Self-Interest or Community Interest
Adam Smith argued that self-interest is a critical element in a society's economic development. Karl Marx, by contrast, argued that society functions better when each of us is more community oriented.
Pretend you are either Adam Smith or Karl Marx, and explain economic recession from these perspectives.
- Discuss when greed and selfishness in businesses go too far and become a hazard to society.
- Stepping back into your shoes, contrast your system of values and ethics concerning greed and self-interest with the system of values of Smith or Marx.
- Discuss if the ethical perspective of a particular group to which you currently belong, or previously belonged resembles the perspective of Adam Smith or Karl Marx?
Total response is 250 words. Support your claims with examples from required material(s) and/or other scholarly resources, and properly cite any references.© BrainMass Inc. brainmass.com October 25, 2018, 10:08 am ad1c9bdddf
I pretend that I am Adam Smith. Economic recession from this perspective is that the forces of competition and self-interest work during economic recession and will help the economy recover. During economic recession, self-interest drives businesses to produce less (they experience lower demand). This leads to lower income for salary earners, and some may lose jobs (1). The workers in their self-interest spend less by buying lower priced goods and services, banks lend less because they fear the money may not be returned, and businesses lay off more ...
The answer to this problem explains self-interest and community interest conflict. The references related to the answer are also included.
Shareholder Value Questions
1. Do officers and directors in public companies place their own self-interest above those of its shareholders? Explain your answers.
2. Is shareholder value the only proper concern for corporate management? Should the interests of other stakeholders (employees, customers, community, etc.) be considered independently or only to the extent necessary to enhance the long-term interests of the shareholders?
3. Mechanically speaking, the shareholders elect the directors who elect the officers. In small businesses, this is the way it really works. However, in big business, the officers have practical control over the nomination and proxy solicitation process. Discuss the distribution of power between the Board and Management. Is increasing the power of the Board at the expense of the power of the Chief Executive always in the best interest of the shareholders?View Full Posting Details