Executive Summary of an organization Term Paper Example | Topics and Well Written Essays - 500 words

Executive Summary of an organization - Term Paper Example The company sells over 300 products to more than 5 billion consumers. Although traditionally the company primarily focused on mature markets, P&G has managed to expand its market share in regions considered as developing markets, which includes Africa. Competitors: Key competitors of P&G’s products include Unilever, Johnson & Johnson and Kimberly Clark Corporation. The ease of substitution of P & G consumer goods by competitors has resulted to decline in the company’s sales volume. In addition, Unilever has also successfully established international market for its products, thus reducing P&G’s market share. Collaborators: To enhance innovation and increase its management efficiency, P&G has adopted a collaborative strategy in its operation. Microsoft has emerged as the key party in P&G’s collaborative strategy. Microsoft has been able to develop and implement essential information systems that are being utilized by P&G for operations management and communication purposes. In addition, P&G collaboration with Cisco led to the development of TelePresence, teleconference information system used by the organization. Community: Due to its vast market, P&G operates in a dynamic market coupled with a myriad of political, economical and social dynamics. The primarily operates under the domain of the set laws and regulations of the given political expanse. This may range from one country to another. Strengths: By using human resources information systems, P&G has been able to manage effectively its vast volume of employees, which totaled 125,000 globally. Furthermore, using supply chain information systems, the organization efficiently manages global distribution of over 300 brands in 160 countries. According to Gelder (2005), effective management of information and communication systems has also necessitated the appropriate management of P&G’s marketing and advertisement, which is evidenced by their popular brands. Weakness: Implementation of

Analyze Research Paper Example | Topics and Well Written Essays - 750 words

Analyze - Research Paper Example According to the article, the US possesses inclusive free-trade agreements with nearly 17 nations comprising both Canada as well as Mexico. The article emphasized that the different service providers that encompass law as well as bank firms to reap maximum benefits from the idea of international trade of the US with other various nations (The New York Times Company, 2013). Government Influence The governmental interventions in global business provide significant implications upon different significant aspects that include employment and inflation among others. From the viewpoint of the aspect of employment, the governments influence global business by encouraging the business procedures of different organizations as well as by generating ample job opportunities. In relation to inflation, the governments influence global business by ensuring that there does not lay any sudden rises especially in the prices of the products (The New York Times Company, 2013). ... order to combat particularly against corruption, terrorism and different cross-border criminal activities like drug smuggling (The Washington Post, 2013). 2. Important aspects of Global Business in relation to Foreign Exchange and Rates Foreign exchange rates are fundamentally regarded as an imperative determinant in the business activity of any nation in the global context. It can broadly be stated with foreign exchange rates, it is possible for a nation to conduct its business transactions nationally as well as internationally by a considerable level. The major significance of foreign exchange rates is that the exchange rates extensively enhance the trade level of a particular nation. There are numerous factors that influence foreign exchange rates by a significant degree. In this connection, the factors comprise dissimilarities in the interest charges, public debt and financial performance among others. In accordance with the reports of a recently published article, it has been vi ewed that Egypt adopts a latest system by which they can purchase as well as sell foreign currencies. The prime objective of the nation i.e. Egypt to introduce a new system of transacting foreign currencies is to provide an active support particularly to the finance related policy makers while facing problem linked with foreign-exchange reserves. The country strongly believed that by introduced such system it can safeguard the reputation of Egypt as a business nation in financial international markets (The Wall Street Journal, 2013). 3. Important aspects of Global Business in relation to International Business Strategy and Country Evaluation and Selection In the context of providing a global strategy for pursuing various business transactions, it has been viewed in a recent article that a

