Which of the Following Statements Is True About Ethical Decision-Making

question 81

Multiple Choice

Which of the following statements is true about ethical decision-making?

• A) In ethical decision-making, managers need not consider the implications of a proposed strategic decision on external stakeholders.
• B) In ethical decision-making, It is illegal to apply the moral principles articulated in any company document other than the code of ethics.
• C) Since maximizing long-run profitability is the decision rule that most businesses stress, it should be applied irrespective of whether moral principles are being violated.
• D) Companies should place their narrow economic interests before the interests of stakeholders.
• E) In ethical decision-making, managers need to ensure that a proposed decision does not violate the fundamental rights of any stakeholders.

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Definitions:

Rival

In economic terms, a good or service that cannot be enjoyed or consumed by more than one person at the same time.

Artificially Scarce Good

A product or service whose supply is deliberately limited, often to maintain high prices or for other non-market reasons.

Excludable

Excludable describes a good or service that one can prevent others from using unless they pay for it, characterized by the ability to exclude non-payers.

Nonrival

A characteristic of a good whereby one person's consumption does not reduce availability to others, often associated with public goods.