Managerial entrenchment occurs when managers gain so much powerthat they can use the firm to further their own interests ratherthan the interests of shareholders. The shareholders are essentialto the organization. For this discussion, consider that you are theCEO of a large public-traded organization. What steps would youtake to ensure that your management team makes decisions for thebetter of the stakeholders and not their own interests? Providespecific steps based on your research of organizations that havefaced this issue in the past.
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