Ethical Decision-Making in Business

The video discusses business ethics, highlighting the importance of ethical behavior for societal and personal benefits. It contrasts ethical and unethical practices, explores legal vs. ethical dilemmas, and examines the impact of ethics on business and society. The video also covers ethical advertising choices and the role of stakeholders in ethical decision-making.

What is one of the main benefits of ethical behavior in business?

• Higher taxes

• Increased short-term profits

• Happier and more fulfilled lives for executives

• Reduced competition

According to Milton Friedman, what is the primary social responsibility of a business?

• Increasing its profits

• Reducing environmental impact

• Serving society

• Creating jobs

What is the minimal acceptable standard for ethical business behavior?

• Adopting new technologies

• Following industry trends

• Compliance with the law

• Maximizing profits

Which of the following is an example of an action that is ethical but illegal?

• Charging high interest rates on loans

• Evicting tenants for non-payment

• Helping slaves escape in the 19th century

• Advertising unhealthy products

Why might unethical behavior be costly for a business?

• It increases employee satisfaction

• It can result in public outrage and boycotts

• It reduces competition

• It always leads to legal action

What is one approach a business can take to ensure ethical advertising?

• Create ads that are potentially offensive

• Use exploitation to increase sales

• Include a systematic review of underlying messages

• Ignore ethics and focus on sales

Who are considered stakeholders in a business?

• Only shareholders

• Shareholders, employees, vendors, and customers

• Only local governments

• Only employees

What is a challenge businesses face when making ethical decisions?

• Balancing the interests of all stakeholders

• Maximizing short-term profits

• Reducing employee benefits

• Increasing product prices

What ethical obligation do businesses have in foreign countries?

• To prioritize profits over ethics

• To follow only local laws

• To maintain high ethical standards even if not mandated

• To ignore local customs and practices

What should employees consider regarding their ethical obligations to their company?

• How to minimize work hours

• How to maximize personal gain

• Whether to account for every minute of paid time

• Whether to take advantage of free perks