Post-Enron, post-Shell, post-WorldCom, post-Parmalat, the collective knickers of the business world are in a twist about ethics, and rightly so.
Parmalat
European frauds such as Vivendi, Royal Dutch Shell and Parmalat demonstrated that corporate scandals were not confined to the US.
Royal Dutch Shell – Conflict is not the only way
Financial Times: Conflict is not the only way: “When managers begin managing the company for themselves rather than for shareholders, conflict breaks out.”
By Morgen Witzel
Published: August 13 2004
Every business hasto deal with the views and demands of groups outside the organisation. Ultimately, businesses are part of society, and have to take account of society’s views. As businesses grow, their profile increases and they become better known, and this in turn leads to still greater external pressures.
The most important external group with which managers must deal are their own shareholders. Managers have a legal and moral duty to manage the company well and earn profits for this group. When managers begin managing the company for themselves rather than for shareholders, conflict breaks out.