By Adrian Henriques
ISBN-10: 1844073904
ISBN-13: 9781844073900
Within the company jungle inhabited through Enrons and WorldComs, a scarcity of transparency is the basis of all scandal, but offering transparency turns out immensely tricky with the usually competing pursuits of shareholders, company forums, executive regulators, and different stakeholders. Written by way of famous company social accountability practitioner Adrian Henriques and drawing on an unlimited wealth of real-life examples from the economic global, this energetic enterprise ebook is going looking for the correct limits of transparency. From advertisement confidentiality to the ethics of promoting to lobbying and company corruption, the writer addresses the placement, importance, and bounds of transparency in glossy company existence and works during the dilemmas that the expanding demands transparency current. From the secrets and techniques of the board room to the struggles of NGOs, transparency is a continual challenge–how a lot is sufficient? How a lot can we desire? How will we do it? This ebook, very best to company leaders and executives, experts and enterprise scholars alike addresses those questions and extra.
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Additional info for Corporate Truth: The Limits To Transparency
Example text
As applied to companies, there is a moral case, and therefore a need, for transparency when there is a significant power relationship between a company and one of its stakeholders. ‘Power relationship’ here means that one party is able to dictate to the other at least some of the terms of their relationship. The following chapter will further argue that a power relationship between a company and one of its stakeholders is actually equivalent to a power relationship between (at least) two of its stakeholders.
They might form a company specifically in order to separate themselves from the possibility of loss, from which the legal form of the company insulates them to some extent. So it is hard to argue that shareholders are internal to the company. It may be suggested that shareholders will inevitably be identified with the financial goals set out by senior management, and while that may often be true, it is hard to see what it is that they may be considered ‘inside’. It follows that senior management themselves should usually be considered as an additional, separate stakeholder group.
For example, to define sustainability as the ability of an organization to make reasonable profits in the long term suggests that sustainability is being defined in terms which benefit shareholders. That is clearly part of the picture, but so are the views of other stakeholder groups. From the point of view of a local community concerned about noise and disruption, for example, sustainability includes the absence of such unacceptable impacts. Similar arguments will apply to all other stakeholder groups.