(Reuters) - AMC Entertainment Holdings has approved millions in bonuses to its top executives and eligible employees as a means to preserve stockholder value during the COVID-19 pandemic, the theater operator said. In a regulatory filing on Friday, the company said Chief Executive Officer Adam Aron would receive $3.75 million as bonus, while other top executives are entitled to bonuses of $173,000 to $507,000. The move comes at a time when cinema chains like AMC have taken a blow due to coronavirus-led restrictions that caused delays in film releases. The company staved off bankruptcy through a debt restructuring deal last year. Read more from the link here: https://sg.news.yahoo.com/amc-entertainment-ceo-adam-aron001505346.html (a) Describe the utilitarian theory and apply it to the above case to determine if AMC’s decision of giving bonuses to its top executives is ethical or not (b) Identify at least 3 main ethical issues in the above case scenario. (c) How can utilitarianism be applied in an organizational context?
(Reuters) - AMC Entertainment Holdings has approved millions in bonuses to its top
executives and eligible employees as a means to preserve stockholder value during the
COVID-19 pandemic, the theater operator said.
In a regulatory filing on Friday, the company said Chief Executive Officer Adam Aron would
receive $3.75 million as bonus, while other top executives are entitled to bonuses of $173,000
to $507,000.
The move comes at a time when cinema chains like AMC have taken a blow due to
coronavirus-led restrictions that caused delays in film releases. The company staved off
bankruptcy through a debt restructuring deal last year.
Read more from the link here: https://sg.news.yahoo.com/amc-entertainment-ceo-adam-aron001505346.html
(a) Describe the utilitarian theory and apply it to the above case to determine if AMC’s
decision of giving bonuses to its top executives is ethical or not
(b) Identify at least 3 main ethical issues in the above case scenario.
(c) How can utilitarianism be applied in an organizational context?
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