1.04 Business Ethics E1

You decide not to take a certain action because you know it’s the wrong thing to do. You have made this decision based on your

• Peers

• Ethics

• Regulations

• Laws

A business’s ethics determine whether or not an action is acceptable for that business, especially if the action

• Affects the environment

• Is illegal

• Contributes to the business's profitability

• Has a negative impact on others

Understanding business ethics can be difficult since

• There are no industry-specific ethical codes

• It is a relatively new field of study.

• Many people aren’t sure how to behave ethically.

• It involves a lot of technical terms

Which of the following is a true statement about business ethics and the law:

• The two are not the same thing, but they do overlap.

• Everything that is illegal is also unethical.

• Everything that is unethical is also illegal.

• The two have nothing to do with each other.

One difference between business ethics and the law is that business ethics

• Are often unwritten

• Must be published

• Are enforced by the government

• Are easy to determine

Which of the following is a true statement about breaking the law:

• It is acceptable in most industries.

• It is necessary for business success.

• It will make a company more popular.

• It may have different consequences than breaching ethics.

Which of the following is one of the four pillars of a business’s social responsibility:

• Political responsibility

• Economic Responsibility

• Media Responsibility

• Universal responsibility

A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility.

• Legal

• Ethical

• Philanthropic

• Economic

Which of the following is an example of a business’s ethical obligation to its stakeholders:

• Sharing trade secrets within its industry

• Doubling investors’ money within two years

• Providing safe working environments for employees

• Allowing the competition to succeed

Why should a business practice good ethics?

• An unethical business will go bankrupt.

• The government will fine an unethical business.

• An ethical business makes more money than all its competitors.

• An ethical business contributes toward its own success.