It’s the sure looks positive in this way, as part of the deal, Sara Lee Corp. loaded up the apparel maker with billions in new debt, then paid itself a big, fat dividend — money it’ll use to trim its own debt and buy back shares. Hanes, by contrast, will start life as a public company with a bond rating in junk status and a debt load so onerous some worry it won’t be able to invest enough in its well-known clothing brands.
Financial engineering that has more in common with the world of leveraged buyouts than with corporate spin-offs. And at first blush, from Sara Lee’s perspective, the deal makes sense. Why should executives rely solely on the fickle stock market to recognize the worth of Hanes as a stand-alone company when they can grab some cold cash now and put it to work immediately?
Managerial ethics would mean many things positive about what is good in the executive managers that manage effectively. These effective managers showed successful operations in of the paper: Examining the questions of why individuals behave the way they do and if there is a natural impulse to do well. This will discusses such issues as whether an individual, pursuing his or her own self-interest, can improve the general welfare and whether people have an innate intuition that leads them to do well.”
In coming to the conclusion that the pursuit of self-interest can produce a lot of good if it is balanced with a bit of societal guidance, the author brings to light issues of corporate governance, performance pay, legal and monetary incentives, and other forms of regulation (Pounds, William F. http://sloanreview.mit.edu)”. It is in this aspect, it points out, that intuition, rather than a more empirical approach, can best be put to good use. Then argument stated that intuition has been lacking from the more utilitarian view of economics and management and that, generally speaking, a blend of both approaches is optimal. Ethical approaches in Business:
Sara Lee executives declined to comment for negative story. A Sara Lee spokesman says the company believes Hanes’s level of debt is appropriate. A Hanes spokesman says the company generates enough free cash to fund investment as well.
The subject of business ethics is complex. Fair-minded people sometimes have significant differences of opinion regarding what constitutes ethical behavior and how ethical decisions should be made. This article discusses four approaches that business owners can use to consider ethical questions. The method you prefer may not suit everyone. Hopefully, by considering the alternatives, you will be able to make decisions that are right for you.
The utilitarian approach to ethical decision-making focuses on taking the action that will result in the greatest good for the greatest number of people. Considering our example of employing low-wage workers, under the utilitarian approach you would try to determine whether using low-wage foreign workers would result in the greatest good.
For example, if you use low-wage foreign workers in response to price competition, you might retain your market share, enabling you to avoid laying off your U.S. employees, and perhaps even allowing you to pay your U.S. employees higher wages. If you refuse to use low-wage foreign workers regardless of the competition, you may be unable to compete. This could result in layoffs of your U.S. workers and even your foreign workers, for whom the relatively low wages may be essential income. On the other hand, using low-wage workers may tend to depress the wages of most workers, thus reducing almost everyone’s standard of living and depressing their ability to purchase the very goods you and others are trying to sell.
The moral rights approach concerns itself with moral principles, regardless of the consequences. Under this view, some actions are simply considered to be right or wrong. From this standpoint, if paying extremely low wages is immoral, your desire to meet the competition and keep your business afloat is not a sufficient justification. Under this view, you should close down your business if you cannot operate it by paying your workers a “living wage,” regardless of the actions of your competitors.
Pounds, William . Retrieved 12/12/2006.
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