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> an excuse people who make decisions use to act unethically. at every level, the incentive is to maximize the profit margins. If acting ethically doesn't incr
by chii 3y ago
> an excuse people who make decisions use to act unethically.
at every level, the incentive is to maximize the profit margins. If acting ethically doesn't increase the profits, then any personal sacrifice on the part of the decision maker to act ethically is only going to get punished (may be not immediately, but certainly some time in the future).
- vkou 3y agoIf behaving ethically didn't cost anything, everyone would do it.
- JumpCrisscross 3y ago> at every level, the incentive is to maximize the profit margins This is wildly oversimplifying. For example, it theoretically rules out principle-agent problems.
- chii 3y agoWhile true, you can somewhat assume that the principle could have already incentivized the agent to align by assigning rewards for increasing profits (aka, bonuses, stock grants based on performance targets etc).
- JumpCrisscross 3y ago> you can somewhat assume that the principle could have already incentivized the agent to align by assigning rewards for increasing profits No, you can’t. This is the problem of corporate management. Management will tend to act to maximise profit margins or even the stock price is a bad explanatory model.
- Arainach 3y ago>at every level, the incentive is to maximize the profit margins Over what time frame?
- deleted 3y ago[deleted]