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For the past two decades, business leaders have focused exclusively on shareholder value. In a time of terrorism and corporate scandal, a much broader vision is imperative, as Yale School of Management Dean Jeffrey E. Garten explains.
In the wake of the past year's reports of numerous corporate misdeeds, relatively few businesses have thought about making substantive voluntary changes in their ways of working. And, among companies that have made changes, the actions are general rather than specific.
How can managers improve the ethical quality of their decisions and ensure that their decisions will not backfire? The authors discuss three types of theories that will help executives understand how they make the judgments on which they base their decisions. By understanding those theories, they can learn how to make better, more ethical decisions.
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