Why is following ethics necessary in business?
Answer and explanation
Correct answer: To maintain the trust of customers and other stakeholders and ensure proper business conduct
Business ethics includes honesty, fairness, transparency, and responsibility towards customers. Following these principles builds trust among customers, employees, investors, and other stakeholders, strengthening the business’s long-term reputation. Hiding product defects may offer a short-term gain, but it violates ethics and damages customer trust. Exam tip: associate ethics in business with trust, honesty, and fair conduct.
Frequently asked questions
What is the correct answer to this question?
To maintain the trust of customers and other stakeholders and ensure proper business conduct
Why is this the correct answer?
Business ethics includes honesty, fairness, transparency, and responsibility towards customers. Following these principles builds trust among customers, employees, investors, and other stakeholders, strengthening the business’s long-term reputation. Hiding product defects may offer a short-term gain, but it violates ethics and damages customer trust. Exam tip: associate ethics in business with trust, honesty, and fair conduct.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Entrepreneurship: definition and characteristics.
