ch42

West's Business Law with Online Research Guide, 9th Edition

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BUSINESS ETHICS: AN INTRODUCTION Ethics: Moral principles and values applied to social behavior. Business Ethics: Moral principles and values applied to situations that arise in a business setting. A particular challenge facing businesses is ethically balancing the competing demands of multiple groups of stakeholders e.g. , shareholders, employees, retirees, suppliers, creditors, customers, the communities in which the business operates – whose lives are affected by business decisions. Ch. 42: Ethics and Business Decision Making - No. 1 West’s Business Law (9th ed.)
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CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility: The concept that corporations can and should act ethically and be accountable to society for their actions. Profit Maximization: Corporate directors and officers have a paramount duty to act in the shareholders’ best interest. Because of the special relationship between the directors and officers of a corporation and its shareholders, the law holds directors and officers to a high standard of care in performing these fiduciary duties . One compromise may be to pursue optimal (i.e., “best”) profits, rather than maximum (i.e., “most”) profits. Stakeholder Theory:
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ch42 - BUSINESS ETHICS: AN INTRODUCTION Ethics: Moral...

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