Ethics and Finance
Completion requirements
This chapter will review the various ethical considerations that managers in a business face and explain the concept of fiduciary duty. It also examines unique ethical concerns that arise from globalization.
Ethics in Management
KEY TAKEAWAYS
- One solution to the agency problem is to align incentives of the agent with the incentives of the principal.
- Stakeholders can include employees, customers, suppliers, investors, communities (and their governments), and potentially even competitors!
- Maintaining human dignity should always factor into a management decision.