Business Ethics Multiple Choice Questions(MCQs) & Answers

1 What is meant by the phrase CSR?

A Corporate Social Responsibility

B Company Social Responsibility

C Corporate Society Responsibility

D Company Society Responsibility

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Answer: Corporate Social Responsibility

2 What does Milton Friedman believe to be the sole responsibility of business?

A The only social responsibility of business is to its shareholders

B Managers should act in ways that balance the interest of society and shareholders

C The primary responsibility organizations have is to its employees

D The primary responsibility organizations have is to its stakeholders

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Answer: The only social responsibility of business is to its shareholders

3 What is the enlightened self-interest model of CSR?

A That it is in an organization's own best interest to put itself first rather than its ethics

B That it is in an organization's best interest to consider what a shareholder would want

C That it is in an organization's own best interest to act in an ethical way

D That it is in an organization's own best interest to follow the legislation and abide by the law

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Answer: That it is in an organization's own best interest to act in an ethical way

4 What does the importance of ethical behaviour, integrity and trust call into question?

A The extent to which managers should attempt to change the underlying beliefs and values of individual followers

B Who does what

C What we do next

D None of these

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Answer: The extent to which managers should attempt to change the underlying beliefs and values of individual followers

5 Which of the following would most effectively act as the primary objective of a business organisation?

A To make a profit

B To procure resources

C To communicate with shareholders

D To mediate between the organisation and the environment

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Answer: To make a profit

6 Which of the following does the term Corporate Social Responsibility relate to?

A Ethical conduct

B Environmental practice

C Community investment

D All of the above

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Answer: All of the above

7 What is Ethics to do with?

A The wider community

B Business

C Right and wrong

D Nothing

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Answer: Right and wrong

8 Which legislation relates to the concept of business ethics?

A Freedom of Information Act

B Food Act

C Building regulations

D All of these

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Answer: Freedom of Information Act

9 A stakeholder orientation includes all of the following activities except:

A Generating Data About Stakeholder Groups

B Assessing The Firm's Effects On Stakeholder Groups

C Distributing Stakeholder Information Throughout The Firm

D Minimizing The Influence Of Stakeholder Information On The Firm

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Answer: Minimizing The Influence Of Stakeholder Information On The Firm

10 A (n) ________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.

A Crisis

B Ethical Issue

C Indictment

D Fraud

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Answer: Ethical Issue

11 What type of justice exists if employees are being open, honest, and truthful in their communications at work?

A Procedural

B Distributive

C Ethical

D Interactional

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Answer: Interactional

12 Better access to certain markets, differentiation of products, and the sale of pollution-control technology are ways in which better environmental performance can:

A Increase Revenue

B Increase Costs

C Decrease Revenue

D Decrease Costs

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Answer: Increase Revenue

13 Atmospheric issues include all of the following except:

A Acid Rain

B Global Warming

C Air Pollution

D Water Quantity

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Answer: Water Quantity

14 Most companies begin the process of establishing organizational ethics programs by developing:

A Ethics Training Programs

B Codes Of Conduct

C Ethics Enforcement Mechanisms

D Hidden Agendas

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Answer: Codes Of Conduct

15 When a firm charges different prices to different groups of customers, it may be accused of:

A Cultural Relativism

B Money Laundering

C Facilitating Payments

D Price Discrimination

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Answer: Cultural Relativism

16 Successful global initiatives addressing standards for business must begin and end with:

A the role of corporate governance and shareholder power in corporate decision making

B social activism

C the implementation of standardized ethics programs

D the consolidation of economic and environmental efforts

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Answer: the role of corporate governance and shareholder power in corporate decision making

17 The social economy partnership philosophy emphasizes:

A Cooperation And Assistance

B Profit Maximization

C Competition

D Restricting Resources And Support

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Answer: Cooperation And Assistance

18 Which of the following is a problem presented by ethics audits?

A They may be used to reallocate resources

B They identify practices that need improvement

C Selecting auditors may be difficult

D They may pinpoint problems with stakeholder relationships

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Answer: Selecting auditors may be difficult

19 The first step in the auditing process should be to secure the commitment of:

A Employees

B Top Executives And Directors

C Stockholders

D Customers

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Answer: Top Executives And Directors

20 ____________ refers to a strategic process involving stakeholder assessment to create long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment.

A Eco-strategy

B Green marketing

C Superfund reauthorization

D Recycle and reprocess management

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