Business Ethics (C717)

Correct answer: 

utilizing ethical standards as significant inputs into top-level strategy formulation and implementation.

Explanation:

The core idea behind a global strategy for improving business ethics is to integrate ethical standards into the overall strategy of multinational corporations (MNCs). Ethical considerations should play a central role in strategic decision-making, ensuring that business operations align with global ethical norms and the expectations of various stakeholders, rather than simply focusing on profits or human rights alone.

Why the other options are incorrect:

a) placing ethics ahead of profits as the number one priority:

While ethics should be a priority, business strategy should aim to balance both ethics and profits, rather than placing one ahead of the other.

b) focusing on human rights rather than profits:

Human rights are a critical component of business ethics, but focusing solely on them to the exclusion of other ethical considerations and profitability is not the key idea in global strategy.

c) employing only hypernorms for the MNC's ethical standards:

"Hypernorms" are universal ethical norms, but the idea of focusing solely on them is not the primary central idea of the global ethics and strategy plan, which should integrate broader ethical inputs.

Correct answer:

B) Ethical behavior; and ethical reputation

Explanation: 

Ethical behavior and maintaining a strong ethical reputation can help a company build trust with customers, suppliers, and employees. This trust is a key competitive advantage, as it leads to long-term loyalty and positive relationships.

Why the other options are wrong:

A) personal goals; personal satisfaction: While personal goals and satisfaction are important for individuals, they do not directly create a competitive advantage in the marketplace.

C) Amoral techniques; an outright deception: These strategies can harm a company’s reputation and business in the long run, leading to loss of trust and competitive disadvantage.

D) Profit margins; demarketing strategies: While profit margins and marketing strategies are essential for business success, they are not focused on building competitive advantages through ethical behavior and reputation.

Correct answer:

A) Ethical issues are not limited to for-profit organizations.

Explanation:

Business ethics apply to all types of organizations, including non-profit organizations, government agencies, and even within personal or family-run businesses. Ethical considerations are important regardless of whether the organization is profit-oriented. This demonstrates the broader scope of ethics beyond just the profit-driven sector.

Why the other options are wrong:

B) Business ethics does not go beyond legal issues: This statement is incorrect because business ethics goes beyond legal requirements. While legal issues are part of business ethics, ethical decisions also involve moral principles and values that are not always covered by law.

C) Ethical conduct does not have any impact on business relationships: This is false. Ethical conduct directly impacts business relationships by building trust, promoting cooperation, and fostering long-term partnerships. Unethical behavior can severely damage relationships and reputation.

D) Ethical conflicts do not evolve into legal disputes: This statement is misleading. While not every ethical conflict becomes a legal dispute, many ethical issues, if not addressed, can evolve into legal problems, especially when they involve violations of laws or regulations.

Correct answer:

B) Product safety,

C) Community involvement.

Explanation:

Business ethics focuses on a wide range of issues, including the responsibility of businesses toward their employees, customers, and society. Among the most emphasized are product safety, ensuring that products meet safety standards and do not harm consumers, and community involvement, where businesses contribute to the well-being of the community they operate in.

Why the other options are wrong:

A) Employment policy:

While employment policies, such as fair treatment and non-discrimination, are important aspects of business ethics, they are not as directly emphasized as product safety and community involvement.

D) Capital budgeting policy:

Capital budgeting, which involves deciding how to allocate financial resources for long-term investments, is more of a financial decision-making process. While ethical considerations may come into play, it is not one of the primary focuses of business ethics.

Correct answer:

A. success

Explanation:

Corporate culture development in business ethics typically involves fostering ethical awareness, reasoning, and leadership. These components support the recognition of ethical issues, the ability to reason through ethical dilemmas, and leadership that sets a positive ethical example. "Success" does not directly pertain to the development of business ethics in this context.

Why the other options are incorrect:

B. awareness:

Ethical awareness refers to recognizing when an action or decision may have ethical implications, which is crucial in building an ethical corporate culture.

