What-actions-and-behaviors-of-leaders-and-managers-in-corporations-could-influence-the-market-value-and-price-of-stocks-

/in /by

Discussion Question:

Finance

In this discussion, please reflect on your comprehension of financial management and knowledge gained from the media concerning financial real world activities and events occurring in the US.

  • What actions and behaviors of leaders and managers in corporations could influence the market value and price of stocks?
  • In reflecting on the creation of the Sarbanes-Oxley Act to increase accountability through new mandatory standards, what are some possible explanations as to why unethical conduct occurs in financial management?
  • What are some activities corporations can do to decrease overall unethical practices and promote good business ethics in the organization?

Student 1 Response to Discussion Question:

Hey Professor and Class,
One of the biggest actions of leaders & managers is within the companies finance. Making poor decisions reflects on the future growth of the company. Choosing high interest loans can result in a decrease in revenue. It would be hard to stay ahead and increase revenue if the money made is being applied to a negative balance. Price of stock can go both ways. If the stock has constant falls and limited rise, that can send off a negative view for investors. 

A possible explanation as to why unethical conduct occurs would be the convenience. It’s not right but you have companies that will overwork employees with minimum pay. Their goal is to increase productivity and revenue but at others expense. I honestly can’t think of any other reasons. Maybe, the cost is too much for the company to handle and they are in over their heads. 

Some activities corporations can do is taking time to create a practical plan. I think for smaller businesses starting off but have a gigantic budget that includes impossible tasks is not logical. To operate big, you must be open to a bigger budget and include possible failures. Within corporations, setting work standards and ensuring they are followed. Respecting employees needs and providing a safe environment. Managerial positions should set standards that they also follow. 

Reference
SHRM (April, 2014) Creating an Ethical Workplace Retrieved from www.shrm.org
Strain, M (2016) Retrieved from http://smallbusiness.chron.com/

Stuedent Number 2 Response to Discussion Question:

Hello Class and Professor, 

What actions and behaviors of leaders and managers in corporations could influence the market value and price of stocks?

Stocks prices are influenced by many factors such as interest rates, inflation and political environment.  Influence based on the actions and behaviors of leaders and managers are those of corporate earnings, changes in management, news about competitors and whether they are taking business away from the company, new products and services and lawsuits.  As stated in an article on Max’s Investment World “Bottom line: try to avoid changing your investment behavior based on general factors affecting stocks as a whole and concentrate on the specific companies you own in your portfolio. Follow fundamental news about whether they are coming out with new products and services, innovating, keeping costs down, winning against competitors, finding talented employees, etc.”.

 In reflecting on the creation of the Sarbanes-Oxley Act to increase accountability through new mandatory standards, what are some possible explanations as to why unethical conduct occurs in financial management? 

 Ethical issues in the financial services industry affect everyone, because even if you do not work in the field, you are a consumer of the services.  Some possible explanations as to why unethical conduct occurs in financial management are self-interest, which sometimes morphs into greed and selfishness, which is unchecked self-interest at the expense of someone else. This greed becomes a kind of accumulation fever.  Some people suffer from stunted moral development, the failure to be taught, the failure to look beyond one’s own perspective, and the lack of proper mentoring, some people equate moral behavior with legal behavior, disregarding the fact that even though an action may not be illegal, it still may not be moral.  Also, professional duty can conflict with company demands; for example, a faulty reward system can induce unethical behavior and individual responsibility can wither under the demands of the client

 What are some activities corporations can do to decrease overall unethical practices and promote good business ethics in the organization? 

Some activities corporations can do to decrease overall unethical practices and promote good business ethics in the organizations are to create a code of conduct; a written code of conduct provides employees and managers with an overview of the type of conduct and behaviors the company expects. It outlines what behaviors are unacceptable and what measures are taken if an employee violates the code of conduct.  They can lead by example.  Employees look to business owners and managers for direction on how they should conduct themselves. As a business owner, make ethics-based decisions and monitor the individuals you put into leadership roles at your company for the same values. Reinforce consequences; business owners must hold their employees accountable when they act unethically.  Start by informing new employees of the rules during their orientation sessions. If an employee acts unethically, refer to the code of conduct and take the necessary measures to warn or terminate.  Show Employees Appreciation; loyal employees feel that a company values the hard work they put into accomplishing tasks on a daily basis. A loyal employee is less likely to act unethically. Show appreciation to the employees for work well done on a regular basis to encourage loyalty. Welcome an Ethics Speaker; schedule an ethics trainer to visit your work site to discuss ethical behavior and explain why it is important in organizations, regardless of the size or industry. Ethics trainers use role-playing, motivational speaking, videos and handouts to illustrate the importance of ethics in the workplace. Create checks and balances; Rather than putting related responsibilities in the hands of one employee, create a system of checks and balances to minimize the opportunities for unethical behavior and Hire for values; when business owners hire employees, many seek to bring on individuals who have the education and experience that prove they are skilled workers, capable of handling the tasks at hand. Employers who want to prevent unethical behavior also look at candidates’ values to ensure they mesh with the company’s culture.

References: 

 http://www.buzzle.com/articles/ethical-management-crucial-business-success.html.

 http://www.maxinvest.com/article_text.php?topic=factors

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.