Business Ethics

Describe the importance of business ethics and explain why ethical behavior is good for business.

• It builds customer trust and loyalty.

• It increases short-term profits.

• It reduces operational costs.

• It eliminates competition.

Which of the following are factors that create good business ethics?

• Transparency and accountability

• Lack of communication

• Ignoring stakeholder interests

• Unethical leadership

The role of ethics in business is to:

• Ensure compliance with laws and regulations

• Maximize profits at any cost

• Ignore stakeholder interests

• Focus solely on shareholder value

Fill in the blank: ______ are moral principles by which people conduct themselves personally, socially, or professionally.

• Ethics

• Laws

• Customs

• Habits

Fill in the blank: ______ are principles and standards that determine acceptable conduct in business.

• Business ethics

• Business strategies

• Market trends

• Financial goals

Fill in the blank: A ______ can cover issues such as employee behavior and environmental safety.

• code of ethics

• financial report

• marketing strategy

• product catalog

Organizations that exhibit a high ethical culture encourage employees to:

• Follow strict rules without question

• Report unethical behavior

• Focus solely on profit

• Ignore ethical guidelines

To truly create an ethical culture, managers must show a strong commitment to:

• Financial success

• Ethical values

• Innovation

• Customer satisfaction

Which of the following is a commitment most businesses are expected to uphold?

• Providing safe products

• Ignoring employee rights

• Harming the environment

• Misleading about financial situations

Which of the following is an example of ethical behavior in business?

• Honesty in communication

• Exploiting loopholes in regulations

• Misleading advertising

• Ignoring customer feedback