Final answer:
When a manager embezzles money, it is a breach of integrity and signifies a serious ethical violation. Embezzlement causes harm to the company and its stakeholders and goes against the principles of stakeholder theory, undermining the trust and ethical standing of the individual involved.
Step-by-step explanation:
When a manager embezzles money, the integrity is high - harm is sure to come to others from his or her actions. Challenge to ethical behavior, including matters of integrity and harm caused by such actions, are central to business ethics and corporate responsibility. Embezzlement reflects a serious breach of trust and ethical failure, as it involves taking money from a company for personal gain, thus harming the company and its stakeholders. It undermines the ethicality and integrity of the individual involved and can lead to significant consequences for the company, such as financial losses, legal action, and a damaged reputation. Additionally, this act of fraud goes against stakeholder theory, which advocates balancing the interests of all stakeholders, and violates the responsibility managers have to both shareholders and other stakeholders.