Ethics and Finance

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.