CAPSIM Capstone team simulation project Case Study

CAPSIM Capstone team simulation project - Case Study Example In addition, the market share of the company will increase. Moreover, there is an opportunity of improving the cash management. There should be a reduction in the days given for the debtors to pay the amount outstanding. This is because they are currently holding cash. Quicker payment will make cash more readily available in running the company. In addition, it would avoid situations where the company will need emergency loans to sustain the business. Furthermore, there is an opportunity of increasing profit by reducing the variable costs of the company. In addition, the company has an opportunity to increase its market share in the low-end segment. It has the potential of having a market share of 29 percentage as compared to the current market share of 18 percentage. Besides, it has an opportunity to expand its market share in the high-end and size segment. Ultimately, the company has an opportunity to increase the efficiency of workers. It can achieve this by allocating money in the budget for quality initiative training. In addition, there is an opportunity to gain acceptability by the community by allocating funds for the UNEP Green program. The program will make the company to exercise social responsibility, which will have positive effects to the company. Customers will feel more attached to the products of the company. The market share has reduced this year as compared to other years. This means that competitors have an edge over the Chester Company. The consumers have shifted to other products over the years. This is a threat because if the situation continues then the company will again start making losses due to poor sales. In addition, the firm’s financial structure is currently poor for the last 2 years. There is a threat of having excessive inventory levels. The company when setting an inventory policy may set a policy that will retain some stock at the end of the period. Inventory consumes cash and eats up profits made by the company.

Working in teams Essay Example | Topics and Well Written Essays - 500 words

Working in teams - Essay Example As we progressed, there were a series of in-group conflicts especially due to conflict of ideas as some members wanted their ideas to get priority than others. With time, such conflicts were resolved and the members grew closer leading to achievement of great cohesion. ï » ¿Trust was also an important component in our team development as proposed by Bass and Ryterband (1979) since it allowed our team members to slowly learn to accept the group norms, virtues and values thereby enhancing conformity. This move was essential in assisting us to have a common voice as a team and also in minimizing resistance and conflicts while ensuring effective coordination that allowed for successful presentation delivery (Bass & Ryterband 1979). Team Tasks were assigned based on Meredith Belbin’s Team Roles Theory in terms of the behavioural strengths and weaknesses (Henry & Stevens 1999). The content of the presentation was divided among members in small chunks in order to merge it after individual contribution. Members were delegated individual tasks by the leader based on observation of their behaviour to identify who is better in what area. This enabled us to compensate for each other’s weaknesses while improving our strengths. As such, we were able to ensure that each member made a contribution to the final output. Participating in the group taught me a lot of skills and gave me experiences I didn’t have before. I learnt the importance of interpersonal skills, trust, communication skills, empathy, listening skills among others. According to Brooks (1993), teams have emerged to be essential pillars of most organizations and, therefore, relevant skills are required since even the most brilliant person can miss out for lack of such skills. Furthermore, working in teams enabled us to establish a sense of belonging due to formation of

Public and Private Sectors Essay Example for Free

Public and Private Sectors Essay * Public sector has an influence in tourism business. It is essential to outline the main policy instruments used by governments in order to manage tourism. * Public bodies influence tourism sector either directly, through organization with responsibility for tourism, which include: establishment of infrastructure, information services and creation of tourist attractions and facilities. Or, indirectly, through foreign policies and legal controls, the commercial sector of tourism industry can operate successfully, co-ordinating, promotional and regulatory role in tourism provision, and conservation of the physical and socio-cultural resources that attract tourists to destination. * Governments use demand and revenue management in order to influence demand in the industry by: marketing and promotion, information provision and network development, pricing, controlling access to the destination, safety and security. Supply and cost management are operated by environmental control, building regulations, market regulations, market research and planning, taxation, ownership, education and training and investment incentives. * Private Sector Improve the overall quality of products and services within the tourism industry (all tourism-related accommodation, restaurants, tour guides, tour operators, and other tourism-related service providers); raise the levels of demand nationally, regionally and internationally; promote competiveness within the industry; and, provide valuable and reliable information on quality standards for the tourist and the travel industry. * Provide intensive training to local communities/ private sector in various aspects of development and management of tourism businesses, and hospitality skills to provide them with better opportunities to seek employment in the tourism sector. * Comprehensive general and area-specific development guidelines for tourism zones with specific urban designing, land use planning and infrastructure planning.

