Ethics

Business ethics reduce a company's freedom to maximise its profit

• True

• False

Business ethics offer companies little in terms of competitive advantage

• True

• False

What is ethical behaviour?

• Observing the law

• Doing the right thing

• Accepting lower profits

1.

Which of the

following best describes the link between ethical behaviour and profits?

• A trade off

• Opportunity cost

• Social costs

How does ethical behaviour affect profits?

• It always reduces profits

• It always increases profits

• It can increase or decrease profits

What do pressure groups aim to do?

• Change the behaviour of businesses

• Protest

• Make a profit

Two employees are working in a large multinational firm. One of them is accustomed to using handshakes as a method of greeting someone, while the other is used to

making a subtle salute. Company policy dictates that 'employees should greet each other in a polite manner'. Why is this an ethical question?

• Because it revolves around the interpersonal relationship of two people within a business organisation

• Because the problem at hand derives from a lack of managerial quality in resolving the problem.

• Because there might be a fallout from their lack of understanding and it is the ethical responsibility of the company to take note of the situation and find a way to deal with it before it compromises the morale of the employees.

• Because it derives from the interpretation of rules of conduct that are recognised by a particular group, in this case, the firm.

Which stakeholder is most able to stop unethical business behaviour?

• Pressure groups

• Customers

• Government

Which of these is NOT a method used by a pressure group?

• Contacting the press

• Running campaigns

• Negotiating labour rights

Whose interests are prioritised in ethical firms?

• Owners

• Primary stakeholders

• Secondary stakeholders