Definition

Ethical responsibilities

Another social commitment for strategic managers is Ethical responsibilities .

Ethical responsibilities reflect the company’s notion of right and proper business behavior. Ethical responsibilities are obligations that transcend legal requirements. Firm are expected, but not required, to behave ethically. Some actions that are legal might be considered unethical. For example, the manufacture and distribution of cigarettes is legal. But in light of the often-lethal consequences of smoking, many consider the continued sale of cigarettes to be unethical. The topic of management ethics receives additional attention later in the chapter.

Ethical responsibilities: The strategic managers notion of right and proper business behavior.

Share it:  Cite

More from this Section

  • Occurring agency problem
    An agency problem that occurs because owners have limited access to company information, ...
  • Global Industries
    An industry in which competition crosses national borders on a worldwide basis. In fact ...
  • Emotions
    Intense feelings that are directed at someone or something, is called ...
  • Shareholders or stockholders
    Shareholders or stockholders are a corporation’s owners but frequently not the individuals ...
  • Inventory management
    Inventory management is the process of developing and maintaining stocks of products that ...