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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.