Ethics and Social Responsibility in Business: A Comprehensive Guide for MBA Students

Question 1

What is the primary objective of environmental law?

Accepted Answer

To regulate pollution and safeguard natural resources

Answer

To encourage economic growth and development

Answer

To protect consumers from harm

Answer

To enforce corporate governance standards

Question 2

Explain the difference between corporate social responsibility (CSR) and sustainability.

Accepted Answer

CSR focuses on stakeholder interests, while sustainability focuses on environmental impact

Answer

CSR is voluntary, while sustainability focuses on long-term profitability

Answer

CSR is a legal requirement, while sustainability is a voluntary practice

Answer

There is no difference between CSR and sustainability

Question 3

What is the function of an ethical code in guiding business behavior?

Accepted Answer

It provides a framework for making ethical decisions

Answer

It shields businesses from legal liability

Answer

It is legally binding on employees

Answer

It serves as a public relations tool

Question 4

Which fundamental principle of corporate governance prioritizes the interests of all stakeholders?

Accepted Answer

Stakeholder primacy

Answer

Shareholder primacy

Answer

Transparency and accountability

Answer

Profit maximization

Question 5

The Clean Air Act is an example of what type of environmental law, which prescribes specific actions for businesses and individuals to comply with?

Accepted Answer

Command-and-control regulation

Answer

Market-based instrument

Answer

Common law

Answer

Tort law

Question 6

Which ethical principle suggests that businesses should prioritize the prevention of harm to others?

Accepted Answer

Non-maleficence

Answer

Justice

Answer

Autonomy

Answer

Beneficence

Question 7

Which of the following is NOT a factor that can influence ethical decision-making in a business setting?

Accepted Answer

Personal income

Answer

Personal values

Answer

Corporate culture

Answer

Government regulations

Question 8

A whistleblower is an individual who:

Accepted Answer

Reports wrongdoing to the relevant authorities

Answer

Represents businesses in ethical disputes

Answer

Investigates financial misconduct

Answer

Exposes corporate malpractices through journalism

Question 9

How does corporate social responsibility (CSR) differ from sustainability?

Accepted Answer

CSR encompasses ethical behavior, while sustainability focuses on environmental practices

Answer

Sustainability emphasizes long-term viability, while CSR focuses on short-term benefits

Answer

CSR is mandatory, while sustainability is voluntary

Answer

There is no meaningful difference between CSR and sustainability

Question 10

How does ethics play a crucial role in corporate decision-making?

Accepted Answer

Guides decision-makers towards responsible choices

Answer

Ensures compliance with legal requirements

Answer

Maximizes profits for shareholders

Answer

Eliminates all potential risks and uncertainties

Question 11

Which of the following laws protects the environment by regulating the discharge of pollutants into water bodies?

Accepted Answer

The Clean Water Act

Answer

The Clean Air Act

Answer

The Resource Conservation and Recovery Act

Answer

The Comprehensive Environmental Response, Compensation, and Liability Act

Question 12

Which of the following was a primary objective of the Sarbanes-Oxley Act of 2002?

Accepted Answer

Improving corporate governance and financial reporting

Answer

Protecting the environment from pollution

Answer

Enhancing consumer rights and protections

Answer

Reducing tax burdens on businesses

Question 13

Which of the following is a primary responsibility of businesses to their shareholders?

Accepted Answer

Maximizing profits over the long term

Answer

Ensuring a safe and healthy workplace for employees

Answer

Protecting the environment from harmful practices

Answer

Contributing to the well-being of society

Question 14

What is the primary purpose of consumer protection laws?

Accepted Answer

To protect consumers from unfair or deceptive practices

Answer

To promote competition and prevent monopolies

Answer

To regulate the pricing of goods and services

Answer

To provide financial assistance to low-income consumers

Question 15

Identify the main ethical concerns associated with the increasing use of artificial intelligence (AI) and machine learning in business.

Accepted Answer

Job displacement and potential bias in decision-making algorithms

Answer

Increased efficiency and productivity without ethical concerns

Answer

Enhanced data privacy and security

Answer

Improved decision-making without human error

Question 16

What is the primary objective of environmental law?

