AIC Week 2 Ethics and Sustainability

Refers to the responsibility an entity has to all stakeholders, including society in general and physical environment

• CSR

• Agency theory

Shareholder (owner) returns are the primary focus of an organisation

• Shareholder value

• Agency theory

• Both

Directors act in the interest of a group(s) of stakeholders and not shareholder value. Legitimacy or stewardship?

• Stewardship theory

• Legitimacy theory

Holds that the purpose of the entity is to work for the good of all stakeholder groups, not just to maximise shareholder

• Stakeholder theory

• Corporate social responsibility

Legitimacy theory that entities must conduct operations in accordance with societal expectations

• True

• False

Triple Bottom Line refers to:

• economic

• social

• environment

• all

Acting in one’s self-interest

• Prudence

• Morality

Acting as one ought to by taking into account the interests of other people

• Deontological

• Teleological

Examine the decision and/or action in terms of morality

• Deontological

• Utilitarianism

lndividuals maximising their utility will lead to society’s utility being maximised also

• Utilitarianism

• Teleological