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CBSE Questions for Class 11 Commerce Business Studies Social Responsibilities Of Business And Business Ethics Quiz 4 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Social Responsibilities Of Business And Business Ethics
Quiz 4
Which one of the following is not an unethical business practice?
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Collusion
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Insider Trading
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Kickback
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Whistle blowing
The rules or principles that define right or wrong conduct are known as _______.
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ethics
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customer satisfaction
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ethical conflict
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none 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.
Thus, ethics relates to the standards of conduct and moral judgments that differentiate right from wrong. Ethics is not a natural science but a creation of the human mind. For this reason, it is not absolute and is open to the influence of time, place and situation.
Which amongst the following ethical issue is not related with ethics in finance?
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Fraudulent asset valuation
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Insider trading
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Executive compensation
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Price fixing
Explanation
Price fixing-
a practice whereby rival companies come to an illicit agreement not to sell goods or services below a certain price.
Price fixing is not related with ethics in finance.
Which one of the following is a measure to improve ethical behavior of business at societal level?
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Indira Gandhi Paryavarari Puraskar
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Mumbai Grahak Panchayat
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Ethical Committee comprising BOD
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All of the above
Explanation
Mumbai Grahak Panchayat $$(MGP)$$ is perhaps the largest voluntary consumer organisation in India with a membership of 24,500 families. It has been engaged in activities of consumer protection and education for the last 33 years. Its unique collective group buying system provides a best practice model for sustainable consumption.
Anti-competitive practices include _________.
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insider trading
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grey markets
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employment of child labour in production activities
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tie-in arrangements
Explanation
Section 3(4) (a) of the
Competition
Act defines "tie in arrangement" as an agreement including any agreement requiring a purchaser of goods, as a condition of such purchase, to purchase some other goods.
A tie-in arrangement becomes illegal if it has an appreciable adverse effect on the competition. Tie-in arrangements have both good and bad effects on the competition. On one hand tie-in arrangements may result in price discrimination, barriers to new entry in the market, monopolization of the tied and tying products. On the other hand tie-in arrangement may benefit the consumers by providing them with goods or services in a bundle which are required and at lower price. But tie-in arrangements are more likely to adversely affect the economy than being beneficial to the economy.
Codes of conduct and codes of ethics ___________.
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are formal statements that describe what an organization expects of its employees
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become necessary only after a company has been in legal trouble
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are designed for top executives and managers and not for regular employees
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rarely become an effective component of the ethics and compliance program
Explanation
A corporate code of conduct may be defined as a document containing the core values and moral principles which all those working in the company are expected to follow in the course of their duties as well as in their daily activities. It reflects commitment of the company to ensure ethical behavior on the part, of its members. It also indicates how an employee should act in general or in specific situations. A code of conduct lays down 'do’s' and `don'ts'. It describes socially acceptable and responsible behavior. Hence, a code of ethics is a tangible guide to ethically desirable behavior.
The Code of conduct or what is popularly known as the Code of Business Conduct contains standards of business conduct that must guide actions of the Board of Directors and senior management of the company.
Business ethics is a __________ norm.
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perversive
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continuous
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relative
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none of the above
Explanation
Ethical or cultural relativism is a philosophical theory about the nature of morality. Fundamentally, relativists argue that no universal moral rules exist, and that all morality needs to be understood from the perspective of what the culture considers acceptable. They also suggest that every culture's moral system is equally valid because there is no universal standard about what is good or bad.
An activity is probably ethical if __________.
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It is approved of by most individuals in the organization and is customary in the industry
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It is approved of by most individuals in the organisation
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It is customary in the industry
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It is legal
A situation requiring a choice between equally undesirable alternatives; any difficult or perplexing situation or problem is known as _______.
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trivial
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pivotal
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dilemma
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veteran
Explanation
Dilemma is a situation that requires a choice between options that are or seem equally unfavorable or mutually exclusive. By definition, an ethical dilemma involves the need to choose from among two or more morally acceptable courses of action, when one choice prevents selecting the other; or, the need to choose between equally unacceptable alternatives.
