Business Ethics and CSR Overview

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Questions and Answers

What best describes the concept of business ethics?

Policies focused solely on employee welfare.

A set of regulations imposed by the government.

Strategies to maximize short-term profits.

Moral principles that guide business operations. (correct)

Which of the following is a key reason why business ethics are important?

They contribute to employee biases.

They enhance a company’s reputation. (correct)

They enable companies to operate without regulations.

They focus on short-term financial gains.

What is the primary focus of Corporate Social Responsibility (CSR)?

To minimize costs in production.

To engage in practices benefiting society and the environment. (correct)

To maximize shareholder dividends.

To establish exclusive partnerships.

Which component of business ethics involves being accountable for the impact of business decisions?

Responsibility (C) Signup and view all the answers

What is a suggested method for incorporating business ethics into a company’s practices?

Develop a code of ethics. (A) Signup and view all the answers

Which of the following best reflects the concept of fairness in business ethics?

Treating all stakeholders equitably. (D) Signup and view all the answers

Which of the following actions can enhance a company's financial performance through CSR?

Aligning corporate actions with societal values. (B) Signup and view all the answers

Which step is NOT part of the ethical decision-making process?

Make decisions based solely on profit. (B) Signup and view all the answers

What is the main distinction between multinational companies (MNCs) and transnational companies (TNCs)?

MNCs adapt to local needs, while TNCs coordinate operations across borders. (D) Signup and view all the answers

Which component is NOT part of the 7Ps of Marketing?

Partnership (B) Signup and view all the answers

Which exchange rate system allows for government intervention to influence currency value?

Managed Float Exchange Rate (C) Signup and view all the answers

What is the primary role of money as a medium of exchange?

To facilitate trade (C) Signup and view all the answers

What is a defining characteristic of entrepreneurship compared to intrapreneurship?

Both require risk-taking but entrepreneurship is individual, while intrapreneurship is within a company. (D) Signup and view all the answers

What is not considered an advantage of exports?

Market monopolization (B) Signup and view all the answers

Which term refers to a country acting independently in its foreign policy?

Unilateralism (A) Signup and view all the answers

What does glocalization primarily focus on?

Adapting global products or services to fit local markets. (B) Signup and view all the answers

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Study Notes

Business ethics encompass moral principles guiding business decisions, including honesty, fairness, and respect for stakeholders.
Important because trust is built amongst customers, employees, and partners, enhancing company reputation and contributing to long-term success and sustainability.

CSR involves businesses going beyond profit-making, focusing on benefiting society and the environment.
Examples include environmental initiatives, ethical labor practices, and community involvement.
Aligns with and can enhance a company's financial performance.
Strengthens relationships with stakeholders leading to positive social and environmental impact.

Key Components of Business Ethics and CSR

Integrity: Consistently upholds ethical and moral principles; honest and transparent business dealings.
Fairness: Treats all stakeholders equitably, avoids discrimination.
Respect: Values employees, customers, and the community, protecting human rights and the environment.
Responsibility: Accountable for business decisions' impact.

Ethical Decision-Making

Identify the ethical issue.
Consider stakeholders involved.
Evaluate potential courses of action.
Make a decision and take action.
Reflect on the outcome.

Incorporating Business Ethics and CSR

Develop a code of ethics.
Provide ethics training to employees.
Establish a CSR committee.
Set measurable CSR goals.
Engage with stakeholders.
Report on CSR performance.

Importance of Business Ethics and CSR

Essential for building a sustainable and responsible business.
Contributes to a company's long-term success and reputation.
Companies must integrate ethical considerations into all aspects of their operations.

Additional Concepts in International Business and Trade

International Trade: Involves exporting and importing goods/services to and from foreign markets.
Multinational/Transnational Companies: Operate in multiple countries with subsidiaries or branches; transnational companies integrate operations across borders, adapting to local needs.
Entrepreneurship/Intrapreneurship: The creation of new ideas and products, often through risk-taking, as well as the application of new ideas or products within existing organizations.
International Financial System: Includes the concept of global financial institutions and their involvement in exchange rates, financial interventions, and development aid concepts.
Globalization: Occurs at global, regional and local levels, involving the adaptation of products and services to fit local markets, and considering cultural factors.

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Description

This quiz explores the essential concepts of business ethics and corporate social responsibility (CSR). You'll learn about the importance of honesty, fairness, and integrity in business decisions, as well as how CSR initiatives can positively impact society and enhance a company's reputation. Test your understanding of these principles and their key components.