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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

Which statement best describes the relationship between emotional intelligence and ethical decision making in an organisation?

Emotional intelligence supports ethical decision making by helping people manage their own emotions and understand others, but it does not replace ethical principles or codes. It does not guarantee ethical outcomes either, and it is useful in every function including finance.

  1. AEmotional intelligence replaces the need for a code of ethics
  2. BEmotional intelligence guarantees that every decision will be ethical
  3. CEmotional intelligence helps individuals manage emotions and understand others, thereby supporting but not replacing ethical principlesCorrect
  4. DEmotional intelligence is relevant only to marketing and not to finance roles

Explanation

Emotional intelligence is a supporting capability that improves awareness of feelings and handling of pressure, helping people apply ethical values. It neither replaces codes of ethics nor guarantees ethical outcomes, and it is relevant across all functions.

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