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The Theory of Basing Ethical Business Conduct on Stakeholder Interest

question 113

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The theory of basing ethical business conduct on stakeholder interest is widely accepted because it is usually possible for businesses to balance stakeholder interests so that each stakeholder is satisfied and protected.


Definitions:

Public Institutions

Organizations established and funded by governments to perform public services or functions, such as education, healthcare, and public safety.

Economic Aims

The goals or objectives that an organization or government seeks to achieve to ensure economic growth, stability, and prosperity.

Social Aims

Objectives that relate to societal challenges or goals, focusing on contributions towards the welfare of communities and the environment.

Profit-Leverage Effect

A financial concept indicating that a reduction in purchasing costs can have a more significant impact on a company's profit than an equivalent increase in sales.

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