Managerial Incentives

Managerial Incentives

Henry Manne believed that companies cannot become too incompetent or corrupt, as eventually their share price would fall and they could be taken over by another firm that would get rid of incompetent management. Adolf Berle and Gardiner Means believed that company managers have an incentive to feather their own nests and to undermine shareholder wealth.

Can elements or parts of these theoretical perspectives have governmental applications? If so, which theory do you think best describes the segment of American government known as the Congress and the Senate? Explain your answer.

Which theory best fits your ethical perspective? Which theory best fits a particular group to which you currently belong, or previously belonged?

Your initial post should be at least 250 words in length. Support your claims with examples from required material(s) and/or other scholarly resources, and properly cite any references. Respond to at least two of your classmates’ posts by Day 7.

Part 2: Child Labor

Child labor is endemic in the poorer countries of the world, and for many children it is seen as way of keeping their families out of poverty. Critics point out that if the governments were to invest more in educating children, they could be more productive and create more wealth for their nation when they are older. In the meantime, multinational enterprises often secure suppliers who use children.

In your opinion, what is the best way to reduce child labor for multinational corporations? How is the phenomenon of child labor viewed from your ethical perspective? Given the ethical perspective of a particular group to which you currently belong, or previously belonged, how would child labor be viewed?

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