Assignment 3: Corporate Governance and Ethical Responsibility LEG 500 - Law, Ethics, and Corporate Governance
1. Determine at least three different internal and external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital. Stakeholders are individuals who are involved in, have a vested interest in, or a “stake” in the success of an organization (Merriam-Webster, 2011), such as a hospital. Dr. DoRight is an influential decision maker as the President of the Universal Human Care Hospital and it is important for him to consider how his decisions and actions affect the stakeholders of the hospital. In the course of his daily activities Dr. Do Right will interact and impact many of the hospital’s internal and external stakeholders. Internal stakeholders are be committed to an organization’s success. Often internal stakeholders will participate in the strategic development of coordinating resources to fund and sustain an operation. Examples of internal stakeholders which Dr. DoRight might engage daily would be: Director of Public Health, Head of Health Intelligence and Information, Director of Nursing, Public Health Strategists, Vice President of Human Relations or Members of the Board of Trustees (Markwell, 2010). External stakeholders are not directly connected to the organization; however, they are vested in the hospital’s success as clients, business or community partners. These stakeholders have influence over organizational activities by contributing their views and experiences related to issues which are important to them. Medical providers or suppliers, Patient Advocacy Groups, Quality Assessors, the Media, and Heads of Local Community and Special Interest Groups are examples of external stakeholders Dr. DoRight may deal with on a daily basis (Markwell, 2010). 2. Compare and contrast potential conflicts of interest that may exist between the internal and external stakeholders. Conflicts of interest exist between the hospital’s internal and external stakeholders. Medical providers such as, staffed research doctors or pharmaceutical manufactures want to provide the ‘best’ wellness plan by providing cutting-edge tests, treatments and medications which are likely to be more expensive to the payer or patients. Payers, such as insurance providers and private paying patients, would prefer a more cost effective approach to wellness with accurate diagnosis and treatments with fewer visits and tests (Wiseman, 2005). Although internal and external stakeholders may have different priorities, they will share common objectives. All stakeholders will share common ambitions for Universal Human Care Hospital to provide quality medical services to its patients. Additionally, all stakeholders will appreciate the hospitals efforts to improve the quality of life for the community it directly serves. (Markwell, 2010). 3. Discuss whether Dr. DoRight has fulfilled his ethical duty by reporting the illegal procedures. Dr. DoRight has reported the illegal procedures and patents dying due to negligent supervision and oversight to his Regional Director, Compliance Manager, as well as an Executive Committee in January 2009, but he has not fulfilled his ethical duty. As a doctor it is his responsibility to protect all patients from criminal acts including the illegal procedures and negligent supervision which has been reported at Universal Human Care Hospital. As there has been no result from the investigation after two years he has a responsibility to take further action to preserve the lives of patients. His ethical duty should include reporting the illegal procedures, as well as, the negligent supervision and oversight to higher ranking internal authorities. If the appropriate investigation and corrective actions do not occur he has a further ethical obligation to report the incidents to external authorities. As a doctor he is legally bound to take reasonable action. The law recognizes...
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