Describe how corporate ethics generates value for a variety of internal and external stakeholders.
What will be an ideal response?
For current and potential employees, a corporation’s reputation as an ethical business can serve as a powerful means of attracting and retaining top talent. Projecting an image of ethical responsibility is an opportunity for corporations to increase profits. Consumers will feel better about the purchases they make, while corporations will benefit from increased profits by unlocking consumer demand for more ethically produced products and services. Investors are another stakeholder group who benefit from corporate ethics—and not just those engaged in socially responsible investing (SRI). A corporation’s adherence to ethical principles is also important in terms of risk management, as seen in the financial crisis. Unethical corporate behavior can destroy shareholder value by causing stocks to plummet. While creating a corporate code of ethics make take some work, especially in large, complex organizations, it’s difficult to understand why a company wouldn’t invest the resources in creating such a document, given the numerous benefits it provides to all its key stakeholders and to the business itself.
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a. True b. False Indicate whether the statement is true or false
People who authorize the proposed actions of deciders or buyers are initiators
Indicate whether the statement is true or false
Wilma participates in a fraud scheme by executing some derivative trades because she believed that a senior analyst knew more about complex derivative transactions than she did. These transactions were fraudulent in nature. Which type of power was employed to deceive Wilma?
a. Expert power b. Referent power c. Coercive power d. Reward power
Which of the following type of firms are most likely to payout cash dividends?
A) rapidly growing firms B) firms encouraging innovation C) large mature firms D) firms expanding their operations