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 elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Ethics has become the buzzword in the corporate world because of_________.

  1. Globalization

  2. Communications explosion

  3. Explosion

  4. Both (a) & (b)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ethics has become the buzzword in the corporate world because of both globalization and communications explosion. Globalization refers to the process of integration of world economies into a village economy.

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept environmental values and ethics industrial pollution accelerated with the start of industrial revolution corporate social responsibility

Ethics is important for _____________.

  1. Top level Management

  2. Middle-level Managers

  3. Non-Managerial Employees

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

Ethics are basically moral principles that governs a person's behaviour or an activity. When a person follows ethics in his business he becomes successful. Ethics is important in business to keep a proper flow of communication between management and employees. Hence, ethics is important for top management, middle-level managers and non-managerial employees.

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

Social responsibility is ______________.

  1. Same as legal Responsiblity

  2. Broader than legal Responsibility

  3. Narrower than legal Responsibility

  4. None of the Above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Social responsibility means responsibility of an organisation to make the well-being of the society at large.  Hence, social responsibility is broader than legal responsibility.

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

Which of the following is capable of doing maximum good to society?

  1. Business success

  2. Laws and regulations

  3. Ethics

  4. Professional management
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Ethics are basically moral principles that governs a person's behaviour or an activity. When a person follows ethics in his business he becomes successful. Hence, ethics is capable of doing good to society.

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

For stopping the unethical practices at society level ____________ practice should be followed.

  1. Establishment of consumer associations

  2. Consumer awareness programs to be stated

  3. Publish journals on social issues

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

All listed options, including consumer associations, awareness programs, and social journals, are effective methods for addressing unethical practices at the societal level.

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

The skills that are required for a ethical coach are __________.

  1. Analitical skill

  2. Confidentially skill

  3. Humanatanian skill

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Competence
Coaches will maintain high standards of competence in their work.

Integrity
Coaches will represent themselves in an honest and fair manner, being knowledgeable about their particular competencies and limitations.
Coaches strive to be aware of their own belief systems, values, needs, and limitations and the effect of these on their work. To the extent feasible, they attempt to clarify the roles they are performing for relevant parties, and to function in accord with those roles.

Professional Responsibility
Coaches will uphold standards of ethical conduct that reflect well on the individual coach as well as the profession at large.

Respect for People’s Rights and Dignity
Coaches will treat clients with dignity and respect, being aware of cultural differences, their own cultural background and biases, and the client’s right to autonomy, privacy, and confidentiality.
Coaches accord appropriate respect to the fundamental rights, dignity, and worth of all people. They respect the rights of individuals to privacy, 

confidentiality, self-determination, and autonomy, mindful that legal and other obligations may lead to inconsistency and conflict with the exercise of these rights. Coaches seek to learn more about cultural, individual, and role differences, including those due to age, gender, race, ethnicity, national origin, religion, sexual orientation, disability, language, and socioeconomic status.
Coaches try to eliminate the effect on their work of biases based on those factors, and they do not knowingly participate in or condone unfair or discriminatory practices.
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

According to W.Wilson______________________.

  1. Business should help others only in that condition when other deserves to help.

  2. Anything that is being done or to be done should be brought to the notice of everyone.

  3. Business should be conducted on the basis of universal value.

  4. One should make proper judgement before doing anything so that there is fair view taken and others do not suffer from any loss or risk of evil by conduct of business.
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

They are concerned about ethics, social responsibility and reputation of the company in which they invest _______________.

  1. Employees

  2. Employers

  3. Investors

  4. Students
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Investors are concerned about ethics, social responsibility and reputation of the company in which they invest. Investors are becoming more and more aware that an ethical climate provides a foundation for efficiency, productivity and profits. Relationship with any stakeholder, including investors, based on dependability, trust and commitment results in sustained loyalty.
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

The four types of social responsibility include _______________________.

  1. Legal, philanthropic, economic and ethical

  2. Ethical, moral, social, and economic

  3. Philanthropic, justice, economic, and ethical

  4. Legal, moral, ethical and economic
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
In general, businesses have a hierarchy of responsibilities to meet, ranging from the basic (making a profit) to the benevolent (benefiting society). Here are some examples:
  • Economic Responsibilities - A business exists to make a profit for shareholders. If it fails to do so, it likely won’t be able to pay its employees, taxes and other obligations. A corporate social responsibility program (CSR program) cannot be implemented until a business is profitable.
  • Legal Responsibilities - Following the law is the foundation of corporate responsibility. A company cannot benefit society if it does not adhere to labor and tax laws or applicable industry regulations.
  • Ethical Responsibilities - Once a company is profitable and meets its legal responsibilities, it can move up the ladder to ethical responsibilities, which might include paying higher wages, offering employees better benefits, avoiding trade with unscrupulous companies or providing jobs to those who would otherwise have difficulty finding work.
  • Philanthropic Responsibilities - As a company meets its economic, legal and ethical responsibilities, it can consider taking on philanthropic responsibilities. Corporate philanthropy ranges in size and scope, and can include everything from donating time to a local charity to building a children’s hospital.
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

Unethical behaviour is often triggered by ____________________.

