What goes against your companys beliefs

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Question: In my opinion, to say that managers should maximize shareholders' wealth "subject to ethical constraints" means that managers take all decisions into consideration and make a choice that will maximize the wealth of the shareholders. The managers decisions do involved processing ethical and unethical constraints. When a manager makes decisions and takes into consideration the morals, this manager is making a decision based on ethical constraints (Carlson, 2022).

Ethical considerations may be deciding between profit and what goes against your company's beliefs/morals. An example could be with air pollutants, such as working for a large agricultural company. The managers will need to decide if using the pollutants, while may increase profit, is within the company's morals. Manager's must take into consideration the effect of lower cash flow and stock price.

Reference no: EM133359689

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