Answer to Question #289987 in Management for surya

Question

When confronted with a decision, managers should utilize ________, which includes these four questions: “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 to take the proposed action?”

Answer 1

Bagley's ethical decision tree 

At times, the business managers and directors are tensed because they cannot manage to maximize share hold values along with keeping ethical concerns in mind. To assist business leaders with ethical concerns, the Bagley's ethical tree was generated. The questions from the Bagley's ethical tree can be applied to any business-related concern. But a company should have a statement of corporate values to understand the laws.

For every decision a manager makes his first concern should be whether the decision is ethically right or wrong.