Ethical decision making by management has a payoff for shareholders in terms of:

Question

Quizplus · Accepted Answer

Ethical decision making by management contributes to enhancing the company's reputation value. This, in turn, can lead to increased customer loyalty, improved employee satisfaction, and better relations with stakeholders. All of these factors can have a positive impact on the company's financial performance and potentially increase shareholder value. Improved capital structure, increased managerial benefits, and higher dividend payments are not directly linked to ethical decision making by management.

Ethical Decision Making by Management Has a Payoff for Shareholders