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Question

Which of the following is not part of Bagley's ethical decision-making model?

  • a. Is the proposed action legal?
  • b. Does the proposed action maximize shareholder value?
  • c. Is the proposed action ethical?
  • d. Is the proposed action in the best interest of stakeholders?
  • e. Would it be ethical not to take the proposed action if the answer to the previous questions is No?
Answer

d. Is the proposed action in the best interest of stakeholders?

The Bagley model consists of three questions: Is the proposed action legal? Does the proposed action maximize shareholder value? Is the proposed action ethical? This question asks which one of the choices is not in the model. The correct answer is d. because it is not listed as one of the three questions. The model is designed to assist decision-makers in resolving ethical dilemmas by ensuring that their actions are both legal and ethical, and that they balance their obligations to shareholders and other stakeholders.