Commerce Accountancy · General Awareness

Business Ethics

815 Questions

Business ethics evaluates moral principles, stakeholder management, and workplace conduct within organizations. Competitive exams test the application of these standards in real scenarios. Understanding these dilemmas builds critical reasoning.

Ethical dilemmas in businessCorporate social responsibilityEngineering and software ethicsStakeholder managementWorkplace conduct standards

Business Ethics Questions

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

__________ also serves to inform employees of the vision that the company's executives have for the company's image and goals.

  1. Customer feedback

  2. Code of ethics

  3. Ethics coach

  4. Mission
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
A code of ethics should reflect top management's desire for compliance with the values, rules, and policies that support an ethical climate. The development of a code of ethics should involve the Board of Directors, and Chief Executive Officers who should be implementing the code.
Legal staff should also ensure that the code has assessed key areas of risk correctly, and that it provides buffers for potential legal problems. 
The code of ethics outlines a set of fundamental principles which could be used as the basis for operational requirements (things one must do), operational prohibitions (things one must not do). It is based on a set of core principles and values and is by no means designed for convenience. The
employees subjected to the code are required to understand, internalize, and apply it to situations which the code does not specifically address.
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

"Adhering to rules and authority" comes under which scope of ethics?

  1. Ethics in marketing

  2. Ethics in compliance

  3. Ethics in finance

  4. Ethics in production
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Compliance is about obeying and adhering to rules and authority. The motivation for being compliant could be to do the right thing out of the fear of being caught rather than a desire to abide by the law.
An ethical climate in an organisation ensures that compliance with law is fueled by a desire to abide by the laws. Organisations that value high ethical values comply with the laws not only in documents but go beyond what is stipulated or expected of them. 
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Which of the following ethical issue is related to finance?

  1. Abusing co-workers

  2. Black mailing

  3. Insider trading

  4. Using of power and abusive language.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Insider trading is a word that has many definitions and connotations and which includes both legal and illegal activities. 


It can also be described as an insider trading of a company’s stock, securities, bonds and stock options by persons with possible access to non-public information about the company. 

Nevertheless, insider trading can take place lawfully every day, when trading by the corporate insiders such as officers, directors, employees and large shareholders to buy or sell stock in their own companies if this trading will not be taking advantage of the non-public information and also be within the boundaries of the company’s policies and the rules governing this trading. 

However, the term “insider trading" is mostly used to describe a practice in which an insider party trades based on non-public material information gained through the performance of the insider’s obligation at the company, in violation of other relationships of faith and assurance or otherwise when the non-public information was stolen from the company. 

In other words, insider trading is buying, selling or dealing in securities, bonds, and stocks of a company by a director, manager, or employee of the company who has confidential information that is not accessible to the public.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Which of the following statements is not correct?

  1. Ethics pays in long term

  2. Codes of ethics foster ethical, ethical behavior because they expand the opportunity to behave ethically

  3. Ethics is good for company

  4. Without a code of ethics or formal policy on ethics employees are likely to base their peers and superiors behave.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Ethical conduct is in the long-term interests of businessmen. A business enterprise that is honest and fair to its customers, employees, and other stakeholders earns their trust and goodwill.
It ultimately results in customer    satisfaction, healthy competition, industrial growth and high earnings. 

Businesses must balance their desire to maximize profits against the requirements of stakeholders. 
Maintaining this balance often requires trade offs. To address this unique aspect of business, rules are articulated to guide it to earn profits without harming individuals or society as a whole. 

While referring to business activity profile, Mahatma Gandhi once mentioned that all business entrepreneurs should ask themselves the question whether the activities they are contemplating would be of some use to the common man. This statement emphasizes the importance of nobility of business purpose.
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Activity to improve ethical behavior by enacting various legislation is not taken at _________.

  1. government level

  2. institutional level

  3. industrial level

  4. societal level
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The major problem for implementing effective Codes of Ethics remains that no law or Code will be of much value if individual civil servants lack the technical competence to recognize an ethics problem for what it is, or if they do not know what standards their organization expects of them, or (worst of all), if they consider it to be not in their interests, personally or professionally, to take a stand for integrity and against corruption.

Measures taken to improve ethical behavior at Government Level are

-companies to follow various legislation such as the Minimum Wages Act, Essential Commodities Act etc,
- framing laws and strict penalties if laws do not adhere.
- The government should announce the certain reward for individuals who practice ethical behavior like Indira Gandhi Paryavaran Puraskar
-Using mass media to educate people.
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Which of the following action indicate ethical practice on part of business?

