When considering capital budgeting decision making for certain products, a firm can manufacture products that generate profits and create positive net present value for shareholders, but these products may impact the environment or affect certain segments of the population.

Respond to the following: 

Is it appropriate to protect shareholder value in exchange for environmental or societal impact? What do you feel is the appropriate balance of shareholder value and protecting environmental or societal impact?

How should firms measure “ethical business risks” such as those involving environmental risks, negative social media exposure, and corporate governance risk created by inappropriate management behaviors and decisions?

Answer rating: 100% (QA)

Balancing shareholder value with environmental and societal impact is a complex ethical dilemma While its crucial for a firm to generate profits and p... View the full answer