Business Ethics Quiz
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Questions and Answers

What is a primary responsibility of both administrators and workers regarding ethics?

  • Ensuring that only administrators adhere to ethical principles.
  • Maximizing profits regardless of ethical implications.
  • Focusing solely on individual ethical development.
  • Motivating constructive actions while preventing unethical behavior. (correct)

    • Which of the following is NOT an area where ethical issues commonly arise in business?

  • Human resource management.
  • Finance and accounting practices.
  • Technological innovation. (correct)
  • Sales and marketing strategies.

    • What is a key aspect of individual ethics development within an organization?

  • Prioritizing personal gain over ethical considerations.
  • Ignoring personal values to conform to company policy.
  • Achieving professionalism and recognizing ethical implications of decisions. (correct)
  • Relying solely on external regulations for ethical guidance.

    • Which of these is considered an unethical financial practice?

    <p>Misleading financial analysis that does not reflect the true state of finances.</p> Signup and view all the answers

    In Human Resource Management, what type of discrimination is considered an ethical issue?

    <p>Favoring certain employees solely based on age, gender or race.</p> Signup and view all the answers

    What is a concern related to ethical marketing?

    <p>The complete omission of information about potential harm to consumers.</p> Signup and view all the answers

    What aspect of sales and delivery is linked to ethics?

    <p>Honesty in the price and delivery times.</p> Signup and view all the answers

    Which of the following is considered a potential ethical issue in sales?

    <p>Potentially altering perceptions and relationships through advertising.</p> Signup and view all the answers

    According to Edgar H. Schein, what are the two main reasons why a culture develops in organizations?

    <p>External adaptation and internal integration</p> Signup and view all the answers

    What does external adaptation in a corporate culture primarily determine?

    <p>How the company will reach its goals, accomplish tasks, and cope with success or failure.</p> Signup and view all the answers

    In the context of internal integration, how do members of an organization acquire a unique identity?

    <p>Through interaction with each other.</p> Signup and view all the answers

    What is the original Greek word from which the term 'ethics' is derived?

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

    In terms of working together, what is the first critical step in establishing group harmony?

    <p>Deciding who is a member of the group and who is not.</p> Signup and view all the answers

    According to the provided content, how does poor ethical conduct at the top of an organization typically affect the rest of the company?

    <p>It is often copied down through the organization.</p> Signup and view all the answers

    What is the purpose of 'internal integration' within a company's culture?

    <p>To establish a unique organizational identity and enable harmonious work among members.</p> Signup and view all the answers

    What is one way in which member develop a shared understanding of goals?

    <p>By sharing common experiences within the organization.</p> Signup and view all the answers

    What does the definition of ethics, as a science, primarily attempt to evaluate?

    <p>The morality of human conduct.</p> Signup and view all the answers

    What should managers ensure for the team or organization?

    <p>Harmony within the team or organization.</p> Signup and view all the answers

    What is the main purpose of organizations establishing a list of organizational values and codes of conduct?

    <p>To ensure that all workers recognize and adhere to the organization's ethical standards.</p> Signup and view all the answers

    What aspect of a business is directly impacted by the ethical conduct of its leaders?

    <p>The culture of the organization and employee behaviour.</p> Signup and view all the answers

    What does the example about bribing customs officials to expedite the release of materials illustrate about corporate culture?

    <p>The impact of corporate culture on ethical decision-making.</p> Signup and view all the answers

    How are the ideas about what is morally good and bad related to ethics?

    <p>Ethics are rules of behavior that are built on ideas of what is good and bad.</p> Signup and view all the answers

    According to the content provided, what is one way that an organization's ethical principles impact its internal operations?

    <p>They can have an impact on relationships within the company, efficiency, and employee retention.</p> Signup and view all the answers

    Which of these is NOT mentioned as a characteristic of the moral principles that guide human behavior described in the content?

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

    What is the primary characteristic of cultural assumptions within a company?

    <p>They exist at a largely unconscious level and are difficult to discern.</p> Signup and view all the answers

    How do employee actions become routines within a company's culture?

    <p>As they internalize the company's values and beliefs over time.</p> Signup and view all the answers

    In a company with a values-based culture, what is primarily emphasized?

    <p>A particular set of guiding principles and ethics.</p> Signup and view all the answers

    What role do leaders play in shaping corporate culture?

    <p>They act as role models by showcasing behaviors and values.</p> Signup and view all the answers

    What is a key characteristic of a compliance-based culture?

    <p>It emphasizes following rules, laws, and policies.</p> Signup and view all the answers

    What is the main focus of a compliance-based culture?