A dilemma could be a right vs. wrong situation in which the right would be more difficult to pursue and wrong would be more convenient. A right versus wrong dilemma is not so easy to resolve. It often involves an apparent conflict between moral imperatives, in which to obey one would result in transgressing the other. This is also called an ethical paradox.
Sarbanes Oxley Act of $$2002$$ is named after which of the following experts?
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Aristotle
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Smator Paul Sarbanes
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Michael Oxley
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Both (b) and (c)
Explanation
The Sarbanes-Oxley Act, officially named the Public Company Accounting Reform and Investor Protection Act of $$2002$$, became law on $$July\ 30, 2002$$. The law was informally named after its sponsors, Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH).
The ethics in human resource management cover those ethical issues arising around the __________.
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society-employer relationship
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customer-employees relationship
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employer-State relationship
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employer-employees relationship
Explanation
Human resource management $$(HRM)$$ plays a decisive role in introducing and implementing ethical practices in an organisation. The ethics of human resource management $$(HRM)$$ covers those ethical issues that arise around the employer-employee relationship, such as the rights and duties issues between the employer and employee.
The ethical issues faced by $$HRM$$ include:
— Discrimination issues i.e., discrimination on the bases of age, gender, race, religion, disabilities etc.
Discrimination of whistle-blowers
— Issues surrounding the representation of employees and the democratization of the workplace and trade unionization.
— Issues affecting the privacy of the employee: workplace surveillance, drug testing, etc.
— Issues relating to the fairness of the employment contract and the balance of power between the employer and employee.
— Occupational safety and health issues:
Companies tend to shift economic risks onto the shoulders of their employees. The emergence of performance related pay system and flexible employment contracts are indicators of these newly established forms of shifting risk.
Investors are concerned about ________ of the company in which they invest.
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ethics, social responsibility and reputation
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employees
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executive compensation
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only profitability
Explanation
Investors are concerned about ethics, social responsibility and reputation of the company in which they
invest. Investors are becoming more and more aware that an ethical climate provides a foundation for
efficiency, productivity and profits. Relationship with any stakeholder, including investors, based on
dependability, trust and commitment results in sustained loyalty
Ethics has ________ application.
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universal
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continuous
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rigid
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limited
Explanation
Characteristics of Business Ethics
(i) A Discipline:
(ii) Ancient Concept:
(iii) Personal Dignity:
(iv) Related to Human Aspect:
(v) Study of Goals and Means:
(vi) Different from Social Responsibility:
(vii) Greater than Law:
Write the expanded form of "EBEN"?
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European Business Ethics Network
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European Behaviour Ethics Network
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Exact Business Ethics Network
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None of the above
Explanation
The European Business Ethics Network $$(EBEN)$$ works to promote business ethics in all sectors of society throughout Europe. Working with local, national, and regional actors, $$EBEN$$ seeks to increase awareness about corporate responsibility and encourage higher standards by facilitating dialogue and research on various issues pertaining to corporate ethics. $$EBEN's$$ Annual Conference brings together academics from different parts of Europe to explore new ideas and methods for the ethical practice of business. Additionally, $$EBEN’s$$ Research Conference joins practitioners and academics to share findings and experiences in an effort to advance socially responsible practices in European businesses.
Which of the following actions is an ethical practice?
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Harassment
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Heluseto grant leave; recording genuine reason in writing by the employer
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Corruption
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Discrimination by employer in treatment while dealing with employees.
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
recording genuine reason in writing for granting leave is an ethical practice, rest are unethical practice.
The word ethics is derived from the word 'ethos' which means ______.
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to hear
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to look
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to see
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to speak
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. The Oxford Dictionary states ethics
as “the moral principle that governs a person’s behaviour or how an activity is conducted”.
Which of the following is/are correct statements?
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Business ethics is not applicable is small business and industry
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Business ethics is not applicable to Government departments
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Business ethics is applicable to all types of businesses
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Business ethics is applicable to only few specifies business by GOI.
Explanation
Business ethics have universal approach and applicable to all class or types of company.