  1. Pressure from higher management to achieve goals.

  2. An organizational atmosphere that condones such behaviour.

  3. Both (A) & (B)

  4. A system of checks and balances.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unethical behavior is often triggered by pressure from higher management to achieve goals.When there is heavy pressure, the employees tend to use unfair means and show unethical behavior. when the organizational atmosphere is not ethical and unethical behavior prevails , then the employees start behaving unethically and take advantage of such situation. 

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

Team leader Gopal is scheduled to prepare a performance report of Kavita, a team member who also happens to be his wife's closest friend. The ethical temptation Gopal faces is ___________________.

  1. Sexual harassment.

  2. Misuse of corporate sources.

  3. Dealing with confidential information.

  4. Conflict of interest,
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A conflict of interest arises in the workplace when an employee has competing interests or loyalties that either is or potentially can be, at odds with each other.

An example is a manager who was promoted from a coworker job where he worked with his wife. The promotion made him his wife's boss so the company, after discussion with the couple and HR, transferred her to another department.

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

Workers will often behave unethically because ___________________.

  1. They have planned to be unethical.

  2. They come from dysfunctional families.

  3. Other issues seem more important at that time.

  4. Management pressures them into unethical behaviour.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

There are number of reasons why people act unethically at workplace. But what is unethical behavior? It is defined as behavior that contradicts with the rules designed to maintain the justice, integrity and decency in the organization. An example of unethical behavior is employees providing fake bills for money redemption against approved funds. Behavior like this is motivated by various things such as :-

  1. Resentment feeling: When employees feel that they are not being treated fairly and are not being rewarded substantially for the amount of effort they are placing into their work they tend to cheat the company they are working for. Their most common perception is that they should not worry about the organization and its well being when the organization is not worrying about them.
  2. Misguided loyalty: It is another reason for unethical conduct on the job. People sometimes lie because they think in doing so they are being loyal to the organization or to their bosses. Examples of this type of behavior are not hard to find. For example, managers at automobile companies who hide or falsify information about defects that later cause accidents and kill people or managers at pharmaceutical companies who hide information about dangerous side effects of their drugs. No doubt these managers believed they were protecting their employers. They may well have seen themselves as good, loyal employees.
  3. Environment: Sometimes, employee acts unethically in business because his employer condones the behavior. For example, in the stock market traders are supposed to cheat a little to create the market hype necessary for its efficient working. This is unethical, but the behavior is so common on the trading floor that it is never questioned.
  4. Individual factor:Employees who obey authority figures’ unethical directives or act merely to avoid punishment. They manipulate others for their own personal gain, fail to see the connection between their actions and outcomes, and believe that ethical choices are driven by circumstance.
  5. Pressure: It can drive people to do things they wouldn’t normally do. Pressure to succeed, pressure to get ahead, pressure to meet deadlines and expectations, pressure from co-workers, bosses, customers, or vendors to engage in unethical activities or at least look the other way.
  6. Career Advancement: A person acts unethically because she believes it helps her career. An unethical act is used as a means of impressing a superior or hurting the career of a competitor. For example, a person sabotages a co-worker’s project as a means of making him/herself to look better in comparison.
  7. Issue-specific: Issues can vary in the degree of harm they impose on the victim, and on the degree of agreement among peers. Sometimes, a particular issue requires unethical behavior from the employee and there is not other option they can utilize.
  8. Greed: Of course, some people do not just do something wrong in a weak moment or because they are not sure about what is the right thing to do. Some people know exactly what they are doing and why. Self-interest, personal gain, ambition, and downright greed are at the bottom of a lot of unethical activity in business.
  9. Ignorance: Ethical conflicts or violations are not always transparent, and it’s easy for an employee to perform an unethical act without knowing it. For this reason, it is important for companies to make employees aware both of the company’s general ethics policy, and specific examples of ethical and unethical behavior.
  10. Insensitivity towards others: Unethical behavior also increases when employees feel that their actions will not harm a potential victim and that their peers will not condemn their actions. They will engage in more unethical behavior when the company promotes an “everyone for him or herself” atmosphere instead of an environment that focuses employee attention on the company’s stakeholders
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

They are concerned about ethics, social responsibility and reputation of the company in which they invest ___________.

  1. employees

  2. employers

  3. investors

  4. students
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Investors are concerned about ethics, social responsibility and reputation of the company in which they invest. Investors are becoming more and more aware that an ethical climate provides a foundation for efficiency, productivity and profits. Relationship with any stakeholder, including investors, based on dependability, trust and commitment results in sustained loyalty. 
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

A worker is most likely to behave ethically and legally when ___________.

  1. a manager observes his or her behaviour closely

  2. the worker has intense morals

  3. the consequences of the act are minor

  4. the consequences of the act are substantial
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Disciplinary provisions should be in place to ensure consistent responses to similar violations of standards and procedures (as against applying different standards to different employees based on their position, performance, function, and the like). There should be provisions for those who ignore as well as for those who violate standards and procedures. This will ensure that workers behave ethically and legally.
Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept environmental values and ethics industrial pollution accelerated with the start of industrial revolution corporate social responsibility

The idea of social responsibility is ____________. 

  1. Maximize owner worth

  2. Maximize profits of business

  3. Concern about effects on public

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

Social responsibility in business or corporate social responsibility $(CSR)$ pertains to people and organizations behaving and conducting business ethically and with sensitivity towards social, cultural, economic, and environmental issues.