How can a top management team lower the chances that key managers will pursue their own...

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General Management

How can a top management team lower the chances that keymanagers will pursue their own self-interests at the expense ofstockholders? At the expense of the employees? At the expense ofother key stakeholders? Without compromising the identity of anindividual or group of individuals, share examples you havewitnessed where this type of behavior occurred. What action didsenior management take to curb the behavior? If no action wastaken, in your opinion what could have senior management done?

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In order to ensure that the key managers of business organisation do not prioritise their self interests at the expense of stockholders it is important to establish a mutual agency relationship with the organization where the agent manager has an implied duty to act solely in the interest of Principal stockholders so that the personal interests do not come in between of accomplishing business motives and stockholders objectives Moreover intoterms of stakeholders to protect their interests the top management See Answer

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