A corporate financial manager trying to maximize shareholder value
A) is not concerned with ethics but rather with writing iron-clad contracts.
B) can safely ignore ethics as long as no laws are broken.
C) must behave ethically in order to stay out of jail.
D) is concerned with ethics because unethical behavior destroys trust, and businesses cannot function without a certain degree of trust.

Question

Quizplus · Accepted Answer

A corporate financial manager's ultimate goal is to maximize shareholder value, but this cannot be achieved without a certain degree of trust from stakeholders, such as shareholders, employees, customers, and suppliers. Unethical behavior, even if legal, can destroy trust and undermine the long-term success of the business. Thus, behaving ethically is not only the right thing to do but also a smart business practice.

A Corporate Financial Manager Trying to Maximize Shareholder Value