Business ethics is one of the important branches of applied ethics. Business ethics is the application of
general ethical ideas to business. ” Business ethics refers to the moral principles and standards and a
code of conduct that businessmen are expected to follow while dealing with others. Business essentially
is a means of society to use scarce resources to produce in an efficient manner those goods and
services which society wants and is willing to pay for. Businesses must balance their desire to maximize
profits against the needs of stakeholders.
________ refers to the code of conduct.
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Code of practice
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Code of ethics
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Business ethics
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All of the above
Explanation
Business ethics refers to a ‘code of conduct’ which businessmen are expected to follow while dealing
with others. ‘Code of conduct’ is a set of principles and expectations that are considered binding on any
person who is member of a particular group. The alternative names for code of conduct are ‘code of
ethics’ and ‘code of practice’.
Business ethics comprises of the principles and standards that guide behaviour in the conduct of
business. Businesses must balance their desire to maximize profits against the needs of the
stakeholders. Maintaining this balance often requires tradeoffs. To address these unique aspects of
businesses, articulated as well as implicit rules are developed to guide the businesses to earn profits
without harming individuals or society as a whole.
The term "Business Ethics" came into common use in the year ________.
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$$1950$$
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$$1960$$
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$$1970$$
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$$1980$$
Explanation
The notion of ethics in business can be traced back to the earliest forms of bartering, based on the principle of equal exchange. Countless philosophers and economists have examined the topic, from Aristotle and his concept of justice to Karl Marx's attack on capitalism. But the modern concept of business ethics dates back to the rise of anti-big business protest groups in the United States in the $$1970s$$. The subject gradually became an academic field in its own right, with both philosophical and empirical branches. Then, thanks to government legislation, ethics have been incorporated into businesses, reflected today in corporate social responsibility strategies and codes of conduct. Business ethics is now not only a firmly established academic field, it is something companies realize they need to manage and internalize.
Which of the following is not related to ethics in marketing?
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Price fixing
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Price discrimination
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Price skimming
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Over billing of expenses
Explanation
Ethics in marketing deals with the principles, values . As marketing is the backbone of the business marketing individual should be well trained in respect of ethics. T
herefore price fixing, price discrimination, price skimming are related to ethics in marketing but over billing of expenses are not a part of ethics in marketing
Which among the following is the vital factor in successful business strategy?
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Attracting and "Retaining Talent
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Investor loyalty
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Customer satisfaction
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None of the above
Explanation
Organizations around the globe develop strategic plans. They carefully create a vision of their future and the strategies needed to get their
critical factors that will ensure your strategic plans are successfully implemented:-
1.Engagement
2.Communication
3. Innovation
4. Project management
5.Culture
Therefore,
Customer satisfaction is a vital factor in a successful business strategy.
Hence, option (C) is the correct answer.
A/An ____________ is a moral situation in which a choice has to be made between two equally undesirable alternatives.
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Moral problem
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Moral obligation
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Ethical confusion
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Ethical dilemma
Explanation
A dilemma could be a right vs. wrong situation in which the right would be more difficult to pursue and
wrong would be more convenient. A right versus the wrong dilemma is not so easy to resolve.
it often involves an apparent conflict between moral imperatives, in which to obey one would result in
transgressing the other. This is also called an ethical paradox.
An ethical dilemma involves a situation that makes a person question what is the 'right' or 'wrong' thing
to do.
They make individuals think about their obligations, duties, or responsibilities. These dilemmas
can be highly complex and difficult to resolve. Easier dilemmas involve a 'right' versus 'wrong' answer.
whereas, complex ethical dilemmas involve a decision between a right and another right choice.
However, any dilemma needs to be resolved.
Hence, option (D) is the correct answer.
Which of the following can be related as the benefits of behaving ethically by the businesses?
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Long term sustainability
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Good will lost
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Societal resistance
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High attrition rate
Explanation
Today, in the contemporary business environment there are numerous changes hand competitors.
Each company meets numerous obstacles if their business plan is not based on business ethics.
Business ethics relates to an individual’s or a work group’s decisions that society evaluates as right or wrong.
The importance of business ethics in the first place is the fact that customers and consumers consciously and subconsciously perceive businesses as ethical.
