WK7 D2 - Corporate Governance and Ethics: A series of decisions Research the famous business case Dodge...

60.1K

Verified Solution

Question

General Management

WK7 D2 - Corporate Governance and Ethics: A series ofdecisions
Research the famous business case Dodge vs. Ford MotorCompany, in 1919.
This story invites students to think about how a corporationdistributes its profits.
Answer the following regarding the story.
Should all returns flow to shareholders, or can managers chooseto return profits to stakeholders in terms of lower prices orhigher wages?
Should the Corporation be run to maximize the immediatelyapparent (as opposed to merely short run) benefit ofshareholders?

Answer & Explanation Solved by verified expert

3.9 Ratings (364 Votes)

1 Should all returns flow to shareholders or can managers choose to return profits to stakeholders in terms of lower prices or higher wages Dodge vs Ford case reinforced the idea that corporations are accountable to making profits for the share holdersJudgements in both the trial court and Michigan supreme court held that dividends need to be distributed to the share holders However the supreme court also See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member