References: Albanese‚ R.‚ M. T. Dacin & I. C. Harris (1997) Agents as stewards. Academy of Management Review‚ 22‚ 609-611. Archie‚ B. C. & N. Juha (1997) Understanding Stakeholder Thinking: Themes from a Finnish Conference. Business Ethics: A European Review‚ 6‚ 46-. Bales‚ F. R. (1958) Task roles and social roles
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rational utility maximizers conflicts of interests whenever one less informed party (principal) depends on the actions of another better informed party (agent). Characteristics: info asymmetry makes it impossible for principal to perfectly determine agent’s marginal productivity. This creates an incentive for agents to shirk‚ as agent enjoys full benefit of shirking‚ while the cost of shirking is shared by the principal. This
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Chapter 14 Questions 1. A principal-agent relationship is a relationship where an agent makes decisions that affect the principal. Examples of explicit principal-agent relationships are the relationships between a client and a lawyer and between an investor and a money manager. Examples of implicit principal-agent relationships are an employee acting on behalf of its employer and a consumer making decisions‚ such as copying and selling a product‚ that can affect a manufacturer. 2. The
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In a broad manner‚ organisational theories can be defined as formal social organisations and their interrelationship with the environment in which they operate. This reading provides insight into the agency and the contingency organisational theories‚ and how management implement these theories into the environment in which their business operates. It also outlines the issues and limitations of these theories‚ using the Coca Cola company as a relevant case study. In addition‚ this essay examines
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more recent literature on corruption as a principal-agent problem whose significance for development depends on its dimensions related to the nature of the corrupt transaction itself‚ such as distinctions based on the agents involved‚ scale‚ type of deal‚ predictability‚ industrial organisation‚ etc.‚ all of which affect for better or worse the nature of the relationship between principal (as represented by the public interest) and the agent (politicians and bureaucrats). From this viewpoint
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Narra sap: A prospect anti-fungal agent against ringworm infestation Chapter 1 Introduction Background of the Study Observing that narra sap can heal ringworms faster than commercial products. We conduct this study because of its beneficiary and practicability. And used as a natural medicine for natives in Mindanao. As we encounter this problem called ringworm‚ we decided to make a medicinal treatment for it. And we discovered that narra‚ aside of its other parts‚ it’s sap also have a
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2.2 Aetiological agent: Classification and characterisation The monkeypox virus is a member of the genus orthopox (family Poxviridae). Other members include cowpox‚ vaccinia‚ and variola (smallpox) viruses. Poxviruses are the largest vertebrate viruses known. The virions contain a linear double-stranded deoxyribonucleic acid (DNA) genome and enzymes that synthesise messenger ribonucleic acid (RNA). The viruses multiply in the cytoplasm of the host cells. The poxvirus family consists
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As cited by Cheffines and Bank (2009)‚ the foundation of agency theory could go back to Berle and Means (1932) and Fama and Jensen (1983a). Their studies discuss the notion of the separation of corporation’s owners (principals) and its manager (agents) which is due to the fact that the owners delegate their responsibilities for control to managers who will actually manage the company. Thus the separation between the functions of decision and control will generate conflicts of interest and a
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Reality Check and the Limits of Principal Agent Theory Arie Halachmi‚ PhD 2011-2011 Distinguished Fulbright Professor Abstract Can partnership and contracting out of the production and delivery of what used to be performed by government improve public sector productivity? However‚ the reality does not always follow the theory. Using an actual case study and a Principal Agent Theory the paper explores and articulates possible limitations of Principal Agent Theory and some issues and possible implications
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“Culture eats strategy for lunch!” This is how Peter Drucker sarcastically describes the importance of the strategy for a company and how employees will make or change this strategy in order to create a culture that fits with the company’s growth. Two different perspectives regarding the growing of the family businesses over the years and remaining innovative are communicated with the psychiatrist Professor Fritz B. Simon and the economist Professor Benoit Leleux. According to the Professor Fritz
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