1. Select a publicly traded firm of your choice that enjoys a large shareholder
base. What challenges may this firm have encountered (or is likely to encounter)
in terms of (a) incorporating ethics into financial management practices, and
(b) maintaining/sustaining ethical practices in the face of internal or external
(market) pressures? Frame your response relative to the financial manager’s
fiduciary duty to maximize shareholder’s wealth.
2. What are some measures that corporations can take to minimize agency problems?
For example, market forces are outside of the control of the firm, but
management compensation is not. How can incentives and compensation be
structured to minimize agency problems?