2.3 Describe
the structure of corporate governance as put forward by Farrar.
Farrar (2005) sees the corporate governance structure past papers as a
relationship between the legal regulation, the stock exchange listing
requirements and statement of accounting practice, codes of conduct, guidelines
and statement of best practice and business ethics. The legal regulation sits
at the core, with the factors emanating outwards depending on their obligatory
nature.
2.4 Compare
and contrast the views of Hobbes with those of Smith and Friedman.
Hobbes viewed regulation as essential whereas
Smith and Friedman advocated little regulation and the promotion of self-interest
thereby creating market efficiencies and wealthy nations past papers by free
entrepreneurial trade.
Thomas Hobbes (1588 – 1679) famous’ position is
that if everyone acted in their own self-interest then anarchy would rein and
it would lead to a shallow, anxious and short life. He argued that most people
would rationally recognize that it was in their best interest past papers to form a
government to regulate behaviour. In so doing they would accept the laws of the
state and agree to abide by their moral obligations (Honderich, 1995).
However, maximising self-interest became a
theme in classical economic theory. Adam Smith (1723-1790) was an advocate of
this philosophy and believed that purchase test banks competitive self-interests were necessary in
the commercial world to achieve overall public benefit. Basically, if people
were free to venture into activities that promoted their own self-interest then
the process would guide them not to war on each
other (as believed by Hobbes) but to a utilitarian state. Economist
Milton Friedman also believed in limited government intervention and in the self-interest
principle as long as it was done in accordance with the “rules of the game”. He
states
“there is one and only
one social responsibility of business – to use its resources and engage in
activities designed to increase its profit so long as it stays within the rules
of the game, which is to say, engages in open and free competition without
deception or fraud.” (Friedman, 1970, p.126).
Friedman’s laissez-faire economy in which
profit is the ultimate goal and there is very little regulation is based on the
idea that a firm taking on social costs makes them less efficient and therefore
in the long run will do more harm to society then good. So Smith and Friedman’s
view of little regulation is in contrast to Hobbes’s position of a government purchase test banks
ruled society. Although at seemingly opposing ends, the Smith and Friedman view
is premised on an acceptance that some regulatory controls are needed. However,
the question remains as to what extent regulation is needed to protect the
interest of the community while not stifling the risk taking ventures of
entrepreneurs that provide the impetus for wealthy nations. In other words,
what are the rules of the game and how and who decides upon them?
2.5 Outline
the major maxims of Kantianism and describe what they mean purchase test banks.
“I ought never to act
except in such a way that I can also will that my maxim should become a
universal law.
Act in such a way that
you always treat humanity … never simply as a means, but always at the same
time as an end.”
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