Business Ethics and Corporate Responsibility
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Questions and Answers

What is a key advantage of a corporation for shareholders?

  • Direct management control
  • Tax-free dividends
  • Limited liability (correct)
  • Unlimited liability

    • Which statement is true about corporations?

  • Corporations are simpler to form than partnerships.
  • Corporations can sue or be sued as legal entities. (correct)
  • Corporations cannot hire employees.
  • Corporations are managed directly by shareholders at all times.

    • What does business ethics primarily involve?

  • Maintaining secrecy in transactions
  • Competing aggressively in the market
  • Maximizing profit at all costs
  • Practicing what is morally and ethically right (correct)

    • What is the primary goal of a business?

    <p>Wealth creation through innovation</p> Signup and view all the answers

    Which level of business ethics is concerned with how a company interprets industry rules?

    <p>Corporate Ethics</p> Signup and view all the answers

    What responsibility do businesses have to their stakeholders?

    <p>Pay taxes to support public infrastructure</p> Signup and view all the answers

    What is the primary focus of macro-level business ethics?

    <p>Broader societal and political norms</p> Signup and view all the answers

    How do corporations manage their employee benefits?

    <p>As deductible business expenses</p> Signup and view all the answers

    How do individual ethical standards influence an organization?

    <p>They combine to shape the organization's stance on moral issues.</p> Signup and view all the answers

    What role do ethical standards play in business transactions?

    <p>They uphold the organization's credibility and integrity.</p> Signup and view all the answers

    What is an example of a situation where a business might operate contrary to its ethical standards?

    <p>Complying with national censorship laws</p> Signup and view all the answers

    At what level do ethics involve rules and standards that apply nationwide?

    <p>Macro level</p> Signup and view all the answers

    What is the primary conflict faced by organizations like Google in different regions?

    <p>Conflicts between national laws and ethical standards</p> Signup and view all the answers

    What was Google's preference regarding censorship based on their global ethical standards?

    <p>To promote unrestricted access to information</p> Signup and view all the answers

    How can businesses reconcile their main purpose with their ethical implications?

    <p>By balancing profit-making with social responsibility</p> Signup and view all the answers

    What principle emphasizes the importance of keeping commitments and not breaking promises lightly?

    <p>Keeping Promises</p> Signup and view all the answers

    Which principle is focused on managers acting impartially and valuing others' suggestions?

    <p>Fairness</p> Signup and view all the answers

    What principle seeks to ensure that managers and employees obey all company policies and legal regulations?

    <p>Obeying the Law</p> Signup and view all the answers

    Which principle advocates fostering a caring environment for employees and stakeholders?

    <p>Caring</p> Signup and view all the answers

    What principle suggests that leaders should act as role models and demonstrate integrity?

    <p>Being a Leader</p> Signup and view all the answers

    What is a primary benefit of high ethical standards in an organization?

    <p>It helps establish credibility and a positive image</p> Signup and view all the answers

    Which principle of business ethics emphasizes the importance of being truthful about product quality?

    <p>Integrity</p> Signup and view all the answers

    Which principle is NOT one of the core principles of business ethics?

    <p>Creativity</p> Signup and view all the answers

    Why is honesty considered essential for a company?

    <p>It fosters trust between customers and employees</p> Signup and view all the answers

    What should companies do if they make a mistake according to the principle of integrity?

    <p>Admit the mistake and act accordingly</p> Signup and view all the answers

    What do a company's values primarily influence?

    <p>Internal conduct and stakeholder relationships</p> Signup and view all the answers

    Which principle is NOT explicitly mentioned as part of upholding company values?

    <p>Employee satisfaction</p> Signup and view all the answers

    How do management demonstrate the importance of the code of ethics?

    <p>By placing it in prominent and strategic locations</p> Signup and view all the answers

    Which of the following best describes a principle of a code of ethics?

    <p>Corporate social responsibility</p> Signup and view all the answers

    What characteristic should company values embody?

    <p>Honesty and fairness</p> Signup and view all the answers

    What is one benefit of managers acting ethically within a company?

    <p>Enhanced company reputation</p> Signup and view all the answers

    What does being accountable entail for managers?

    <p>Acknowledging the impact of decisions</p> Signup and view all the answers

    Which of the following is considered an unethical business practice?

    <p>Making false claims</p> Signup and view all the answers

    What consequence can a company face due to unethical practices like accounting manipulations?

    <p>Potential jail time for managers</p> Signup and view all the answers

    How can overbilling affect a service provider's business?

    <p>It might result in lower sales.</p> Signup and view all the answers

    What might be a result of misleading advertisements?