This fact is more than enough for companies to start with ethical business. Hence long term sustainability can be related as the benefits of behaving ethically by the business.
According to sacredness of means and ends principle of business ethics ____________.
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For a good end a man should not be treated as a factor of production.
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It is unethical to do major evil to another or oneself.
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Business should not co-operate with any one for doing any evil acts.
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A good end cannot be attained with wrong means
Explanation
Sacredness of means and ends : The first and most important principles of business ethics
emphasize that the means and techniques adopted to serve the business ends must be sacred and
pure. It means that a good end cannot be attained with wrong means, even if it is beneficial to the
society.
Activity to improve ethical behavior by enacting various legislation is not taken at _________.
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government level
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institutional level
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industrial level
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societal level
Explanation
The major problem for implementing effective Codes of Ethics remains that no law or Code
will be of much value if individual civil servants lack the technical competence to recognize
an ethics problem for what it is, or if they do not know what standards their organization
expects of them, or (worst of all), if they consider it to be not in their interests, personally or
professionally, to take a stand for integrity and against corruption.
Measures taken to improve ethical behavior at Government Level are
-companies to follow various legislation such as the Minimum Wages Act, Essential Commodities Act etc,
- framing laws and strict penalties if laws do not adhere.
- The government should announce the certain reward for individuals who practice ethical behavior like Indira Gandhi Paryavaran Puraskar
-Using mass media to educate people.
__________ is doing the right thing even if nobody is watching.
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Promise keeping
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Effectiveness
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Efficiency
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Integrity
Which of the following can be related as the benefits of behaving ethically by the business?
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Societal resistance
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Goodwill lost
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High attrition rate
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Long term sustainability of business
Explanation
Ethical conduct is in the long-term interests of businessmen. A business enterprise that is
honest and fair to its customers, employees, and other stakeholders earns their trust and goodwill.
It ultimately results in customer satisfaction, healthy competition, industrial growth, and high earnings.
Businesses must balance their desire to maximize profits against the requirements of
stakeholders.
Maintaining this balance often requires trade-offs. To address this unique aspect
of business, rules are articulated to guide it to earn profits without harming individuals or society
as a whole.
While referring to the business activity profile, Mahatma Gandhi once mentioned that all
business entrepreneurs should ask themselves the question of whether the activities they are
contemplating would be of some use to the common man.
This statement emphasizes the
importance of nobility of business purpose.
Hence, option (D) is the correct answer.
The element which serves to provide employees with a means for reporting observed misconduct or violations without fear of reprisal is known as ___________.
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Ethics training
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Ethics coach
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Strong code of ethics
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Systems for confidential reporting
Explanation
Confidential reporting systems gather data from individuals about their mistakes made in the workplace or safety concerns that they feel unable to report through normal channels.
A confidential incident reporting system is a mechanism that allows problems in safety-critical fields such as aviation and medicine to be reported in confidence. This allows events to be reported which otherwise might not be reported through fear of blame or reprisals against the reporter.
Hence, option (D) is the correct answer.
Which ethical principle in business advocates equal treatment of all irrespective of caste, creed, gender or any other differences'?
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Justice and fairness
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Ethics of care
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Utilitarianism
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Right and duties
Explanation
Ethical executives and fair and just in all dealings; they do not exercise power arbitrarily, nor take undue advantage of another’s mistakes or difficulties.
Persons who follow fair practices manifest a commitment to justice, equal treatment of individuals, tolerance for and acceptance of diversity. They are open-minded, are willing to admit they are wrong and where appropriate, change their positions and beliefs. Thus justice and fairness are ethical principles in business advocates equal treatment of all irrespective of caste, creed, gender or any other differences.
Business ethics may be defined as a set of moral rules and principals to protect the interest of _________.
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industry as whole
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business unit
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both business & industry
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employer
Explanation
Importance of Business Ethics. Following ethical business practices are valuable for long-term gains
and success.
Trustworthiness and Honesty. Trustworthiness is a key element of business ethics because the client must have deep trust in your company.
Confidentiality.
Technical Integrity.
Creating an Open Environment.
Hence Business ethics may be defined as a set of moral rules and principals to protect the interest of both business and industry.
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