Chapter 2. Ethics and Corporate Social Responsibility.

Chapter 2. Ethics and Corporate Social Responsibility. 1. Which of the following best defines ethics? A) The study of law B) A set of moral principles guiding behavior C) Rules created by corporations D) Guidelines for improving efficiency Answer: B) A set of moral principles guiding behavior Rationale: Ethics is the study of what constitutes right and wrong, focusing on moral values and principles. 2. Corporate social responsibility (CSR) refers to: A) Companies focusing solely on profits B) Companies fulfilling legal obligations only C) Businesses considering the impact of their actions on society D) Businesses focusing on competition Answer: C) Businesses considering the impact of their actions on society Rationale: CSR emphasizes the responsibility of businesses to consider societal interests alongside profit goals. 3. Which ethical theory is based on the idea that actions are right if they promote happiness and wrong if they produce harm? A) Utilitarianism B) Deontology C) Virtue ethics D) Social contract theory Answer: A) Utilitarianism Rationale: Utilitarianism suggests that the best action is the one that maximizes overall happiness or minimizes harm. 4. Which philosopher is most closely associated with deontological ethics? A) John Stuart Mill B) Immanuel Kant C) Aristotle D) Adam Smith Answer: B) Immanuel Kant Rationale: Kant's deontological ethics focus on the idea that actions are morally right if they follow a set of principles, regardless of outcomes. 5. A company's responsibility to avoid harm to the environment is an example of: A) Legal compliance B) Philanthropy C) Corporate social responsibility D) Consumer protection Answer: C) Corporate social responsibility Rationale: CSR involves companies being accountable for their impact on the environment and society. 6. Which ethical framework focuses on duties and rules rather than consequences? A) Utilitarianism B) Deontology C) Virtue ethics D) Relativism Answer: B) Deontology Rationale: Deontology emphasizes adherence to duties and principles, focusing on whether actions themselves are ethical, not on their outcomes. 7. Which ethical principle suggests "doing the most good for the most people"? A) Utilitarianism B) Deontology C) Virtue ethics D) Corporate governance Answer: A) Utilitarianism Rationale: Utilitarianism is based on the idea that ethical decisions should maximize happiness for the greatest number. 8. Which of the following best describes virtue ethics? A) Focus on specific duties B) Emphasis on following the law C) Striving for moral character and virtues D) Acting in self-interest Answer: C) Striving for moral character and virtues Rationale: Virtue ethics, inspired by Aristotle, centers on cultivating moral character and virtues in decision-making. 9. An ethical dilemma occurs when: A) There is a clear legal right and wrong B) All options are legally permissible C) A decision must be made between two morally challenging options D) The decision does not impact anyone else Answer: C) A decision must be made between two morally challenging options Rationale: Ethical dilemmas involve conflicting moral principles where a choice must be made, often with difficult consequences. 10.Which of the following best describes corporate governance? A) The process of maximizing profits B) Oversight mechanisms to guide corporate actions C) Philanthropy and community service D) Strictly following legal standards Answer: B) Oversight mechanisms to guide corporate actions Rationale: Corporate governance ensures accountability and adherence to ethical and legal standards within a corporatio