hostile takeovers

A detailed Summary of hostile takeovers


Lisa Newton argues against hostile takeovers and has many rational reasons backing her point. Takeovers in the past overall have not proven effective nor have they been monetarily beneficial to either the company or the society involved. Corporations are ruined and people, even families, are hurt. In this paper, I will argue against hostile takeovers for these reasons from the standpoint of a utilitarian.

Utilitarianism is the "moral doctrine that we should always act to produce the greatest possible balance of good over bad for everyone affected by our action." (Shaw & Barry, 59) Actions are evaluated according to their consequences and look to maximize happiness. The view is long-term not just immediately. A hostile corporate takeover is not a positive thing through the eyes of a utilitarian for several reasons.

To begin with, the idea of a possible takeover has degenerating effects on a company. "At the first level there is disruption and millions of dollars' worth of unproductive expense." (Newton, 189) Effectiveness and productive activity at the upper levels of management comes to a stop and systematical planning disappears. Employees become apprehensive about the security of their jobs and end up spending


There are no laws to protect or help those who may one day be involved in a hostile takeover. These people have rights since they have contributed a lot of time, effort and even money towards the growth of the company. A corporation is nothing by itself; it is made up of the people with whom it employs. Human needs are not noticed by business practice and they hardly receive the justice deserved. Hostile takeovers are "harmful to corporate stakeholders, the economy, and the general public." (Newton, 188) The law should restrict or even prohibit them, which is currently does not. There usually is no protection or justice for those involved. There are laws for anything and everything else to supposedly protect individuals, so why not this?

a majority of their time speculating or searching for another job. It takes a toll on everyone involved in that they feel dishonored or belittled. Utilitarians would argue this is not a moral action since it harms the majority of the people. It is not the greatest good for the greatest number. It may immediately (short-term) benefit those who have done the takeover and those in higher up positions. However, in the long run it may not benefit even anyone. <

Some common words found in the essay are:
Shaw Barry, Lisa Newton, hostile takeovers, company level, hostile takeover,

Approximate Word count = 818
Approximate Pages = 3 (250 words per page double spaced)

Category: Miscellaneous

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