Given below are two statements:

Statement I: To exist and be successful in a competitive world a business has to be ethical.
Statement II: An ethical organisation can be recognized on the basis of its corporate excellence and not on its relations with the stakeholders.

Choose the most appropriate answer from the options given below:

Correct option is C

Statement I is correct. In today’s highly competitive and globalized world, businesses are expected to operate not just for profit but also with a strong sense of ethics. Ethical conduct fosters trust, enhances reputation, attracts investors and customers, and ensures long-term sustainability. A company that ignores ethics may achieve short-term gains but often faces legal, social, and financial consequences in the long run.

Statement II is incorrect. Ethical organisations are primarily recognized by how they engage with their stakeholders—including employees, customers, suppliers, communities, and shareholders. While corporate excellence is important, it cannot be a sole marker of ethics. Ethical conduct is deeply reflected in stakeholder relationships, such as transparency, fairness, respect, social responsibility, and environmental care.

Information Booster:

• Ethical businesses create shared value and build a culture of integrity.

• Ethical practices lead to employee satisfaction, customer loyalty, and investor confidence.

• Global frameworks like ESG (Environmental, Social, Governance) and CSR (Corporate Social Responsibility) emphasize ethical behavior toward stakeholders.

• Regulatory bodies and society demand businesses to go beyond profits and act responsibly.

• Ethical leadership and decision-making are central to organizational longevity.

• Ethics is not optional—it is foundational to sustainable business success.