PKR-eIF2α Signaling Mediated Spatial Memory Impairment

PKR-eIF2ÃŽ ± Signaling Mediated Spatial Memory Impairment SUPPLEMENTARY MATERIAL Activated PKR-eIF2ÃŽ ± signaling mediated spatial memory impairment, tau phosphorylation, AÃŽ ² pathology, oxidative stress, selectively synaptic protein loss in mice caused by low levels of Cu Mouse behavior analysis. Morris water maze test: MWM was performed as previously described (PMID:23402899) with minor modifications and the test was performed double blinded according to the standard operation protocol. The MWM consisted of a circular pool (120 cm diameter, wall depth 40 cm) in which all the mice were trained to escape from water by swimming to a hidden platform (2 cm beneath water surface) whose location only be identified by using the visual cures on the inner wall of the pool (Supplementary Fig. 3A). The water and the room temperature were kept at 23 ±1 à ¢Ã¢â‚¬Å¾Ã†â€™. The pool was divided into four quadrants by a computerized tracking software (Huaibei Zhenghua Biologic Apparatus Facilities Limited Company, Huaibei, Anhui, China). The platform was located half-way between the center and the wall in one quadrant and maintained at the same position during all the experiment. The navigation test consisted of 4 training trials per day and 5 consecutive training days. As can be seen in Table 1, mice were released with their heads facing the inner wall of the pool from the four quadrantal locations (N, E, SE, and NW) according the sequence as previous report (Supplementary Fig. 3B) (PMID:17406317), and not allowed to swim and search for the platform more than 60 s, after which they were guided to the platform and allowed to remain on it for 15 s. Each mouse was then returned to its cage for 30 min before its next trial. The latency to reach the hidden platform was recorded. One day or six days after the end of navigation test, mice received a probe test, in which the platform was removed. Mice were released from the NE location and allowed to a 120 s swim to find the previous location of the platform. The swimming path, the time spent in each quadrant, the distance traveled each quadrant, the probe time, the platform crossing number, the total distance traveled, and the average swimming speed was recorded by the computerized tracking software. Y-maze: In order to study the PKR role in exploratory behavior and spatial memory, we performed the Y-maze in the PKR+/+Tg+/- and PKR+/-Tg+/- mice as described previously (PMID: 8986335, 1393562). Response to novelty was tested in a Y-maze, adopting a two-trial procedure in this test. The apparatus was equipped with black materials with three identical arms each 50 cm long, 16 cm wide, and 32 cm high. Visual cues made from colored paper with different symbols and the floor of the maze was covered with soiled animal bedding (Beta wood chips). All the mice was performed with starvation treatment for 24h before Y-maze. In trial 1, one arm was blocked with black Plexiglas and referred to as the â€Å"novel† arm in Trial 2. The remaining two arms were designated as the ‘start’ arm and â€Å"other† arm respectively. Three arms were randomized between mice (but not for the same mouse) to reduce arm bias effects. At the start of testing, a mouse was placed in the start arm and was allowed to explore the start and other arms for 10 min (acquisition trial). At the end of Trial 1, the mouse was returned to its home cage and the bedding inside the maze was mixed to reduce the possibility of using odors as a cue. After an intertrial interval (ITI) of 1 h, the mouse was placed in the same start arm as in Trial 1. The previously blocked arm was opened in Trial 2 and the mouse was allowed to investigate all three arms for 5 min (recall trial). The dependent variables measured in Trial 2 were: (1) the amount of time spent in each arm for each minute; (2) the number of entries made into each arm for each minute (Entry). Those indexs reflect inquisitive behavior (i.e. response to novelty) and spatial recognition memory of the previously unvisited arm. Step-down test: This test was used to measure inhibitory avoidance and short-term memory, according to the previously described method (PMID: 24678498). The apparatus comprised a plastic chamber (12x12x18cm) with an elevated rubber platform (4.84.84.5cm) placed on the left side wall. The floor was made of caliber stainless steel bars (0.1cm in length) placed in parallel, 0.5cm apart. On the first training day, mice were exposed to a 5-min learning