    <p>Following specific laws, rules, policies and regulations.</p> Signup and view all the answers

    In relation to ethics, what is the main role of the legal counsel in a compliance-based culture?

    <p>To ensure adherence to regulations and legal requirements.</p> Signup and view all the answers

    Which of the following is an example of a values-based culture in action?

    <p>Encouraging employees to share and develop new tech ideas.</p> Signup and view all the answers

    What is a key characteristic of a company with a values-based culture regarding its code of conduct?

    <p>They adopt their code of conduct with more consideration.</p> Signup and view all the answers

    In a values-based culture, when the rules do not cover a specific situation, what does the organization primarily rely on?

    <p>The personal integrity of its members to make correct judgement.</p> Signup and view all the answers

    What does the example of Tina Garcia from ABGM Network demonstrate?

    <p>How a company's values can significantly influence employee behavior.</p> Signup and view all the answers

    What should ethical leaders prioritize when performing their jobs?

    <p>Acting in accordance with the business' ethical values and principles.</p> Signup and view all the answers

    What does the example of Eugenio Lapid show about ethical leadership?

    <p>Caring and showing concern for the well-being of his subordinates.</p> Signup and view all the answers

    Why is it crucial for ethical leaders to visibly practice company values?

    <p>To influence perceptions and build an ethical culture among employees.</p> Signup and view all the answers

    What qualities does Mrs. Pam Palma demonstrate as an ethical leader?

    <p>Punctuality, carefulness with words, meticulousness, and the ability to balance work and family life.</p> Signup and view all the answers

    What conclusion can be drawn about the relationship between effective leadership and ethical leadership?

    <p>Not all effective leaders are effective ethical leaders.</p> Signup and view all the answers

    What is a key difference between an effective leader and an effective ethical leader, based on the content?

    <p>Effective leaders may use coercion, while ethical leaders use interpersonal means.</p> Signup and view all the answers

    Which of the following best describes an ethical issue in a business, according to the text?

    <p>A situation requiring a decision between right and wrong, ethical or unethical options.</p> Signup and view all the answers

    According to the content, what makes an issue ethical?

    <p>If it requires a decision between ethical and unethical options.</p> Signup and view all the answers

    The MNO Corporation IT head is described using which leadership style?

    <p>Coercive Leadership.</p> Signup and view all the answers

    The MNO Corporation HR head is described as exhibiting which leadership style?

    <p>Ethical Leadership.</p> Signup and view all the answers

    What is an example of misrepresenting a product, as outlined in the text?

    <p>Claiming a product can make skin fairer without proof.</p> Signup and view all the answers

    According to the content, what is considered an example of misuse of company time and resources?

    <p>Reading and posting on social media during work hours.</p> Signup and view all the answers

    What is a common outcome of misrepresenting a product to customers?

    <p>Negative publicity and customer dissatisfaction.</p> Signup and view all the answers

    Study Notes

    Module 3 - Code of Ethics

    • This module covers Business Ethics & Social Responsibility in Accountancy, Business and Management, module 12.
    • The module number is 3.
    • The school is City National High School, Bayog, 2007.
    • Contact information is provided: (055) 209 1535, @TheCityHighBulletin, @CCNHSOfficial.

    Most Essential Learning Competency

    • The competency is to formulate a "code of ethics that reflect core principles derives from analyses".
    • The code of ethics is for ABM_ESR12-Illa-d-1.6.

    Quotes

    • "If ethics are poor at the top, that behavior is copied down through the organization" - Robert Noyce.

    Objectives

    • Define ethics.
    • Explain why ethics is important in business.
    • Classify ethical issues.
    • Create a simple code of ethics for a business.

    Activity #1

    • Chona, an online food service owner, receives a complaint from a customer about spoiled food.
    • Students are asked to consider how Chona should handle the situation.

    Definition of Ethics

    • Ethics are derived from the Greek word "ethos," meaning "characteristic way of thinking."
    • Ethics is a science that evaluates morality and provides a common understanding of universal, objective, and irreversible moral principles.
    • Ethics guide human behavior and moral decisions (Roa, 2011).
    • Ethics are moral principles that guide individual conduct (Racelis, 2017).
    • Ethics are rules of behavior based on ideas about what is morally good and bad (Merriam-Webster Dictionary).

    Why Ethics is Important in Business

    • Business ethics, whether professional or personal, reflects principles and values of the person and the institution.
    • Organizations establish their culture, ideals, and thus impact efficiency, prestige, performance, and employee retention.
    • It impacts the relationships within the company, legal aspects, and the wider community.
    • Organizations develop values and codes of conduct, recognizing ethical actions, and an atmosphere that prevents unethical behaviors. This is a vital part of the administrative and workplace obligations.

