University of Central Florida (UCF) BUL3130 Legal and Ethical Environment of Business Practice Exam 2

The main purpose of business ethics is to align company actions with moral principles. Business ethics serves as a framework for guiding decisions and actions in a manner that is consistent with the values and norms of society. It emphasizes the importance of integrity, fairness, and responsibility in business operations, ensuring that companies act in a way that is not only legal but also morally sound.

Ethical business practices foster trust among stakeholders, including employees, customers, investors, and the community. By adhering to ethical standards, businesses can enhance their reputation, build customer loyalty, and create a positive workplace culture, all of which contribute to long-term success.

While other choices mention profitability, legal liabilities, and shareholder interests, these can sometimes conflict with ethical standards. Focusing solely on profitability or shareholder interests can lead to unethical behavior if such actions disregard the well-being of employees, customers, or the environment. Thus, aligning actions with moral principles is fundamental, ensuring that business objectives are pursued in a responsible and ethical manner.