course, if the animals stepped down from the platform, they were exposed to an electric foot shock (36V, AC). After 24h, latency was reassessed and recorded as the learning grade (latency), which was taken as a measure of memory retention. Each acquisition trial was performed 5min in the PKR+/+Tg+/- and PKR+/-Tg+/- mice. Supplementary Table 1. Primary antibodies used for protein immunodetection in western blot analysis (WB), immunohistochemistry (IHC) and immunofluorescence (IF). Antigen Supplier Application PAGE (%) Species origin Incubation conditions Ab dilution 8-OhdG US Biological, H9076-02 IF N/A Goat 10% NGS, 12h, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:200 acetylated-ÃŽ ±-Tubulin Santa Cruz, sc- 23950 WB 10 Mouse 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:5000 APP Cell signaling, #2452 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 AT8 Thermo, MN1020B WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 ATF-4 Abcam, ab50546 WB 10 Mouse 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 ATF-4 Abcam, ab50546 IF N/A Mouse 10% NGS, 12h, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:100 AÃŽ ²42 Abcam, ab10148 IHC N/A Rabbit 10% NGS, 12h, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:100 BACE-1 Abcam, ab2077 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 CCS Abcam, ab16962 WB 10 Mouse 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:100 CHOP Cell signaling, #2895 WB 10 Mouse 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 CREB Cell signaling, #9197 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 complexin-1/2 Santa Cruz, sc-33603 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 Cp Abcam, ab48614 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 Drebrin Cell signaling, #12243 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 eIF2ÃŽ ± Cell signaling, #5324 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 GSK-3ÃŽ ² Cell signaling, #9315 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 JNK Cell signaling, ##9252 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 Nitro-Tyrosine Cell signaling, #9691 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 NR2A Molecular Probes, A-6473 WB 8 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:500 NR2B Molecular Probes, A-6474 WB 8 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:500 PKR (N-Term) GenWay Biotech, GWB-A4757E WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:500 p-PKR (Thr 451) Invitrogen, 44668G WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:500 p-eIF2ÃŽ ± (Ser51) Cell signaling, #3398 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 p-GSK-3ÃŽ ² (Ser9) Cell signaling, #9336 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 p-CREB (Ser133) Cell signaling, #9198 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 p-JNK Cell signaling, #4671 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 p-PP2A Epitomics, 1155-1 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 PP2A C subunit Epitomics, 1512-1 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 PS396 Invitrogen, 44752G WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 PS404 Invitrogen, 44-758G WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 PSD-93 Cell signaling, #9445 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 PSD-95 Cell signaling, #2507 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 PSD-95 Cell signaling, #2507 IF N/A Rabbit 10% NGS, 12h, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:100 synapsin 1 Invitrogen, 51-5200 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 sAPPÃŽ ± Covance, SIG-39139 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 sAPPÃŽ ² Covance, SIG-39138 WB 10 Rabbit 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 Tau-1 Chemicon, MAB3420 WB 10 Mouse 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:1000 Tau-5 Abcam, ab80579 WB 10 Mouse 5% skim milk, 2h, O/N, 4à ¢Ã¢â‚¬Å¾Ã†â€™ 1:500 ÃŽ ±-tubulin Santa Cruz, sc-58667 WB 8-10 Mouse 5% skim milk, 2h, O/N, RT 1:1000 ÃŽ ²-actin Santa Cruz, sc-47778 WB 10 Mouse 5% skim milk, 2h, O/N, RT 1:1000 N/A, not applicable; NGS, normal-goat serum; O/N, over-night; RT, room temperature. SUPPLEMENTARY FIGURES Supplementary Figure 1. Content of Cu in Serum and brain. (A-D) Total iron, zinc, calcium, magnesium content in the serum respectively; (E-H) Total iron, zinc, calcium, magnesium content in the hippocampus respectively; (I-L) Total iron, zinc, calcium, magnesium content in the cortex respectively; *P

