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Word Count: 760
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 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 The early results of hostile takeover activity are combined with unnecessary and unwise business practices The takeover has two destructive effects on corporates management Equity is transformed into debt leaving the company without protection Being desperate management may begin to look for short-term profits and
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