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Ethical problem - Essay Example

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Ethical problem

The action of the managers to hide some information to the shareholders is unethical. This is because, ethical behavior requires that any decision reached by the management should be a truthful one, and thus any action that is mean to hide the truth from the shareholders is unethical (Frederic, 17). This type of conflict falls under the category of conflict referred to as Normative ethics, in a subset referred to as professional ethics, which requires that the professional conduct of individuals within an certain professions should act in accordance with set standards of right and wrong, and the deviation from such conduct eventually creates an ethical conflict (Weiss, 41). The classification of this ethical conflict under the Normative ethics category is informed by the fact that Normative ethics apply a practical approach towards arriving at an ethical decision, which has to do with the duties that individuals should follow and the implication of behaviors of an individual on others (Frederic, 31). ...Show more


Businesses exist so they can produce goods and services that are needed by the consumers, while making value to the shareholders. Therefore, the relationship between the shareholders and the management of the company is based on the assumption that the managers will act in the best interest of the shareholders…
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Ethical problem essay example
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