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These factors are emphasized particularly by these whoregard the agency as a "nexus of contracts" among variousparties (Easterbrook & Fischel 1996; Jensen & Meckling1976). It simply so happens that, in most cases, capital hires labor.We know this because typically capital-providers are the ultimatedecision-makers in the firm. Capital can "hire"labor (and different inputs of production) or labor can "hire"capital. Benefits of Managing Ethics in the Workplace
All that's assumed in these arguments is that some peopleown capital, and others personal labor.

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What Principles Do Ethical Businesses Follow? In flip, workers will trust that their management group is working towards the higher good of the complete company. This information breaks down the significance of business ethics and how to establish an moral culture in your company. Although this can be plenty of work, it might possibly also positively influence the underside line, defend a company’s brand and lead to higher customer satisfaction.