BUSINESS ETHICS

REVISION QUESTIONS

Q1: Define the following terminologies

a—stakeholders: Clients, customers, suppliers, investors, retailers, employees, the media, the
government, members of the surrounding community, competitors, and even the environment

b—integrity: is unity between what we say and what we do—is a highly valued trait

c—compliance business ethics: refers to the extent to which a company conducts its business
operations in accordance with applicable regulations, statutes, and laws

d--ethics: standards of behavior to which we hold ourselves in our personal and professional lives

Q2: Mention the importance of ethics?

 It establishes the levels of honesty

 It establishes the levels of empathy and trustworthiness
 ethics sets norms for the ways in which we interact with family and friends
 guides our interactions with customers, clients, colleagues, employees, and shareholders
affected by our business practices
 establishes virtues by which we hope to identify our personal behavior and our public
reputation

Q3: Distinguish the following pairs of terminologies

a-legal compliance and ethical compliance

legal compliance: The law is needed to establish and maintain a functioning society. Without it, our
society would be in chaos. Compliance with these legal standards is strictly mandatory: If we violate
these standards, we are subject to punishment as established by the law.

Ethical compliance: are generally considered voluntary and personal—often based on our
perception of or stand on right and wrong.

b-normative ethical theories and descriptive ethical theories

normative ethical theories: focus on how people ought to behave

descriptive ethical theories: describe how people tend to behave within a particular context
Q4: Explain the following

Stockholders: those who own shares of the company’s stock

social contract: implies that a company gives back to the society that permits it to exist, benefiting the
community at the same time it enriches itself

goodwill: the positive feeling stakeholders have for any particular company
corporate culture: shared beliefs, values, and behaviors that create the internal or organizational
context within which managers and employees interact

corporate social responsibility (CSR): is the practice by which a business views itself within a broader
context, as a member of society with certain implicit social obligations and environmental
responsibilities

Q5: Describe the difference between Multiple versus Single Ethical Standards

Multiple ethical standards recognize the complexity and diversity of ethical considerations,

while single ethical standards emphasize a consistent and universal moral framework.