Which of the following defines the concept of ethics in management?

The concept of ethics in management is best defined as a set of moral principles that govern behavior. This definition emphasizes the importance of having a strong moral foundation in the decision-making processes within an organization. Ethics guides managers in determining what is right or wrong and influences their conduct and the culture of the organization. By adhering to ethical principles, managers help foster an environment of trust and integrity, which is essential for long-term success and sustainability in business practices.

While the other options discuss aspects that may relate to business operations, they do not encapsulate the essence of ethics. Profitability is certainly a factor in decision-making but does not address moral considerations. A strategy for competitive advantage focuses more on market positioning than ethical considerations. Regulatory compliance is about following laws and regulations, which is important, but ethics is broader and involves personal and organizational morals that can sometimes transcend mere legal compliance. Thus, the emphasis on moral principles provides a comprehensive understanding of ethics in a management context.