2. Business Ethics

What does social responsibility in business refer to?

• The obligation to maximize profits for shareholders

• The concern of businesses for the welfare of society beyond legal requirements

• The responsibility to pay taxes

• The duty to engage in competitive practices

What is the term for individuals or groups to whom a business has a responsibility?

• Shareholders

• Stakeholders

• Board members

• Executives

What is the term for a person who reports illegal activity occurring within a firm to outside parties?

• Insider

• CEO

• Whistleblower

• Auditor

What is the term for the practice of limiting investments to securities that fit within beliefs about ethical and social responsibility?

• Ethical investing

• Social investing

• Strategic investing

• Responsible investing

According to the 2016 The Forum for Sustainable and Responsible Investing report, what is the value of SRI assets in the U.S.?

• Over $500 million

• Over $8.72 trillion

• Over $1 billion

• Over $100 billion

What is the primary purpose of a code of ethics in a company?

• To define the company's financial goals

• To provide employees with expectations regarding their responsibilities and behavior

• To outline the company's annual budget

• To serve as a legal document in court proceedings

Which of the following is a trend in corporate philanthropy?

• Random giving

• Strategic giving

• Giving only to the largest charities

• Avoiding any form of giving

Which of the following is NOT a self-test to help make the right ethical decision?

• The Feeling Test

• The Newspaper or Social Media Test

• The Financial Gain Test

• Asking if the action is legal

What is the philosophy that focuses on the consequences of an action to determine whether it is right or wrong?

• Justice

• Utilitarianism

• Deontology

• Individual Rights

What is the term for a company's efforts to improve society in some way?

• Profit Maximization

• Cost Reduction

• Corporate Social Responsibility

• Market Expansion