The Moral Hazard And Its Elusion In Corporate Management

On the circumstance of market economy, enterprise management has many risks to take. And the moral risk is one of the main risks the enterprise had taken. On the relationship of authorized agent, the moral risk is that economic subject's deeds hazard to others while it seeking greatest advantage or one party don't take the whole responsibility as his selfish deeds is for greatest advantage. In the modern enterprise, the division of the ownership and the right of management caused the relationship of authorized agent, and the moral risk originated from this problem. On the relationship of authorized agent, the owner, handler and the employees are the basic elements, so the enterprise moral risk can divided into three respects: owner, handler and employees. And among of these, the handler's moral risk is the central problem. There are four circumstances for the causation of the enterprise moral risk: Firstly, the profit subject is not unanimous. Secondly, the information is not complement. Thirdly, the confronting problems are uncertain. Fourthly, the contract is not mature. These four circumstances interacted, especially for the formal three circumstances caused imperfectness. That is the antinomy caused by the economic market. New consciousness of contract should be reset for avoiding enterprise moral risk. The foundation of the contract is the moral contract. The purpose of avoiding the risk is through resetting the psychological contract, and establishing the long trust method, and then establishing some basic principles such as mutualism, power restriction and cooperation. The uncertain of the moral risk is because of the uncertain of the employees and environment. So, risk avoiding should take the way of professionalization. On the hand, the employees are qualified in the professional ethics and the culture. On the other hand, work process, the quality of products and work attitude should be standardization. Management specialization is the basic way for avoiding moral risk. As different worker with different job, management specialization made the workers specialized according to their own jobs. So , they should include handler, marketer, researcher and etc.