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CBSE Questions for Class 11 Commerce Business Studies Social Responsibilities Of Business And Business Ethics Quiz 5 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Social Responsibilities Of Business And Business Ethics
Quiz 5
The records and operation of the organisations have to be made more transparent. The shareholders, employees and creditors of the firm should be aware of each and every financial decision taken by the firm. This statement can be attributed to which type of measure to improve ethical behaviour of business?
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Government level
0%
Global level
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Institutional level
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Societal level
Explanation
Five steps to improve ethical performance
Develop a code, and make ethical performance a strategic priority.
Set the tone from the top.
Engage, communicate and train your staff.
Provide support routes for staff.
Measure effectiveness of your ethics programme
Which of the following action indicate unethical practice on part of business?
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To reduce price of product
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To pay bonus
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To reduce cost of product
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To reduce safety standards in factory premises.
Explanation
Ethics in human resources - Ethics is the main issue for HR managers, issues of ethics faced by HRP are:-
-Discrimination on the basis of sex, caste, religion, etc.
-Issues related to the employer such as Workplace surveillance etc.
-
Issues related to employers such as whistleblowing.
-Sexual harassment.
-Fair employment and business practice.
-Occupational Safety and Health.
-Community Service.
-To reduce safety standards in factory premises indicate unethical practice on part of the business.
Hence, option (D) is the correct answer.
Business ethics has ______ application.
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natural
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practical
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universal
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artificial
Explanation
Ethical principles are universal in nature. They prescribe obligations and virtues for everybody in a society. They are important not only in business and politics but in every human endeavor.
Which functional area in business ethics is about obeying and adhering to rules and authority ________________.
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Ethics in compliance
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Ethics in finance
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Ethics in production
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None of the above
Explanation
Compliance is about obeying and adhering to rules and authority. The motivation for being compliant
could be to do the right thing out of the fear of being caught rather than a desire to abide by the law. An
ethical climate in an organisation ensures that compliance with law is fuelled by a desire to abide by the
laws. Organisations that value high ethical values comply with the laws not only in letter but go beyond
what is stipulated or expected of them.
Ethics refers to a _______ that guides an individual while dealing with others.
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code
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conduct
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code of conduct
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rules of conduct
Explanation
The code of ethics outlines a set of fundamental principles which could be used as the basis for
operational requirements (things one must do), operational prohibitions (things one must not do). It is
based on a set of core principles and values and is by no means designed for convenience. The
employees subjected to the code are required to understand, internalize, and apply it to situations which
the code does not specifically address. Organizations expect that the principles, once communicated
and illustrated, will be applied in every case, and that failure to do so may lead to disciplinary action.
To create a code of ethics, an organization must define its most important guiding values, formulate
behavioural standards, review the existing procedures for guidance and direction and establish the
systems and processes to ensure that the code of conduct is implemented and effective. Codes of
ethics are not easily created from boilerplate. Ideally, the development of a code is a process in
whereby Boards and senior management actively debate and decide core values, roles, responsibilities,
expectations, and behavioural standards.
The Society for Business Ethics was started in _____.
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1950
0%
1960
0%
1970
0%
1980
Explanation
The Society for Business Ethics is a non-profit organization established in $$1980$$ to promote the advancement and understanding of ethics in business. Its mission is to provide a forum in which moral, legal, empirical, and philosophical issues of business ethics may be openly discussed and analyzed. Members include scholars, students, and professionals from several countries with a common interest in research, teaching, or the application of ethical principles to business management. The society sponsors a scholarly journal, Business Ethics Quarterly, publishes a newsletter, and hosts an annual conference. Members receive online access to the journal, the newsletter, and a number of scholarly books and conference proceedings as benefits of membership.
According to whom, business ethics is an art and science for maintaining harmonizing relationship with society?
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Rogene
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S.J. Mill
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Herbert Spencer
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Wheeler
Explanation
According to Wheeler Business Ethics is an art and science for maintaining harmonious relationship with society, its various groups and institutions as well as reorganizing the moral responsibility for the rightness and wrongness of business conduct.
Business Ethics or Ethical standards are the principles, practices and philosophies that guide the business people in the day today business decisions. It relates to the behaviour of a businessman in a business situation. They are concerned primarily with the impacts of decisions of the society within and outside the business organizations or other groups who keep interest in the business activities . Business ethics can be said to begin where the law ends. Business ethics is primarily concerned with those issues not covered by the law, or where there is no definite consensus on whether something is right or wrong.
According whom, business ethics refers to right or wrong behaviour in business decisions?
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S.J Mill
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CAntt
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Woodrad
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Rogene
Explanation
According to Rogene. A. Buchholz, "Business ethics refers to right or wrong behaviour
in business decisions".