    <p>Potential lawsuits</p> Signup and view all the answers

    What is a characteristic of customer service failures regarded as unethical?

    <p>Refusing to honor warranties</p> Signup and view all the answers

    Why is accounting manipulation considered detrimental to a company?

    <p>It can mislead investors and inflate company assets.</p> Signup and view all the answers

    What is an advantage of a sole proprietorship?

    <p>Complete decision-making control by the proprietor</p> Signup and view all the answers

    What is a significant disadvantage of a sole proprietorship?

    <p>Unlimited liability, risking personal assets</p> Signup and view all the answers

    In a partnership, what does joint liability mean?

    <p>Partners are equally responsible for business debts</p> Signup and view all the answers

    Which of the following is NOT a characteristic of a sole proprietorship?

    <p>Limited liability for owners</p> Signup and view all the answers

    What is a common issue faced by partnerships?

    <p>Immediate dissolution upon partner withdrawal</p> Signup and view all the answers

    How do partners typically manage their business?

    <p>Partners share decisions and agree on profit sharing</p> Signup and view all the answers

    Which advantage is specific to partnerships compared to sole proprietorships?

    <p>Ability to pool resources and raise funds more easily</p> Signup and view all the answers

    What might deter high-skilled employees from joining a sole proprietorship?

    <p>Perceived instability in business operations</p> Signup and view all the answers

    What is one requirement of employees under Unilever's Code of Ethics?

    <p>Treat everyone fairly and equally without discrimination.</p> Signup and view all the answers

    Which principle is emphasized in Nestlé's Corporate Business Principles?

    <p>Integrate with diverse cultures.</p> Signup and view all the answers

    What does Ayala Corporation require for disclosure of material information?

    <p>It must be full, fair, accurate, clear, and timely.</p> Signup and view all the answers

    Which aspect is NOT included in Unilever's Code of Ethics regarding treatment of others?

    <p>Hiring based solely on personal connections.</p> Signup and view all the answers

    What does Nestlé recognize as a right of consumers?

    <p>Access to information about the products they buy.</p> Signup and view all the answers

    What is the main purpose of employees observing good manners in the workplace?

    <p>To ensure conversations do not distract other employees.</p> Signup and view all the answers

    Which of the following must be registered with the Department of Trade and Industry?

    <p>Sole proprietors</p> Signup and view all the answers

    What responsibility do employees have regarding company property?

    <p>To safeguard it against loss, theft, and misuse.</p> Signup and view all the answers

    How should office conversations be conducted to maintain professionalism?

    <p>By avoiding personal calls and maintaining confidentiality.</p> Signup and view all the answers

    Which of the following best describes the use of communication infrastructure in a business setting?

    <p>To ensure confidentiality and integrity.</p> Signup and view all the answers

    What must partnerships and corporations ensure regarding government compliance?

    <p>Registration with the Securities and Exchange Commission.</p> Signup and view all the answers

    Which behavior is considered unethical in business organizations?

    <p>Using low-quality materials in products.</p> Signup and view all the answers

    Employees should keep the workplace clean for which of the following reasons?

    <p>To promote a pleasant and professional environment.</p> Signup and view all the answers

    Study Notes

    Business Ethics

    • Business ethics is the practice of what is morally and ethically right in the conduct of business in the workplace
    • It is essential for organizations to establish credibility; this attracts customers and employees
    • All members of the organization from top management down should practice ethical standards that will morally uphold the organization and sustain its integrity at all times

    Levels of Business Ethics

    • To further understand the meaning of business ethics, Johnson and Scholes define three levels: macro, corporate, and individual
    • Macro: The macro level in ethics is defined as the area that represents business operations bound by the virtues and norms of the different political and social systems of every society. It clearly defines the crucial role of business and reinforces the role of the government in the delivery of benefits to its people in a morally upright and ethical manner. Every society has a code of conduct which specifies how a business activity is carried out, guided by national and international ethical standards.
    • Corporate: The corporate level in ethics represents how each company interprets the rules and standards of the industry; Managers who act morally and ethically as individuals engage in legal transactions that will benefit the company as a whole. Corporate ethics helps implementation of corporate strategies. Therefore, at the corporate level, business ethics helps the company respond to changing pressures effectively.
    • Individual: The individual level in ethics is the employee's own moral principles which guide his/her life. The combined ethical standards of every employee set the stage for the organization's moral issues. When an employee enters the organization, he/she has to reconcile his/her own personal convictions on ethics with the organization's moral and ethical standards.

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    Description

    Explore the fundamental concepts of business ethics, corporations, and their responsibilities to shareholders and stakeholders. This quiz covers ethical standards, decision-making, and examples of ethical dilemmas faced by businesses today.

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