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CBSE Questions for Class 11 Commerce Business Studies Social Responsibilities Of Business And Business Ethics Quiz 3 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Social Responsibilities Of Business And Business Ethics
Quiz 3
Ethics has been received from Greek word _________.
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ethos
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ethes
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Eeths
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Eethose
Explanation
The term ethics is derived from the Greek word ethikos which itself is derived from the Greek word ethos, meaning custom or character.
In philosophy, ethical behavior is that which is “good.” The field of ethics or moral philosophy involves developing, defending, and recommending concepts of right and wrong behavior
In setting ethical standards, perhaps the most effective step that a company can take is to _________.
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adopt a code of ethics
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demonstrate top management support of ethical standards
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engage employees in ethics training
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take an accommodative stance
Explanation
The top management is ultimately responsible for its firm’s success or failure, as well as for the ethical climate and practices of its company. As has been stated earlier the ethical tone of an organization is set at the top, the actions and attitudes of the board greatly influence the ethical climate of an organization. The directors on a company’s board assume legal responsibility for the firm’s resources and decisions. Board members have a fiduciary duty, i.e., a position of trust and confidence.
Due to globalization and the enhanced role of media and technology, the demand for accountability and transparency has increased greatly. This calls for ethical decision-making as well as ethical decision-making framework.
A code of ethics should reflect top managements’ desire for compliance with the values, rules, and policies that support an ethical climate. The development of a code of ethics should involve the President, Board of Directors, and Chief Executive Officers who should be implementing the code.
Legal staff should also ensure that the code has assessed key areas of risk correctly and that it provides buffers for potential legal problems.
Which statement is false?
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Fewer and fewer companies are adopting codes of ethics.
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More and more companies are adopting codes of ethics.
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Some ethical responses can be learned through experience.
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Social responsibility involves providing quality products and pricing products fairly.
Explanation
Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. The field of ethics, along with aesthetics, concern matters of value, and thus comprise the branch of philosophy so in today's dynamic environment every small medium or large companies are adopting codes of ethics.
Select the issue that your text book identifies as a category of ethical issues to study.
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Development of relations with employees
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Fairness and honesty
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Business relationships
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All of the above
Explanation
Development of relations with employees, fairness and honesty, business relationships all are ethical issues to study as they all are concerned with human behavior, culture and diversity.
____________ are beliefs about what is right and wrong or good or bad.
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Mores
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Motivators
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Cultures
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Ethics
Explanation
Ethics is a conception of right or wrong conduct. Ethics tells us when our behavior is moral and when it is immoral. It deals with the fundamental human relationship, how we think and behave towards others and how we want them to think and behave towards us.
Ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues.
Behaviour that conforms to individual beliefs and social norms about what is right and good is referred as _________.
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collusion
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social reaction
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ethical
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none of the above
Explanation
Ethics, also called moral philosophy, is the discipline concerned with what is morally good and bad, right and wrong. The term is also applies to any system or theory of moral values or principles.
Ethics covers the following:
how to live a good life
our rights and responsibilities
the language of right and wrong
moral decisions - what is good and bad?
Ethics has become important because of _________.
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Globalization
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Communication explosion
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Both (a) & (b)
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None of the above
Ethics is a study of ________.
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the kind of action a person should do
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rules that define the course of actions
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discussion of the right and wrong codes of conduct
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all of the above
Explanation
The term “ethics” is derived from the Greek word “ethos” which refers to character, guiding beliefs, standards and ideals that pervade a group, a community or people.
Ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues.
It deals with the fundamental human relationship, how we think and behave towards others and how we want them to think and behave towards us.
Thus, ethics relates to the standards of conduct and moral judgments that differentiate right from wrong.
Business ethics came into use in early _________.
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$$1980s$$
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$$1970s$$
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$$1965s$$
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$$1975s$$
Explanation
The history of “business ethics” depends on how one defines it. Its current use originated in the United States and became widespread in the $$1970s$$.
The primary sense of the term refers to recent developments and to the period, since the early $$1970s$$, when the term 'business ethics' came into common use in the United States. Its origin in this sense is found in the academy, in academic writings and meetings, and in the development of a field of academic teaching, research and publication.
If the owner of a sports shoes store gives the manager of another athletic shoe manufacturing Company a new personal computer to get some work done from him which can help him in his business in competition with the athletic shoe manufacturing company, the shoe store owner is using which approach?
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Tipping
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Bribery
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Marketing
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Sowing excessive concern about the manager
Explanation
Bribery involves an attempt to influence the decision of someone in a position of authority by offering them money or similar benefit. In this question, the owner of the sports shoe store is unduly influencing by giving a new personal computer to manager of another athletic shoe manufacturing company in exchange for a work done from him which will give him a competitive advantage in his business. Bribery is typically illegal and the person committing bribery may be fined or imprisoned.
