Question Two relates to company A and company B. Company A: ‘Our company’s objective is to focus on the maximization of global shareholder wealth. We aim at all times to serve our shareholders by paying a high level of dividends and adopting strategies that will increase the company’s share price. Company B: ‘Our company’s primary objectives are to enhance our customers’ satisfaction and to grow our business. We aim to supply our customers with the highest quality products and provide outstanding levels of sales and delivery service, incapable of being matched by our competitors, and thereby increasing our market share.’ Required: (a) Discuss and contrast these objectives. Comment upon any possible ethical implications of the objectives.    (b) Provide examples of ethical issues that might affect capital investment decisions.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question Two relates to company A and company B.
Company A: ‘Our company’s objective is to focus on the maximization of global shareholder wealth. We aim at all times to serve our shareholders by paying a high level of dividends and adopting strategies that will increase the company’s share price.
Company B: ‘Our company’s primary objectives are to enhance our customers’ satisfaction and to grow our business. We aim to supply our customers with the highest quality products and provide outstanding levels of sales and delivery service, incapable of being matched by our competitors, and thereby increasing our market share.’
Required:
(a) Discuss and contrast these objectives. Comment upon any possible ethical implications of the objectives. 

 

(b) Provide examples of ethical issues that might affect capital investment decisions.

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