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Resposibility Essay

1199 words - 5 pages


Corporate Governance and Ethical Responsibility

Marshan Brown

Leg-Bus 500 Law, Ethics, and Corporate Governance

Professor Daniel Smith

May 13, 2012


Determine at least three different internal and external stakeholders that Dr. Do Right
might have to deal with on a daily basis at the hospital. Discuss the duty of loyalty owed to
each internal and external stakeholder.

Dr. Do Right has a duty of loyalty to employees, society, and board of directors. Each duty of

loyalty has its’ own significant meaning. Dr. ...view middle of the document...

He has legal obligations to report

any indiscretions to board members that may infringe on the welfare of the patients. Because

Dr. Do Right is the executive of a large health operation, his duty of loyalty falls to the

community. The community depends on the health care system to provide care that heals,

supports, and brings resolutions to their health needs. The hospital is also there for researchers

to find new serums and medicines to cure illness. Dr. Do Right must make sure his facility is

there to serve the needs of the patients, community, and society as a whole.

Finally, Dr. Do Right has an obligation to his board members. The board members assigned him

a position to take care of the business interest, financial interests, and daily operations of the

organization. Although, Dr. Do Right has man daily tasks. He is responsible for communicating

detailed reports to board members about daily operations and the financial status of the

organization. Dr. Do Right must bring problems that arise within the organization, so that

decisions can be made to resolve them or the necessary votes can take place to implement new


Compare and contrast potential conflicts of interest that may exist between duties of
loyalty owed to an internal stakeholder versus external stakeholders.

The conflicts of interest that can exist between upholding the duties of a hired position and

upholding social obligations, often exist in the workplace. The duty of loyalty of Dr. Do

Right is to the hospital and keeping their best interests in front of any conflict. The conflict

is revealing information that could bring about criminal liability to the hospital. The hospital

is aware of the death of patients and negligence by their staff. Although, Dr. Do Right was

informed that there would be a thorough investigation, the hospital committee has not found

any findings or information to help resolve the continuing deaths. Dr. Do Right has to struggle

with his moral convictions and social responsibility to society to decide whether or not he

should be a whistleblower. A whistleblower alerts media and other outside sources that

unethical and illegal behavior is taking place in their organization. His salary and oath makes

him ponder the decision of doing the fairest approach to the situation. Besides, the hospital

will have numerous lawsuits brought against it and criminal negligence may be a possibility.

Determine whether Dr. Do Right has fulfilled his ethical duty by reporting the illegal
procedures. Recommend additional steps Dr. Do Right should have taken to prevent
further harm to...

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