Business Ethics and Social Responsibility

Questions and Answers

What is the main concern of customers in relation to corporate social responsibility?

Ensuring value for their money, fair and truthful advertisement, and product safety and quality.

What is the primary goal of a company at the economic level of corporate social responsibility?

To maximize profits while complying with laws.

How do businesses demonstrate their commitment to employees at the stakeholder level?

By fostering participation in decision-making, providing proper working conditions, and fair treatment of all employees.

What is the primary concern of a business at the community level of corporate social responsibility?

Ensuring proper disposal of waste, reducing pollution, and lessening displacement caused by business operations. Signup and view all the answers

What is the primary goal of corporate governance?

To guide the way a business is operated through a set of rules, practices, and processes. Signup and view all the answers

What is the primary characteristic of a business at the discretionary level of corporate social responsibility?

Taking voluntary action to improve society, beyond what is required by law. Signup and view all the answers

What is the primary sector of economic activity, and what are some examples of industries within this sector?

The primary sector involves the harvesting, extraction, or collection of natural resources. Examples of industries within this sector include agriculture, fishing, forestry, mining, and deposits. Signup and view all the answers

What is the difference between equity and liabilities in a business's financial accounts?

Equity refers to the owner's capital in the form of original shares, while liabilities are sums of money that a business owes to an individual or other entity, represented by negative numbers in brackets. Signup and view all the answers

What is the purpose of a cash flow statement, and what are some of its advantages?

A cash flow statement shows how inflows were generated and outflows were spent, providing insight into a company's financial health and operational efficiency. Advantages include allowing for proper judgment on future cash flows, assessing liquidity and financial viability, and facilitating comparison of present and future values of funds. Signup and view all the answers

What is the quaternary sector of economic activity, and what are some examples of industries within this sector?

The quaternary sector involves knowledge-based activities, providing services primarily based on information, research, and technology. Examples of industries within this sector include financial planning, consultancy, information technologies, and designing. Signup and view all the answers

What is the relationship between profitability and cash flow in a business, and why is it important to consider both?

While cash flow is necessary for short-term operations, a business needs profit to be viable in the long term. Profitability and cash flow are interconnected, but a business may need to sacrifice cash flow for large investments to achieve long-term profitability. Signup and view all the answers

What is the process of accounting, and what are its key components?

The process of accounting involves recording, analyzing, summarizing, and reporting transactions. Key components include assets, capital, liabilities, and cash flow. Signup and view all the answers