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write 400–600 wordsthat respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.
Part 1 (Post this response in the main U2 DB thread “Unit 2 Discussion Board”)
In the Unit 1 Discussion Board, you analyzed a corporation’s social responsibility with regard to its customers. Not only do corporations have responsibly to their customers, but their corporate officers or directors owe fiduciary duties to their corporation and its stockholders. Corporate officers, such as a chief executive officer, president, chief financial officer, treasurer, corporate secretary, and so on are agents and carry out the daily operations of a corporation.
You are Phishy Pharmaceuticals' CEO, and therefore an agent of Phishy Pharmaceuticals. As CEO (agent), what fiduciary duties do you owe the corporation (principal)?
Part 2 (Post this response in the appropriate topic within U2 DB [labeled "FOR" and "AGAINST"])
Complete the following:
- Review the fiduciary duties owed by an agent to the principal.
- Choose a fiduciary duty, and complete the following:
- Provide an argument that supports your decision to leave the diet pill on the shelf. Submit your position by posting in the Unit 2 Debate Forum under the FOR topic.
Case Example: Phishy Pharmaceuticals is a corporation that recently kicked off the sale of its new weight-loss pill, Lose It Fast. After 3 months of sales, the management team has received some troubling reports of some unanticipated side effects caused by the pill. The management team asks the accounting department to run some numbers to determine how much it would cost to recall Lose It Fast, to suspend manufacturing, and to conduct more tests to determine the pill’s safety and other possible side effects.
After running some numbers, the accounting department states that it would be more cost-effective to leave the product on the market shelves and propose settlement proceedings with anyone who is injured and initiates a lawsuit.
The corporate attorney has advised that the product's packaging states that the pill is not FDA-approved, and says off the record that everyone who buys a weight-loss product knows there are some risks involved, so it is likely that the majority of injured consumers will not initiate a lawsuit.
If you recall the product, it will result in a delay of dividends paid to shareholders, a loss in revenue affecting shareholder profit, and possibly your job as CEO.