Fundamentals for Success in Business - D072:
Comprehensive Overview Questions With All
Correct & Verified Answers
Ethics Correct answer-A system of moral principles.
The principles of right and wrong that guide an individual in making decisions
Legal Correct answer-Permitted by law.
An act that is permissible or in conformity with the law of the land
Legal and Ethical (legal-ethical) Correct answer-When the law and personal or organization are in
concordance with each other
Legal and Unethical (legal-unethical) Correct answer-Dilemma in which stablished laws are not in
accordance or do not uphold the ethical choice
Illegal and Ethical (illegal-ethical) Correct answer-Dilemma in which ethical choice would be in
violation of stablished laws
Scenarios: Legal and Unethical (legal-unethical) Correct answer-I: As the outsourcing movement
has grown, so have accompanying reports of sweatshop abuses and health and safety issues.
Ignoring dangerous work conditions is unethical in any sense, regardless of where the workers are
located.
II: A judge believes that the use of cannabis should never be allowed regardless of the situation due
to personal principles of what is right and wrong. A law was recently passed, however, allowing
individuals to use cannabis.
Scenarios: Legal and Ethical (legal-ethical) Correct answer-An organization plans to close its local
factory and shift manufacturing operations overseas. This brings opposition from employees.
Scenarios: Illegal and Ethical (illegal-ethical) Correct answer-Pentagon papers case: U.S government
officials leaked top secret papers to inform the public about government actions during the Vietnam
War.
Personal Ethics Correct answer-Codes, principals, and values that shape people's interactions with
others
Values Correct answer-Stable life goals that people have that reflect what is most important to
them
Morals Correct answer-are sets of rules that individuals develop based on cultural norms and
beliefs
Scenarios: Values Correct answer-A job candidate asks questions during an interview to determine
whether their personal life goals align with those of the organization.
,Organizational ethics Correct answer-Rules, principals, and standards for deciding what is morally
right or wrong when doing business
Scenarios: Organizational ethics Correct answer-If an organization can create an ethically oriented
culture, it is more likely to hire people who behave the same.
4 main Ethical Issues Correct answer-1. Societal issues
2. Stakeholder issues
3. Internal policy issues
4. Personal Issues
Ethical Issues: Societal issues Correct answer-Concerns issues relating to the world as a whole
Involvement happens because of the ethics the organization creates out of care and concern for
individuals.
Ethical Issues: Stakeholder issues Correct answer-Concerns policies that affect its customers,
employees, suppliers, and people within the community
Ethical Issues: Internal policy issues Correct answer-Concerns internal relationships between a
company and its employees
Examples include fairness in management, pay, and employee participation.
Ethical Issues: Personal issues Correct answer-Concerns how people treat others in their
organization
Examples include gossiping at work or taking credit for another's work.
Stakeholder issues Correct answer-A company insists on treating suppliers with respect and refuses
to push them to the lowest pricing possible. Which level of organizational ethics is being used by this
company
Internal policy issues Correct answer-A retail company frequently updates its principles, rules, and
guidelines to reflect input by employees.
Which level of organizational ethics is being illustrated by this company?
How Personal Ethics Affect Organizational Ethics Correct answer-Ethics and integrity tend to start
(or fail) at the top and trickle down.
Who is responsible for setting the ethical tone of a corporation? Correct answer-Managers
Integrity and ethics starts at the top with organizations' leadership and trickles down to everyone
else.
A company is working hard to establish objectives that promote ethics and standards.
What terms describe how these objectives are defined? Correct answer-Specific and measurable
Specific outcomes define a desired outcome, and measurable outcomes define a method for
determining whether an objective has been met. Promoting ethics and standards requires
specifically defining which ethics and standards have been established and should be measurable
based on outcomes.
,Corporate Social Responsibility (CSR) Correct answer-The notion in which a company voluntarily
engages in action that benefits society, be it economically, socially, politically, or environmentally.
Corporate Social Responsibility (CSR) Main Idea Correct answer-Their aim is to more directly
benefit from corporate growth as well as surrounding entrepreneurial opportunities.
A company has embraced the philosophy of CSR.
Which practice reflects this commitment?
A) Ensuring that local, state, and federal taxes are paid on time
B) Abiding by state environmental laws
C) Holding a food drive to support local residents in need
D) Providing the workers with free coffee and tea during their shifts Correct answer-Correct
Answer:
C - CSR refers to voluntary actions taken by a company that benefits the community at large. A food
drive is both voluntary and works to benefit the local community.
Steakholders Correct answer-Those who have a stake in the performance and output of an
organization, such as employees, unions, investors, suppliers, consumers, local and national
government, and communities.
World Trade Organization (WTO) Correct answer-a permanent global institution to promote
international trade and to settle international trade disputes
What is the strategic value of implementing CSR?
A) To maintain global operating guidelines such as those set by the WTO
B) To help recruit, train, and maintain groups of local employees
C) To generate a profit and meet the letter of the law in their business operations
D) To increase profits and trust in the long-term while promoting positive community relations
Correct answer-Correct Answer:
D - CSR is designed to increase long-term profits and shareholder trust while promoting positive
community relations and maintaining high ethical standards.
