What term describes the moral values that determine and affect business behavior and decision-making?

• A. Values
• B. Morality
• C. Principles
• D. Ethics

Answer: (D)

Ethics is the set of moral principles that guide how a business should behave and make decisions. It defines what’s considered right and wrong in professional conduct and shapes actions beyond what law requires, helping to balance the interests of customers, employees, shareholders, and society. Values are personal beliefs about what’s important, morality is broader societal notions of right and wrong, and principles are general rules; ethics applies these ideas specifically to how a business operates. For example, choosing not to pay a bribe because it’s unethical, even if it might be legally permissible or profitable, reflects ethical decision-making.