A Company's Board of Directors Chooses to Provide a Comprehensive

question 9

Multiple Choice

A company's board of directors chooses to provide a comprehensive health care plan for the families of all employees,despite the large cost.They argue that this will not only increase the number of employees who stay with the firm,and thus reduce some costs involved in employee turnover,but also increase the employees' diligence and industry.What general principle is being argued by the board of directors?

• A)In a conflict between stakeholders in a company,the most important stakeholder is not always the stockholders.
• B)Some activities that decrease shareholders' wealth may have intangible benefits which increase the strength of the company overall.
• C)When a conflict of interest arises between shareholders and other stakeholders,in general,the correct solution is the one that creates the greatest good for the greatest number of stakeholders.
• D)Ethical decisions should be assessed on their moral value,not on their value in dollars and cents.
• E)Decisions involving employees must take fairness into account.

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Definitions:

Corporate Political Speech

refers to the expression by corporations about political matters or candidates, often protected under the First Amendment in the United States.

Obscenity

Material that depicts sexual conduct in a way that is considered offensive by community standards, lacking serious artistic, political, or scientific value.

State Action Doctrine

A principle in U.S. constitutional law that requires government action in order for constitutional provisions to apply to a particular case, particularly those involving equal protection and due process.

Constitutional Guarantees

Provisions within a constitution that protect certain rights and liberties of the individuals or entities against infringements.