A behavior that does not conform to accepted beliefs and social norms is defined as ________.
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ethical
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unethical behaviour
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irresponsibility
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business ethics
Explanation
Unethical behavior is an action that falls outside of what is considered morally right or proper for a person, a profession or an industry. Individuals can behave unethically, as can businesses, professionals and politicians.
Unethical behavior is behavior that is contrary to our own moral principles as well as the principles admired in the community one lives in. Moral principles, such as fairness, honesty, dignity, and concern for individual rights are of profound importance.
The skills that are required for an ethical coach are ________.
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analytical skill
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confidentiality skill
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humanitarian skill
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all of the above
Explanation
Any ethical coach should posses analytical skill so as to be good at analyzing situation and taking decision.
Confidentiality skill, because that individual should have positive approach towards target or goals.
He should have moral values and should know to respect the feelings of others.
Thus all of above skills are required for an ethical coach.
Invariably businesses have unethical practice because of ___________.
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the stringent and rigid government policies
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fear of taxation
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greed
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none of the above
Explanation
Invariably business has unethical practice because of the stringent and rigid government policies. As the government implied strict policies which include the business to do identical practices in order to save taxes. More policies mean more bureaucrats involved which seeks a change of more corruptions which leads to unethical practices by businesses.
Having good ethical relations with customers will help company _________.
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by developing a strong competitive position
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by providing strong willingness amongst employees
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both (a) and (b)
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none of the above
Explanation
Having good ethical relations with the customers is s huge advantage for any company. Customers nowadays are more aware and conscious about the developments around them. Having good relations maintains the loyalty of the customers and it provides a strong competitive advantage over the rivals.
Business ethics helps the organization in ________.
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retaining people
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getting people
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attracting the best talent
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all of the above
Explanation
People aspire to join organizations that have high ethical values. Such companies are able to attract and retain the best talent. The ethical climate matters a lot to the employees. Ethical organizations create an environment that is trustworthy, making employees willing to rely on the company's policies. Retaining talented people is a big challenge for the company. The relationship with their employer must be a win-win situation in which their loyalty should not be taken for granted. Talented people will invest their energy and talent only in organizations with value and belief that matches their own.
Business ethics is __________ in nature.
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absolute
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not absolute
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permanent
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none of the above
Explanation
Business ethics is not absolute in nature. It is based on the theory of relativism.
Theory of Relativism promotes the idea that some elements or aspects of experience or culture are relative to, i.e. dependent on, other elements or aspects. It holds that there are no absolute truths in ethics and that what is morally right or wrong varies from person to person or from society to society.
A running company was selling defective machines by claiming them to be new, such kind of practice is unethical at __________.
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institution level
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government level
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society level
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none of the above
Explanation
Selling defective machines by claiming them to be of a new kind of practice is unethical at society level. Any transaction done which is not transparent and it could harm the other party is unethical in nature. Selling the defective machinery in an unethical way could harm the people living in the society.
Employer should behave ethically while dealing with employees, suppliers, customers etc. In this sense, what view does Business ethics concept represent?
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Narrow
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Limited
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Conservative
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Universal
Explanation
There are several ethical standards that are considered to be self-evident, and seem to apply to all people throughout all of history, regardless of cultural, political, social, or economic context. The non-aggression principle, which prohibits aggression, or the initiation of force or violence against another person, is a universal ethical principle.
Employer or a business management deal with the stakeholders in a way that they follow the universal principle of ethics to manage their relationship.
____________ is one of the principles in business ethics.
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Loyalty
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Security
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Integrity
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Both (a) & (c)
Explanation
INTEGRITY
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Maintain personal integrity. Ethical executives earn the trust of others through personal integrity. Integrity refers to a wholeness of character demonstrated by consistency between thoughts, words and actions. Maintaining integrity often requires moral courage, the inner strength to do the right thing even when it may cost more than they want to pay.
LOYALTY
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Be loyal within the framework of other ethical principles. Ethical executives justify trust by being loyal to their organization and the people they work with. Ethical executives place a high value on protecting and advancing the lawful and legitimate interests of their companies and their colleagues. Ethical executives demonstrate loyalty by safeguarding their ability to make independent professional judgments.
The end of cold war brought a concept of __________ before media and business firms.
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business communication
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business ethics
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business strategy
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none of the above
Explanation
Business ethics being part of the larger social ethics, always been affected by the ethics of the epoch. At different epochs of the world, people, especially the elites of the world, were blind to ethics and morality which were obviously unethical to the succeeding epoch. The current discourse of business ethics is the ethical discourse of the post-colonialism and post-world wars. The need for business ethics in the current epoch had begun gaining attention since 1970s.
If something is to be improved they have to be improved at _________.
