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A company disclosed product risks to customers which reduced some sales but increased trust. Which objective was dominant?

Answer and explanation

Correct answer: Social objective

The governing concept is the social objective of protecting consumers through truthful and adequate information. Disclosing product risks enables customers to make informed decisions, even when complete honesty may reduce short-term sales. The company is placing consumer welfare, transparency, and trust above an immediate sales advantage. Increased trust may support reputation and sustainable business later, but the action itself is primarily social in nature. Therefore option A is correct. Personal objectives relate to employee satisfaction and security, growth concerns expansion or scale, and wages are one aspect of employee compensation. None of these alternatives explains why the firm openly communicated risks to customers. The temporary sales decline does not change the classification of the objective.

Related tags

Social-ObjectiveRisk-DisclosureConsumer-TrustObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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