David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 7 (1-2):109 - 116 (1988)
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)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
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 downloads7 ( #191,341 of 1,099,556 )
Recent downloads (6 months)1 ( #300,754 of 1,099,556 )
How can I increase my downloads?