The Ethics of International Business Essay Example | Topics and Well Written Essays - 2000 words

The Ethics of International Business - Essay Example According to the research findings, it can, therefore, be said that the relationship of the managers, including the directors, with the stakeholders, is mainly fiduciary. They are after all paid for working for the primary stakeholder, the shareholder to create value and profit for him. It is incidental that for earning this profit, they have to be equally mindful of befitting the secondary stakeholders. Contrary to common belief, there are many stakeholders in the business apart from the shareholder or the stockholder. They are the employees, customers, suppliers, bankers and even the society at large who look for some benefit from the company, and in turn are also its well-wishers. The various audits and financial data only show that these are results of activities that have been checked for correctness but they do not reflect on what level of competence was exercised. The better and more comprehensive method is through Corporate Governance. The company is a legal entity and theref ore has to enter into commercial transactions all the time for carrying on its business activities. These transactions are concluded by the managers on behalf of the company since the legal entity is not a person and needs agents to carry out these duties for it. This ability of the managers to enter into legal contracts and agreements makes them the agent of the company with the liability resting with the company. This situation gives rise to irresponsible behavior on the part of managers who do not carry the burden of any wrongdoing on their part. It is to control this likely misuse of power that Corporate Governance assumes importance.

Memo Essay Example | Topics and Well Written Essays - 1000 words - 3

Memo - Essay Example The insurer has a duty to defense before a court of law. Insurance companies lose the right to defense only when there is conflict of interest. Insurance companies do not compensate the insured automatically before thorough analysis of the real cause of the losses which call for compensation. According to Devine (2006), the insurance company has a duty and a right to defend itself basing this on the principles governing the insurance contracts as stipulated in insurance law. Mr. and Mrs. Turner entered into an insurance contract with Youngston Company when they took a cover against any liability that arises other than injuries resulting from discharge, release, dispersal or escape from pollutants. These clauses specified the kind and extent of losses to be compensated whenever such specific liability arises. The policy language excluded losses suffered due to discharge, dispersal, release, or escape of pollutants. From the excerpt, we noted that the child became ill because of too mu ch lead in the body system. Insurance company should defend itself basing this on the language of the cover i.e. the cover would not cover any liabilities resulting from losses suffered due to escape of pollutants. In addition, the company is not liable for the losses suffered by a third party. During inception of the insurance contract, neither Mr. and Mrs. Cavanaugh nor any other person who rented the apartment, was mention in the contract. Since, the child belongs to the third party; the insurance company has a duty to defense based on this. However, the insurance policy issued by the company did not specify exactly the boundaries of compensation. The exclusion language did not mention the specific pollutants which will be covered by the policy. In addition, the policy cover did not specify whether the company should compensate any damages suffered by the third party. It is therefore the decision of the court to