Bachelor of General Studies (BGS) Degree Practice Exam

What concept involves accounting for ethical considerations in corporate decision-making?

1. Utilitarian approach

2. Ethical management

3. Philanthropic responsibility

4. Market-driven decision-making

The correct answer is: Ethical management

The concept that involves accounting for ethical considerations in corporate decision-making is ethical management. This approach emphasizes the importance of integrating ethical principles and values into the decision-making process within organizations. It involves analyzing situations to understand the moral implications of business actions and ensuring that decisions align with ethical standards. Ethical management goes beyond merely following legal requirements; it promotes a culture where ethical behavior is valued alongside achieving business objectives. It encourages managers to consider the impacts of their decisions on various stakeholders, including employees, customers, and the community. This perspective is essential for building trust and maintaining a positive reputation in today's business environment. Utilitarian approaches, while relevant in considering outcomes, primarily focus on maximizing overall happiness or utility rather than emphasizing ethical principles directly. Philanthropic responsibility generally relates to voluntary actions that benefit society rather than embedding ethics into everyday decision-making processes. Market-driven decision-making prioritizes profit and market demand, often without a specific focus on ethical considerations. Thus, ethical management clearly stands out as the comprehensive framework for incorporating ethical considerations into corporate decisions.