Arizona State University (ASU) MGT300 Principles of Management and Leadership Exam 2 Practice

Ethics are fundamentally concerned with principles that outline what is considered right and wrong conduct. This definition emphasizes the moral framework that guides individuals and organizations in their decision-making processes. Ethics serve as a compass for behavior, influencing how individuals interact with each other, how organizations operate, and how they fulfill their responsibilities to stakeholders.

In the context of management and leadership, ethics are crucial for establishing trust, maintaining a positive organizational culture, and ensuring accountability. When leaders promote ethical standards, they help create an environment where employees feel valued and where their actions align with the broader moral expectations of society and the organization.

The other choices do not encapsulate the essence of ethics. For instance, while guidelines for strategic decision-making can be influenced by ethical considerations, they do not solely define ethics. Similarly, rules regarding organizational profit are often focused on financial outcomes and may not take into account ethical implications. Standards for employee performance generally assess how well individuals adhere to their roles and responsibilities but do not inherently define ethical conduct. Thus, option B accurately captures the essence of what ethics encompass.