True or False: There are drawbacks of a business behaving ethically.

The assertion that there are drawbacks to a business behaving ethically is accurate. Operating within ethical standards can sometimes lead to challenges for organizations. For instance, ethical practices might result in higher operational costs due to fair wages, sustainable sourcing, or environmental compliance measures. Additionally, a company prioritizing ethical behavior may take longer to make decisions, as they involve comprehensive evaluations of stakeholder impacts and values.

Moreover, there can be competitive disadvantages, particularly in markets where unethical practices might provide cheaper options or faster service. This might challenge a business that adheres to ethical principles, limiting its competitiveness against less scrupulous competitors. Ultimately, while ethical behavior fosters trust and can strengthen a company's reputation, there are tangible drawbacks that businesses must consider in their strategic planning.