Is it ethical if the managers hide some information to the shareholders? Under which type of conflict can you classify this event? In this case, to which type of cost the shareholders are exposed? How can you manage the managers in order to align their interests with the shareholders’ interests?
The structure of the assignment is:
1) Define the conflict and explain why it can be happened in the corporation?
2) Explain the effect of this conflict on the stakeholders?
3) Define the type of costs?
4) How can you minimize this conflict?
This an essay write up which discusses the ethical role of managers in hiding important information from shareholders. The solution discusses whether or not information can be hidden from shareholders and if so, in what event.
Total Word Count 1000