Commerce Accountancy · General Awareness

Business Ethics

777 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

Which statement is false?

  1. Fewer and fewer companies are adopting codes of ethics.

  2. More and more companies are adopting codes of ethics.

  3. Some ethical responses can be learned through experience.

  4. Social responsibility involves providing quality products and pricing products fairly.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. The field of ethics, along with aesthetics, concern matters of value, and thus comprise the branch of philosophy so in today's dynamic environment every small medium or large companies are adopting codes of ethics.

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

Invariably businesses have unethical practice because of ___________.

  1. the stringent and rigid government policies

  2. fear of taxation

  3. greed

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unethical practices in business are predominantly driven by greed, where individuals or corporations prioritize financial gain over moral and ethical standards.

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

The issue of fraudulent asset valuation is included in _________.

  1. ethics in compliance

  2. ethics in finance

  3. ethics in marketing

  4. ethics in production
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
“Ethics in Finance” will address the professional intersection where financial theory meets practice and where the concept of ethical behavior crosses from the abstract to the concrete. 
Issue of fraudulent asset valuation is an example of unethical practice in finance. This is the most common ethical issue which companies and individual face in the field of finance.

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

Providing information to law enforcement or regulatory agencies about illegal or improper activities of business or by its employees is known as _______.

  1. ethical wrong

  2. whistle blowing

  3. ethical dilemma

  4. ethical wonder
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
A whistle-blower is a person who publicly complains about concealed misconduct on the part of an organization or a body of people, usually from within that same organisation. This misconduct may be classified in many ways, for example, a violation of a law, rule, regulation and/or a direct threat to the public interest, such as fraud, health/safety violations, and corruption.

Whistle-blowers frequently the face retaliation - sometimes from the organisation or the group which they have accused of, unless a system is in place that would ensure confidentiality. In addition, people are more likely to take action with respect to unacceptable behavior within an organization, if there are complaint systems that ensure confidentiality and indemnity. 
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 one of the following is not the primary element of a strong organizational compliance program?

  1. A written code of conduct

  2. An ethics officer

  3. Significant financial expenditures

  4. A formal ethics training program
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Elements of business ethics 
1. The first element is a strong code of ethics.
2. The second key element to a solid ethics foundation is ethics training.
3. The third key element to a strong ethics foundations is an "ethics coach".


Thus significant financial expenditure is not the key element of business ethics.

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

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

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

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