How should organization balance its fiduciary responsibility

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Reference no: EM133632113

Discussion - Fiduciary Responsibility

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Respond to the following-

- What are the potential ethical implications when an organization fails to meet financial standards?

- How should an organization balance its fiduciary responsibility to shareholders. while also maintaining ethical and sustainable pc between these two demands?

Potential ethical implications of an organization's failure to meet financial standards include fraud, privacy violations, not following government regulations. and money laundering. 'There are many other ethical implications but these Would be the main reasons a business would fail financially. Balancing fiduciary responsibility to shareholders while maintaining ethical and sustainable practices can be achieved by putting ethical standards first. While some organizations are more Interested in profits received, which makes shareholders more money but can lead to unethical or unsustainable implications of the business, By maintaining ethical and sustainable practices, we can execute fiduciary responsibility to shareholders. Conflict is present between balancing fiduciary responsibility to shareholders and maintaining ethnical and sustainable practices. Most businesses want to see an increase in profit, as it increases shareholder's profits and makes them more likely to increase investing in the business. This would be beneficial to the business for a short period of time but if the business fails to maintain ethnical and sustainable practices. shareholders will lose interest in the long run. Ethical and sustainable practices are most important for a business to maintain in the long run. Shareholders show more interest in companies that enforce ethical and sustainable standards, due to their trustworthiness.

Reference no: EM133632113

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