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LS1_HRM Incident Paper

Elements is legitimate although they are not equally

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elements is legitimate, although they are not equally weighted in importance. The shareholder interests and the union response should be given priority, as these have the greatest impact on the outcome of the HR plan’s success. 2.) Is it true that Scott should be concerned first and foremost with protecting the interests of shareholders? Discuss. a. Yes, Wheeler’s primary concern should be company stockholders. Shareholders are key to a company’s existence. Companies have three sources of capital: earnings, debt, and equity. Shareholders represent equity. Weakening equity will force more reliance on earnings or debt which both have their limits. Furthermore, if shareholders are not protected, they will not invest and a company can stagnate, contract, and eventually fail. If shareholder interests are not first, investors will simply not invest and the company will lose vital capital important to its success and competitive advantage in its market. HRM Incident One: An Ethical Flaw HRM Incident One: An Ethical Flaw gives an overview of an unfortunate incident of preferential hiring based on connections versus skills and knowledge. The daughter of one executive vice president was hired by the company of his business associate of another company strictly based on the business
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5 HRM INCIDENTS relationship and not based on the daughter’s qualifications, possibly in spite of the daughter’s qualifications. The daughter, once hired, went on to abuse the opportunity given to her and is exploiting the relationship of her father and the president of the company. Questions 1.) From an ethical standpoint, how would you evaluate the merits of Mr. Garbo’s employing Amber? Discuss.
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