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Which of the following is an example of unethical business practices?

A. avoiding conflict of interest
B. high executive salaries
C. security of information
D. insider trading
E. environmental protection

1 Answer

7 votes

Final answer:

Insider trading is an example of unethical business practices since it involves trading based on non-public, material information, offering an unfair advantage and violating legal and ethical standards.

Step-by-step explanation:

Among the options provided, insider trading is an example of unethical business practices. Insider trading involves trading a public company's stock or other securities (such as bonds or stock options) based on material, non-public information about the company. This practice gives certain individuals an unfair advantage, is illegal, and is considered highly unethical in the realm of business. The other options, like avoiding conflict of interest, high executive salaries, security of information, and environmental protection, are all ethical practices or are not inherently unethical.

Presumptive principle, environmental injustice, and the tragedy of the commons are examples of concepts that can involve unethical behavior but are not options in the question provided. In contrast to these, corporate crimes such as embezzlement and the concept of environmental equity demonstrate the range of ethical considerations in business and the environment.

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