Business Ethics: Top 10 Solved
Practice Questions.
1. Define Business Ethics and explain its importance in modern corporations.
Q
Answer: Business ethics are the moral principles that act as guidelines for the way a
business conducts itself.
Importance: It builds customer trust, improves employee retention, avoids legal issues, and
enhances the brand’s long-term reputation (Brand Equity).
Q2. What is the "Triple Bottom Line" concept?
Answer: Developed by John Elkington, it suggests that companies should focus on three
"Ps" instead of just profit:
Profit: Financial performance.
People: Social responsibility and fair labor practices.
Planet: Environmental sustainability and reducing carbon footprint.
Q3. Explain the difference between Utilitarianism and Deontology.
Answer: * Utilitarianism: Focuses on the outcome. An action is right if it produces the
greatest good for the greatest number of people.
Deontology: Focuses on duty. An action is right if it follows moral rules, regardless of the
consequences.
Q4. What is a "Conflict of Interest" in a professional setting?
Answer: It occurs when an individual’s personal interests (financial or personal) interfere with
their professional obligations.
Example: A manager hiring a family member who is less qualified than other candidates.
Q5. Define Corporate Social Responsibility (CSR).
Answer: CSR is a self-regulating business model that helps a company be socially
accountable—to itself, its stakeholders, and the public. It includes philanthropic, ethical, and
environmental initiatives.
Q6. What is Whistleblowing, and why is it ethically significant?
Answer: Whistleblowing is the act of an employee reporting illegal or unethical conduct
within their organization to outsiders (media or government). It is significant because it
protects the public interest and promotes transparency.
Q7. Explain the "Stakeholder Theory" vs. "Shareholder Theory."
Answer:
Shareholder Theory (Friedman): The only social responsibility of business is to increase
profits for shareholders.
Stakeholder Theory (Freeman): Managers must balance the interests of everyone affected
by the business (employees, customers, suppliers, community).
Q8. How does "Greenwashing" affect business ethics?
Answer: Greenwashing is the practice of making misleading claims about the environmental
benefits of a product. It is considered unethical because it deceives eco-conscious
consumers and damages market trust.
Q9. What are the 4 main types of Ethical Dilemmas?
Answer: 1. Truth vs. Loyalty (Telling the truth vs. staying loyal to a peer).
2. Individual vs. Community (Needs of one vs. needs of many).
3. Short-term vs. Long-term (Immediate profit vs. future sustainability).
4. Justice vs. Mercy (Following rules strictly vs. showing compassion).
Practice Questions.
1. Define Business Ethics and explain its importance in modern corporations.
Q
Answer: Business ethics are the moral principles that act as guidelines for the way a
business conducts itself.
Importance: It builds customer trust, improves employee retention, avoids legal issues, and
enhances the brand’s long-term reputation (Brand Equity).
Q2. What is the "Triple Bottom Line" concept?
Answer: Developed by John Elkington, it suggests that companies should focus on three
"Ps" instead of just profit:
Profit: Financial performance.
People: Social responsibility and fair labor practices.
Planet: Environmental sustainability and reducing carbon footprint.
Q3. Explain the difference between Utilitarianism and Deontology.
Answer: * Utilitarianism: Focuses on the outcome. An action is right if it produces the
greatest good for the greatest number of people.
Deontology: Focuses on duty. An action is right if it follows moral rules, regardless of the
consequences.
Q4. What is a "Conflict of Interest" in a professional setting?
Answer: It occurs when an individual’s personal interests (financial or personal) interfere with
their professional obligations.
Example: A manager hiring a family member who is less qualified than other candidates.
Q5. Define Corporate Social Responsibility (CSR).
Answer: CSR is a self-regulating business model that helps a company be socially
accountable—to itself, its stakeholders, and the public. It includes philanthropic, ethical, and
environmental initiatives.
Q6. What is Whistleblowing, and why is it ethically significant?
Answer: Whistleblowing is the act of an employee reporting illegal or unethical conduct
within their organization to outsiders (media or government). It is significant because it
protects the public interest and promotes transparency.
Q7. Explain the "Stakeholder Theory" vs. "Shareholder Theory."
Answer:
Shareholder Theory (Friedman): The only social responsibility of business is to increase
profits for shareholders.
Stakeholder Theory (Freeman): Managers must balance the interests of everyone affected
by the business (employees, customers, suppliers, community).
Q8. How does "Greenwashing" affect business ethics?
Answer: Greenwashing is the practice of making misleading claims about the environmental
benefits of a product. It is considered unethical because it deceives eco-conscious
consumers and damages market trust.
Q9. What are the 4 main types of Ethical Dilemmas?
Answer: 1. Truth vs. Loyalty (Telling the truth vs. staying loyal to a peer).
2. Individual vs. Community (Needs of one vs. needs of many).
3. Short-term vs. Long-term (Immediate profit vs. future sustainability).
4. Justice vs. Mercy (Following rules strictly vs. showing compassion).