Business Ethics or Ethical standards are the principles, practices and philosophies that
guide the business people in the day today business decisions. It relates to the behaviour of a
businessman in a business situation. They are concerned primarily with the impacts of decisions
of the society within and outside the business organizations or other groups who keep interest in
the business activities . Business ethics can be said to begin where the law ends. Business ethics
is primarily concerned with those issues not covered by the law, or where there is no definite
consensus on whether something is right or wrong.
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 – This principle of organizational ethics emphasizes that the means and techniques adopted to serve the organization 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.
______ is a set of principles and expectations that are considered binding on any person who is member of particular group
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Code of conduct
0%
Code of ethics
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Code of practice
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Any of the above
Explanation
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.
The code of ethics outlines a set of fundamental principles which could be used as the basis for
operational requirements (things one must do), operational prohibitions (things one must not do). It is
based on a set of core principles and values and is by no means designed for convenience. The
employees subjected to the code are required to understand, internalize, and apply it to situations which
the code does not specifically address. Organizations expect that the principles, once communicated
and illustrated, will be applied in every case, and that failure to do so may lead to disciplinary action.
Ethics is a set of _______ of human conduct that govern the behaviour of individuals or organizations.
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principles
0%
standards
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principles or standards
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none of the above
Explanation
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 judgements 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.
The term "ethics" is derived from the Greek word _______.
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ethos
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ethocis
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ethioys
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ethis
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 behavior or how an activity is conducted”.
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 judgement 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.
The term 'business ethics' came into common use in year _____.
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1950
0%
1960
0%
1970
0%
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.
Business Ethics is a code of conduct which businessmen should follow while conducting their _________.
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normal activites
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special activities
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specific activities
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none 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.
Which of the following is a feature of business ethics?
(1) Business ethics has a universal application.
(2) It is a relative norm. It differs from business to business
(3) Business ethics is based on well accepted moral and social values.
Select the correct answer from the options given below-
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(1)
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(2)
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(3)
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All the above
Explanation
Ethical principles are universal in nature. They prescribe obligations and virtues for everybody in a society. They are important not only in business and politics but in every human endeavor.
There exist no sharp boundaries between ethical and non-ethical. Therefore, people often face ethical dilemmas wherein a clear cut choice becomes very difficult.
Ethics relates to the formalized principles derived from social values. It deals with the moral choices that we make in the course of performing our duties with regard to the other members of society. Hence, it is relevant in the context of a society only.
State as to why business should behave ethically?
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To unprotect its own interest and of the business community as a whole
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To keep its commitment to society to act ethically
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To not meet stakeholder expectations
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To build distrust with key stakeholder groups
Explanation
An organization has to be ethical in its behavior because it has to exist in the competitive world. We can find a number of reasons for being ethical in behavior, a few of them are cited below: Most people want to be ethical in their business dealings. Values give management credibility with its employees. Only perceived moral righteousness and social concern bring employee respect. Values help better decision-making.
Hence, option (B) is the correct answer.
Scope of ethics in business is in which area(s)?
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Compliance
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Finance and HR
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Marketing and Production
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All of the above
Explanation
Compliance is about obeying and adhering to rules and authority. The motivation for being compliant
could be to do the right thing out of the fear of being caught rather than a desire to abide by the law. An
ethical climate in an organisation ensures that compliance with law is fueled by a desire to abide by the
laws. Organisations that value high ethical values comply with the laws not only in letter but go beyond
what is stipulated or expected of them.
Human resource management $$(HRM)$$ plays a decisive role in introducing and implementing ethical
practices in an organisation. Ethics should be a pivotal issue for $$HR$$ specialists. 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 in finance that companies and employees are confronted with include:
— In accounting – window dressing, misleading financial analysis.
Measures to improve ethical behaviour of business are framed at which level ____________.
Report Question
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institutional level
0%
government level
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societal level
0%
all of the above
Explanation
Measures to improve ethical behavior of business are framed at three level-
1. societal level
2. government level
3. institutional level
Reason(s) why business should act ethically include(s) ____________.
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To keep its commitment to society to act ethically
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To meet stakeholder expectations
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To protect their employees and their reputation
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All of the above
Explanation
Customer satisfaction is a vital factor of a successful business strategy. Repeated purchases/orders
and an enduring relationship with mutual respect are essential for the success of the company. The name
of a company should evoke trust and respect among customers for enduring success.
This is achieved
by a company only when it adopts ethical practices. When a company with a belief in high ethical
values is perceived as such, the crisis or mishaps along the way is tolerated by the customers as minor
aberrations.
Investors are concerned about the 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 result in sustained loyalty.
People aspire to join organizations that have high ethical values. Such companies are able to attract 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, ability to make
decisions and act on those decisions.
In such a work environment, employees can expect to be treated
with respect and will have consideration for their colleagues and superiors as well. Thus, the company's
policies cultivate teamwork, promote productivity, and support employee growth.
Hence, option (D) is the correct answer.
Corporate entities are legally considered as persons in __________.
