Ethical Decision Making by Management Has a Payoff for Shareholders

question 76

Multiple Choice

Ethical decision making by management has a payoff for shareholders in terms of:

• A) improved capital structure.
• B) enhanced reputation value.
• C) increased managerial benefits.
• D) higher dividend payments.

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Definitions:

Norm Of Reciprocity

A social norm that dictates that a favor should be repaid in kind, fostering cooperation and social bonds.

Informational Social Influence

The process by which individuals change their attitudes or behavior to align with those of a group, due to the desire to be correct or to understand the proper way to act.

Norm Of Reciprocity

A social norm that expects individuals to respond to each other with equivalent actions, such as returning favors or responding to hostility in kind.

Foot-In-The-Door Study

Psychological experiments demonstrating that agreeing to a small request increases the likelihood of agreeing to a larger request later on.