This activity has the purpose of helping students identify the various stakeholder groups and their interests or claims on an organization, identify who has authority and responsibility at the top of an organization, and distinguish between different levels of management, describe the agency problem that exists in all authority relationships and the various mechanisms, such as the board of directors and stock options, which can be used to help control illegal and unethical managerial behavior and discuss the vital role that ethics plays in constraining managers and employees to pursue the goals that lead to long-run organizational effectiveness.

1.Give some examples of how the interests of different stakeholder groups may conflict?

2.Why Do Ethical Rules Develop? Why Does Unethical Behavior Occur?

3.Why is it important for managers and organizations to behave ethically?