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

Question

Quizplus · Accepted Answer

Ethical decision making by management enhances the firm's reputation value which can lead to increased trust from stakeholders and potentially result in stronger financial performance over the long term. It can also result in increased brand loyalty from customers, which can lead to increased sales and profits. However, ethical decision making does not necessarily lead to improved capital structure, increased managerial benefits, or higher current dividend payments, as these factors are dependent on other factors such as financial performance and company policies.

Ethical Decision Making by Management Has a Payoff for Shareholders