Question

When making decisions, managers often have to decide between doing what is beneficial for themselves (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm should ______.

Answer 1

Answer:

D. must ensure that long-term goals of the firm are aligned with the short-term goals of each individual within the firm.

Explanation:

According to a different source, these are the options that come with this question:

A. Must evaluate its quarterly profit statement from an ethics standpoint.

B. must state its long-term goals in general terms, so as to not interfere with managers' short-term goals.

C. must always put society's needs ahead of the firm's needs.

D. must ensure that long-term goals of the firm are aligned with the short-term goals of each individual within the firm.

E. should adhere rigidly to legal standards in its industry.

F. The firm does not need to always put society's needs above its own; however, it is important to ensure that short-term behavior supports long-term goals.

A firm does not always need to put the interests of others ahead of its own. Moreover, it does not need to be able to reconcile short and long-term goals in all situations. However, it does need to ensure that, overall, the short-term goals of individuals are not against the long-term goals of the firm. In this way, it can better ensure a long-lasting impact and success.