Date Free Market Dilemma: The Contention between Corporate and Public Interests The historical development of the free market paradigm of laissez faire economy and independent trade has led to the growth of modern corporations and giant, consolidated business, which, in the current age of globalization and IT boom, have emerged as the major controlling powers of the world economy…
(Lydenberg 9) The main aim of my paper is to address the question that while global corporations have become the foundation of world economy, do they act in the interest of the general population. I have made use of the highly resourceful and entertaining book by Joel Bakan, The Corporations, among other sources, where the author examines the ‘pathological pursuit of profit and power’ with a deep insight into dominant problems of the current market paradigm. He compares private corporate industry, amusingly as well as disturbingly, to a clinical psychopath whose obsessive self-indulgence does not admit human considerations of common public welfare. Aided by government-sanctioned laws, functioning to further business interests, these great corporations act with absolute impunity, pursuing the single object of meeting their own financial targets. While much of the prevailing argument is negative, one must admit the capacity of public good that Corporate Welfare truly holds and can contribute to society. Market productivity can propagate, even ensure, general innovations in terms of technology and finance. However, whether that immense power is actually employed for its real purpose is another question altogether. Several current discourses and studies are now addressing these areas. Many works seek to confirm the validity of a number of activities falling under the broad category of Corporate Social Responsibility and aims at the behavioral analysis of the related philanthropic aspects of the said initiations. (Keim 1) Other researchers openly criticize the entire concept of corporate social welfare, deeming it an empty facade that merely masks the ugly face of self-interested private enterprises, driven only by and towards profit and power, as superbly exemplified in Bakan’s excellent book. The recent atmosphere of public distrust and doubt towards the corporations are quite evident given the frightening economic crashes in the past few years. The on-going debates over public vs. corporate interests have intensified following the emergence of the market trend of privatizing and industrialization of social services. (Lydenberg 10) In The Corporations, Bakan gives a comprehensive outline of the process of corporate growth from the 17th to the early 20th century, citing the first major incidents of economic disasters, almost as cautionary tales of corporate greed. He goes on to present a non-ambivalent and direct criticism of the US jurisprudence for supporting the ultimately counter-productive business claims of large companies for the temporary gain of profits. The de-regularization of legalities concerning corporate functions have handed over too much freedom to these industries, causing a capitalist power center that controls much of the socio-political scenario. However, I must highlight, that efforts have been made in the recent past to correct this oversight and gain back some government control over the companies. Contemporary readings, I believe, must involve an examination of both ‘the market and the public sphere models’ (Crocteau and Hoynes 38). The past three decades show the development of several strategies to counter corporate exploitation of public ...
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Crossen (1996) identifies three conflicts of interest which are recurrent in research. The interests are the sponsor’s, the media’s and the researcher’s (p. 20). It may not be wrong to assume that long gone are the days when the results of researches can be thought of as true and factual.
Effective solutions to a wicked problem require approaches that can generate reasonable outcomes in spite of flaws in strategies, capacities, and incentives (Rittel & Weber 1973). The inherent conflict of interests within a public-private partnership is an excellent example of a wicked problem.
Conflict of interest is a common term today. Many people are usually confronted with conflict of interest in the course of leaving particularly when faced with ethical choices. However, conflict of interest is viewed as an unethical behavior that an individual should avoid.
Where ever there is a choice between two interests that is the point where conflict arises. Suppose if an employer has recently employed his wife on a job then there will be conflicts while giving promotions, bonuses and he would definitely not fire his wife for a poor performance.
As fiduciaries, directors owe the shareholders of the corporation and the corporation as a whole a duty of loyalty and duty of care (Aronson v Lewis). The duty of loyalty is a firmly established principle of corporate law. The duty of loyalty imposes upon directors and other relevant corporate officers, a duty of care.
Through the years, the identity of corporations that are able to deal with the most important issues of commerce continuously shows how much important the role of corporations is in the process of building better systems of business entrepreneurship so as to assist the current society towards developments and further professionalism in dealing with the new businesses and operations of modern entrepreneurial groups today.
Changes in interest and exchange rates directly affect profitability of companies having international business by influencing their investment decisions, production costs and prices. High interest rates are associated with higher business risk and make cost of capital more expensive, thus reducing profitability and amount of business investments in the region over a long-run period.
It is very important in modern business world to achieve business success and improve organizations image. All organization has their own ethical codes to ensure their social obligation these ethical codes are applied in their day-to-day operations.
Enron’s case exhibited critical levels of conflict of interest across directors, auditors, business analysts, business consultants, and stockbrokers (McLean & Elkind, 2003). The underlying conflict could be addressed in differentiated ways, relative to all the parties
According to the paper journalism principles and standards comprise ethical codes that are of good practice as pertinent to the particular challenges journalists face. When journalists are compelled to make decision with competing tenets, it culminates in great damage either on their professional duties or on personal lives, thus developing a conflict of interest. This conflict of interest often involves personal, financial, or professional obligations, which compete with the journalist’s accountability to their media audience and organization.
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