ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unethical behaviour can have severe financial consequences for a company.
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For many businesses, reputation is critical to conducting business.
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A company with a reputation for shady dealing will lose value relative to its ethical competitors.
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Ethical behaviour becomes part of the intangible value of the company.
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All of the above
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Detailed explanation-1: -Business leaders in the financial sector must move beyond simple compliance and rule-based consideration. Ethics in finance demands adherence to the highest standards. The consequences of unethical behavior are clear, from loss of reputation and trust to monetary penalty and criminal prosecution.
Detailed explanation-2: -An ethical company runs on principles such as honesty, integrity, fairness, trustworthiness, accountability, and respect for others.
Detailed explanation-3: -By definition, business ethics are the moral principles that act as guidelines for the way a business conducts itself and its transactions. In many ways, the same guidelines that individuals use to conduct themselves in an acceptable way – in personal and professional settings – apply to businesses as well.
Detailed explanation-4: -Ethics is what guides us to tell the truth, keep our promises, or help someone in need. There is a framework of ethics underlying our lives on a daily basis, helping us make decisions that create positive impacts and steering us away from unjust outcomes.