Question

State as to why a business should behave ethically?

• A. To unprotect its own interest and of the business community as a whole.
• B. To keep its commitment to society to act ethically.
• C. To not meet stakeholder expectations.
• D. To build distrust with key stakeholder groups.

Answer 1

The correct option is B To keep its commitment to society to act ethically.

There is a kind of social contract between the society and business by which the society expects the business to work in its interest. Society creates and accepts business enterprises, hence it expects them to work in a manner which is not detrimental to its well being and interests. Technological advancements have to be made but their impact on the environment and mankind has he kept in mind.