Fundamentals of Business Intelligence (FBI) Practice Exam

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What is the primary purpose of ethics within an organization?

  1. To establish profit goals

  2. To serve the organization

  3. To increase employee turnover

  4. To enhance market competitiveness

The correct answer is: To serve the organization

The primary purpose of ethics within an organization is to serve the organization by creating a framework for behavior that guides the decision-making processes of its members. This ethical framework helps to foster a culture of integrity, trust, and accountability, which can enhance collaboration, employee morale, and overall organizational effectiveness. When an organization prioritizes ethical standards, it also reinforces its commitment to social responsibility, ensuring that business practices align with both legal requirements and societal expectations. The establishment of profit goals, while important for business performance, does not inherently relate to ethical considerations. Increasing employee turnover is contrary to what ethical practices aim to promote, as ethics strive to cultivate a supportive work environment that retains talent. Enhancing market competitiveness can be a positive outcome of ethical practices, but it is not the primary purpose; instead, ethics focuses on sustaining long-term relationships and a positive organizational culture that can ultimately lead to competitive advantages but is rooted in serving the organization through its foundational values.