Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 2

To whom do managers owe their allegiance? Is it to the shareholders? To other stakeholders? Be sure to support your answer with ethical thought and examples in the text from discussions about corporate governance.

Step 1 of 2

Ethics:

Ethics is the set of some moral values and principal that differentiate right and wrong morally.

Corporate governance:

It is a set of rules, laws, and regulations under which business organizations operate. It helps the organization to work smoothly. It ensures transparency between management and shareholders.

Stakeholder:

A person who is interested in the operations of the company; whether he is a part of the company or not. He is known as a stakeholder.