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Organization level
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Government level
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Society level
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Individual level
Which one of the following is correct about business ethics?
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Business ethics has absolute norms
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Business ethics is enforced by law
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Following business ethics practices is mandatory for all organisations
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Business ethics has a universal application.
Explanation
Universal application- intended to provide standards of professional conduct. This code is intended to provide general principles to cover most situations encountered by coaches of ethics. Its primary goal is the welfare and protection of individuals and groups with whom coaches work.
Business ethics have no absolute norms, neither enforced by law.
Which of the following Acts made code of ethics mandatory for companies listed on the stock exchange?
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Companies Act, $$2006$$
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Sarbanes- Oxley Act, $$2002$$
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Limited Liability Partnership Act, '$$2008$$
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None of the above
Explanation
Section 302 of Sarbanes Oxley Act of 2002, an Act enacted by U.S. congress to protect investors by
improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for
other purposes contains following provisions for whistle-blowers:
• Make it illegal to “discharge, demote, suspend, threaten, harass or in any manner discriminate against”
whistle-blowers.
• Establish criminal penalties of up to 10 years for executives who retaliate against whistle-blowers.
• Require board audit committees to establish procedures for hearing whistle-blower complaints.
• Allow the secretary of labor to order a company to rehire a terminated employee with no court
hearing.
• Give a whistle-blower the right to a jury trial, bypassing months or years of administrative hearings.
Ethics is considered as ____________.
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normative science
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exact science
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natural science
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none of the above
Explanation
Ethics, also called moral philosophy, the discipline concerned with what is morally good and bad, right and wrong. The term is also applied to any system or theory of moral values or principles.
Hence ethic is not a normative science nor a exact science or natural science. It is better to call it as moral philosophy.
Which one of the following means ethical dilemma?
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A situation requiring a choice between ethical and unethical behaviour
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A situation of ethical behaviour
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A situation of unethical behaviour
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A written statement of policies and principles that guides the behavior of all employees.
Explanation
Ethical dilemmas, also known as a moral dilemmas, are situations in which there is a choice to be made between two options, neither of which resolves the situation in an ethically acceptable fashion. In such cases, societal and personal ethical guidelines can provide no satisfactory outcome for the chooser, like situation requiring a choice between ethical and unethical behavior
Business ethics and financial performance are linked together and hence are advantageous to _________.
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Company
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Investors' loyalty
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Employees
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All of the above
Explanation
Despite the increasing significance of corporate ethics, few studies have explored the intermediate mechanisms that explain the relationship between corporate ethics and firm's financial performance.
Businesses have great potential to transform people's lives and to alleviate poverty by generating economic growth. They produce goods and services that customers want and they create jobs.
Through paying taxes, they contribute to government revenue that can finance schools, hospitals and other public services.
A written document of policies and principles that guides the behavior of all employees is known as __________.
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ethical dilemma
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code of ethics
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financial delegation document
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none of the above
Explanation
Code of ethics.
A written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.
Which one of the following is the quality of an ethics coach?
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He should have strong knowledge of ethical practices
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He should have strong analytical skills
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He should have knowledge of decision making tools
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All of the above.
Explanation
Ethics coach - intended to provide standards of professional code of conduct. This code provides general principles to cover most situations encountered by coaches. Its primary goal is the welfare and protection of individuals and groups with whom coaches work.
The third key element to a strong ethics foundation is an "ethics coach" - the service can be either in-house or out-sourced, who will be available as a friendly and confidential resource for employees facing complicated ethical dilemmas. This person needs to have sufficient expertise in employing ethical concepts, analytical skills and decision-making tools to facilitate an ethical resolution to the problem.
Which one of the following statements about business ethics is false?
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Business ethics goes beyond legal issues.
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Ethical conflicts lead to ethical dilemma.
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Ethical conduct builds trust among individuals and in business relationships.
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Application of business ethics is limited to the profitable organisations.
Explanation
Business ethics is required for every type of organization, small or big, profitable or less profitable, as business ethics will help them to have a good connection with customers, employees, shareholders etc.
Business ethics is not against fair profit making. However, it is against making profit by cheating and exploiting consumers.
'Compliance' refers to obeying and adhering to _________.
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rules and authority
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policies and discipline
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laws
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none of the above
Explanation
In general, compliance means conforming to a rule, such as a specification, policy, standard or law. Regulatory compliance describes the goal that organizations aspire to achieve in their efforts to ensure that they are aware of and take steps to comply with relevant laws, policies, and regulations. Due to the increasing number of regulations and need for operational transparency, organizations are increasingly adopting the use of consolidated and harmonized sets of compliance controls. This approach is used to ensure that all necessary governance requirements can be met without the unnecessary duplication of effort and activity from resources.
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