Shareholder Value and the Common Good
406 Pages
English
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Shareholder Value and the Common Good

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Gain access to the library to view online
Learn more
406 Pages
English

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What is the objective or purpose of business Management? According to the dominant theory of contemporary financial management scholarship, agency theory, business managers are obligated to maximise owner or shareholder value. According to most theories of business ethics, however, some owner-value-maximising actions should not be performed, because they would be unethical. Because business management scholars and business ethics scholars have not resolved this contradiction, students of commerce receive a contradictory education. The twenty-five essays in this interdisciplinary, international volume address the question of the objective or purpose of business management from a wide range of theoretical perspectives. Since some of the writers contradict one another, it is not possible that all of them are correct. Nevertheless, the fact that many of them argue persuasively that business managers should aspire to more than maximisation of a financial variable challenges everyone with a theoretical or practical interest in commerce to reconsider acceptance of the owner-value paradigm and to develop a richer conception of the profession of business management.

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Published by
Published 29 December 2005
Reads 1
EAN13 9789966530059
Language English
Document size 2 MB

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SHAREHOLDERVALUEANDTHECOMMONGOOD
SHAREHOLDERVALUEANDTHECOMMONGOOD
Essays on the Objectives and Purposes of Business Management
Edited by David Lutz Paul Mimbi
Published by:
LawAfrica Publishing (K) Ltd. rd Top Plaza, 3 Floor Kindaruma Road, (Off Ngong Road) P.O. Box 4260-00100 GPO Nairobi, Kenya Wireless: +254 20 249 5067 Cell: +254 708 898 189 Fax: +254 20 249 5067
LawAfrica Publishing (T) Ltd th Co-Architecture Building, 7 Floor India/Makunganya Street P.O. Box 38564 Dar-es-Salaam,Tanzania Phone: +255 22 2120804/5 Fax: +255 22 2120811
LawAfrica Publishing (U) Ltd Office Suite, No. 2 Plot 10A Jinja Road (Opposite NEMA House) P.O. Box 6198 Kampala, Uganda Phone: +256 41 255808 Fax: +256 41 347743 Email: sales@lawafrica.com Website: www.lawafrica.com Strathmore University Press P.O. Box 59857 – 00200 City Square Nairobi, Kenya
© LawAfrica Publishing Ltd Reprint 2011 © LawAfrica Publishing Ltd 2005
ISBN 9966-031-15-0
& SUP (Strathmore University Press) Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the publisher’s written permission. Any unauthorised reproduction of this work will constitute a copyright infringement and render the doer liable under both civil and criminal law. Whilst every effort has been made to ensure that the information published in this work is accurate, the editors, publishers and printers take no responsibility for any loss or damage suffered by any person as a result of the reliance upon the information contained therein.
Acknowledgements
Introduction
C ONTENTS
DAVIDLUTZandPAULMIMBI
Keynote Address:The Relationship between Ethics and Business Management
JOHNGITHONGO
Altruism and Human Flourishing:The High and Low Dimensions of ‘Self-Interest’ in Business Enterprise
CHRISTINEW. GICHURE
Beyond Agency Theory:The Nature of the Firm from a Humanistic Perspective
JUANFONTRODONA
A Comparative Analysis of the Principle of Competition in Business Management and the Principle of Love in Christian Ethics in Africa
EUNICEKARANJAKAMAARA
The Purpose of Business Management in the Light of Catholic Social Teaching
HILARYGEORGENDEMO
The Challenge of Business: Going beyond Wealth Maximisation and Profit Maximisation
ANNAMARIAE. MENDOZAandCORAZONT.TORALBA
Human Perfection as the Proper Aim of Business Management
FRANCISGIKONYOWOKABI
The Objective of Maximum Profit, or the Wishful Thinking of a ‘Hyper-Monetised’ Economy
MINERVAULLATEFABO
ix
1
23
31
47
69
83
101
123
143
The German Way:The Free-Enterprise System – Daily Struggle between Capitalism and Social Responsibility
PETERSCHIWY
Which Business Models for Sustainable Development?
MICHELALBERT
Beyond ‘Welfarism’:Towards a Philosophical Grounding of Economic Theory PAULMIMBI
The Objective of Business Management: A Biblical Perspective
CHRISTOPHEROWCZAREK
Should Entrepreneurs Advance the Profit-Maximisation Objective?
HENRYM. BWISA
Ethics in Business Economics: Self-Interest, Inequality of Income, and Social Justice
MADUABUCHIDUKOR
Governing the Business Enterprise: The Wealth-Creating Organ of, in, and for Society
KARUGORGATAMAH
Profit Maximisation and Business Social Responsibility Objectives in Business Management
BENJAMINO. MATURU
Capitalism and Social Investment in Africa: Contradictory Commitment to Development
O. F. EMIRI
The Misapplication of the Concept of Agency to Financial Management Theory
LUISFRANCESCHI
161
169
185
199
211
225
243
255
269
281
Founding an Ethical Kenya:The Role of the Business Sector
ANNEWAIGURU
The Search for Metaphysical, Epistemological, Moral Principles to Serve as a Basis of Business Management
JOSEPHKAHIGAKIRUKI
The Objective of Business Management and the Necessity of Ethical Business Managers
MIRIAMP. NARBARTE
Presumptive Taxation and Tax Compliance in Uganda: Incorporating Ethical Aspects
ARTHURSSERWANGAandTHOMASWALTER
Management Ethics and the Reality of Negative Attitudes in Nigeria’s Public Employment Sector V.T. JIKE
Work Ethic, Locus of Control, and Task Performance
JOSEPHNTAYI
Personal Morality and Business Management: Empirical and Philosophical Perspectives
MICHAELMABURURUNTABO
Contributors
305
323
329
337
349
363
383
393
ACKNOWLEDGEMENTS
ix
Many persons and several organisations contributed to the publication of this book.
The conference at which the papers were presented was made possible by a donation from Haco Industries Kenya Limited. We would like to thank Mr. C. J. Kirubi, Chairman, Mrs. E. Mbugua, Finance Director, and Mr. Chris Pasha, Sales and Marketing Director, for their company’s generosity.
Of the many members of Strathmore University’s staff who contributed to making the conference a success, we would like to thank especially Fina Desouza, Lucy Gikonyo, Rachael Kanini, Rufina Kingori, Robert Mureithi, Francis Mwaura and Margaret Roche. We would also like to express our gratitude to the students, members of the Journalism Club, who assisted in the administration of the conference: Rufina Achieng’, Crispus Kinyanjui, Oliver Madara, Dedi Maganga, Alex Maina, Andrew Mutha, Nancy Muturi,Winnie Ibukayo Mwangi, Joan Nduati, Christine Nzau, Brian Omwenga, Elsie Onsongo and Elizabeth Wamicha.
Mr. Martyn Drakard translated Mr. Michel Albert’s paper from the French. Mr. Carlos Sotz and Mr. Silvano Borruso translated Dr. Minerva Ullate’s essay from the Spanish. We are thankful that they made these contributions accessible to readers of English.
Last but not least, we would like to thank the Konrad Adenauer Foundation and its representative in Kenya, Mr. Gerd Bossen, for making it possible for Prof. Peter Schiwy to travel from Germany to participate in the conference, as well as for meeting the cost of printing the proceedings.
David Lutz and Paul Mimbi