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'Convention Dictates that a company looks after its shareholders first, its customers next and last of all worries about its employees. Virgin does the opposite.' Richard Branson - Evaluate.
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'Convention Dictates that a company looks after its shareholders first, its customers next and last of all worries about its employees. Virgin does the opposite.' Richard Branson. Evaluate how adopting this approach of putting employees rather than shareholders first might affect the performance of a business. (40 Marks) In this essay I am going to be putting forward arguments for and against putting shareholders before employees. If a company put shareholders before employees many there would result in many implications. Shareholders own the business by financing it for future growth. Therefore a company would benefit by putting them first as if they receive higher dividends then they will continue to provide finance giving the business a greater sense of financial security. This is because an increase in shareholders usually means an increase in share capital, which in turn means more capital employed lowering the companies gearing. This can improve the performance of...
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