Business Ethics: Standards and Purpose

Questions and Answers

Match the following purposes of business ethics with their descriptions:

To make businessmen realize they cannot employ double standards = To show businessmen common practices are wrong To serve as a standard or ideal for business conduct = To help determine right and wrong business practices To assist in formulating codes of conduct for business decisions = To guide in making business plans and strategies To evaluate situations according to personal beliefs = To have a universal standard code of ethics

Match the following statements with the correct description:

Business ethics involves making moral and right decisions = Covers all conduct, behavior, and judgment in business Businesses are legally bound to conduct business ethically = Based on personal values and standards of individuals engaged in business There is no universal standard code of ethics in the business world today = Individuals evaluate situations according to their beliefs One specific purpose of business ethics is to assist in formulating codes of conduct = Helps in making business plans and strategies

Match the following concepts with their definitions:

Standards of moral conduct, behavior, and judgment in business = Business ethics Area where businesses are socially obligated to be ethical = Corporate responsibility Business practices that are considered right = Ethical business practices Personal values and standards influencing business behavior = Ethical decision-making

Match the following terms with their meanings:

Determining right and wrong in business practices = Purpose of business ethics Guiding principles for ethical behavior in business = Codes of conduct Document outlining acceptable behavior in a company = Code of ethics Set of rules for conducting oneself ethically in business = Business standards Signup and view all the answers

Match the following ethical concepts with their descriptions:

Ethical principles = Acts that may be legal but are considered wrong Business ethical rules of conduct = Observing fair competition and making right choices Uniform standards of right and wrong = Lack of consistent guidelines for business actions Fair business competition = Achieving success through offering better products or services Signup and view all the answers

Match the following impacts with their descriptions:

Economic impact = Influences society through employee wages, supplier payments, and customer prices Social impact = Contributes to the ethical climate of society through corporate governance Environmental impact = Business influence on society through implementation of good environmental policies Impact on business managers = Expected to act in the best interest of the business while following the law and conscience Signup and view all the answers

Match the following negative impacts with their consequences:

Corruption in businesses = Raises prices for consumers and compromises product or service quality Breach of legal limitations = Leads to a deteriorating ethical environment and societal ethics suffer Accounting fraud = Contributes to a deteriorating ethical climate in society Offering bribes for work = Negatively affects the ethics of society Signup and view all the answers

Match the following positive impacts with their outcomes:

Fair living wages for employees = Has a positive social impact on employees and suppliers Paying suppliers fairly and on time = Creates a positive effect on the suppliers Good value for customers' money = Positively impacts customers by providing value for price paid Implementing good environmental policies = Reduces internal costs and promotes a positive company image Signup and view all the answers

What is the main purpose of business ethics?

The main purpose of business ethics is to help businesses determine what business practices are right and what are wrong. Signup and view all the answers

What is one of the special purposes of business ethics mentioned in the text?

To make businessmen realize that they cannot employ double standards to their own actions and the actions of others. Signup and view all the answers

Why is business ethics necessary?

Because the business world today does not have one universal standard code of ethics, and individuals evaluate situations according to their own beliefs. Signup and view all the answers

What does business ethics cover, as stated in the text?

Business ethics covers all conduct, behavior and judgment in business. Signup and view all the answers

What is one of the specific purposes of business ethics mentioned?

To serve as a standard or ideal upon which business conduct should be based. Signup and view all the answers

What is business ethics based on?

Business ethics is based on the personal values and standards of each person engaged in business. Signup and view all the answers

What are the key areas of business influence on society according to the passage?

The key areas of business influence on society according to the passage are: economic impact, social impact, and environmental impact. Signup and view all the answers

What is the difference between what is legal and what is ethical, as described in the passage?

The passage states that while some actions may be legal (not forbidden by law), they can still be considered unethical if they violate ethical principles. There is no uniform standard of right and wrong that all businesses base their actions on. Signup and view all the answers

What are the positive social impacts of businesses, as described in the passage?

The passage states that businesses can have a positive social impact by paying fair living wages and benefits to employees, paying suppliers fairly and on time, and providing customers with good value for the prices they pay. Signup and view all the answers

How can a business's environmental policies impact society, according to the passage?

The passage states that businesses that implement good environmental policies to reduce waste and lighten their environmental footprint can not only reduce their internal costs, but also promote a positive image of their company. Signup and view all the answers

What is the key limitation placed on a business manager's actions, according to the passage?

The passage states that although a manager is expected to act in the best interest of the business, they cannot be expected to act in a manner that is contrary to the law or to their conscience. Signup and view all the answers

Study Notes

Business Ethics

Business ethics involves making moral and right decisions, and is an area of corporate responsibility where businesses are legally bound and socially obligated to conduct business in an ethical manner.
It is based on personal values and standards of each person engaged in business.

Purposes of Business Ethics

Main purpose: to help businesses determine what practices are right and wrong.
Special purposes:
To make businessmen recognize that they cannot employ double standards to the actions of others and their own actions.
To show businessmen that common practices thought to be right because others do them are actually wrong.
To serve as a standard or ideal for business conduct.

Scope of Business Ethics

Covers all conduct, behavior, and judgment in business, including slight deviations from what is right to illegal and dishonest acts.
Involves making right choices while engaging in business activities such as manufacturing, selling products, and rendering services.
Covers legal acts that violate ethical principles.
Actions not forbidden by law are considered ethical, but what is legal may not be ethical.

Fair Business Competition

Achieving success solely by offering better products, services, and terms than competitors.
Success is gained by the merits of one's goods or services.

Economic Impact

Business economic impact on society through wages, materials, and prices.
Positive social impact on employees if paid fair living wages and benefits.
Positive effect on suppliers if paid fairly and on time.
Positive effect on customers if given good value for the price.

Contributes to the ethical climate of society.
Negative impact if businesses engage in corruption, bribery, or fraud.
May unfairly raise prices or compromise product/service quality.

Environmental Impact

Key area of business influence on society.
Businesses that implement good environmental policies can reduce internal costs and promote a positive image.

Impact on Business Managers

Managers are expected to act in the best interest of the business, but not in a manner contrary to the law or their conscience.

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