Question

Which of the following are reasons a business should be managed ethically?

O avoid lawsuits
O to increase employee
O turn over to maintain a good reputation
O to attract customers

Answer 1

Businesses should be managed ethically to avoid lawsuits, maintain a good reputation, and attract customers. Ethical practices can lead to increased trust and customer loyalty, and support better employee retention.

Step-by-step explanation:

There are several reasons a business should be managed ethically. Firstly, ethical management helps avoid lawsuits, which can be costly and damage a company's reputation. Secondly, operating ethically can help maintain a good reputation, which is crucial for attracting and retaining customers. A good reputation leads to trust, and customers are more likely to return to a business they trust. Additionally, ethical practices can attract customers who prefer to do business with companies that align with their values.

For instance, a grocery store known for ethical management and quality products can generally charge higher prices than a less reputable vendor, as customers feel more assured about their purchases. Furthermore, ethical practices can influence employee turnover; companies that operate ethically generally create better workplace environments, thus retaining employees and avoiding the costs associated with high turnover. Lastly, businesses that adhere to a code of ethics demonstrate social responsibility, which can enhance their overall value in the eyes of stakeholders.