Explore BrainMass

Explore BrainMass

    Ethics and Firm Goals: Can our goal of maximizing the value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Ethics and Firm Goals: Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior?

    In particular, do you think subjects like customer and employee safety, the environment, and the general good of society fit in this framework, or are they essentially ignored?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:17 am ad1c9bdddf
    https://brainmass.com/business/business-philosophy-and-ethics/ethics-and-firm-goals-can-our-goal-of-maximizing-the-value-450549

    Solution Preview

    Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior?

    Every public company has a goal of maximizing shareholder value. If they didn't, they likely would not be in business for a long period of time. Many of the massive accounting frauds that we have heard about over the years have started because management gets nervous about shareholder value. Management sees that the return is less than expected, and begins thinking of ways to raise shareholder value. Unfortunately for companies, particularly companies that are doing poorly, the numbers are the numbers. There is no ethical way to raise shareholder value, or maximize the ...

    Solution Summary

    Ethics and Firm Goals: Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior?

    In particular, do you think subjects like customer and employee safety, the environment, and the general good of society fit in this framework, or are they essentially ignored?

    $2.19

    ADVERTISEMENT