QUESTION $28$

Why is it so important that managers, and people in general, should act ethically and temper their pursuit

$2$ points

of self$-$interest by considering the effects of their actions on others?

Giving excessive importance to oneself with no consideration of societal interests leads to disaster for each individual and for the whole society because scarce resources are destroyed.

Ethical issues are seldom clear$-$cut, since the rights, self$-$interests, goals, and incentives of different stakeholders often conflict.

A manager has no reluctance about communicating an ethical decision to people outside the company since the typical person in a society would think it is acceptable.

Stakeholders have the best interests of the company in mind and not their own self$-$interest.