Business Ethics and Social Responsibility

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Questions and Answers

What does Friedman argue is the primary responsibility of businesses?

To maximize profits within competitive rules (correct)

To support community initiatives

To engage in ethical decision-making

To promote social welfare

According to Friedman, who has moral responsibility for actions?

Shareholders

Individuals (correct)

Corporations as entities

Government officials

What do Bebchuk and Tallarita say about stakeholder theories?

They exclusively benefit employees

They are either irrelevant or impractical (correct)

They are practical and beneficial

They encourage deception for profits

What challenge do businesses face according to the document?

Navigating ethical gray areas Signup and view all the answers

What is one reason businesses might delay ethical behavior?

Immediate financial success conflicts with long-term ethics Signup and view all the answers

Friedman's perspective on CSR implies that social issues should be addressed by:

Government responsibilities Signup and view all the answers

What do critics believe stakeholder theories ultimately serve?

Shareholder interests Signup and view all the answers

How do pluralistic ethical frameworks affect businesses?

They allow for conflicting interpretations of morality Signup and view all the answers

What was a consequence of the fear-based culture at the organization?

Coercion and wrongful termination Signup and view all the answers

Which psychological bias involved justifying unethical acts despite knowing they were wrong?

Ethical Illusions Signup and view all the answers

What is one recommendation for restoring ethical standards in an organization?

Strengthening ethical leadership and cultural reforms Signup and view all the answers

What does motivated blindness refer to in an ethical context?

Ignoring ethical breaches for financial gain Signup and view all the answers

Which of the following was a significant psychological factor contributing to misconduct?

Overvaluing Outcomes based on sales quotas Signup and view all the answers

What was one effect of the company's cross-selling strategy on customers?

Victimization by fraudulent accounts Signup and view all the answers

What aspect of ethical leadership is highlighted as crucial for preventing unethical conduct?

Demonstrating integrity, transparency, and fairness Signup and view all the answers

What is a key component of a robust ethics program?

Establishing whistleblowing channels Signup and view all the answers

What was a significant consequence of Shell's failure in stakeholder engagement during the 1990s?

Erosion of trust among stakeholders Signup and view all the answers

Which factor has reshaped the role of CSR in business strategy?

Increased regulatory pressures Signup and view all the answers

What aspect of Wells Fargo's culture contributed to the cross-selling scandal?

Top-down pressure to meet aggressive sales targets Signup and view all the answers

What major strategy did Wells Fargo implement that contradicted its ethical standards?

Go for Gr-Eight initiative Signup and view all the answers

What is a critical lesson learned from Shell's stakeholder engagement efforts?

Authentic engagement is vital for legitimacy Signup and view all the answers

What did Wells Fargo's initiative emphasize in terms of employee performance?

Revenue generation over ethical considerations Signup and view all the answers

What driving force is highlighted as integral to modern CSR practices?

Ethics and social values Signup and view all the answers

What unintended consequence arose from the aggressive sales culture at Wells Fargo?

Creation of unauthorized accounts Signup and view all the answers

What does relativism emphasize in ethical considerations?

A context-dependent and subjective approach Signup and view all the answers

What is a potential downside of relativism?

It can undermine universal principles Signup and view all the answers

How does pluralism relate to relativism and absolutism?

It advocates for consensus on universal ethical principles Signup and view all the answers

What is the main focus of egoism in ethical theories?

Serving the decision-maker's long-term interests Signup and view all the answers

What challenge does utilitarianism face?

Difficulty in quantifying outcomes Signup and view all the answers

Which ethical theory emphasizes actions based on universal principles?

Ethics of Duties (Kant) Signup and view all the answers

Ethics of Rights is primarily focused on what?

Safeguarding fundamental human rights Signup and view all the answers

One critique of the Ethics of Rights framework is:

It may exhibit Western-centric biases Signup and view all the answers

What is a key advantage of Creating Shared Value (CSV)?

Enhanced competitiveness through societal alignment Signup and view all the answers

Which of the following is a challenge faced in the implementation of CSV?

Balancing short-term profits with long-term goals Signup and view all the answers

What societal initiative is Coca-Cola known for in relation to CSV?

Water stewardship and conservation Signup and view all the answers

Which organization certifies B Corporations for accountability and social performance?

B Lab Signup and view all the answers

What is the primary focus shift for B Corporations compared to traditional corporations?

Integrating stakeholder needs and environmental concerns Signup and view all the answers

How do CSV initiatives often reduce business risks?

Through proactive engagement with societal challenges Signup and view all the answers

In the context of CSV, what does stakeholder engagement foster?

Trust and collaboration Signup and view all the answers

What is one of the features that protect B Corporations' societal goals?

Legal frameworks securing mission integrity Signup and view all the answers

What is the first step in the ethical decision-making framework?

Recognize the Moral Issue Signup and view all the answers

Which psychological driver of unethical behavior involves justifying unethical actions based on outcomes?

Overvaluing Outcomes Signup and view all the answers

What phenomenon does Lance Armstrong's case illustrate regarding the influence of environment?

Systemic Pressures Signup and view all the answers

What does establishing moral intent involve in ethical decision-making?

Committing to ethical action Signup and view all the answers

Which term describes the gradual compromise of ethics leading to larger breaches over time?

Slippery Slope Signup and view all the answers

What critical aspect do professionals need to consider when working in ethically controversial industries?

Long-term impacts Signup and view all the answers

Which cognitive bias contributes to ignoring unethical actions benefiting the observer?

Motivated Blindness Signup and view all the answers

What challenge does ethical decision-making often face within organizations?

Cultural and organizational pressures Signup and view all the answers

Study Notes

Business ethics is the study of business situations, activities, and decisions involving morally right or wrong actions.
Ethical dilemmas occur in grey areas where a clear right or wrong answer is absent.
Corporate social responsibility is the responsibility of businesses for the impacts they have on society.
Businesses should comply with laws and agreements.
CSR integration includes social, environmental, ethical, human rights, and consumer concerns within operations.
CSR aims to identify, prevent, and mitigate negative impacts while maximizing shared value for stakeholders and society.
Arguments against CSR often question its sincerity.
Some argue that businesses primarily focus on profit maximization and that social responsibility is the responsibility of governments, not companies.
Ethical decision-making involves recognizing moral issues, making judgments based on ethical principles, establishing moral intent, and acting ethically.
Psychological biases, such as overvaluing outcomes, motivated blindness, ethical illusions, and the slippery slope, contribute to unethical behavior.

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Description

Explore the important concepts of business ethics and social responsibility in this quiz. Dive into topics like ethical dilemmas, corporate social responsibility (CSR), and the implications of ethical decision-making in business practices. Understand how businesses can balance profit with social and environmental concerns.