Western Governors University (WGU) MGMT2700 D253 Value-Based Leadership Practice Exam

Question: 1 / 400

What does a company gain by fostering a strong culture of ethical behavior?

Increased profits at any cost

Higher satisfaction among external stakeholders

Fostering a strong culture of ethical behavior within a company leads to higher satisfaction among external stakeholders because it builds trust and credibility. When a company prioritizes ethical practices, it demonstrates a commitment to integrity, fairness, and social responsibility. This not only enhances the company’s reputation in the eyes of customers, suppliers, and investors, but it also fosters stronger relationships with the community and can lead to increased loyalty and support from those stakeholders.

External stakeholders often prefer to engage with businesses that align with their values and demonstrate a commitment to doing what is right. This can lead to improved customer retention, positive public relations, and greater competitive advantage. Therefore, when a company actively promotes ethical behavior, it positively impacts stakeholder satisfaction and contributes to long-term success.

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Reduced necessity for corporate governance

Less focus on community involvement

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