    How to Apply Ethics

    • Organizations should concentrate on improving and encouraging respect for ethical principles among employees.
    • Understanding ethical implications of individual decisions is important.

    Examples of Ethical Issues in Business

    • Finance: Fairness in trading, conditions, and financial contracting, sales, consultancy, and tax payments; internal and external audits, and executive compensation; corporate bribery, kickbacks, misinformation, insider trading, and fraud are issues under the umbrella of finance and accounting.

    • Human Resource Management (HR): Hiring, orientation, performance evaluation, training, development, labor relations, and health and safety concerns are tasks of HR. Discrimination based on age, gender, sexual orientation, race, ethnicity, disability, and physical appearance, are all ethical issues.

    • Sales and Marketing: Marketing ethics involves beliefs, standards, and morals followed by advertisers and marketing organizations. It includes promoting obsolete or harmful products and/or services; providing appropriate environmental and financial information; protection of consumer privacy and autonomy; and honest advertising. Pricing involves practices like price manipulation and price skimming, as discussed by Hayes (2020).

    • Production: Company duties to ensure that goods and industrial procedures do not inflict harm. Examples include the adverse effects of tobacco products on consumers and the environment, such as air pollution, habitat destruction, and urban sprawl.

    Activity #2

    • Classify phrases into ethical issues categories (finance, human resource, sales/marketing, and production).
    • Examples of phrases to be classified are provided.

    Code of Ethics

    • It's a guide of behavior, professionally, to conduct business honestly and with integrity.
    • It may outline a business' mission and values; ethical principles; and the standards to which professionals are held.
    • Recommendations for developing a code of ethics include:
      • Adopting code of ethics from other companies.
      • Providing training to management and employees.
      • Dealing with immoral activities.
      • Rewarding employees' ethical behavior.
      • Carrying out a social audit/conducting surveys of employees.
      • Empowering individuals who maintain integrity and work with honesty.
      • Ensuring proper procedures for handling violations of ethical conduct within and across the company and the industry.
      • Ensuring high ethical standards are upheld by the board of trustees.
      • Leading by example.

    Ethical Issues in Business Decisions

    • When making ethical decisions, one way is by use of the four-way test.
    • Four key questions to address are: Is it truthful, fair to all affected parties, goodwill-building to the organization, and benefitting all parties with interest?

    Components of a Code of Ethics

    • Vision: A clear picture or idea of the future.
    • Values: Important principles or standards.
    • Mission: A specific task or goal.
    • Principles: Moral rules or beliefs.

    Simplified Sample Code of Ethics (XYZ Company)

    • Values: Integrity, respect for individuals.
    • Vision: Leading the car industry with quality cars and services.
    • Mission: Efficient and enthusiastically working to be the top car dealer and serving customers punctually and courteously.
    • Principles: Zero tolerance for bribery/corruption, following Philippine laws and regulations, acting in good faith, and maintaining professionalism.
    • Link to example code provided.

    Ethical Issues:

    • Ethical issues are identifiable problems and situations that require decisions according to several options--right or wrong, ethical or unethical.
    • These issues usually involve business financial matters.

    Ethical Issues in Business Decisions

    • Possible examples of ethical issues are given in the tables included.
    • The examples describe topics such as: misrepresentation of benefits, misuse of company time and resources, abusive behavior, and conflict of interest.

    Ethical Leadership and Management

    • Ethical leaders need to be visible models of company characteristics, values, and behaviors
    • Ethical leadership is important for creating and maintaining an ethical corporate culture, inspiring and motivating employees towards company goals.
    • Ethical leadership can include a values-based approach or a compliance-based approach.
      • Compliance-based cultures focus on adherence to rules, laws, policies, and regulations to address business ethics.
      • Values-based cultures prioritize values and principles over rules and focus on individual integrity and ethical decision-making.
    • The importance of ethical employees, their appropriate treatment and reward or punishment for ethical performance and mistakes is illustrated.

    Activities

    • Activity 4 requires referring to the textbooks for assigned readings.
    • Activity 4 contains examples of questions to be answered, such as classifying or defining the given issues, or responding to a possible workplace issue.

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    Related Documents

    Business Ethics & Social Responsibility Module 3 (PDF)

    Description

    Test your knowledge on key concepts of business ethics, including ethical responsibilities, discrimination issues, and the development of corporate culture. This quiz will challenge your understanding of individual ethics and the ethical implications in various business practices.

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