Saturday, February 23, 2019

ETHICAL/UNETHICAL ISSUES IN TAKEOVER (Finance)

                                                                                                    Blog by--Mukul Roy 
                                                                                                                Q1802 (A28)



                            “HOSTILE TAKEOVER"   

                       

In business, A TAKEOVER is the purchase of one company (the target) by another company. 
The management of the target company may be agree or disagree with a proposed takeover, and it is concluded in the following takeovers:

FRIENDLY TAKEOVER:
Friendly takeover, can also be called as “Negotiated Takeover”. A takeover can be defined as a friendly takeover when the targeted company do agree through negotiations between the existing company or bidder who wants to takeover the conpany. This kind of takeover is regain to further some common objectives of both the owner and bidder.


HOSTILE TAKEOVER:
When a company is not willing to sell their company and they they are able to handle the company efficiently, but the bidder wants to gain that particular company forcefully from the existing owner can be defined as hostile takeover. In this case bidder company wants to have the company by any cost.






CHALLENGES (HOSTILE TAKEOVER):
1.Organizations have to laid off their employees an it affect the economy very much.
2.It is very costly and and organizations have to take risk as well. 
3.Companies have to face a heavy debt situation.


Ethical Activities in Finance Field (Current scenario):
Corporate Social Responsibility (CSR) is burning topic to consider now a days. Sometimes it is seen that, though organizations are in very much profit margin but they are not willing and not practicing CSR. But in the other hand some organizations are practicing it as considering it as their duty and they are practicing it very much willingly which is very much appreciative. 
The top 10 companies with the best CSR reputation are,
1.Microsoft, 2.The Walt Disney Company, 3.Google, 4.BMW, 5.Daimler, 6.Sony, 7.Intel, 8.Volkswagen, 9.Apple, 10.Nestle
  

         

                  

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                    Your opinion will be considered as assets. So, please do comments.

36 comments:

  1. As a lot of picturesarr added according particular topics,its very much easy to understand

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  2. The whole situation should be considered when its about hostile take over. If the higher authority is actually failing to handle the organisation, then hostile takeover will not be unethica,

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  3. Do you really think hostile takeovet should always be considered as unethical? if you do then how ?

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    Replies
    1. If the management body is running the company well and if a another company is forcing to sell their company then it will be unethical.

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  4. Very Good content and easy to understand

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  5. Hostile takeover should not be in parctise. Because its often done in a wrong way. Sometimes its seen that board of directors of a company is able to run the company well but but the bidder say that the board of directors are not able to run the company wall.

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  6. Of course the hostile takeover should be consider as unethical. if a company is willing to be sold just than another company should buy it or takeover it.

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  7. Friendly takeover is always be acceptable rather than hostile takeover. when its clear to all that current higher authority are not capable to run the company in well, they shoud hand it over to othets.

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  8. Very informative post. Got something new from it.

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  9. Hostile takeover should not be considered as unethical when the higher authorities are corrupted and another company willing to takeover it.

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  10. Hostile takeover,a very critical issues as per as I know. Very impressive that this topic is discussed in a easy way..

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  11. The board of directors should not be corrupted.

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  12. Why hostile takeover is an unethical issue ?

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    Replies
    1. If the bidder is making force a company sell their company then its unethical.

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  13. Why the hostile takover will be considered as unethical when the management body is not able to run that particular business?

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    Replies
    1. If the management body is willing to hand over their business then it will not be unethical.

      Delete
  14. I think hostile takeover is already illegal!
    And if its not then why so. And how can any company take over the other without the consent of the owner.

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    Replies
    1. If they are not willing to hand it over then hostile takeover should be applied to save the company.

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  15. If the management body is not able to run the company and they also not willing to handover it then hostile takeover will not be unethical.

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  16. Hostile takeover should be continued when it's about the goodness of an organization.

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  17. thanks a lot for sharing this. lot of people don't know about this matter that, hostile takeover is illegal.

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  18. Hostile takeover can be supported only then when the management body will be recognised as corrupted.

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  19. The governning body will be the responsible for hostile takeove.

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  20. Hostile takeover should be practiced if the management board are corrupted.

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  21. I must say that's agreat work

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