Despite this, most business ethicists acknowledge some limits on costs. Holley argues that salespeople are required to confide in clients what a “affordable individual would want to know” a few product before they buy it. Ebejer and Morden claim that salespeople should disclose all information that is “relevant” to a purchaser’s buy.
It is often assumed that managing companies in shareholders’ best interests requires maximizing their wealth. This view is often referred to as “shareholder primacy” (Stout 2002) or—so as to distinction it more immediately with its major rival (to be mentioned below) “shareholder theory”. The Sarbanes-Oxley Act is a U.S. federal law that aimed to guard buyers by making corporate disclosures extra reliable and correct. Internal controls are policies and procedures put in place by management to ensure that, among other issues, the corporate’s financial statements are dependable.
A final criticism of misleading advertising is that it erodes belief … Read MoreRead More »