Shareholders often tend to be biased in decision making, as they are aware that their wealth can be put at serious risk if they perform a wrong move. In contrast, stakeholders are more likely to behave objectively when they know that their decisions will not necessarily affect their social position. Thus, stakeholders can behave more ethically than shareholders, but the downside on this is that the former have more chances of performing mistakes, as they know that the risks involved in most conditions that they encounter are lesser on their side.
In particular situations, stakeholders can feel more inclined to behave unethically, as they know that the risks involved are not decisive on their part while the profits will pay off. Shareholders, on the contrary, might feel that it would be safer for them to behave ethically, as they will only profit if all the other stakeholders will. Thus, shareholders act based on the theory that they protect their own interests by protecting the interests of all the other stakeholders involved. Moreover, shareholders can look after the interested of other stakeholders because of their certainty that their efforts will pay of sooner or later.
V: Why some believe that ethical behavior is essential for the benefit of business
A sacrifice made by a shareholder at a certain moment can materialize into profits,...
Ethical Egoism & Abortion Ethical egoism, as a philosophical position, holds that it is an ethical obligation for people to act in their own self-interest. How does this philosophical position deal with the debate over the morality of abortion? It is necessary, before beginning a closer analysis, to define our terms. Abortion is a hotly contested issue, but our sense of ethics here needs to be understood first as distinct from
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