Brennan said that the agency theory & incentives will 'coarsen' humanity and make the world we live in a less hospitable place. Do you agree? why or why not, whether your business uses them and if so, whether they work or what you would do differently.
what is altruism and what role does altruism has in business? explain giving appropriate examples.
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Please find guidelines and ideas for Business Ethics in the attached file.
Running Head: BUSINESS ETHICS
Agency Theory & Ethics
I am not agree with this statement of Brennan that the agency theory & incentives will coarsen humanity and make the world we live in a less hospitable place. The subsequent explanation will assists to clarify my thought which is against of Brennan's statement.
In contrast of this statement, it is stated that agency theory focuses on problems of business relations that are aroused by the authority delegation. Agency theory assists to identify the way of managers to protect the interest of stakeholders in the best manner (Hill & Jones, 2009). Several times, managers do not behave ethically and legally that creates agency problem. By understanding agency problems, more hospitable environment can be created.
In the contemporary environment, stakeholders' satisfaction and relationship marketing play an important role for organizational success (Chew & Gillan, 2006). By understanding agency problems, effective business relations can be maintained for long term organizational success that is positive for maintaining the humanity. Effective business relations will lead to make more hospitable environment (Hill & Jones, 2009). It will be beneficial to gain competitive environment with the help of stakeholders' satisfaction.
In the same manner, incentives also assist in enhancing employee satisfaction that is an important factor of organizational success. It assists to motivate employees and to increase their efficiencies. Incentives are paid for employees' efforts for ...
The expert examines management agency theory and incentives.