POBF On the Up & Up Biz Ethics 5.03C

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

• ethics are not always clear-cut

• it involves a lot of technical terms

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

• are often unwritten

• must be published

• are enforced by government

• are easy to determine

Which of the following is not one of the four pillars of a business’s social responsibility?

• Legal responsibility

• Political responsibility

• Economic responsibility

• Ethical responsibility

A business’s philanthropic responsibility involves its contributions to

• political campaigns

• scientific research

• charity

• the economy

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

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action

• benefits the community

• is not illegal

• is committed by unethical employees

• doesn’t hurt anyone

A financial advisor receives a “bonus” for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action

• benefits the community

• is acceptable within the industry

• is acceptable in foreign cultures

• is committed by unethical employees

Which of the following is a potential consequence of poor business ethics:

• Decreased internal problems

• Negative public image

• Increased customer loyalty

• Reduced risk of lawsuits