Accepted Answer

Protecting the environment from harmful practices

Answer

Promoting sustainable economic development

Answer

Ensuring compliance with government regulations

Answer

Maximizing profits for businesses

Question 17

According to stakeholder theory, businesses should prioritize the interests of:

Accepted Answer

All stakeholders, including shareholders, customers, employees, suppliers, and the community

Answer

Shareholders only

Answer

Customers and employees only

Answer

Government agencies and regulators only

Question 18

Which of the following is a legal requirement for businesses operating in the United States?

Accepted Answer

To adhere to government regulations

Answer

To maximize profits

Answer

To act in an ethical manner

Answer

To protect the interests of shareholders

Question 19

What was the primary impetus behind the enactment of the Sarbanes-Oxley Act?

Accepted Answer

Financial accounting scandals

Answer

The dot-com bubble burst

Answer

The Great Recession

Answer

The global economic crisis

Question 20

The ethical principle of utilitarianism places emphasis on:

Accepted Answer

Maximizing happiness for the greatest number of people

Answer

Adhering to a set of moral rules

Answer

Respecting individual rights and autonomy

Answer

Promoting equality and justice

Question 21

Corporate social responsibility (CSR) underscores that businesses have a duty to:

Accepted Answer

Act responsibly towards society and stakeholders

Answer

Maximize profits

Answer

Protect the environment strictly

Answer

Avoid ethical responsibilities

Question 22

Which of the following principles is NOT a key principle of corporate governance?

Accepted Answer

Maximizing short-term profits at any cost

Answer

Board of directors' accountability to shareholders

Answer

Transparency and accuracy in financial reporting

Answer

Separation of ownership and management roles

Question 23

The Clean Air Act is an example of:

Accepted Answer

Environmental law

Answer

Consumer protection law

Answer

Employment law

Answer

Tax law

Question 24

Which ethical theory places emphasis on the consequences of actions?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Answer

Natural law

Question 25

The Sarbanes-Oxley Act was enacted primarily due to:

Accepted Answer

Corporate scandals and financial irregularities

Answer

Environmental degradation

Answer

Consumer safety concerns

Answer

Labor union demands

Question 26

Which among the following is NOT considered a stakeholder of a business?

Accepted Answer

Competitors

Answer

Customers

Answer

Employees

Answer

Suppliers

Question 27

The Sarbanes-Oxley Act of 2002 primarily focuses on:

Accepted Answer

Corporate financial reporting standards

Answer

Consumer protection regulations

Answer

Environmental law enforcement

Answer

Labor relations management

Question 28

What is the primary objective of the Americans with Disabilities Act (ADA)?

Accepted Answer

To ensure equal opportunities for individuals with disabilities

Answer

To shield businesses from discrimination lawsuits

Answer

To provide financial aid to disabled individuals

Answer

To establish quotas for hiring individuals with disabilities

Question 29

Which of the following is an ethical challenge faced by businesses engaging in global operations?

Accepted Answer

Navigating cultural differences in ethical norms

Answer

Complying with varying environmental regulations

Answer

Managing currency exchange rate fluctuations

Answer

应对政治不稳定

Question 30

Which ethical theory emphasizes maximizing overall well-being, seeking the greatest benefit for the majority?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Answer

Kantian ethics

Question 31

Which of the following is a key component of corporate governance?

Accepted Answer

Board of Directors

Answer

Shareholders

Answer

Employees

Answer

Customers

Question 32

The Clean Air Act is an example of legislation related to which area of ethical and social responsibility?

Accepted Answer

Environmental Law

Answer

Consumer Protection

Answer

Labor Law

Answer

Antitrust Law

Question 33

Which of the following is considered a fundamental ethical principle that guides responsible business conduct?

Accepted Answer

Integrity

Answer

Profit maximization

Answer

Shareholder primacy

Answer

Competitive advantage

Question 34

The Foreign Corrupt Practices Act (FCPA) primarily focuses on prohibiting businesses from:

Accepted Answer

Bribing foreign officials

Answer

Establishing subsidiaries abroad

Answer

Hiring foreign workers

Answer

Investing in emerging markets

Question 35

The concept of sustainability in business refers to:

Accepted Answer

Meeting the needs of the present without compromising future generations

Answer

Maximizing profits at any cost

Answer

Expanding market share aggressively

Answer

Investing solely in short-term gains

Question 36

The Equal Pay Act prohibits discrimination in compensation based on:

Accepted Answer

Gender

Answer

Race

Answer

Religion

Answer

National origin

Question 37

The Sarbanes-Oxley Act was primarily enacted to address concerns related to:

Accepted Answer

Financial reporting fraud

Answer

Environmental violations

Answer

Workplace discrimination

Answer

Product safety issues

Question 38

Which of the following is a fundamental principle guiding ethical decision-making in business?

