If an entrepreneur is earning a profit but employee morale is declining, what should be addressed first?
Answer and explanation
Correct answer: Work environment, respect and communication
Employees are an important interest group because their motivation affects productivity, service quality and employee retention. Therefore, the entrepreneur should examine the work environment, ensure respectful treatment and encourage open communication. Machines, customers’ clothing and weather do not directly address the reason for falling morale. This reflects the business responsibility towards employees, even when the business is profitable.
Frequently asked questions
What is the correct answer to this question?
Work environment, respect and communication
Why is this the correct answer?
Employees are an important interest group because their motivation affects productivity, service quality and employee retention. Therefore, the entrepreneur should examine the work environment, ensure respectful treatment and encourage open communication. Machines, customers’ clothing and weather do not directly address the reason for falling morale. This reflects the business responsibility towards employees, even when the business is profitable.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Social Responsibilities of Business and Business Ethics. Topic: Responsibility towards different interest groups.
