Which of the following best describes the relationship between ethics and stakeholders?

Ethics in a business or organizational context often encompasses a broader set of principles that take into account the interests and welfare of all stakeholders involved. Stakeholders include not only shareholders but also employees, customers, suppliers, the community, and even the environment. When ethical considerations are made, they must reflect an understanding of how decisions impact these various groups. This holistic approach ensures that ethical practices promote fairness, accountability, and respect for diverse interests.

In contrast, disregarding stakeholder interests would lead to decisions that could be harmful to many, and focusing solely on legal compliance ignores the ethical implications of actions that may be legal but not necessarily right. Ethics also extends beyond individual beliefs, as it is not limited to personal opinions but rather encompasses shared values and standards that govern behavior within an organization and society as a whole. Thus, the assertion that ethics is governed by principles that consider all stakeholders aptly captures the essence of ethical decision-making in relation to stakeholder interests.