interests and maintaining confidences.(2,5) | Compliance focus uses (1) rule-based codes, (2) systems of monitoring, and (3) punishments and rewards to motivate compliance from outside.(2,6) |
Stockholder Approach (3,1) | Corporation is property of stockholders who dispose of it as they see fit.(3,2) | Stockholders pursue self interest. They are rational (instrumental), economic self-interest maximizers.(3,3) | Owners invest in corporation and seek a return (profit) on their investment.(3,4) | Managers are responsible for ensuring that owners get maximum return on investment.(3,5) | Stockholders direct compliance toward manager control and external conformity to laws.(3,6) |
Stakeholder Approach (4,1) | Owners drop out of center focus. Corporation is run for the sake of its stakeholders.(4,2) | Groups have special interests but recognize the need to integrate these. Humans possess capacity for procedural reasoning.(4,3) | Owners drop to one of a group of equal stakeholders. Still advocate their financial interests but not to exclusion of other stakeholders.(4,4) | Managers are meta-stakeholders. They treat stakeholders and stakes equally and integrate these to the fullest extent possible.(4,5) | (4,6) |
Stewardship Model (5,1) | Managers act as stewards for absentee owners; oversee the operations of corporation and exercise care over them. Emotion (care) plays an equal role with instrumental rationality.(5,2) | Desire and self interest are balanced out by social motives such as Rousseau's pity and Aristotle's virtues.(5,3) | Owners still set cardinal objectives but they also are responsible for providing managers with a meaningful work environment.(5,4) | Managers are stewards exercising care over the property of the owners in their absence. Stewardship is based on internally generated and self-imposed motives toward care.(5,5) | Value-based: (1) identify and formulate common standards of excellence, (2) develop training programs to foster pursuit of these excellences, and (3) develop support structures to help reduce value "gaps."(5,6) |
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