CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence
Which of the following is a benefit an organisation typically gains from maintaining high ethical standards?
A typical benefit of high ethical standards is a better reputation and stronger long-term trust from customers, employees, investors and other stakeholders. Ethics does not guarantee legal immunity, yearly profit growth or removal of competition, so those claims are overstated.
- AImproved reputation and stakeholder trust over the long termCorrect
- BGuaranteed exemption from all legal liability
- CCertain increase in profit in every single year
- DElimination of all competition
Explanation
Ethical conduct builds goodwill, trust among customers, employees and investors, and a sound reputation. It does not give legal immunity, guarantee yearly profit, or remove competitors, so those options overstate the benefits.
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