Ethics in Business Essay Example | Topics and Well Written Essays - 500 words - 1

Ethics in Business - Essay Example It sets out the fundamental principles that the company values and that employees should apply in their daily work. Supporting the Code of Conduct policy is a range of corporate policies providing specific guidance in areas such as competition law, marketing practices, non-discrimination, share dealing, and conflicts of interest. It is the responsibility of each employee to implement the code and follow the employee guide to sustain the trust and confidence as well as to ensure compliance with applicable laws, regulations, and company policies, and to foster a positive, ethical work environment for all employees. In an article by Scott Shifrel on 10 August 2008 entitled, â€Å"Worst of times unveiled in Lawsuit,† a case involving ethical considerations is brought to court. In this article it is stated that, â€Å"a lawsuit by a New York Times employee paints a disturbing portrait of a workplace rife with sexual harassment - including an alleged incident of office cubicle masturbation - and age discrimination. Charles Cretella, 57, who has worked for decades creating summaries of Times stories, is fighting back after he says he was falsely charged with sexually harassing a 33-year-old male co-worker.† Though there are mixed reactions in this article, it is very unethical for one employee to sexually harass another work mate by virtue of seniority in the organisation. Each employee is entitled to his or her own freedom in the conduct of her daily duties. In another article which appeared in an online periodical entitled, â€Å"Mixing Politics, Religion and money,† the author condemns the use of money especially by religious leaders to buy votes during the period preceding the presidential elections in America. â€Å"The involvement of popular and religious figures in swaying the outcome of elections is clearly growing. While most of us are understandably shocked at the inflated importance given to the opinions of

Financial Management Individual Work 2 Week 6 Essay

Financial Management Individual Work 2 Week 6 - Essay Example theory that explains that dividends at hand are preferred by investors to dividends retained in a company in which the dividend policy would have affected the value of the firm. The theory was put forward by John Lintner and Myron Gordon. They argued that investors perceive dividends at hand to be less risker than dividends of potential future capital gains. Stockholders therefore prefer actual dividends to retained earnings. Tax preference theory knows that there are two tax related reasons for believing that investors may prefer low dividend payout to higher dividend payout. The taxes on capital gains are only paid when the stock is sold but when it is held by a person; no capital gains will be due at any given point in time. a.3 The theories are one way traffic such that if the dividend irrelevance theory is right, then dividend payout has no significance hence the firm can follow any dividend payout. If the bird in the hand theory is relevant, the firm can set a high payout if it wants to maximize the stock price. If the tax preference is accurate, the firm can set a low payout if is to maximize the stock price. Therefore in general, the theories are in total war with one another. a.4. Regrettably, empirical tests of theories have not been in conclusion, so it is absolutely difficult to tell if investors prefer either dividends or capital gains. However, the firms’ managers’ can use the analyses to a reasonable and rational decision over dividend policy. b. 1.Different groups of stockholders choose different kinds of dividend payout policies for example pension funds which are tax bracket. This kind of group of stockholders might prefer high payout stocks. Investors can sell their stocks and incur some transaction costs hence forcing sales to be made in a down market. 2. Clienteles are in existence and the question that arises is whether there are more members of one clientele than the rest. There are relevant costs such as taxes and brokerage costs