Assignment 3

ASSIGNMENT 3: CORPORATE GOVERNANCE AND ETHICAL RESPONSIBILTY RESEACH PAPER

Glenda Higgins

Leg 500: Law, Ethics, and Corporate Governance

Professor Regina Hurte

August 8, 2012

Determine at least three (3) different internal and external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital.

Internal stakeholders

Managers are held to a higher duty of loyalty standard than regular employees. The duty of loyalty specifically prohibits corporate officers from (1) actively exploiting their positions within the corporation for their own personal benefit or (2) hindering the ability of a corporation to continue the business for which it was developed.

Employees - the duty of loyalty requires that an employee act solely for the benefit of the employer in all matters connected with his or her employment. In general, the duty of loyalty prohibits non-officer employees from: 1) competing with the employer while still in the employ of that employer; 2) taking employer’s customer list or soliciting customers away from employer while still in the employ of that employer; and 3) appropriating the employer’s personal property.

Trustees - The duty of loyalty is the requirement that trustees act in good faith in all matters relating to the administration of the trust.  A trustee needs to avoid conflicts of interest and cannot favor any beneficiary over another unless so provided in the instrument. His or her primary duty is not to allow own interest as an individual even the opportunity of conflict with his interest as trustee. Trustees who take actions that are explicitly authorized by the terms of the trust do not breach their duty of loyalty. Actions made by the trustee that appear to be in violation of the duty of loyalty must be supported by powers or instructions that are clearly stated in the trust instrument.

External stakeholders

Patients – Patients, as the clients of hospitals, have a right and duty to give feedback to...