Discuss How the Goal of Profit Maximization Is Affected by Ethical

question 27

Essay

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

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Definitions:

Evaluative Tendency

A cognitive bias or predisposition towards assessing or judging situations, individuals, or objects in a particular way.

Emotional Labour

The effort required to manage and express emotions in a way that fulfills the emotional requirements of a job.

Display Rules

Culturally based guidelines that dictate the appropriate expressions of emotions for a given situation or role.

Discrepancy Theory

A theory that job satisfaction stems from the discrepancy between the job outcomes wanted and the outcomes that are perceived to be obtained.