A company develops a program to help guide employees in decision-making and defines
expectations for accepting gift from clients.
A) Whistleblower and protection
B) Social responsibility
C) Internal transparency
D) Compliance and ethics Correct answer-Correct Answer:
D - Many organizations implement compliance and ethics programs to help guide decision-making
and employee behavior.
CSR Key Concepts: Correct answer-CSR refers to a philosophy in which a company voluntarily
engages in actions that benefit society economically, socially, politically, or environmentally.
, Organizations are increasingly launching CSR initiatives in which companies do more than produce a
reliable product, charge a fair price with a fair profit margin, and pay a fair wage to employees. These
organizations also care for the environment and act on other social concerns.
CSR initiatives are based on the underlying utilitarian notion of mutual benefit—the idea that an
organization should give back to the customers and communities in which it does business.
Today many U.S. citizens expect organizations to conduct themselves in an ethical and socially
responsible manner. However, CSR has many strategic benefits for the corporation as well and can
lead to an improved bottom line.
Institutions like the WTO function as international instruments to support ethical trade on a global
scale.
Code of Ethics Correct answer-begins by establishing the organization's key values and describes
the company's obligation to its stakeholders
Greenwashing Correct answer-When organizations carry about CSR missions in an inauthentic way,
using them to increase publicity rather than to spur real change.
Therefore, ethical commitments and statements run contrary to actual practices.
Confined animal feeding operations CAFOs Correct answer-CAFOs have been condemned by
animal rights activists as harmful to the well-being of the animals
Internal transparency Correct answer-Degree in which an organization operates with openness,
communication, and accountability.
Sarbanes-Oxley Act (SOX) Correct answer-Regulations passed by Congress to reduce unethical
corporate behavior.
whistleblowers Correct answer-insiders who report illegal or unethical behavior
A large manufacturer of ice cream products has a core value of "making the world a better place."
However, it was discovered that the manufacturer sourced their main raw ingredient from a
company that used practices considered detrimental to the well-being of animals.
A) Whistleblowing
B) Greenwashing
C) Kickbacking
D) Publicizing Correct answer-Correct Answer:
B - Greenwashing is when a company's ethical commitments and statements run contrary to their
actual practices. Sourcing ingredients from suppliers who have practices detrimental to the well-
being of animals is clearly contrary to the manufacturer's commitment to "making the world a better
place."
The top management of a publicly traded company has been cited for violation of the transparency
standards with respect to their financial and accounting reporting practices.
A)Generally Accepted Accounting Principles Act (GAAP)
Comprehensive Overview Questions With All
Correct & Verified Answers
Ethics Correct answer-A system of moral principles.
The principles of right and wrong that guide an individual in making decisions
Legal Correct answer-Permitted by law.
An act that is permissible or in conformity with the law of the land
Legal and Ethical (legal-ethical) Correct answer-When the law and personal or organization are in
concordance with each other
Legal and Unethical (legal-unethical) Correct answer-Dilemma in which stablished laws are not in
accordance or do not uphold the ethical choice
Illegal and Ethical (illegal-ethical) Correct answer-Dilemma in which ethical choice would be in
violation of stablished laws
Scenarios: Legal and Unethical (legal-unethical) Correct answer-I: As the outsourcing movement
has grown, so have accompanying reports of sweatshop abuses and health and safety issues.
Ignoring dangerous work conditions is unethical in any sense, regardless of where the workers are
located.
II: A judge believes that the use of cannabis should never be allowed regardless of the situation due
to personal principles of what is right and wrong. A law was recently passed, however, allowing
individuals to use cannabis.
Scenarios: Legal and Ethical (legal-ethical) Correct answer-An organization plans to close its local
factory and shift manufacturing operations overseas. This brings opposition from employees.
Scenarios: Illegal and Ethical (illegal-ethical) Correct answer-Pentagon papers case: U.S government
officials leaked top secret papers to inform the public about government actions during the Vietnam
War.
Personal Ethics Correct answer-Codes, principals, and values that shape people's interactions with
others
Values Correct answer-Stable life goals that people have that reflect what is most important to
them
Morals Correct answer-are sets of rules that individuals develop based on cultural norms and
beliefs
Scenarios: Values Correct answer-A job candidate asks questions during an interview to determine
whether their personal life goals align with those of the organization.
,Organizational ethics Correct answer-Rules, principals, and standards for deciding what is morally
right or wrong when doing business
Scenarios: Organizational ethics Correct answer-If an organization can create an ethically oriented
culture, it is more likely to hire people who behave the same.
4 main Ethical Issues Correct answer-1. Societal issues
2. Stakeholder issues
3. Internal policy issues
4. Personal Issues
Ethical Issues: Societal issues Correct answer-Concerns issues relating to the world as a whole
Involvement happens because of the ethics the organization creates out of care and concern for
individuals.
Ethical Issues: Stakeholder issues Correct answer-Concerns policies that affect its customers,
employees, suppliers, and people within the community
Ethical Issues: Internal policy issues Correct answer-Concerns internal relationships between a
company and its employees
Examples include fairness in management, pay, and employee participation.
