invites students to think about how a corporation distributes its profits. Should all return flow to shareholders, or can managers choose to return profits to stakeholders in terms of lower prices or higher wages? This case uses as its platform the issues decided in the famous business case Dodge vs. Ford Motor Company, 1919.

 Should all return flow to shareholders, or can managers choose to return profits to stakeholders in terms of lower prices or higher wages? Should the Corporation be run to maximize the immediately apparent (as opposed to merely short run) benefit of shareholders?

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The question of profit distribution in a corporation involves complex ethical legal and economic considerations Lets delve into the issues raised in t... View the full answer