BL 260 Chapter Notes - Chapter 5: Profit Maximization, Customer Retention, Hobby Lobby
Document Summary
Stakeholders need to consider: stockholders/investors (make sure investments in the company are maintained and encouraged to grow), employees (treated in a fair manner), customers (duty to be honest and fulfill their needs) Ex: deciding whether to downsize (balance conflicting duties of stockholders/investors and employees) Ethics is the study of right and wrong behavior; whether an action is fair, right or just. In business, ethical decisions are the application of moral and ethical principles to the marketplace and workplace. Directors and officers owe ethical duties to their stakeholders. Short term: spending more to build an environmentally friendly building made very little since (cost them more=bad decision) Ex: aggressive sales goals vs. the customer"s needs: maximize profit (traditional responsibility, be a good corporate citizen (new responsibility) Consider the impact on society and the planet. Worth questioning should this be a goal of corporations? for a business"s ethics. Long run view often eliminates conflict with corporate citizenship-but not always.
