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Business Ethics - Moral Agent

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Explain the responsibility of the corporation as a moral agent. Give examples of how a corporation can be considered a societal moral agent.

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Solution Summary

This solution helps answer a question about business ethics. It helps explain the responsibility of the corporation as a moral agent. Examples are given.

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Problem: Explain the responsibility of the corporation as a moral agent. Give examples of how a corporation can be considered a societal moral agent.

Solution:
Business objectives of owners and managers are likely to diverge as they can have their own personal objectives which may not be aligned by the organization. The most important financial goal of the firm is to maximize shareholder wealth as reflected in the market price of the stock. This goal is in conformity with the best long-run interests of stakeholders and society in the long run. (Blackwellpublishing, 2009) Hence, responsibility of the corporation as a moral agent is to maximize the wealth of shareholders. This is based on the assumption that managers operate in the best interests of stockholders, not ...

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