PHIL186 Corporate Downsizing

PHIL186 Corporate Downsizing - simply because they are the...

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Professor Bashaw PHIL 186 8 April, 2008 The Ethics of Corporate Downsizing In “The Ethics of Corporate Downsizing” John Orlando argues that the act of corporate downsizing is often morally wrong. He does this by refuting the arguments that corporate managers have an obligation to look over the interests of the shareholder over the workers. He then goes on to state his arguments for why he believes corporate downsizing is morally wrong and then offers some suggestions on how to avoid or make corporate downsizing morally right. Orlando first argues against the idea that the shareholders take precedence over all others
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Unformatted text preview: simply because they are the legal owners of the corporation. The second argument is that corporate managers have a fiduciary duty to their shareholders above any other duties. Orlando states that “fiduciary duty does not establish the obligation of the agent…it does not create those duties, and thus cannot justify them.” The next argument is from Ian Maitland and he provides two justifications for shareholders taking precedence over workers. The first is that shareholders have invested capital in the corporation and have taken a risk in doing so. The second is...
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This note was uploaded on 09/08/2010 for the course BUS 186 at San Jose State.

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