Question

"is the proposed action legal? if yes, does the proposed action maximize shareholder value? if yes, is the proposed action ethical? if no, would it be ethical not to take the proposed action? these are four questions that managers of all organizations should ask when confronted with a decision on an action according to _____."

Answer 1

“corporate shenanigans suggest that some managers need to be reminded: If the action isn't legal, don't do it.”

“yes,” should you do it? Not necessarily

though directors and top managers may believe they are bound by corporate law to always maximize shareholder value, the courts and many state legislatures have held they are not. Rather, their main obligationis to manage “for the best interests of the corporation,” which includes the interests of the larger community.