Thesis (MPhil)--University of Stellenbosch, 2003. / ENGLISH ABSTRACT: The historical development of the role of directors in public listed companies contains
inherent tensions by reference to the fiduciary responsibility of directors and the
method in which directors are remunerated. The nature of incentive based
remuneration is such that it will compel directors, in certain circumstances, to weigh
their interests against those towards whom they owe a duty of care and a moral
responsibility to act with prudence and temperance.
The modem day corporate environment is complex and calls for directors with strong
ethical views. This assignment endeavours to identify some of the complexities that
contribute towards directors finding it difficult to stay on the ethical "straight and
narrow" and attempts to weigh the effect of those factors against the effect of
incentive remuneration, both as detractors from ethical behaviour. Both the
shareholder supremacy business model and the stakeholder approach are analysed to
identify those factors present in each that may add to the ethical complexity that
directors have to deal with. The advent of the stakeholder approach in particular, adds
an enormous amount of complexity.
The case studies deal with two South African financial services companies that have
both ceased trading as a consequence of unethical behaviour. The incentive
remuneration models of both companies have been found to have played a major
contributing role in the decision making processes in the companies, and have
contributed to the demise of these organisations. Lessons are taken from the case studies and applied against the backdrop of the
various principles of ethical behaviour namely rights, utility, justice and the ethics of
responsibility. The finding of this study is that there is a role for incentive
remuneration of directors, provided that the ethical pitfalls that this causes are
recognised and steps taken to address them. Some of these steps are identified. / AFRIKAANSE OPSOMMING: Die historiese ontwikkeling van die direkteursrol, en spesifiek van openbare
genoteerde maatskappye bevat inherente teenstrydighede met verwysmg na
direkteursvergoeding en die vertrouensverpligtinge wat op direkteure rus. Die aard
van direkteursvergoeding met 'n aansporingskomponent is so dat dit 'n direkteur van
tyd tot tyd in 'n posisie plaas waar hy tussen sy eie belange en die van die ander
belanghebbendes in 'n maatskappy, aan wie hy dit verskuldig is om met verdrag en
versigtig op te tree, moet kies.
Die hedendaagse maatskappyomgewing is kompleks van aard, en vereis direkteure
met sterk etiese oortuigings. Hierdie werkstuk poog om sommige van die komplekse
faktore wat afbreuk doen aan 'n direkteur se vermoe om ten alle tye streng eties op te
tree, te identifiseer en op te weeg teen die effek wat direkteursvergoeding speel -
beide as items wat afbreuk doen aan etiese optrede. Hier word ondersoek ingestel na
beide die sogenaamde "aandeelhouersmodel" asook die" belanghebbende" model
waarvolgens besigheid bedryf word. Die ontsluimering van die belanghebbende
model veroorsaak spesifiek 'n aansienlike hoeveelheid etiese kompleksiteit.
Die gevallestudies behandel twee Suid Afrikaanse fmansiele instellings wat hul
bedrywighede gestaak het as gevolg van onetiese optrede deur direkteure. Die
aansporingskomponent van die vergoedingsrnodelle in daardie maatskappye blyk 'n
groot bydraende faktor te wees in die onetiese besluitneming wat plaasgevind het, en
wat uiteindelik tot die ondergang van die ondernemings gelei het. Laastens, word die lesse wat geleer is uit die gevallestudies, toegepas in gewysigde
format, en getoets aan die hand van die verskillende beginsels wat etiese
besluitneming onderhou, naamlik die beginsels van regte, regverdigheid, utiliteit en
die beginsel van etiese verantwoordelikheid. Daar word tot die slotsom gekom dat
daar wel ruimte vir aansporingskemas vir direkteure is, maar dat dit slegs eties
regverdigbaar sal wees mits ag geslaan word op die lesse wat uit die gevallestudie
voortspruit, tesame met die impementering van sekere korrektiewe maatstawwe.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/49796 |
| Date | 12 1900 |
| Creators | Van der Walt, J. C. |
| Contributors | Esterhuyse, W. P., Stellenbosch University. Faculty of Arts and Social Sciences. Dept. of Philosophy. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 80 p. |
| Rights | Stellenbosch University |
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