5-7 Ethical decisions oa key ethical issue is how to disperse harm and benefits among stakeholders. receive the profits? Employees, managers and hould If a firm is very profitable for two years, who stockholders all want a share Should we keep the cash for future slowdowns? What is the ethical decision? o What about the reverse. when firms must layoff workers. o Final point: stockholders are the legal owners of the firm! Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 5-7 Ethical Decisions ⚫A key ethical issue is how to disperse harm and benefits among stakeholders. ◼ If a firm is very profitable for two years, who should receive the profits? Employees, managers and stockholders all want a share. ◼ Should we keep the cash for future slowdowns? What is the ethical decision? ⚫What about the reverse, when firms must layoff workers. ⚫Final point: stockholders are the legal owners of the firm!