Corporate governance and Ethical Responsibility

Corporate governance and Ethical Responsibility

Introduction

Internal and external stakeholders that Dr. Do Right has to interact with

A stakeholder is an organization, an individual or a group that has indirect or direct interest in an business because it has the capability to get affected by the actions of the organization's, it's policies and objectives. The Major stakeholders in a business organization includes customers, unions, suppliers, directors creditors, government (and its agencies), employees, owners (shareholders), and the community from which the business draws its resources (www.dictionary.com). The internal stakeholders at “Universal Human Care Hospital” are employees, department managers, and trustees while the external stakeholders are pharmaceutical representatives, patients and corporate partners.

The employee duty of devotion requires the employees to act solely for the advantage of the employer in all matters related to his or her employment. This general principle prohibits an employee from competing with an employer; appropriating the employer's personal property or soliciting customers away from employer while in the employ of the employer. The department managers are representative of hospital management therefore, the duty of loyalty is much higher. It prohibits manager from activities (decisions) that benefit themselves at the expense of the company or imped the ability of a corporation to continue the business for which it was established. The Board of Trustee is usually concerned in the Compliance Program of the hospital, giving oversight to various committees and Compliance Officer, as well as being informed of the Program's effectiveness. In some institutions members of the Board of Trustees provide on a different committee to obtain periodic information on the various programs, the positions are usually appointed by the Chairman of the Board of Trustees and are on a rotation cycle. The trustee is a legal owner of a trust property; the trustee invests trust assets, and distributes trust income or principal to beneficiaries as directed in the trust document. The external stakeholders are pharmaceutical representatives, patients and corporate partners. Pharmaceutical representatives provide the medical supplies, equipment, drugs, etc. for the daily operation of the hospital therefore, the pharmaceutical representatives duty of loyalty includes ensuring; medical devices are used in compliance with manufacturers specifications; safety and performance of medical devices are maintained throughout the life circle of the device, ensure continue safety and performance of equipment provided; supply only FDA approve product, etc. (conduct business as stipulated in the hospital business code of conduct). Patients are the hospital customers and clients their right of loyalty is providing feedback to management for the improvement of the hospital, reducing medical errors, illegal procedures and negligent supervision.

Relation of stakeholders

Both internal and external stakeholders have vested interest in the hospital. The internal stakeholders interest includes but not limited to job security, pay , working conditions training and career opportunities and the external stakeholders gets returns of their investments, profits, long term growth of the hospital etc. These stakes holders have basic needs that could cause conflict, the degree of the stakeholder power; the goal of the stakeholder (partnerships ...