Corporate Governance and Ethical Responsibility

[May 15th, 2012]

Corporate Governance and Ethical Responsibility

Answer # 1

A company has both internal as well as external stakeholders and Dr. Do Right has to deal with these stakeholders at the hospital, however, the duty of loyalty differs. Internal stakeholders include the leaders, shareholders and employees while the external shareholders include customers, suppliers, government and NGO's, competitors and residents near the hospital building. Duty of loyalty to the internal and the external loyalty differs because every stakeholder has a different level of interest with the hospital. Loyalty of the doctor towards the internal stakeholders especially the leaders and shareholders is much more than the external stakeholders. As the relationship progresses and respect from one's identity must also increase loyalty and transparency on both sides leaving no areas meeting unless it is perceived to continue to nurture that relationship is to betray one's own identity and being fully aware of the ethical requirements that derive from the fact that she kept that relationship (respect for the other party and secrecy on matters that may be differentiating or for other strategic delivery and that a greater good not required to be unveiled). Economic climate influences employee motivation because as the economy spirals downward, organizational leaders often have the daunting task of initiating cutbacks in budgeting for incentives. Likewise, long-term motivators, such as company stock and retirement plans, can have less motivational affect due to declining value. Therefore, a positive relationship must be maintained with all the stakeholders to progress well.

Answer # 2

There are many conflicts of interest that occur between the duties of loyalty owed to an internal stakeholder and an external stakeholder. This is mainly because of the part the stakeholders take in the management of the hospital, their role and the way in which they are associated with it. The stakeholders who are closer to the management and are in the leadership level are given more importance. In this case, although the doctor feels the importance of inquiring about the deaths of the patients, nothing was done properly and therefore; this shows that the patients were not given much importance. However, shareholders were given importance and they continue earning well.

Answer # 3

Although Dr. Do Right has reported the illegal procedures and asked for investigation, the work regarding this has not been done properly yet. It is highly essential to follow ethical obligations which includes the Health Insurance Portability and Accountability Act of 1996 (HIPAA) is legislation Federal United States that "maintain in force technical and physical measures, reasonable and shown to prevent the use or disclosure, intentionally or unintentionally, information personal protected health information ". This includes the medical records of patients, insurance policies, invoices and other health information. Under the Act, the Care Sector organizations health must, in particular, adopt policies and procedures for access to information to ensure that personal information are properly protected and not likely to be improperly disclosed. Under the regulation on confidentiality, sector organizations, health care must make agreements with participating ...