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Why Do Centralized Organizations Tend to Be More Ethical Than

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Why do centralized organizations tend to be more ethical than decentralized ones? Can you think of a situation or example in which a decentralized organization might be more ethical than a centralized one?


Definitions:

Labor Demand

The total quantity of labor that employers want to hire at a given wage rate.

Labor Supply

Refers to the total hours that workers are willing and able to work at a given wage rate in a specific period.

Profit-maximize

A strategy where a firm makes decisions intended to achieve the highest possible profit.

Profit-maximizing

The point at which a firm achieves the highest possible profit, where the marginal cost of production equals the marginal revenue from sales.

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