Corporate Governance and Ethical Responsibility

Corporate Governance and Ethical Responsibility

Strayer University

LEG 500 Law, Ethics, and Corporate Governance

Professor James Viricos

1. Determine at least three (3) different internal and external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital. Discuss the duty of loyalty owed to each internal and external stakeholder.

External and internal stakeholders are a community of people affected by the decision and actions of a business, who contribute either voluntarily or involuntarily to the welfare of the organization. Internal stakeholders are groups of people who operate entirely within the boundaries of the organization. The internal stakeholders that Dr. DoRight has to deal with on a daily basis are employees, board of trustees, Regional Director of Compliance. External customers consist of patients, community organizations, and corporations.

Concerning the duty of loyalty owed to internal stakeholders; it is the obligation of all organizations top managers to lead by example. Furthermore, uphold the core values and ethical principles that employees and other stakeholders, should use to guide their behaviors, and decision making in the organization, also keeping the organizations goals in profit and sales in-order, to keep the organization in sound financial standing. Laws created by, OHSA to protect healthcare workers must be followed to prevent health hazards on the job and exposure to infectious disease(Sethuraman, 2006).

In the medical profession, Physicians profess to be competent to help patients and have the patient's best, interests in mind, Dr. Doright loyalty to external customers is to abide by the oath he took as a Physician. To have the best interest of the patients, community and corporations he service (Sethuraman, 2006).

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

Physicians and other health care professional hesitate when it comes to describing the health care as an industry; in realty health has become an enormous business. The health care is changing from a noncompetitive, high-growth industry to a low growing competitive one. The problems resulting from these changes are compounded by the changes to a system which medical providers receive a set fee per patient, and possible change to the pricing systems for Medicare, Medicaid. These changes cause problems for physician executives, who have to maintain a balancing act attempting to control health care cost, and profit issues while maintaining the integrity of the physician-patient relationship. An industry that was in a noncompetitive situation, and now finds themselves in a competitive