Corporate Governance and Ethics: A series of decisions
Research the famous business case Dodge vs. Ford Motor Company, in 1919.
This story invites students to think about how a corporation distributes its profits.
Answer the following regarding the story.
Should all returns flow to shareholders, or can managers choose to return profits to stakeholders in terms of lower prices or higher wages?
Should the Corporation be run to maximize the immediately apparent (as opposed to merely short run) benefit of shareholders?