What question can help determine if a business decision is ethical?

Prepare for the NOCTI General Management Exam. Utilize interactive flashcards and multiple-choice questions with comprehensive hints and explanations. Ace your test!

Determining the ethical implications of a business decision involves evaluating whether the decision aligns with moral principles and fairness, not just legal compliance or economic outcomes. The correct choice emphasizes that assessing whether a decision is legal and balanced is crucial in understanding its ethical nature.

A decision may be legally permissible but still unethical if it disadvantages certain stakeholders disproportionately. Therefore, considering both legality and balance ensures that the decision promotes fairness among all affected parties. An ethical decision should take into account the rights, dignity, and well-being of individuals involved, as well as the broader impact on society.

Furthermore, while cost-effectiveness, stock price impacts, and job creation are important factors in business decisions, they do not inherently address ethical considerations. Focusing solely on these aspects might lead to profit-driven motives that overlook the ethical responsibilities of the business. Thus, the most comprehensive approach to evaluating whether a business decision is ethical is to ask if it is legal and balanced, as it encompasses a broader consideration of ethical principles.

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