C. reasoning:

Ethical reasoning involves the ability to analyze and make decisions based on ethical principles, which is fundamental in guiding employees and leadership in ethical decision-making.

D. leadership:

Ethical leadership is a key component of developing a corporate culture that promotes ethical behavior, as leaders set the tone for ethical practices within the organization.

Correct answer:

c) Principles.

Explanation:

Principles refer to fundamental truths or propositions that guide behavior and decision-making. In the context of ethics, principles set the boundaries for what is considered acceptable behavior, serving as guidelines that should not be violated in business settings.

Why the other options are wrong:

a) Values:

Values are beliefs or standards that guide behavior but are not necessarily specific or pervasive boundaries. They are more general and subjective compared to principles.

b) Morals:

Morals are personal beliefs about right and wrong. While closely related to ethics, morals may vary greatly from person to person, and are not as universally applicable or specific as principles.

d) Philosophy:

Philosophy is the study of general and fundamental questions, including ethics, but it does not refer specifically to boundaries for behavior. It is a broader term encompassing many fields.

e) Business ethics:

Business ethics is the study of ethical principles in a business context, but it refers to a broader set of rules and guidelines, not just specific and pervasive boundaries. Principles are the individual elements within the broader field of business ethics.

Correct Answer:

Community involvement.

Explanation:

Community involvement: Sustainability encompasses not just environmental and economic factors, but also social aspects. Community involvement involves actively engaging with and improving the local communities where a company operates or where its suppliers are located. Investing in or developing these neighborhoods aligns with the social responsibility aspect of sustainability.

Why the other options are wrong:

Ethics: While ethical practices are important in sustainability, ethics generally focuses on moral principles and actions, not specifically on the direct support of communities.

Governance: Governance refers to the structures and processes used to direct and manage a company, including policies, regulations, and decision-making processes, which is different from community involvement.

Business relationships: Business relationships are important for operations and supply chain management, but community involvement focuses more on the broader social impact of business activities.

Financial return: While financial return is a key element of business sustainability, it doesn’t specifically relate to the investment in or development of neighborhoods where suppliers are located.

Correct answer: 

C) weighing the benefits, costs, and risks associated with a course of action.

Explanation:

Utilitarianism is an ethical philosophy that evaluates actions based on their consequences. In a business context, this means making decisions that maximize overall benefits while minimizing costs and risks. Utilitarian ethics emphasizes the greatest good for the greatest number, often using cost-benefit analysis to determine the most ethical course of action.

Why the other options are wrong:

A) ensuring justified treatment of any minority: While fairness and justice are important in ethics, utilitarianism does not focus specifically on protecting minorities. Instead, it prioritizes the overall balance of benefits and harms.

B) maximizing business profits by increasing employee productivity: While utilitarianism may consider profits, it does not solely focus on increasing productivity. It weighs multiple factors, including employee well-being and societal impact.

D) applying home-country standards of ethics in foreign countries: This relates more to ethical relativism or absolutism, rather than utilitarianism, which evaluates actions based on their overall outcomes rather than fixed ethical principles.

E) adopting the ethics of the culture in which a business operates: This describes cultural relativism, which suggests adapting to local ethical norms rather than focusing on maximizing overall well-being through utilitarian reasoning.

Correct answer:

c. Personal Ethics

Explanation:

Personal ethics refers to an individual's moral values and principles that guide their behavior in everyday life. These ethics influence relationships with family, friends, and society, shaping personal decisions and interactions.

Why the other options are wrong:

a. Business Ethics: Business ethics focuses on ethical principles within a business environment rather than an individual’s personal life.

b. Professional Ethics: Professional ethics govern conduct in a specific profession and impact workplace behavior more than personal relationships.

d. Work Ethics: Work ethics refer to an individual's dedication, responsibility, and integrity in a professional setting, but they do not directly impact family and personal life as significantly as personal ethics.