Chapter 3 Flashcards
What is the primary focus of business ethics?
A) Maximizing profit at all costs
B) Balancing stakeholder interests with profits
C) Ensuring all business transactions are legally compliant
D) Making decisions in a way that considers ethical principles
D
Which concept involves a company’s voluntary commitment to social and environmental sustainability?
A) Corporate liability
B) Corporate social responsibility (CSR)
C) Business ethics
D) Profit maximization
B
What is the stakeholder model of responsibility?
A) A business model focusing only on shareholder returns
B) A model that addresses the needs and interests of all stakeholders
C) A model used solely by non-profit organizations
D) A regulatory framework for environmental compliance
B
How can a business encourage ethical behavior among its employees?
A) By reducing oversight and accountability
B) By implementing strict financial controls
C) Through ethics training and a strong corporate ethics policy
D) By focusing solely on legal compliance
C
What role does transparency play in corporate social responsibility?
A) It is unrelated to CSR
B) It decreases trust in the company
C) It involves disclosing business practices to stakeholders
D) It is only relevant in financial reporting
C
Which of the following is NOT a component of corporate social responsibility?
A) Environmental efforts
B) Ethical labor practices
C) Focus on increasing short-term profits
D) Community engagement
C
What is the main purpose of ethical codes in business?
A) To govern the personal behaviors of employees outside of work
B) To provide a guide for making ethical decisions within the company
C) To comply with international laws
D) To monitor competitor behaviors
B
How might a business demonstrate social responsibility in its community?
A) By avoiding taxes through offshore accounts
B) Through charitable contributions and volunteer programs
C) By maximizing shareholder wealth only
D) All of the above
B
What is an ethical dilemma in the business context?
A) A clear-cut situation with a single ethical answer
B) A situation where several legal options are available
C) A situation in which choosing between competing ethical principles is necessary
D) A problem that can be resolved through standard financial audits
C
What impact does CSR have on a company’s reputation?
A) It has no impact
B) It typically damages the reputation due to increased costs
C) It generally improves trust and goodwill among consumers and the community
D) It is viewed negatively by shareholders
C
Which of the following is NOT a primary focus of corporate social responsibility (CSR)?
A) Environmental protection
B) Economic profitability
C) Philanthropic efforts
D) Ethical labor practices
b
What does the stakeholder model of corporate governance primarily emphasize?
A) Shareholder profitability
B) Government regulations
C) Broad accountability to all parties affected by corporate decisions
D) Internal management efficiencies
c
Ethical dilemmas in business are least likely to involve:
A) Choices that potentially harm the environment.
B) Decisions that impact only internal stakeholders.
C) Trade-offs between corporate profit and social welfare.
D) Conflicts between personal values and organizational goals.
b
Which of the following is an example of a proactive approach to corporate social responsibility?
A) Following legal standards after regulatory fines.
B) Implementing a voluntary community development program.
C) Responding to customer complaints as they arise.
D) Establishing a compliance department due to legal pressure.
b
The triple bottom line in CSR does NOT explicitly include:
A) Social impact
B) Environmental impact
C) Ethical management
D) Economic value
c
