Question

Describe a personal experience, or find a real life example from the news, when top tier management used the shareholder primacy norm to justify a questionable action. Conversely, you may also describe a personal experience, or real life example from the news, when top tier management acted in direct defiance of the shareholder primacy norm.

Answer 1

Definition:

Any expense or transaction is done by employees/top management of the company. This pretends to be an expense of the company but in actual they lead to an unwanted benefit to that employee/top management or any relative of above.

Example.

In big companies, top management got a Car facility that is provided out of shareholder's funds. But sometimes the director uses that car for their own routine personal works.

Also, sometimes top management starts shifting of billing their personal car repair & maintenance to company car expense.