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USA
0%
Japan
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China
0%
None of the above
Explanation
A
legal person
is any human or non-human
entity
, in other words, any human being, firm, or government agency that is recognized as having privileges and obligations, such as having the ability to enter into contracts, to sue, and to be sued.
Therefore, corporate entities are legally considered as person in usa.
Administrative corruption includes "gifts" to the _________.
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Factory inspector
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Boiler inspector
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Pollution control board inspectors
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All of the above
Explanation
Examples of adminstrative corruption inclues gifts to factory inspectors, boiler inspector, pollution control board inspector and officers under customs, income tax, gst.
Which of the following is a feature of business ethics?
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Business ethics is based on well accepted moral and social values
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Practice of business ethics give protection to corporate and not to consumers
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Business ethics provide road map to earn more profit in today's competitive world
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All the above
Explanation
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.
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.
Which functional area in business ethics is about obeying and adhering to rules and authority?
Report Question
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Ethics is compliance
0%
Ethics in finance
0%
Ethics in production
0%
None of the above
Explanation
Compliance is about obeying and adhering to rules and authority. The motivation for being compliant
could be to do the right thing out of the fear of being caught rather than a desire to abide by the law. An
ethical climate in an organisation ensures that compliance with law is fueled by a desire to abide by the
laws. Organisations that value high ethical values comply with the laws not only in letter but go beyond
what is stipulated or expected of them.
Business ethics cannot be enforced by __________.
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governance
0%
business
0%
law
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none of the above
Explanation
Governance cannot enforce business ethics upon any firm or enterprise.
Social responsibility of a business refers to its ________ obligation.
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Action values of our society
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Action values for business
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Action values for individual
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All of the above
Explanation
There is a kind of social contract between society and business by which the society
expects the business to work in its interest. Society creates and accepts business enterprises,
hence it expects them to work in a manner that is not detrimental to their well-being and
interests. Technological advancements have to be made but their impact on the environment
and mankind has he kept in mind.
Hence, option (A) is the correct answer.
The idea of social responsibility is ____________.
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Maximize owner worth
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Maximize profits of business
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Concern about effects on public
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All of the above
Explanation
Social responsibility in business or corporate social responsibility $$(CSR)$$ pertains to people and organizations behaving and conducting business ethically and with sensitivity towards social, cultural, economic, and environmental issues.
Hence, option (C) is the correct answer.
Business ethics is based on well accepted __________.
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moral and social values
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social values only
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moral values only
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none of the above
Explanation
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 maximise
profits against the needs of stakeholders. The significant issues in business ethics include ethical management of enterprise in relation to its stakeholders in particular and natural environment in
general.
An expert who is confidentially available to solve the ethical dilemmas is known as ________.
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ethic coach
0%
ethics trainer
0%
ethics guide
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none of the above
Explanation
Ethics Coaches is intended to provide standards of professional conduct. This code is intended to provide 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.
Ethics is important because _________.
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suppliers prefer to deal with ethical companies
0%
customers prefer to deal with ethical companies
0%
employees prefer to deal with ethical companies
0%
all of the choices
Explanation
Importance of ethics
Satisfying Basic Human Needs:
Being fair, honest and ethical is one the basic human needs. Every employee desires to be such himself and to work for an organization that is fair and ethical in its practices.
Creating Credibility:
An organization that is believed to be driven by moral values is respected in the society even by those who may have no information about the working and the businesses or an organization. Infosys, for example is perceived as an organization for good corporate governance and social responsibility initiatives. This perception is held far and wide even by those who do not even know what business the organization is into.
Uniting People and Leadership:
An organization driven by values is revered by its employees also. They are the common thread that brings the employees and the decision makers on a common platform. This goes a long way in aligning behaviors within the organization towards achievement of one common goal or mission.
Improving Decision Making:
A man’s destiny is the sum total of all the decisions that he/she takes in course of his life. The same holds true for organizations. Decisions are driven by values. For example an organization that does not value competition will be fierce in its operations aiming to wipe out its competitors and establish a monopoly in the market.
Long Term Gains:
Organizations guided by ethics and values are profitable in the long run, though in the short run they may seem to lose money. Tata group, one of the largest business conglomerates in India was seen on the verge of decline at the beginning of 1990’s, which soon turned out to be otherwise. The same company’s Tata NANO car was predicted as a failure, and failed to do well but the same is picking up fast now.
Securing the Society:
Often ethics succeeds law in safeguarding the society. The law machinery is often found acting as a mute spectator, unable to save the society and the environment. Technology, for example is growing at such a fast pace that the by the time law comes up with a regulation we have a newer technology with new threats replacing the older one. Lawyers and public interest litigations may not help a great deal but ethics can.
Measures to improve ethical behavior of business are framed at which level _________.
Report Question
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Institutional level
0%
Government level
0%
Social level
0%
All of the above
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