A SUGGESTED ETHICAL FRAMEWORK FOR EVALUATING CORPORATE-MERGERS AND ACQUISITIONS

The 1980s witnessed a dramatic increase in hostile takeovers in the Un ited States. Proponents argue that well-planned mergers enhance the va lue of the firm and the value of the firm to society. Critics typicall y argue that undesired takeovers ultimately harm society due to extern al costs not borne by the acquiring firm. To be socially responsible, the manager must consider the effects of the merger/acquisition on all stakeholders. Different traditional ethical frameworks for decision m aking are proposed and reviewed. A model is proposed.