Responsibility for Encouraging Ethical Decision Making and Ensuring Ethical Behavior

question 80

Multiple Choice

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies with

• A) only a firm's strategists.
• B) only a firm's managers.
• C) only a firm's shareholders.
• D) both a firm's strategists and its managers.
• E) neither a firm's strategists nor its managers.

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Definitions:

Nash Equilibria

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of others remain unchanged.

Maximin Strategy

In decision-making and game theory, a strategy which maximizes the minimum gain that can be achieved, focusing on the most favorable outcome of the worst possible scenarios.

Entry-Deterrence

Strategies employed by existing firms in a market to prevent or discourage new competitors from entering the market.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, often considered in decision-making processes.