To Make Sure That Ethical Issues Are Considered in Business

question 53

Multiple Choice

To make sure that ethical issues are considered in business decisions:

• A) companies should eliminate the principal-agent approach.
• B) companies should have a no-layoff policy.
• C) top managers should articulate and model ethical behaviors.
• D) top managers should generously grant stock options.
• E) companies should hire and promote employees with a strong focus on economic gains.

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Definitions:

Strategic Fit

The alignment between an organization's strategy and its external environment, as well as its internal resources and capabilities.

Responsiveness Spectrum

(new definition) Refers to the continuum of adaptability levels a company can exhibit, from highly reactive to changes in the market to relatively unresponsive.

Product Development Strategy

A plan of action for creating new products or improving existing ones to meet market demands and achieve competitive advantage.

New Products

Items that have been introduced to a market for the first time or significantly improved in terms of technology, composition, or usability.