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 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

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.

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 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

Discretionary responsibility means ______.

  1. Providing charitable contributions to educational institutions

  2. Helping the affected people during floods

  3. Helping the affected people during earthquakes

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

Discretionary responsibility refers to purely voluntary obligations that an enterprise assumes.It is the responsibility of the company management to safeguard the capital investment by undertaking only healthy business ventures which gives good returns on investment.It includes charitable contributions, helping people during floods and earthquakes and many such activites.

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

Business enterprise develop a proper image in society by ________________.

  1. continuous interaction with government

  2. continuous interaction with people

  3. continuous interaction with employees

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

In a competitive business climate, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the general public.


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 environmental values and ethics industrial pollution accelerated with the start of industrial revolution corporate social responsibility

A business should have what kind of an approach? 

  1. Profit earning

  2. Social responsibility

  3. Both (A) and (B)

  4. Either (A) and (B)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Companies are expected to meet society’s demands for goods and services, to provide employment, to contribute to the exchequer, and to operate efficiently at a profit. There is no conflict between social responsibility and the obligation on companies to use scarce resources efficiently and to be profitable—an unprofitable business is a drain on society. The essence of the contract between society and business is that companies shall not pursue their immediate profit objectives at the expense of the long-term interests of the community.