Analysing Business Ethics And Corporate Social Responsibility Philosophy Essay

Analysing Business Ethics And Corporate Social Responsibility Philosophy Essay The question of business ethics has been at the forefront of business studies for several decades. It is an issue that has been discussed by everyone from philosophers to economists, many of whom placed an emphasis on the social responsibility of corporations and their shareholders. With the unprecedented success and profits that corporations have experienced within recent history it is no surprise that ethical problems may arise. However, is it the responsibility of corporations to help eradicate such problems even if doing so is in direct conflict with shareholder interests? This paper will explain the stakeholder and stockholder theories of corporate management and argue in favor of the stakeholder theory on the basis of the harms the shareholder argument poses in terms of both social responsibility and the stability of the corporation. In order to fully concretize its argument it will use research of Edward Freeman, Milton Friedman, and John Boatright. Stakeholder theory is one of the most well-known theories of business management. Managing for stakeholders is based on a set of relationships among groups which have a stake in the activities that make up the business. This can include but is not limited to customers, suppliers, employees, stockholders, banks, etc. Executives play an integral role in the activity of the business since they are expected to look after the health of the overall enterprise, to keep varied stakes moving in roughly the same direction, and to keep them in balance. (Freeman R. E.: 2008, Managing for Stakeholdersp.63) Freeman explains that the primary duty of the executive is to create as much value as possible for stakeholders. Where stakeholder interests clash, the executive is required to work to find solutions and bring these interests together. Executives must understand that business is fully situated in the realm of humanity. (Freeman R. E.: 2008, Managing for Stakeholdersp.64) The benefit of the stakeholder theory is that businesses, and the executives who manage them, actually do and should create value for customers, suppliers, employees, communities, and financiers (or shareholders). Edward Freeman explains in his paper The Purpose of the Corporation that the model of business is no longer workable, is resistant to change, not consistent with the law, and for the most part, simply ignores matters of ethics. He states, each of these flaws is fatal in the business world of the twenty-first century. (Freeman, R. E.: 2008, Managing for Stakeholders, pp. 56) By using the stakeholder as a basic unit of analysis, it is more difficult to ignore matters of ethics. To explain this, Edward Freeman argues that the primary responsibility of the executive is to create as much value for stakeholders as possible, and that no individual stakeholders interest is more important than that of another stakeholder. This in turn guarantees the rights of all the stakeholders. T he problems that pose risk lie within the shareholders capitalism theory. Furthermore, if the stakeholder theory is examined, one would find that all stakeholders have rights and if one is denied theirs, the others are undeniably affected. Edward Freeman further supports this with an argument about character. He explains that one of the strongest arguments for stakeholder theory concerns character because it asks executives and entrepreneurs to consider the question of what kind of company they want to create and build. (Freeman, R. E.: 2008, Managing for Stakeholders, p. 66) Finally, Freeman poses the pragmatist argument which seeks to know how we can live better, how we can create both ourselves and our communities in ways where values such as freedom and solidarity are present in our everyday lives to the maximal extent. (Freeman, R. E.: 2008, Managing for Stakeholders, p.66). For the pragmatist, business and its close relative capitalism have evolved into a social practice, an important one that we use to create value and trade with each other. Consequ ently, the stakeholder model is always aiming to find the best possible solution for all parties involved in the corporation. Its social responsibility lies within the company as a whole. Social responsibility comes in many forms and recognizing any one form means it is required to recognize all. Conversely, Friedman states that if these are social responsibilities, they are of individuals not of a business. (Friedman, The Social Responsibility of Business is to Increase Its Profits, p.52) He contends that, in any situation, the executive would be spending someone elses money for the social responsibility. For example, if the executive makes expenditures on reducing pollution beyond the amount that is in the best interest of the corporation; and he then must hire hard-core unemployed applicants instead of better qualified workmen, he is spending someones money by reducing returns to stockholders for his environmental responsibility and lowering wages of some employees by spending what he would have given to a more experienced employees. According to Friedman, if the employees, stockholders, or consumers, want to spend their money towards social responsibility then it is their money and their decision. Friedman concludes his paper by stating; in my book Capitalism and Freedom, I have called it a fundamentally subversive doctrine in a free society, and have said that is such a society, there is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. (Friedman, The Social Responsibility of Business is to Increase Its Profits, p.55) Friedmans point here can be used to understand the stakeholders benefit because it is its own form of social responsibility. Who is to say that social responsibility