Question

Companies that say they work in the interests of all their stakeholders are ethically superior to companies that do not make such claims.

Select one: True False

Answer 1

True.

Lets look at some definitions to understand this concept.

Ethics or moral philosophy is a branchof philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior."

Now, Business ethics refers to contemporary organizational standards, principles, sets of values and norms that govern the actions and behavior of an individual in the business organization.

Stakeholder is a member of "groups without whose support the organization would cease to exist",as defined in the first usage of the word in a 1963 internal memorandum at the Stanford Research Institute.

Since stakeholders are one of the fundamental elements of a company, their interests should be looked into and acted upon . This act will ensure that business ethics are maintained and hence will make the company more ethically superior to another company that does not make such claims.