Which statement about business ethics is true? Multiple Choice They are skills needed to identify and overcome business problems. They are of decreasing significance to businesses in the post-trust era. They are self-formulated values prioritized and adhered to by individuals in business. They measure the extent to which employees care for the needs of the business.
The Correct Answer and Explanation is:
Correct Answer:
They are self-formulated values prioritized and adhered to by individuals in business.
Explanation:
Business ethics refer to the principles and standards that guide behavior in the world of commerce. These principles help determine what is considered right or wrong in various business situations. Ethics are not necessarily imposed by external authorities; rather, they are often internalized by individuals who choose to act with integrity, fairness, and responsibility in their professional roles.
The correct statement highlights that business ethics are self-formulated values. This means that individuals in business settings often reflect on their own beliefs, moral upbringing, and professional standards to decide how to act. For instance, a businessperson might choose to report honest financial figures, even when faced with pressure to manipulate data for short-term gain. This decision is guided by an internal value system rather than external enforcement alone.
The other options are incorrect for specific reasons. Saying that business ethics are skills to overcome business problems is misleading. Skills like problem-solving or decision-making may involve ethical thinking, but ethics themselves are not mere skills; they are moral principles. The claim that business ethics are of decreasing importance in the post-trust era is also incorrect. In fact, trust is more important now than ever, especially in an age where consumers and stakeholders value transparency and accountability. Lastly, measuring how much employees care for the business is not a valid definition of ethics; that describes commitment or loyalty, not ethical conduct.
In conclusion, business ethics are essential for maintaining trust, ensuring fair practices, and creating long-term success. They are primarily based on individual moral judgments and values, which shape how people behave in the business environment.
