How do strong ethical values benefit a firm?
A) They lay the groundwork for a quick increase of profits and short-term success.
B) They serve as the guardrails put in place to keep the company on track when pursuing its mission.
C) They provide strong public relations, which can either benefit or hinder competitive advantage.
D) They emphasize benefiting stakeholders by significantly increasing profit.

Question

Quizplus · Accepted Answer

Strong ethical values have two important functions. First, they form a solid foundation on which a firm can build its vision and mission, and thus lay the groundwork for long-term success. Second, values serve as the guardrails put in place to keep the company on track when pursuing its vision and mission in its quest for competitive advantage.

How Do Strong Ethical Values Benefit a Firm