If an entrepreneur reduces costs by harming the environment, why is this decision wrong?
Answer and explanation
Correct answer: It is an unethical and unsustainable business decision
Reducing costs by polluting or damaging natural resources shifts the burden of business activity onto society and future generations. It conflicts with ethical responsibility and may also lead to penalties, clean-up costs, loss of reputation, and declining customer trust. A responsible entrepreneur seeks efficient methods that reduce waste without violating environmental standards. Therefore, environmental harm may create a short-term saving but is not a responsible or sustainable business strategy.
Frequently asked questions
What is the correct answer to this question?
It is an unethical and unsustainable business decision
Why is this the correct answer?
Reducing costs by polluting or damaging natural resources shifts the burden of business activity onto society and future generations. It conflicts with ethical responsibility and may also lead to penalties, clean-up costs, loss of reputation, and declining customer trust. A responsible entrepreneur seeks efficient methods that reduce waste without violating environmental standards. Therefore, environmental harm may create a short-term saving but is not a responsible or sustainable business strategy.
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: Business and Environmental Protection.
