Question

An important reason for a company to maintain its ethical reputation is

(A) it prevents government audits
(B) it attracts and retains customers
(C) to increase employee turnover
(D) it reduces laws and regulations

Answer 1

Maintaining an ethical reputation is important for a company because it attracts and retains customers.

Step-by-step explanation:

Establishing and maintaining an ethical reputation is important for a company because it attracts and retains customers. When buyers know that a firm is concerned about its reputation, they are more likely to trust the company and purchase its products or services. For example, a well-established grocery store with a good reputation can often charge a higher price than a temporary stand at a local farmer's market.