Details

Business Ethics


Business Ethics

The Ethical Revolution of Minority Shareholders

39,26 €

Verlag: Springer
Format: PDF
Veröffentl.: 16.01.2006
ISBN/EAN: 9780387232317
Sprache: englisch
Anzahl Seiten: 269

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Beschreibungen

“Morten: And what are we going to do, when you have made liberal-minded and high-minded men of us? Dr. Stockman: Then you shall drive all the wolves out of the country, my boys!” (Ibsen, An Enemy of the People, Act V) The theoretical and empirical research of this book describes how the traditional safeguards of the rights of minority shareholders have failed in their duty and how those shareholders have remained practically without any protection against the arbitrariness of the companies and majority shareholders. The law, the SEC, society, boards of directors, independent directors, auditors, analysts, underwriters and the press have remained in many cases worthless panaceas. Nevertheless, in the Ethics of 2000 new vehicles have been developed for the protection of minority shareholders, mainly the Internet, transparency, activist associations and ethical funds. Those vehicles give the shareholders at least the chance to understand the pattern and methods that are utilized to wrong them and give them a viable alternative for investment in ethical funds. The new vehicles will prevent minority shareholders from using the Armageddon weapon, by ceasing to invest in the stock exchange and causing the collapse of the system, that discriminates against them.
“Morten: And what are we going to do, when you have made liberal-minded and high-minded men of us? Dr. Stockman: Then you shall drive all the wolves out of the country, my boys!” (Ibsen, An Enemy of the People, Act V) The theoretical and empirical research of this book describes how the traditional safeguards of the rights of minority shareholders have failed in their duty and how those shareholders have remained practically without any protection against the arbitrariness of the companies and majority shareholders. The law, the SEC, society, boards of directors, independent directors, auditors, analysts, underwriters and the press have remained in many cases worthless panaceas. Nevertheless, in the Ethics of 2000 new vehicles have been developed for the protection of minority shareholders, mainly the Internet, transparency, activist associations and ethical funds. Those vehicles give the shareholders at least the chance to understand the pattern and methods that are utilized to wrong them and give them a viable alternative for investment in ethical funds. The new vehicles will prevent minority shareholders from using the Armageddon weapon, by ceasing to invest in the stock exchange and causing the collapse of the system, that discriminates against them.
Acknowledgements.
1. Introduction.
2. The Inefficient Safeguards of the Minority Shareholders.
3. The Attitude of Society.
4. The Excessive Privileges of the Majority Shareholders.
5. Internet and Transparency as Ethical Vehicles.
6. Ethical Funds.
7. Activist Associations, `Transparency International', `Adam'.
8. Case Study of the French Company Loskron.
9. Case Study of the Israeli/American Company Furolias.
10. Case Study of the Israeli Companies Erinsar and Soktow.
11. Case Study of the American Company Mastoss.
12. Class Actions.
13. 36 Laws of Wrongdoing to Minority Shareholders in Unethical Companies.
14. Conclusion.
Bibliography.
Index.
Business Ethics: The Ethical Revolution of Minority Shareholders is a pioneer and original work in the domain of ethics in the relations between companies and minority shareholders. The book puts into context the motives of the controlling shareholders, who operate in collaboration with the management of their companies, in order to maximize their profits, very often at the expense of the small shareholders who do not possess insider information. This volume describes how the traditional safeguards of the rights of shareholders, namely the law, the SEC, boards of directors, independent directors, auditors, analysts, underwriters and the press, are inefficient in many cases toward minority shareholders. New vehicles are needed for the ethical revolution of the minority shareholders, such as the Internet, Transparency and Activist Associations, enabling them to have at least the chance to understand the pattern and methods that wrong them and how they have for the first time an alternative to invest in Ethical Funds with 13% of all investments under professional management in the US and investments of billions of Euros in Europe. Ethical investing is screened to reflect ethical environmental, social, political or moral values. The empirical part of the book presents four cases of US, French and Israeli companies, most of them in high-tech, in which the minority shareholders lose almost all of their investments. The cases are based on current events and try to find the common aspects and basic rules that govern the wrongdoing to minority shareholders. The book concludes that once the minority shareholders, who are ultimately all of us, are assisted by the new vehicles of Ethics, and are properly organized, motivated and conscious of their strengths, they will be able to win their fight and safeguard their interests. Business Ethics is primarily intended for the academic market and is particularly appropriate for academics in business administration, ethics and finance. It should also appeal strongly to a professional business/finance market, but to minority shareholders as well, who are aware of the wrongdoing committed to them and who want to remedy the situation by activist conduct.
Presents an exploration of the relatively new subject of business ethics and governance relationships as they affect minority shareholders
Helps improving the ethical conduct towards minority shareholders, who are very often wronged by the controlling shareholders and their companies
Has a pioneer value, being probably the first one to tackle the subject by a businessman with great experience in international business
This monograph is based on qualitative and inductive research. All the cases treated in it are based on current events and try to find the common aspects and basic rules that govern the wrongdoing to the minority shareholders. In the four cases of US, French and Israeli companies, most of them in high tech, the minority shareholders lose almost all their investment. Those are not pervert cases but the norm in many companies, which is illustrated by qualitative cases, without being able of course to quantify them. Case studies are the preferred strategy when "how" and "why" questions are being posed. The purpose of this monograph is therefore to analyze why and how companies do not act ethically towards their minority shareholders, not how many, not which, not to what degree and not where.