As we discus social responsibility and ethics, is it possible that certain decisions and actions an conflict with the goal of shareholder wealth maximization? Is there any difference between unethical and illegal behavior?

answer

watching

132

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Nelly StrackeLv2

31 May 2018

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

It has been argued that shareholder wealth maximization is not a realistic norma- tive goal for the firm, given the social responsibility activities that the firm is âexpectedâ to engage in (such as contributing to the arts, education, etc.). Explain why these social responsibility activities are not inconsistent with shareholder wealth maximization.

Since shareholder wealth is the present value of the expected future returns to the owners of the business. The primary normative goal of the firm is to make the most efficient use of the firmâs scarce financial and physical resources and thereby to maximize shareholder value. Thus, realization of the shareholder wealth maximization goal is constrained by social responsibility concerns and problems arising out of agency relationships. Since the class comprises of students spanning different majors we should know that managers can take a variety of actions to influence the magnitude, timing, and risk of the firmâs free cash flows. These actions are often classified in the context of operating, investment, financing, and dividend decisions. Would you agree?

sangriahorse216

Financial executives insist that there should be no separation between an individual's personal ethics and his or her business ethics. "It's a jungle out there" and "business is business" should not be excuses for engaging in unethical behavior. Many firms have ethics codes which are based on economically rational concepts such as integrity and trustworthiness, which guide the decision maker in attempting to increase shareholder wealth. Of course, some employees sometimes choose to not comply with their firm's ethics code.

How do ethics codes apply to project selection and capital budgeting? What are the potential risks to a company of unethical behaviors by employees? What are potential risks to the public and to stakeholders? Please explain how Saint Leoâs core value of integrity is reflected in your answer.

greypanda818

Weekly leaderboard

Home

Homework Help 3,900,000

Finance 370,000

As we discus social responsibility and ethics, is it possible that certain decisions and actions an conflict with the goal of shareholder wealth maximization? Is there any difference between unethical and illegal behavior?

Unlock all answers

Related questions

Related Documents

FIN 240 Lecture Notes - Lecture 9: Profit Maximization, Business Ethics, Corporate Social Responsibility

FIN 3054 Lecture Notes - Lecture 1: Deontological Ethics, Equitable Remedy, Legal Realism

FIN 800 Lecture Notes - Lecture 5: Financial Industry Regulatory Authority, Certified Public Accountant, Certified Financial Planner

Weekly leaderboard