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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Unit II Discussion Question

Unit II Discussion Question

Q According to Fortune magazine, in 1978, chief executive officers (CEOs) of major American corporations earned 30 times the average earnings of the employees of the corporations that they ran. In 2016, CEOs earned 276 times the average earnings of the employees of the corporations that they ran. Do corporations have ethically responsibilities to their employees that suggest that this kind of CEO compensation is improper? Do corporations have ethical responsibilities to their customers to control CEO compensation?

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The real motive behind the existence of a company is larger than what is seen. The company should not merely exist because it wants to make profit rather it has better purpose to solve. A company should not merely exist because it wants to expand its market and earn money from it. On the other hand, it is to be noted that a company has many stakeholders attached to it and looking after their benefit is one of the important motives of the company. The lives of many people depend on the operation of an organization and there should be a set of rule and laws that should be there which will abide the company to maintain certain obligation.