Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to ensure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

Question

Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to ensure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act​

Quizplus · Accepted Answer

Acting in good faith means making a genuine effort to act ethically and comply with the law. This is the most responsible course of action for the CEO and the company, as it ensures that Cog & Gear operates with integrity and builds a positive reputation with stakeholders. Ignorance of the law or acting solely in their own self-interest could lead to legal or ethical violations, which could damage the company's reputation and result in financial and legal consequences. Additionally, prioritizing the firm's shareholders only may not be ethical if it involves harming other stakeholders or violating laws and regulations. Therefore, acting in good faith is the best choice for both ethical and practical reasons.

Brewster, the Chief Executive Officer of Cog & Gear Lubricants