Ethical Issues: Personal issues Correct answer-Concerns how people treat others in their
organization
Examples include gossiping at work or taking credit for another's work.
Stakeholder issues Correct answer-A company insists on treating suppliers with respect and refuses
to push them to the lowest pricing possible. Which level of organizational ethics is being used by this
company
Internal policy issues Correct answer-A retail company frequently updates its principles, rules, and
guidelines to reflect input by employees.
Which level of organizational ethics is being illustrated by this company?
How Personal Ethics Affect Organizational Ethics Correct answer-Ethics and integrity tend to start
(or fail) at the top and trickle down.
Who is responsible for setting the ethical tone of a corporation? Correct answer-Managers
Integrity and ethics starts at the top with organizations' leadership and trickles down to everyone
else.
A company is working hard to establish objectives that promote ethics and standards.
What terms describe how these objectives are defined? Correct answer-Specific and measurable
Specific outcomes define a desired outcome, and measurable outcomes define a method for
determining whether an objective has been met. Promoting ethics and standards requires
specifically defining which ethics and standards have been established and should be measurable
based on outcomes.
,Corporate Social Responsibility (CSR) Correct answer-The notion in which a company voluntarily
engages in action that benefits society, be it economically, socially, politically, or environmentally.
Corporate Social Responsibility (CSR) Main Idea Correct answer-Their aim is to more directly
benefit from corporate growth as well as surrounding entrepreneurial opportunities.
A company has embraced the philosophy of CSR.
Which practice reflects this commitment?
A) Ensuring that local, state, and federal taxes are paid on time
B) Abiding by state environmental laws
C) Holding a food drive to support local residents in need
D) Providing the workers with free coffee and tea during their shifts Correct answer-Correct
Answer:
C - CSR refers to voluntary actions taken by a company that benefits the community at large. A food
drive is both voluntary and works to benefit the local community.
Steakholders Correct answer-Those who have a stake in the performance and output of an
organization, such as employees, unions, investors, suppliers, consumers, local and national
government, and communities.
World Trade Organization (WTO) Correct answer-a permanent global institution to promote
international trade and to settle international trade disputes
What is the strategic value of implementing CSR?
A) To maintain global operating guidelines such as those set by the WTO
B) To help recruit, train, and maintain groups of local employees
C) To generate a profit and meet the letter of the law in their business operations
D) To increase profits and trust in the long-term while promoting positive community relations
Correct answer-Correct Answer:
D - CSR is designed to increase long-term profits and shareholder trust while promoting positive
community relations and maintaining high ethical standards.
A company develops a program to help guide employees in decision-making and defines
expectations for accepting gift from clients.
A) Whistleblower and protection
B) Social responsibility
C) Internal transparency
D) Compliance and ethics Correct answer-Correct Answer:
D - Many organizations implement compliance and ethics programs to help guide decision-making
and employee behavior.
CSR Key Concepts: Correct answer-CSR refers to a philosophy in which a company voluntarily
engages in actions that benefit society economically, socially, politically, or environmentally.
, Organizations are increasingly launching CSR initiatives in which companies do more than produce a
reliable product, charge a fair price with a fair profit margin, and pay a fair wage to employees. These
organizations also care for the environment and act on other social concerns.
CSR initiatives are based on the underlying utilitarian notion of mutual benefit—the idea that an
organization should give back to the customers and communities in which it does business.
Today many U.S. citizens expect organizations to conduct themselves in an ethical and socially
responsible manner. However, CSR has many strategic benefits for the corporation as well and can
lead to an improved bottom line.
Institutions like the WTO function as international instruments to support ethical trade on a global
scale.
Code of Ethics Correct answer-begins by establishing the organization's key values and describes
the company's obligation to its stakeholders
Greenwashing Correct answer-When organizations carry about CSR missions in an inauthentic way,
using them to increase publicity rather than to spur real change.
Therefore, ethical commitments and statements run contrary to actual practices.
Confined animal feeding operations CAFOs Correct answer-CAFOs have been condemned by
animal rights activists as harmful to the well-being of the animals
Internal transparency Correct answer-Degree in which an organization operates with openness,
communication, and accountability.
Sarbanes-Oxley Act (SOX) Correct answer-Regulations passed by Congress to reduce unethical
corporate behavior.
whistleblowers Correct answer-insiders who report illegal or unethical behavior
A large manufacturer of ice cream products has a core value of "making the world a better place."
However, it was discovered that the manufacturer sourced their main raw ingredient from a
company that used practices considered detrimental to the well-being of animals.
A) Whistleblowing
B) Greenwashing
C) Kickbacking
D) Publicizing Correct answer-Correct Answer:
B - Greenwashing is when a company's ethical commitments and statements run contrary to their
actual practices. Sourcing ingredients from suppliers who have practices detrimental to the well-
being of animals is clearly contrary to the manufacturer's commitment to "making the world a better
place."
The top management of a publicly traded company has been cited for violation of the transparency
standards with respect to their financial and accounting reporting practices.
A)Generally Accepted Accounting Principles Act (GAAP)
