Business Law and Ethics Essay Example | Topics and Well Written Essays - 2000 words

Business Law and Ethics - Essay Example eternal law), further bolstering its obligatory nature, then calling attention to the Roman jurists and the contemporary court pronouncements to the same effect, adding a legal dimension to the duty. All these aside, Johnston argues that the fiduciary obligation is encompassed within natural law, that is, it is within the nature of man as a free, rational and social being to render fiduciary loyalty where the situation calls for it. In the context of business, the fiduciary relationship exists between the owner of the business and the person that owner has hired to discharge the business. In modern corporate parlance, the business owner would be the shareholders, those who have invested financial resources in the business entity. The steward hired to conduct the affairs of the business is the modern business manager, or the Chief Executive Officer (CEO) in large corporations. In the Biblical metaphor, therefore, the CEO is the servant who is morally charged to owe loyalty to the shar eholders. Johnston argues that one who serves in a fiduciary position cannot serve his interest first before the interest of the person/s to whom trust is owed, legally, the cestui que trust or beneficiary of the trust relationship. Corollary to this argument is that the person entrusted cannot substitute his own judgment for that of the trustor, or undertake an action that he knows jeopardizes the trustor’s best interests. The conflict therefore arises in the modern business context, where advocates of corporate social responsibility insist that business managers, particularly for large corporations, have a duty not only to shareholders but also to other stakeholders – customers, employees, suppliers, the immediate community and society in general – to likewise serve their benefit and welfare in the conduct of their business. This is seen to run counter to the fiduciary relationship because management would have to decide in favour of the benefit of other share holders, at times to the detriment of the aim to maximize shareholder gain and corporate profit. It is the equal obligation to stakeholders as to shareholders that Johnston believes is untenable in practice From a legal standpoint, I would tend to agree with Johnston. Given an either-or proposition, the fiduciary relationship would supersede the stakeholder relationship. From a practical perspective, however, it is apparent that seldom is one drawn into the choice of one side to the exclusion of the other. Most business owners are aware that keeping customers satisfied, employees engaged and motivated, suppliers operationally viable, and the community supportive, would eventually translate to business gain and growth. By serving stakeholder interests, managers may forego opportunities for short-term profits but benefit the shareholders in terms of long-run and sustainable profitability. From a utilitarian perspective, therefore, the satisfaction of stakeholder interests also serves the interests of the shareholders, and there is no conflict. It is also often forgotten that the shareholders are themselves stakeholders of the company, particularly as customers, and oftentimes also as employees, because of employees’ share options. Shareholders are also part of the community and larger society. In this sense, the

Engineering Reflective Statement Essay Example | Topics and Well Written Essays - 500 words

Engineering Reflective Statement - Essay Example that, I enjoy reading materials on engineering like the Mechanical Engineering Magazine monthly edition and the Mechanical Society of American Engineers which promotes the art, science & practice of multidisciplinary engineering and allied sciences around the globe. However, the main reason why I chose the article is an article I read on making coal a cleaner burning fuel. The global impact seen as a result of engineering solutions is the destruction of the ozone layer due to the use of various machines. A good example is the CFC used as a coolant because of its excellent heat capacity, but it ends up destroying the ozone layer. A lot of machines that have been invented contribute towards the destruction of the ozone layer through the fumes that they emit while in operation. The economic impact is felt in the manufacture and distribution of the various machines that have been invented. They provide a trading ground for many companies and individuals and at the same time create revenue for firms, individuals and governments (Huber, 23). The environment is also affected by engineering solutions in that there is increased pollution of the air and water sources. This is due to the fumes emitted by various machines and waste deposited by various industries. Automobiles have eased transportation problems but cause pollution and, as a result, global warming. The social impact can be seen in the way communication has been eased through various gadgets and social networks that have come up as a result of engineering solutions. Mechanical engineers need to understand the impact of their engineering solutions in order to come up with better ideas that will ensure the safety of everyone in the future. Their inventions have solved a lot of problems within homes, at work places and around us. However these solutions have come along with other negative impacts that are slowly affecting the natural ways of living and putting the future at risk. In order to understand these