216k views
5 votes
Is the goal of maximization of shareholder wealth necessarily ethical or unethical? g

User Tim Grant
by
5.1k points

1 Answer

3 votes

Answer:

Ofcourse it is ethical if the company is running according to the law and enforced policies. Earning money is also a social responsibility of the organization. This is because if the company earns money, it will pay dividends which will help the investors in their daily lives. The company will also retain some part of the total return earned. This money will be invested somewhere which will increase the employment and the living standards of thousands of people. So remember that only spending on the environment is not what social responsibility means. It also includes the responsibility to make profit. Furthermore, if the company is harming wild life or marine life or anything then it is not trading ethically. This company thus owes the duty of care and compensational duty to the marine life if it has harmed them.

Ethics begins where law ends.

User Tynn
by
5.0k points