  1. To promote harmful products

  2. To promote corruption

  3. To promote harmless products

  4. To promote alcohol
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Promoting harmful products, corruption and alcohol are not a ethical practice. But promoting harmless product are an ethical activity.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Measures to improve ethical behavior of business are framed at which level?

  1. Societal level

  2. Government level

  3. Institution level

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

following are the measures to improve ethical behavior of business :-

1. Institutional level
2.Government level
3. Societal level.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Which of the following ethical issue is related to production?

  1. Black market

  2. Grey market

  3. Price discrimination

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
This area of business ethics deals with the duties of a company to ensure that their products and production processes do not cause harm to society at large. 
Some of the more acute dilemmas in this area arise out of the fact that there is usually a degree of danger in any product or its production process and it is difficult to define the degree of permissibility, since the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk.

 — Defective, addictive and inherently dangerous products.

 — Ethical relations between the company and the environment include pollution, environmental ethics and carbon emissions trading.

 — Ethical problems arising out of new technologies, for example, genetically modified food.

 — Product testing ethics.
The most systematic approach to fostering ethical behavior in business is to build a corporate culture
that would link ethical standards and business practices.
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Corporate codes of ethics.

  1. Are always externally audited

  2. Create guidelines for employees to work by

  3. Are always compliance based

  4. Are always integrity based
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
A corporate code of conduct may be defined as a document containing the core values and moral principles which all those working in the company are expected to follow in the course of their duties as well as in their daily activities. It reflects commitment of the company to ensure ethical behaviour on the part, of its members. It also indicates how an employee should act in general or in specific situations. A code of conduct lays down 'do’s' and `don'ts'. It describes socially acceptable and responsible behaviour. Hence, a code of ethics is a tangible guide to ethically desirable behaviour. 
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Pick the odd one. It is UNCOMMON for business to behave ethically because.

  1. It has to meet stock holder expectations

  2. It has to ignore their employees relations

  3. To build trust with shareholders

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ignoring employees relations are not ethical because employees are the most important resource of the company .

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

EBEN is?

  1. European Business Ethics network

  2. European Business Ethics nation

  3. European Business Ethics national

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The European Business Ethics Network $(EBEN)$ is an international network of academics and practitioners that promotes ethical business practice and increases awareness about ethical challenges in the global marketplace. 

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility corporate social responsibility social responsibility

All definitions of Corporate Social Responsibility recognize that __________.

  1. companies have a responsibility for their impact on society and environment

  2. the natural environment should be the main focus of CSR activities

  3. business ethics is a complex issue

  4. companies must pay equal attention to business ethics and sustainability
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Corporate Social Responsibility  is a concept whereby companies not only consider their profitability and growth, but also the interests of society and the environment by taking responsibility for the impact of their activities on stakeholders, environment, consumers, employees, communities, and all other members of the public sphere. The basic premise is that when the corporations get bigger in size, apart from the economic responsibility of earning profits, there are many other responsibilities attached to them which are more of non-financial/social in nature. These are the expectations of the society from these corporate to give something in return to the society with whose explicit or implicit help these entities stand where they are. 

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility corporate social responsibility social responsibility

Which of the following is not a dimension of Corporate Social Responsibility ? 

  1. Economic

  2. Legal

  3. Voluntary

  4. Emotional
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There are four kinds of social responsibility: legal, ethical, economic and philanthropic. 

Hence emotional is not a dimension of Corporate Social Responsibility 

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility corporate social responsibility social responsibility

All definitions of Corporate Social Responsibility recognize that ________________________.

  1. Companies have a responsibility for their impact on society and environment

  2. The natural environment should be the main focus of CSR activities.

  3. Business ethics is a complex issue.

  4. Companies must pay equal attention to business ethics and sustainability.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The term Corporate Social responsibility refers to the concept of business being accountable for how it manages the impact of its processes on stakeholders and takes responsibility for producing a positive effect on society.
CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility corporate social responsibility social responsibility

Which of the following is not a dimension of Corporate Social Responsibility?

  1. Economic

  2. Legal

  3. Ethical

  4. Emotional
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There are four kinds of social responsibility: legal, ethical, economic and philanthropic. Legal dimension of CSR relates to compliance with laws and regulations established by the authorities, which set standards for responsible behavior – the codification of what society thinks is right or wrong.