3.4.4 Business Ethics

What is Corporate Social Responsibility (CSR)?

• A company's obligation to maximise profits for shareholders.

• A company's commitment to manage the social, environmental, and economic effects of its operations responsibly.

• A company's strategy to reduce costs by outsourcing.

• A company's focus on increasing market share.

Which of the following is an example of ethical decision making in business?

• Choosing to ignore environmental regulations to cut costs.

• Implementing fair trade practices in sourcing materials.

• Prioritising profit over employee welfare.

• Engaging in deceptive advertising.

What is the primary purpose of a stakeholder impact assessment?

• To evaluate the financial performance of a company.

• To assess the impact of business decisions on all stakeholders.

• To determine the market value of a company's shares.

• To analyse the competitive position of a company.

Which of the following is a reason for doubting CSR initiatives?

• They always lead to increased profits.

• They are often used as a marketing tool rather than a genuine effort.

• They are mandatory for all businesses.

• They have no impact on a company's reputation.

What is a common trade-off between profit and ethics in business?

• Increasing profits by reducing product quality.

• Enhancing brand reputation by engaging in ethical practices.

• Reducing costs by improving employee benefits.

• Expanding market share by ignoring environmental concerns.

Which of the following is a reason for a company to engage in CSR?

• To avoid paying taxes.

• To improve its public image and brand reputation.

• To reduce employee wages.

• To increase short-term profits.

How can ethical decision making benefit a business?

• By reducing the need for employee training.

• By fostering trust and loyalty among customers and employees.

• By eliminating the need for marketing.

• By decreasing production costs.

What is a potential negative impact of CSR on a business?

• Increased customer satisfaction.

• Higher operational costs.

• Improved employee morale.

• Enhanced brand loyalty.

Which of the following best describes the concept of 'pay and rewards' in business ethics?

• The process of determining the market value of a company's shares.

• The system of compensating employees fairly for their work and contributions.

• The strategy of reducing employee benefits to cut costs.

• The method of increasing executive bonuses at the expense of lower-level employees.

Why might a company choose to prioritise ethics over profit?

• To increase short-term revenue.

• To comply with legal requirements.

• To build long-term sustainability and trust.

• To reduce competition in the market.