can only be defined in narrow terms? What is clear is that no one set of criteria can unequivocally define it and if under these ambiguous circumstances a corporation manages to achieve it, then it has guaranteed the rights of the stakeholders, thus creating social responsibility. Moreover, John Boatright explains that advocates of stakeholder management are correct in their insistence that the modern for-profit corporation should serve the interests of all stakeholder groups. Where stakeholder management fails is in its refusal to recognize that a business organization working in the interests of shareholders does not have to be in conflict with the interests of stakeholder groups. Boatright assumes that this failure is due in large part, to a second mistake on the part of proponents of stakeholder management. Stakeholder management assumes that management decision making is the main vehicle by which the benefits of corporate wealth creation are distributed among stakeholders, but these benefits can also be obtained in other ways; namely by groups interacting with a corporation through the market. This is where Boatright is taking a risk in his argument because he wants the corporation to obtain its benefits externally when it can be done internally. The bene fit of the stakeholder theory is that all the rights are guaranteed from the top down, top stakeholders all the way to the consumers at the bottom of the model. When all stakes have their rights preserved by the executive equally, there is no need for the corporation to act in the best interest of the shareholders solely. The managerial model positions its shareholders at the center of the firm as the principal group for managers to worry about. Increasing shareholder value has become common wisdom in modern business and many companies have instituted complex incentive compensation plans aimed at aligning the interests of executives with the interests of shareholders. (Freeman, R. E.: 2008, Managing for Stakeholders page.57) Edward Freeman poses three arguments in regards to shareholders. Firstly, he explains that management of the firm becomes separated from the ownership of the firm and in order to be successful the top managers of the company were required to satisfy the owners, employees, suppliers, unions, and customers. If managers worried about the shareholders only, the stakeholders will in turn be harmed. When the stakeholders are harmed, the whole corporation is harmed leading to instability. From another angle, Freeman explains that the model poses harm and risk because it is so rigid. It unabashedly puts shareholders interests over and above the interests of customers, suppliers, employees, and others, as if these interests must conflict with each other. The only change that matters is the kind that is oriented toward shareholder value. In addition, Edward Freeman also explains that the law of corporations gives a less than clear answer to the question of in whose interest and for whose benefit the corporation should be governed. It has evolved to give a de facto standing to the claims of groups other than shareholders. Even more harmful is the fact that the shareholder model is not consistent with basic ethics. Practically any business decision has some ethical content or concern. Milton Friedman refers to this by stating that, responsibility of the executive is to make profits subject to law and ethical custom. The purpose of ethics is to create a better world for all of us. (Freeman, R. E.: 2008, Managing for Stakeholders p.60) Numerous theorists have argued that the main reason that the dominant model of managing for shareholders is a good one is that it leads to the best consequences for all involved. These arguments invoke Adam Smiths idea of the invisible hand, whereby each business actor pursues her own self-interest and the greatest good of all actually emerges. (Freeman, R. E.: 2008, Managing for Stakeholders p.65) However, in reality, each business actor can have a different approach and a different idea of their own self-interest which in turn, may harm the corporation internally and externally. Although the stakeholder concept has been developed in various ways, it has expressed the moral prescription that managers, in making decisions, ought to consider the interests of all above those of the few. This is proven in the laws that have evolved to protect the interests of local communities and employees of corporations through unionization. Laws such as The Equal Pay Act of 1963, the Civil Rights Act of 1964, The Clean Water Act of 1977, and the Clean Air Act of 1990, all have helped stakeholders to achieve a great level of equality. The laws that are relevant to business have evolved differently around the world, to take into account the interests of groups other than just shareholders. (page 58) The dispute between stockholder and stakeholder management revolves around the question of how best to enable each stakeholder group or corporate constituency to benefit from the wealth-creating activity of business. Stakeholder management is correct in its emphasis on the moral requirement that every stakeholder group benefit from corporate activity and to make managers aware of their responsibility to create wealth for the benefit of everyone. The stakeholder management theory is superior to the shareholder theory because in such a system of corporate governance, all the groups would share the control of the firm. Hence, the interests of the involved stakes would be to maximize the profit for all stakeholders. The most important point, however, is the social responsibility of the managers to their corporations. As has been proven, the stakeholder management theory has the responsibility to assure the stakes interests and rights through a clear guideline that has been proven to work in modern day corporations.