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

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.

Multiple choice organization of commerce and management office introduction to office organising functions of management

Organizational control systems:

  1. always penalize ethical decision making

  2. rely entirely on formal controls

  3. may help to embed corporate social responsiveness

  4. are just another name for budgeting
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Organizational control systems are not just for monitoring performance; they can be designed to reinforce ethical standards and corporate social responsibility by aligning employee behavior with company values.

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.