Podcast
Questions and Answers
Which of the following is not considered unethical behavior in business?
Which of the following is not considered unethical behavior in business?
A code of ethics is essential for guiding the expected moral behavior of all employees in a business.
A code of ethics is essential for guiding the expected moral behavior of all employees in a business.
True
Name one way a business can improve its ethics in the workplace.
Name one way a business can improve its ethics in the workplace.
Encourage whistleblowing, develop a code of ethics, model ethical behavior, provide staff training.
Businesses have a social, ethical, and environmental __________ to follow ethical practices.
Businesses have a social, ethical, and environmental __________ to follow ethical practices.
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Match the unethical behavior to its description:
Match the unethical behavior to its description:
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What is a key responsibility of environmentally conscious businesses?
What is a key responsibility of environmentally conscious businesses?
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Environmentally conscious businesses often cover up accidents or breaches of laws affecting the environment.
Environmentally conscious businesses often cover up accidents or breaches of laws affecting the environment.
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Which company closed 8,000 stores to address a social justice issue?
Which company closed 8,000 stores to address a social justice issue?
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The environmentally conscious business that states it is 'in business to save our home planet' is _____.
The environmentally conscious business that states it is 'in business to save our home planet' is _____.
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Match the following environmental business practices with their descriptions:
Match the following environmental business practices with their descriptions:
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What is one benefit of meeting social, ethical, and environmental responsibilities?
What is one benefit of meeting social, ethical, and environmental responsibilities?
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What is NOT a consequence businesses can impose for breaches of the code of ethics?
What is NOT a consequence businesses can impose for breaches of the code of ethics?
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A code of ethics is meant to only benefit the management of a company.
A code of ethics is meant to only benefit the management of a company.
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Businesses focused on environmental sensitivity avoid conducting Environmental Impact Statements.
Businesses focused on environmental sensitivity avoid conducting Environmental Impact Statements.
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What is a disadvantage of meeting social, ethical, and environmental responsibilities?
What is a disadvantage of meeting social, ethical, and environmental responsibilities?
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What is the purpose of an ethical audit?
What is the purpose of an ethical audit?
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_____ committed to achieving net-zero emissions throughout its value chain by 2030.
_____ committed to achieving net-zero emissions throughout its value chain by 2030.
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Rewards for ethical behavior can include __________ and promotions.
Rewards for ethical behavior can include __________ and promotions.
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Match the stakeholders with their responsibilities:
Match the stakeholders with their responsibilities:
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What can be a potential drawback of businesses focusing on ethical labor practices?
What can be a potential drawback of businesses focusing on ethical labor practices?
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Environmentally conscious businesses often ignore environmental issues among their employees.
Environmentally conscious businesses often ignore environmental issues among their employees.
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Which of the following is NOT a characteristic of an environmentally conscious business?
Which of the following is NOT a characteristic of an environmentally conscious business?
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A strong code of ethics can help improve decision-making capabilities within a business.
A strong code of ethics can help improve decision-making capabilities within a business.
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Name a company that redeveloped its manufacturing processes to be powered completely by renewable energy.
Name a company that redeveloped its manufacturing processes to be powered completely by renewable energy.
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A business's commitment to using energy more efficiently aligns with the concept of _____ development.
A business's commitment to using energy more efficiently aligns with the concept of _____ development.
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Why might employees dismiss a new code of ethics?
Why might employees dismiss a new code of ethics?
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Corporate Social Responsibility (CSR) involves making a positive contribution to the __________.
Corporate Social Responsibility (CSR) involves making a positive contribution to the __________.
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Match the following companies with their environmental initiatives:
Match the following companies with their environmental initiatives:
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Which of the following is a common reason for businesses to adopt environmentally friendly practices?
Which of the following is a common reason for businesses to adopt environmentally friendly practices?
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What is one of the disadvantages of having a code of ethics?
What is one of the disadvantages of having a code of ethics?
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Keeping a code of ethics up-to-date is unimportant for its effectiveness.
Keeping a code of ethics up-to-date is unimportant for its effectiveness.
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What should businesses do to encourage whistleblowing?
What should businesses do to encourage whistleblowing?
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The code of ethics defines expected behaviors and makes __________ clear.
The code of ethics defines expected behaviors and makes __________ clear.
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Why might a company experience industrial unrest after implementing a code of ethics?
Why might a company experience industrial unrest after implementing a code of ethics?
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A code of ethics should only be relevant to upper management.
A code of ethics should only be relevant to upper management.
