Business Ethics

Question 1

Ethics

Answer 1

Moral principles that guide decision making. An ethical decision is the right thing to do but unethical may not necessarily be illegal

Question 2

Ethical Issues

Answer 2

environment, animal rights, worker’s rights, corruption/ nepotism. trading issues, selling certain products to minors

Question 3

Code of Ethics

Answer 3

instruct employees on how to respond to ethical issues.

Question 4

Social Responsibility

Answer 4

Obligation of business to protect and improve the welfare of society. Involves making ethical decisions ,responding to societies expectations, meeting shareholders interest, voluntary actions to promote human welfare

Question 5

Benefits of Social Responsibility

Answer 5

1) Enhanced brand image and reputation
2) Increased sales and customer loyalty
3) Ability to attract and retain employees
4) Access to capital
5) Reduced regulations and penalties
6) Lower operating costs

Question 6

Disadvantages of Social Responsibility

Answer 6

1) Reduces profitability
2) Increased costs are passed onto consumer
3) Conflict between objectives of shareholders
4) Businesses dp not have skills to solve societal problems