Conflict Between Maximizing Shareholder Wealth And Never Paying Bribes - 275 Words

Conflict Between Maximizing Shareholder Wealth And Never Paying Bribes (Case Study Sample) Content: Maximizing Wealth with Shareholders Name Institution Date Maximizing Wealth with Shareholders Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm's position to shareholders asking why the company does not pay bribes when its foreign competitors in various nations clearly do so? Please explain how Saint Leo’s core value of responsible stewardship is reflected in your answer. According to me, it is possible to maximize the wealth of the shareholders and the investors in general without paying bribes. There is no conflict between the two actions. I think the two concepts are correlated positively. Ethics and the good public image are crucial for the growth and development of the business. By portraying a right public perception, the firm can increase the market value of the current stocks, thus increase in the wealth of shareholders. Sound policies help grow the business. The company is likely to enjoy profits for a short time when engaging in unethical deeds like bribery. Therefore, it is vital for a firm to make right decisions when it comes to investment to motivate the stakeholders, which can make them determined to increase the value of the stocks (Lea, 2008). When there are good plans instilled and a well-stipulated procedure on how the firm is going to invest and develop itself, the existing shareholders are motivated to remain loyal, and at the sam e time, new ones are attracted to the company. Companies that operate at an international level should consider the rules set by the Foreign Corrupt Practices Act, and refrain from paying bribes. Although the competitors might be engaging in the act and...