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Riley and Malena are managers at SAWR Co Since a recent take over bid they have been seeking to award themselves better terms and conditions of service and behaving in ways that are not favourable to shareholders of the company
Which of the following theories describes the situation above?
A)Agency
B)Governance
C)Stewardship
D)Stakeholder
is it Agency or not?Can you help me tu understand fully this situation?It’s not too clear to me and it is a poor question.
Agency is the idea that an agent should put the principal first. Whether they do or no is another matter. Here they are not behaving as they should so there is an agency issue
Governance is the way companies are controlled and managed. So, here, why has this not been stopped? Good governance should prevent this.
Stewardship is the responsibility to take good care of resources – presumably they are being wasted here.
Stakeholders: not very relevant here
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