Graduate studies at Western
Journal of Business Ethics 7 (1-2):109 - 116 (1988)
|Abstract||The recent takeover and merger trend cries out for ethical evaluation. This essay proposes a model for evaluating them in terms of their impact on a firm's immediate stakeholders: investors, owners, management and employees. Since mergers and takeovers are Transfers of Ownership of Firms (TOFs) they entail a property ethic of ownership, control, securing stakeholder interests, and defining which stakeholders should exercise these rights. I use the model to evaluate two fictional cases, a friendly merger and a hostile takeover. The results show that neither TOF serves all interests equitably. Since the control structure of the private firm is legitimized by its interest structure, I reason that both should be reformed. Both rest on a broader economic rationale; but it is controverted. Accordingly, the economic and ethical evaluation of TOFs, I conclude, both entail the democratic reform of the control structure of the firm.A corporation represents far more than its current stock price; it embodies obligations to employees, customers, suppliers and communities.|
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
|Through your library||Configure|
Similar books and articles
J. M. Elegido (1995). Intrinsic Limitations of Property Rights. Journal of Business Ethics 14 (5):411 - 416.
Zuko Mbele, Organisational Culture and Structure as Mechanisms for the Reduction of Human Behavioural Variability at the Merged Faculty of Education of the University of Kwazulu Natal (UKZN).
Marguerite Schneider & Alix Valenti (2011). A Property Rights Analysis of Newly Private Firms. Business Ethics Quarterly 21 (3):445-471.
Shalini Perumpral, Dan Davidson & Nilanjin Sen (1999). Event Risk Covenants and Shareholder Wealth: Ethical Implications of the "Poison Put" Provision in Bonds. [REVIEW] Journal of Business Ethics 22 (2):119 - 132.
E. Jansson (2005). The Stakeholder Model: The Influence of the Ownership and Governance Structures. [REVIEW] Journal of Business Ethics 56 (1):1 - 13.
Nick Collett (2010). Partial Utilitarianism as a Suggested Ethical Framework for Evaluating Corporate Mergers and Acquisitions. Business Ethics 19 (4):363-378.
Patricia H. Werhane (1988). Two Ethical Issues in Mergers and Acquisitions. Journal of Business Ethics 7 (1-2):41 - 45.
Daniel G. Chase, David J. Burns & Gregory A. Claypool (1997). A Suggested Ethical Framework for Evaluating Corporate Mergers and Acquisitions. Journal of Business Ethics 16 (16):1753-1763.
Ken Hanly (1992). Hostile Takeovers and Methods of Defense: A Stakeholder Analysis. [REVIEW] Journal of Business Ethics 11 (12):895 - 913.
Added to index2009-01-28
Total downloads6 ( #154,981 of 739,559 )
Recent downloads (6 months)2 ( #37,338 of 739,559 )
How can I increase my downloads?