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 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

Social responsibility of a business refers to its ________ obligation.

  1. Action values of our society

  2. Action values for business

  3. Action values for individual

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
There is a kind of social contract between the society and business by which the society expects the business to work in its interest. Society creates and accepts business enterprises, hence it expects them to work in a manner which is not detrimental to its well being and interests. Technological advancements have to be made but their impact on the environment and mankind has he kept in mind. 
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 of a business can broadly be divided into _____ categories.

  1. Three

  2. Two

  3. Four

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

Social responsibility can be divided into 4 categories:

  • Economic responsibility
  • Legal responsibility
  • Ethical responsibility
  • Discretionary responsibility.

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

Social responsibility is beneficial because of __________.  

  1. Availability of resources with business

  2. Maintenance of society

  3. Justifications for its existence and growth

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

Social responsibility has become increasingly important to companies over the last several years. Whether it's by empowering women, helping the environment, or trying to end poverty, more and more companies are incorporating social responsibility into their overall business strategy. The social issues may be local, national, or global, but a concern for the health and wellness of others that do not involve sales can be seen as commendable. There are many reasons why a company might engage in social responsibility, and in this article, we'll outline a few of them. 

Improving the Company's Brand 

Being a socially responsible company can bolster a company's image and build its brand. The public perception of a company is critical to customer and shareholder confidence in the company. By projecting a positive image, a company can make a name for itself for not only being financially profitable, but socially conscious as well. Also, by being active in the community, a company's employees are engaging with potential customers and in doing so, indirectly marketing the company in the process. 

Engaging Customers 

Building relationships with customers is the cornerstone of a successful company and having a social responsibility policy can impact the buying decisions of customers. Some customers are willing to pay more for a product if they know a portion of the profit is going to worthy cause. Also, if a company is active in the local community – for example, a bank that offers loans to low-income families – the company will be viewed positively by the community and perhaps boost the company's sales as a result. In short, building a positive relationship with customers and their communities can lead to increased sales and rising profits. 

Retaining Top Talent

Many employees want to feel like they're part of something bigger. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Some public corporations' employees number in the tens of thousands, and when they get behind an initiative, the results can be amazing.  

Furthermore, being part of a strategy that helps the greater good can boost employee morale and lead to greater productivity in the workforce. Knowing a product and service is also helping with social causes can create a sense of pride and that pride shows in relationships with customers and fellow employees.

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

Negative effects of social responsibility ___________. 

  1. Violation of profit maximization objective

  2. Lack of social skills

  3. Burden on consumers

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

The negative aspects of corporate social responsibility.

The basic reason why a business is formulated is to make a profit. Corporate social responsibility insists on a corporation to make an effort to look out for stakeholders who are not shareholders only, but who have an interest on what an organization does and the outcomes of what it does. Despite of that, its not totally the duty of the corporation to look out for the many people who hold an interest in the company's activities. If the operations of the free market don’t solve the social problem, it is the duty of the government and not the businesses, to address the many issues faced by the society.

Some businesses are just not prepared to deal with social issues. The lack of preparations of a particular business to deal with societal issues needs the managers to be trained and well versed in dealing with the complex issues that many societies face, as this will give them the skills and the knowledge to be prepared to do so.

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

Statement X:
In some situations a company action can be legal, yet still unethical
Statement Y: 
Ethics is the study of moral obligation, or separating right from wrong.
Select the correct answer from the options given below:

  1. Statement X is correct but Statement Y is false

  2. Both Statement X and Y are false

  3. Statement Y is correct but Statement X is false

  4. Both Statement X and Y are true
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There is biggest ethical dilemma, a legal action, yet unethical so upper level management has to understand.

Ethics is the study of moral obligation or separating right from wrong. According to the concept of moral intensity, an intensely moral person will be equally ethical in almost all situations.

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

Under social responsibility business enterprise should serve ___________. 

  1. Customer

  2. Community

  3. Owner

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

Ethics is the discipline that deals with moral duties and obligations. Social responsibility implies corporate enterprises should follow business ethics and work for not only to maximize their profits or shareholders' value but also to promote the interests of other stakeholders and the society as a whole.

Social responsibility of business implies the obligations of the management of a business enterprise to protect the interests of the society.
Customer, community,owner are the part of 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

Nestle and ICI have taken steps to address human rights issues in their overseas factories. This represent that these companies have.

  1. Social obligation

  2. Social screening

  3. Social responsibility

  4. Social responsiveness
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Social responsibility is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. Hence any steps taken to address human rights issue represent social 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

Behaviour that does not conform to generally social norms will be considered as.

  1. Arrogant Behaviour

  2. Arbitrary Behaviour

  3. Ethical Behaviour

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

Unethical behavior is an action that falls outside of what is considered morally right or proper for a person, a profession or an industry. Individuals can behave unethically, as can businesses, professionals and politicians.

Unethical behavior is behavior that is contrary to our own moral principles as well as the principles admired in the community one lives in.

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

Ethics has become important because of _________.

  1. Globalization

  2. Communication explosion

  3. Both a & b

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Globalization – coupled with focus on cross-border trade, multinational enterprises and global supply chains — is increasingly raising ethical concerns related to human resource management practices, environmental protection, and health and safety, among other things.
Advances in communications technology, such as the Internet, cellular phones and personal digital assistants, are making it easier to track corporate activities and disseminate information about them. Non-governmental organizations now regularly draw attention through their websites to business practices they view as problematic. 
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 manger 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

A worker is most likely to behave ethically and legally when the consequences of the act are substantial. When the workers know that his unethical behavior will cause him certain loss then he is more likely to act ethically in order to save himself from the consequence of the unethical acts.

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

A whistle blower is an employee who __________________.

  1. Exposes organizational wrongdoing.

  2. Complains a lot of company management.

  3. Engages in unethical behaviour.

  4. Referees disputed with other employees.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A whistleblower is an employee that reports an employer's misconduct. There are laws that protect whistleblowers from being fired or mistreated for reporting misconduct. One of these laws is the Whistleblower Protection Act.

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 memorandum of understanding and articles of association company business studies

A hospital does some charity work although it was not obliged to do so. What will be true?

  1. It will be considered a CSR activity

  2. Hospitals are not required to do CSR activity

  3. It will not be considered a CSR activity

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

Corporate Social Responsibility (CSR) activities are voluntary contributions by companies toward social welfare. Even if not legally mandated for a specific entity, such activities are categorized under CSR.

Multiple choice memorandum of understanding and articles of association company business studies

What is full form of CSR?

  1. Corporate social responsibility

  2. Company sales revenue

  3. Company social responsibility

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

CSR stands for Corporate Social Responsibility, which refers to a company's initiatives to assess and take responsibility for its effects on environmental and social wellbeing.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

The areas like health and hygiene, public interest, philanthropic activities comes under _____________.

  1. Corporate Social Responsibility

  2. Critical Success Factors

  3. Common Social Responsibility

  4. Common Success Review
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Corporate social responsibility is a commitment to do more than just serve the needs and expectations of customers and shareholders. It can also mean going beyond business basics and serving a social need. 

Through corporate social responsibility programs, including responsible business practices, philanthropy and volunteer efforts, businesses can benefit society while boosting their brand. A CSR program cannot be implemented until a business is profitable. 
A company cannot benefit society if it does not adhere to labor and tax laws or applicable industry regulations. Ethical responsibilities 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. 
Corporate philanthropy ranges in size and scope, and can include everything from donating time to a local charity to building a children’s hospital.