Business decision at Stargames Oy, part 7/7 of the series

[Stargames ®]

Ethical business decisions

The ethics of business decisions are the subject of a societal debate on the social responsibility of limited liability companies, which is value-based. Sometimes it is difficult to understand whether the purpose of a limited liability company's operations is to generate profit for its shareholders or whether limited liability companies are obliged to act in accordance with the interests of another or others when implementing the purpose of their operations, or in what way companies should make business decisions.




Ultimately, it is a question of understanding the content of the company's interest. The majority of those discussing it seem to view the company's interest in such a way that it is understood by reconciling the management's obligations in Section 1:8 of the Finnish Companies Act and the provisions on the purpose of operations in Section 1:5 of the Finnish Companies Act. In this case, the company's interest is that the company's management strives to achieve the goal set by the shareholders for the company's management through business decisions, namely generating profit for the shareholders.

It follows from this that understanding the company's interest is concretely related to the kind of business decisions the company makes. It is in the company's interest that business decisions have acceptable business economic grounds in terms of business objectives, i.e. the company's shadow is used in the manner provided for in the Limited Liability Companies Act 624/2006 to implement the company's purpose of operations.

When making business decisions, management must understand how the company's business relates to the expectations of the company's shareholders and customers regarding the company's business and products, and what the business's connections are to responsible and sustainable business. The management's task is to assess what kind of business decisions the company makes to meet the expectations set by shareholders, customers, and sustainable development and responsibility. If management believes that it is realizing the company's interest by developing the company's business mechanisms and earnings logic in accordance with the ideas described above, this is a normal business decision that is in the common interest of the company and all its shareholders.

The dissertation also discusses separately situations in which a business decision is not binding on the company.

Admin