In Terms of Ethical Theory, Lofty Compensation Packages Have a Utilitarian

question 60

True/False

In terms of ethical theory, lofty compensation packages have a utilitarian function when they act as incentives for executives to produce greater overall results.

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Definitions:

Situational Attribution

The process of attributing behavior to external circumstances or situations rather than to internal personality traits or dispositions.

Empathy Gap

The inability to accurately predict one's own or others' emotional states and behaviors in different situations, usually underestimating the influence of emotions.

Tend and Befriend

A theory that suggests in times of stress, individuals, particularly females, will seek social alliances and support, rather than isolating themselves or fighting.

Stressful Situations

Scenarios that cause psychological or physical tension or strain.