Which of the following statements is true of the role of economic interdependence on business ethics and society?
A) It reduces concerns about business ethics.
B) It sometimes gives opportunities to executives who control what stockholders own to manipulate corporate actions for their own benefit.
C) It reduces any transparency problems in an organization as corporate leaders are usually the real owners of corporations.
D) It predominantly results in utilitarianism.
E) It ensures that the decision taken by stockholders have little effect on others.

Question

Quizplus · Accepted Answer

A serious ethical problem arises from economic interdependence and the modern corporation, which is the structure of most large businesses in this country. The problem is that the corporate leaders are not the real owners of corporations. The stockholders are, and although corporate executives and managers may own some stock, they seldom own significant percentages of very large companies. The ethical problem that can arise is that the executives and managers who control what the stockholders own are sometimes able to manipulate corporate actions for their own benefit, actions that have unacceptable risks to the owners and others.

Which of the Following Statements Is True of the Role