PRC-3 · Chapter 6 · Question 33 of 68
If a major food company is exposed by the media for knowingly selling contaminated products, what is the most severe and immediate non-legal risk it faces?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Loss of reputation and severe credibility damage among consumers
Explanation
Unethical behavior causes massive reputational risk. Loss of consumer trust can permanently damage the brand and destroy sales revenue.
More Business Ethics MCQs
- Q35A procurement manager must award a lucrative contract for office supplies. He secretly directs the contract to a firm owned by his…
- Q36A chef working at a famous restaurant writes down the restaurant's secret, highly profitable sauce recipe and sells it to a rival…
- Q37After working for 15 years as a bank manager, Mehnaz is severely pressured by her uncle to approve a highly risky loan for his failing…
- Q38The professional code of ethics dictates that an accountant must be straightforward and completely honest in all professional…
- Q39A multinational corporation's branch in a developing country hires underage children to work in the factory because it is cheaper…
