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 business ethics and corporate governance environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

If a company has ethics than it gets back from the employees.

  1. Time

  2. Skill & energy

  3. Return out of money

  4. Both a & b
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
People aspire to join organizations that have high ethical values. Such companies are able to attract the best talent. The ethical climate matters a lot to the employees. Ethical organizations create an environment that is trustworthy, making employees willing to rely on company’s policies, ability to take decisions and act on those decisions. In such a work environment, employees can expect to be treated with respect, and will have consideration for their colleagues and superiors as well. Thus, company's policies cultivate teamwork, promote productivity and support employee-growth.
Retaining talented people is as big a challenge for the company as getting them in the first place. Work is a mean to an end for the employees and not an end in itself. The relationship with their employer must be a win-win situation in which their loyalty should not be taken for granted. Talented people will invest their energy and talent only in organizations with values and beliefs that matches their own. In order to achieve this equation, managers need to build culture, compensation and benefit packages, and career paths that reflect and foster certain shared values and beliefs.
Multiple choice organization of commerce and management business ethics and corporate governance environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Effective ethics management within an organization can.

  1. Minimize errors, losses and fraud

  2. Eliminate general e-mail abuses

  3. Eliminate all errors, fraud and losses

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


1. Attention to business ethics has substantially improved society.
2. Ethics programs help maintain a moral course in turbulent times.
3. Ethics programs cultivate strong teamwork and productivity.
4. Ethics programs support employee growth and meaning.
5. Ethics programs are an insurance policy — they help ensure that policies are legal
6. Ethics programs help avoid criminal acts “of omission” and can lower fines.
7. Ethics programs help manage values associated with quality management, strategic planning and diversity management — this benefit needs far more attention.
8. Ethics programs promote a strong public image.
9. Overall benefits of ethics programs
10. Minimize errors and frauds

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

Ethical and unethical behaviours are determined by.

  1. The individual

  2. The culture

  3. Both the individual and the culture

  4. Neither the individual nor the culture
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Acting in ways consistent with what society and individuals typically think are good values. Ethical behavior tends to be good for business and involves demonstrating respect for key moral principles that include honesty, fairness, equality, dignity, diversity and individual rights.

Hence both the individual and the culture determine unethical behavior

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

Having good ethical relations with customers will help company.

  1. By developing a strong competitive position

  2. By providing strong willingness amongst employees

  3. Both a & b

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
 Ethical policies and practices enable a business enterprise to build goodwill for itself. A business organisation that adheres to a code of conduct gains a competitive advantage and builds long term value. 
On the other hand, unethical practices lead to the ultimate downfall of big organisations too.
 Ethical organizations create an environment that is trustworthy, making employees willing to rely on company’s policies, ability to take decisions and act on those decisions.
 In such a work environment, employees can expect to be treated with respect, and will have consideration for their colleagues and superiors as well. Thus, company's policies cultivate teamwork, promote productivity and support employee-growth.

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

Business Ethics helps the organisation in.

  1. Retaining people

  2. Getting people

  3. Attract the best talent

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
People aspire to join organizations that have high ethical values. Such companies are able to attract the best talent. The ethical climate matters a lot to the employees. Ethical organizations create an environment that is trustworthy, making employees willing to rely on company’s policies, ability to take decisions and act on those decisions. In such a work environment, employees can expect to be treated with respect, and will have consideration for their colleagues and superiors as well. Thus, companys’ policies cultivate teamwork, promote productivity and support employee-growth.
Retaining talented people is as big a challenge for the company as getting them in the first place. Work is a mean to an end for the employees and not an end in itself. The relationship with their employer must be a win-win situation in which their loyalty should not be taken for granted. Talented people will invest their energy and talent only in organizations with values and beliefs that matches their own. In order to achieve this equation, managers need to build culture, compensation and benefit packages,and career paths that reflect and foster certain shared values and beliefs. 
Multiple choice organization of commerce and management business ethics and corporate governance environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Reasons why business should act ethically:

  1. To keep its commitment to society to act ethically.

  2. To meet stakeholder expectations.

  3. To protect their employees and their reputation.

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

Business should act ethically to keep its commitment to society as society and business are interdependent on each other. Investors invest their money in a business and expects the firm to act ethically in all its functions. Employees are aware and want to work in an organization that respect and behave ethically.

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

Top managers demonstrate commitment to ethical business practices with ________.

  1. the adoption of written codes of ethics

  2. employee empowerment

  3. decentralized decision making practices

  4. collusion with other companies
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • Managers at all levels and in all functional areas face ethical issues. In fact, there is seldom a decision wherein an ethical dimension is not involved. Matters of right and wrong, just and unjust, and fair and unfair arise frequently. In order to deal with these issues, managers need some guidelines.
  • Organisations, formulate both business and non-business guidelines in the form of a code of conduct or code of ethics. The need for a corporate code of conduct has increased due to frequent corporate scandals, inside trading and misuse of funds. With globalization of business, more and more companies are developing a code of ethics to be observed. Moreover, every profession has a code of conduct for its members.
  • 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 President, 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. 
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

What are the corporate codes of ethics?

  1. Are always externally audited

  2. Create guidelines for employees to work

  3. Are always compliance based

  4. Are always integrity based.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
A code of ethics is a guide of principles designed to help professionals to conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values and the standards to which the professional is held. A code of ethics, also referred to as an "ethical code", may encompass areas such as business ethics, a code of professional practice and an employee code of conduct.
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
A Correct answer
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 a measure to improve ethical behavior of business at societal level?

  1. Indira Gandhi Paryavarari Puraskar

  2. Mumbai Grahak Panchayat

  3. Ethical Committee comprising BOD

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

Mumbai Grahak Panchayat $(MGP)$ is perhaps the largest voluntary consumer organisation in India with a membership of 24,500 families. It has been engaged in activities of consumer protection and education for the last 33 years. Its unique collective group buying system provides a best practice model for sustainable consumption.

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 idea of business ethics caught the attention of academics, media and business firms by the end of __________.

  1. First World War

  2. Second World War

  3. Cold war

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

The notion of ethics in business can be traced back to the earliest forms of bartering, based on the principle of equal exchange. Countless philosophers and economists have examined the topic, from Aristotle and his concept of justice to Karl Marx's attack on capitalism. But the modern concept of business ethics dates back to the rise of anti-big business protest groups in the United States in the $1970s$. The subject gradually became an academic field in its own right, with both philosophical and empirical branches. Eventually, ethics have been incorporated into businesses, reflected today in corporate social responsibility strategies and codes of conduct. Business ethics is now not only a firmly established academic field, it is something companies realize they need to manage and internalize.

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.