Governance in Practice — Balancing Value, Ethics, and Accountability Assignment Purpose

Governance in Practice — Balancing Value, Ethics, and Accountability Assignment Purpose This activity allows students to individually apply corporate governance and agency theory concepts to real-world ethical and strategic dilemmas. Students will demonstrate their understanding of shareholder primacy, stakeholder theory, ethical culture, and governance mechanisms as discussed in assigned readings. Assigned Readings 1. Jensen, M. C. (2001). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. 2. Milosevic, D. (2017). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. 3. Shwartz, M. (2013). Developing and Sustaining an Ethical Corporate Culture: The Core Elements. Harvard Business Review. 4. Cheng, J. (2023). Introduction to Corporate Governance. Harvard Business Review. Instructions Format: Individual written analysis (1–2 pages, double-spaced) Points: 20 total Select one scenario from the list below and write a short analysis applying course concepts and assigned readings. Choose One Scenario · Agency and Executive Pay: The CEO’s bonus is based on short-term stock performance, encouraging risk-averse or manipulative behavior. Apply Jensen (2001) and Cheng (2023) to explain how governance mechanisms could align incentives with long-term value.