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Study Notes
Business Ethics
- A set of moral rules and standards that guide truthful and right behaviour in business.
- These principles guide business decisions, ensuring fairness, honesty, and respect are considered regardless of potential profit impact.
- Business ethics focus on social, ethical, and environmental responsibility.
Unethical Behaviour in Business
- Low wages
- Poor quality goods
- Sourcing from unethical suppliers (e.g., sweatshops)
- Unsatisfactory shareholder dividends
- Unsafe working conditions
- Environmental damage
- Employee discrimination
Improving Business Ethics
- Whistleblowing: Encourage employees to report unethical behaviour through incentives and clear reporting procedures.
- Code of Ethics: Develop a formal written statement outlining expected moral behaviour for everyone involved in the business, covering interactions with colleagues, customers, and the community.
Code of Ethics Benefits
- Decision Making: Provides a foundation for future business decisions, ensuring all stakeholders are considered.
- High Standards: Clarifies expected behaviour for management and staff, promoting alignment with set standards.
- Corporate Image: Promoting the code of ethics can improve public perception, attract employees and customers, and strengthen reputation.
- Rules and Procedures: Deter unethical behaviour by defining expectations and outlining clear consequences.
- Encourages Whistleblowing: Codes of ethics can include procedures for reporting unethical behaviour, empowering employees to speak up.
Code of Ethics Disadvantages
- Culture Clashes: Employees may dismiss a new code as a formality if not consistently implemented or supported by management.
- Keeping Up-to-Date: Codes need regular updates to remain relevant, including new ethical considerations (e.g., social media use).
- Enforcement: Sanctioning employees, especially in new systems, can lead to conflict and unrest.
- Training: Implementing and maintaining a code requires investment in staff training, which can be time-consuming and costly.
Corporate Social Responsibility (CSR)
- A business's duty to treat everyone honestly and fairly, contributing positively to its operating environment.
- Involves taking responsibility for the impact on stakeholders.
Example of Stakeholder Responsibility
- Investors: Businesses should be transparent with financial information, provide reasonable dividends, and avoid excessive executive bonuses. This is illustrated by VW's share price drop after admitting to emissions manipulation, leading to investor lawsuits.
Environmentally Conscious Business Characteristics (CHAOSS)
- Consultation: Engaging with stakeholders to seek input and information before implementing policies that impact the environment.
- Honesty: Being truthful and transparent about environmental issues, taking responsibility for any transgressions, and avoiding cover-ups.
- Awareness: Promoting environmental awareness within the business, educating employees, customers, and the business community, and investing in environmentally conscious practices.
- Openness: Willing to adapt and change processes, including product design, manufacturing, and recycling.
- Sensitivity: Considering all potential environmental impacts in policy-making through environmental audits.
- Sustainable Development: Using natural resources responsibly, considering the needs of future generations, and promoting renewable energy sources.
Specific Examples of Environmentally Conscious Business
- Aldi: Paid employees the living wage (€12.30 in 2019) for their skills and responsibilities, exceeding the legal minimum wage (€10.10 in 2020).
- Patagonia: Has a long history of prioritizing environmental consciousness, emphasizing sustainable practices and promoting responsible consumerism.
- Ikea: In 2020, they transitioned to using renewable energy for all their manufacturing processes.
- Starbucks: Responded openly to a social justice controversy, closing stores and providing employee training to address a manager's bias.
Benefits of Meeting Social, Ethical, and Environmental Responsibilities
- Cost Reductions: Lower risk of fines for environmental violations, reduced legal disputes with employees, potential for long-term cost savings with renewable energy sources.
- Corporate Image: Boosting public perception and brand reputation by promoting environmentally friendly products and responsible behaviour.
- New Market: Attract environmentally conscious customers and expand into new markets by developing sustainable products and services.
- Employee Morale: Positive environmental attitudes contribute to a supportive and ethical work environment, improving employee satisfaction and loyalty.
Disadvantages of Meeting Social, Ethical, and Environmental Responsibilities
- Labour Costs: Paying the living wage (€14.80 in 2023) can increase staffing costs.
- Production Costs: Sourcing ethically produced raw materials may be more expensive.
- Capital Expenditure: Investing in new environmentally friendly machinery can require significant capital investment.
- Waste Disposal: Safe disposal of hazardous waste can incur additional costs.
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Description
This quiz explores the fundamental concepts of business ethics, including the moral principles that shape business conduct. It also addresses the consequences of unethical behavior and strategies for improving ethical practices within organizations. Understand the importance of a code of ethics and the role of whistleblowing in fostering a responsible business environment.
