A manager refuses to manipulate sales figures because doing so violates a moral rule, even though it could increase the firm's bonus. Which ethical theory best supports this decision?
Correct answer: B. Deontological ethics
- A. Utilitarianism
- B. Deontological ethics
- C. Shareholder theory
- D. Ethical relativism
Explanation
Deontological ethics holds that some duties and rules should be followed even when breaking them might produce a desirable result. The manager therefore rejects manipulation because it is inherently wrong.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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