How would you describe each man’s probable view on corporate social responsibility? Jorgenson think he should be accountable to his employees, especially those who have served the company for a long time. Gekko’s and Garfield’s views were similar. They represent the shareholders and prioritized the interest of the investors, including themselves. Compare and contrast their speeches to the shareholders.
From Gekko’s speech, he highlighted about the ineffective leadership in Teldar Paper Company. He criticised the management for their alledged self-interest which was threathening the survival of the company. Jorgenson, was defending the continuity of a failing business with the interest of the company’s employees. Garfield represented the shareholders and demanded the company to cease it’s operations and start payouts to the investors. What do these two films say about the Board of Directors?
The Wall Street
From the Wall Street movie, Gekko, as a major shareholder of Teldar Paper Company criticised the Board’s lack of interest for the compay’s survival because they do not experience the liabilites of a failing busineess. The Board only held 3% of the stocks, which could easily be overshadowed by their compensation in other forms, probably cash. The Board from the New England Wire & Cable company failed to help the company stay relevant with time and technology. In Jorgenson’s speech, he clinged on the hopes of progress that were beyond the company’s control. Although he might be accountable for his staff, he is one who waits for opportunities rather than fighting for it and that will accelerate the downfall of his company. What can we learn about business (strategic) management from these two films?
Board of directors should make fair representation of both management and shareholder’s interest. Ineffective leadership and bad direction from the Board will kill the business. We also can learn that how executive are compensated matters and it is important...
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