PHIL 2600 Lecture Notes - Lecture 6: Equal Opportunity, Genetic Engineering, Nuclear Power
8 Apr 2014
School
Department
Course
Professor
Document Summary
Peculiarities of corporate ownership: locus of control, fragmented ownership, divided functions and interest. Duties of managers: duty to act for the benefit of the company, duty of care and skill, duty of diligence. Describes the process by which shareholders seek to ensure that their corporation is run according to their intentions. It includes processes of goal definition, supervision, control and sanctioning. In the narrow sense it includes shareholders and the management of a corporation as the main actors; in a broader sense it includes all actors who contribute to the achievement of stakeholder goals inside and outside the corporation. Principal: shareholder seeks profits, rising share price, etc agent: manager. A separate body of people that supervises and controls management on behalf of shareholders. Dual structure of leadership: executive directors: are actually responsible for running the corporation, non-executive directors: are supposed to ensure that the corporation is being run in the interests of the shareholders.
