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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Moominoid who wrote (19190)5/20/2002 9:34:56 AM
From: Ilaine  Read Replies (1) of 74559
 
I think principal-agent problems have an ethical component. Not sure how you'd separate it out.

When you work for someone else (shareholders) but it's in your own best interest to do something that will hurt shareholders in the long run, what do you do? Maximize your own best interest, or maximize the best interest of the company?

If your employees get stock options, will they tell you the truth or will they tell you what they want you to know?

If you loan someone money, did they tell you the truth when they filled out the loan application?

Can you do business without being able to trust the people you do business with?
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