Question 1

Which of the following best describes the difference between ethics and laws in a business context?

Accepted Answer

Ethics are standards of moral behavior accepted by society as right versus wrong, while laws are written rules designed to protect us from fraud, theft, and violence.

Question 2

A manager at a company discovers a legal loophole that allows the company to avoid paying certain taxes, but doing so would harm the local community. According to ethical principles, what should the manager consider?

Accepted Answer

Whether the action aligns with basic moral values such as integrity and respect for others.

Question 3

Which of the following is an example of situational ethics?

Accepted Answer

A person decides what is right based on what works best for them in a given situation.

Question 4

Which ethical principle is violated when a CEO conceals evidence during an investigation into misconduct?

Accepted Answer

Accountability

Question 5

Why is it important for top management to set an example of ethical behavior in an organization?

Accepted Answer

Because organizational ethics begin at the top and strong leadership can help instill corporate values in employees.

Question 6

Which of the following is NOT a reason to manage businesses ethically and responsibly?

Accepted Answer

To increase employee turnover

Question 7

A company implements a code of ethics that emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers. What type of ethics code is this?

Accepted Answer

Compliance-based ethics code

Question 8

Which of the following is a feature of integrity-based ethics codes?

Accepted Answer

They focus on enabling responsible employee conduct and shared accountability.

Question 9

What is the main purpose of the Sarbanes-Oxley Act (SOX)?

Accepted Answer

To establish stronger standards to prevent misconduct and improve corporate governance practices.

Question 10

Which of the following best describes a whistleblower?

Accepted Answer

A person who reports illegal or unethical behavior within an organization.

Question 11

Which of the following is a dimension of Corporate Social Responsibility (CSR)?

Accepted Answer

Corporate Philanthropy

Question 12

A company donates a portion of its profits to local charities and encourages employees to volunteer. This is an example of:

Accepted Answer

Corporate Social Initiatives

Question 13

Which framework measures and reports corporate performance against economic, social, and environmental parameters?

Accepted Answer

Triple-bottom line (TBL)

Question 14

Which of the following is a key component of sustainable development?

Accepted Answer

Integrating environmental, economic, and social considerations into decision making.

Question 15

A company is considering reformulating its product to reduce environmental harm, even though it is not legally required to do so. What ethical principle is most relevant in this scenario?

Accepted Answer

Caring and compassion for society and the environment.

Question 16

Which of the following is NOT a step to improve business ethics according to the study materials?

Accepted Answer

Reward systems should encourage unethical behavior.

Question 17

Which of the following is a real-world example of a corporate scandal related to unethical behavior?

Accepted Answer

Volkswagen's emissions cheating scandal.

Question 18

What is the primary objective of compliance-based ethics codes?

Accepted Answer

Avoid criminal misconduct.

Question 19

Which of the following is a benefit of managing businesses ethically and responsibly?

Accepted Answer

Preventing government intervention.

Question 20

A company uses green materials, reduces waste, and invests in renewable energy projects. Which aspect of responsibility is this most closely related to?

Accepted Answer

Environmental responsibility

Ethics and Social Responsibility in Business

Study Guide - Practice Questions

Study Guide - Flashcards