fiduciary duty

Examples of fiduciary duty in the following topics:

• Managers Role in Ethical Conduct

  • They have a duty to respond quickly and appropriately to minimize the impact of suspected ethical violations.
  • Fiduciary duty is an example that applies to some managerial roles.
  • A fiduciary must put the interests of those to whom he is accountable ahead of any interests, and must not profit from his position as a fiduciary unless the principal consents.
  • The stakeholders will be interested to hear how the organization took ethics into account, and in those cases it is the manager's duty to speak on the company's behalf.

• Banking Crises and Centralized Reserve Enforcements

  • One of the Federal Reserve's duties is to regulate financial institutions, such as bank-holding companies and state member banks.
  • Generally, the Federal Reserve takes formal enforcement actions against the above entities for violations of laws, rules, or regulations, unsafe or unsound practices, breaches of fiduciary duty, and violations of final orders.

• Employee Retirement Income Security Act

  • Sets minimum standards for participation, vesting, benefit accrual, and funding. provides fiduciary responsibilities for those who manage and control plan assets.
  • Gives participants the right to sue for benefits and breaches of fiduciary duty

• Nonprofit Organizations (NPOs)

  • Both not-for-profit and for-profit corporate entities must have board members, steering committee members, or trustees who owe the organization a fiduciary duty of loyalty and trust.

• Profit and Stakeholders

  • In the traditional view of the firm, the stockholders are the owners of the company, and the firm has a binding fiduciary duty to put their needs first and to increase value.

• Unique Issues in Nonprofit Marketing Strategies

  • Both not-for-profit and for-profit corporate entities must have board members, steering committee members, or trustees who owe the organization a fiduciary duty of loyalty and trust.

• Conflicts of Interest

  • An example of using a third-party to establish an 'arm's length' or fair transaction would be where a corporation that leases an office building that is owned by the CEO might get an independent evaluation showing what the market rate is for such leases in the locale, to address the conflict of interest that exists between the fiduciary duty of the CEO (to the stockholders, by getting the lowest rent possible) and the personal interest of that CEO (to maximize the income that the CEO gets from owning that office building by getting the highest rent possible).
  • A director or executive of a corporation will be subject to legal liability if a conflict of interest breaches his/her Duty of Loyalty.
  • Such competing interests can make it difficult to fulfill his or her duties impartially.
  • A conflict of interest could impair an individual's ability to perform his or her duties and responsibilities objectively. "

• Ethical Considerations

  • If a company's purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its fiduciary responsibility.
  • Ethical issues include the rights and duties between a company and its employees, suppliers, customers and neighbors, and the company's fiduciary responsibility to its shareholders.
  • Business ethics in production usually deals with the duties of a company to ensure that products and production processes do not needlessly cause harm.

• The Definition of Money

  • Money comes in three forms: commodity money, fiat money, and fiduciary money.
  • Fiduciary money includes demand deposits (such as checking accounts) of banks.
  • Fiduciary money is accepted on the basis of the trust its issuer (the bank) commands.

• Other Barriers

  • Anti-dumping duties: In international trade, dumping refers to a form of predatory pricing in which exported products are priced below the cost of production or below the price charged in the home market.
  • Anti-dumping duties are usually extra taxes levied on the product to neutralize the predatory pricing and bring the price closer to the "normal value. "
  • Countervailing duties: Countervailing duties, or anti-subsidy duties, are extra duties levied on imports in order to neutralize an export subsidy.
  • If a country discovers that a foreign country subsidizes its exports, and domestic producers are injured as a result, a countervailing duty can be imposed in order to reduce the export subsidy advantage.
  • In that respect, countervailing duties are similar to anti-dumping duties in that they both bring a imported product's value closer to the "normal value. "