Accepted Answer

Transparency and accountability in corporate operations

Answer

Solely maximizing shareholder value

Answer

Prioritizing environmental protection at all costs

Answer

Promoting diversity and inclusion solely for reputational benefits

Question 39

Which ethical theory focuses on the overall consequences of actions and seeks to promote the greatest happiness for the greatest number of people?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Answer

Ethical egoism

Question 40

Which of the following is NOT generally considered to be a potential benefit of ethical business practices?

Accepted Answer

Guaranteed higher profits in the short term

Answer

Enhanced reputation and customer loyalty

Answer

Improved employee morale and productivity

Answer

Reduced legal risks and fines

Question 41

Businesses that prioritize both social and environmental responsibility alongside profitability are commonly referred to as:

Accepted Answer

Triple-bottom-line businesses

Answer

Sustainable enterprises

Answer

Socially conscious corporations

Answer

Ethical ventures

Question 42

The ethical principle that emphasizes the importance of individuals acting in accordance with their own moral beliefs is known as:

Accepted Answer

Autonomy

Answer

Beneficence

Answer

Non-maleficence

Answer

Justice

Question 43

Analyze the ethical implications of sharing economy business models, such as Airbnb and Uber, particularly regarding the potential for perpetuating inequality between platform owners and workers.

Accepted Answer

Perpetuation of inequality between platform owners and workers.

Answer

Diminished consumer oversight of goods and services.

Answer

Promotion of environmental sustainability.

Answer

Enhanced transparency in business practices.

Question 44

How does globalization affect ethical business practices? Consider both the potential for increased transparency and the ethical challenges that may arise.

Accepted Answer

Increased transparency and increased ethical challenges

Answer

Increased transparency and reduced ethical challenges

Answer

Reduced transparency and reduced ethical challenges

Answer

Reduced transparency and increased ethical challenges

Question 45

How does ethical conduct contribute to business innovation and creativity?

Accepted Answer

It encourages the exploration of novel solutions to societal and environmental issues.

Answer

It limits businesses' freedom to pursue lucrative opportunities.

Answer

It provides a rigid framework for businesses to adhere to.

Question 46

Which concept is central to the ethical principle of utilitarianism?

Accepted Answer

Maximizing overall well-being

Answer

Avoiding harm to others

Answer

Adhering to established moral codes

Answer

Respecting individual autonomy

Question 47

Which of the following is a primary responsibility of businesses operating in a socially responsible manner?

Accepted Answer

Considering the impact of their operations on all stakeholders

Answer

Ensuring maximum short-term profits

Answer

Complying with minimal legal standards

Answer

Avoiding any negative publicity

Question 48

The Sarbanes-Oxley Act of 2002 was primarily enacted to:

Accepted Answer

Strengthen corporate governance and accountability

Answer

Reduce environmental pollution

Answer

Liberalize financial markets

Answer

Promote consumer protection

Question 49

Which of the following is a common obstacle encountered in implementing ethical practices within businesses?

Accepted Answer

Pressure from stakeholders to prioritize short-term financial gain

Answer

Inadequate legal frameworks

Answer

Insufficient resources

Answer

Lack of employee commitment

Question 50

Corporate social responsibility encompasses:

Accepted Answer

Voluntary actions taken by companies to enhance their societal and environmental impact

Answer

Minimum legal obligations to shareholders

Answer

Personal ethical responsibilities of employees

Answer

Government regulations governing business conduct

Question 51

Which concept emphasizes respect for individual choices and decisions?

Accepted Answer

Autonomy

Answer

Justice

Answer

Beneficence

Answer

Non-maleficence

Question 52

Which of the following is NOT a key principle of corporate governance?

Accepted Answer

Centralized decision-making

Answer

Transparency and accountability

Answer

Separation of ownership and management

Answer

Fairness to all stakeholders

Question 53

The primary aim of environmental law is to:

Accepted Answer

Protect and preserve the natural environment from harmful human activities

Answer

Ensure equitable distribution of natural resources

Answer

Resolve land use disputes

Answer

Promote economic growth and development

Question 54

Which of the following is NOT a form of consumer protection regulation?

Accepted Answer

Trademark law

Answer

Lemon laws

Answer

Product safety standards

Answer

False advertising laws