STR 581: CH 9: ETHICS, CORPORATE SOCIAL
RESPONSIBILITY EXAM QUESTIONS AND ANSWERS
LATEST UPDATE 2025/2026
business ethics
deals with the application of general ethical principles to the actions and decisions of
businesses and the conduct of their personnel
ethical universalism
the most fundamental concepts of right and wrong are universal and transcend culture,
society, and religion.
ethical relativism
holds that a "one-size-fits-all" template for judging the ethical appropriateness of
business actions and the behaviors of company personnel is total inappropriate.
- whether certain actions or behaviors are ethically right to wrong depends not he ethical
norms of the country or culture in which they take place
Integrative social contracts theory
provides a middle position between the opposing views of ethical universalism and
ethical relativism
- ethical standards a company should try to uphold are governed by both (1) a limited
number of universal ethical principles that are widely recognized as putting legitimate
ethical boundaries on behaviors in all situations and (2) the circumstances of local
cultures, traditions, and values that further prescribe what constitutes ethically
permissible behavior.
self-dealing
occurs when managers take advantage of their position to further their own private
interests rather than those of the firm.
short-termism
the tendency for managers to focus excessive attention on short-term performance
objectives-is that it doesn't create value for customers or improve the firm's
competitiveness in the marketplace; that is, it sacrifices the activities that are the most
reliable drivers of higher profits and added shareholder value in the long run
two reasons a company's strategy should be ethical
1. because a strategy that is unethical is morally wrong and reflect badly on the
character of the company and its personnel
2. because an ethical strategy can be good business and serve the self-interest of
shareholders
Corporate social responsibility
refers to a company's duty to operate in an honorable manner, provide good working
conditions for employees, encourage workforce diversity, be a good steward of the
environment, and actively work to better the quality of life in the local communities
where it operates and in society at large.
CSR strategy
, defined by the specific combination of socially beneficial activities the company opts to
support with its contributions of time, money, and other resources
sustainable busienss practices
those that meet the needs of the present without compromising the ability to meet the
needs of the future
environmental sustainability strategies
entail deliberate and concerted actions to operate businesses in a manner that protects
natural resources and ecological support systems, guards against outcomes that will
ultimately endanger the planet, and its therefore sustainable for centuries.
In general, business ethics consists of _______
The application of ethical principles and standards to the actions and decisions of
business organizations
Adherents of ethical universalism are likely to believe that _______
common agreement about right and wrong is the basis for ethical standards that apply
to all businesspeople
Ethical universalism ________
allows for a single set of standards
Differences in which of the following cause variations in ethical standards across
cultures?
1. social customs
2. religious beliefs
3. core values
Adherents of the concept of ethical relativism believe that _______
1. holding a common template for judging the ethics of business actions everywhere is
ethically problematic
2. given actions are ethically right or wrong depending on the ethical norms of the
country in which they take place
True or false: ethical principles in business differ substantially from general
ethical principles in society.
false
Although many people would agree that child labor is lamentable, others have
noted that which of the following are true?
1. labor opportunities for children are preferable to a life of begging, drug trafficking, or
prostitution
2. many poor families throughout the world require financial contributions from their
children in order to survive
According to the concept of ethical universalism, fundamental concepts of right
and wrong ______
transcend culture, society, and religion
In some cultures, the practices of bribing customs officials and paying kickbacks
to customers have been justified on the ground that they _____
are similar to tipping a server in a restaurant
Which of the following are strengths of the concept of ethical universalism?
1. the concept of ethical universalism helps multinational companies set ethical
standards that apply to all personnel
RESPONSIBILITY EXAM QUESTIONS AND ANSWERS
LATEST UPDATE 2025/2026
business ethics
deals with the application of general ethical principles to the actions and decisions of
businesses and the conduct of their personnel
ethical universalism
the most fundamental concepts of right and wrong are universal and transcend culture,
society, and religion.
ethical relativism
holds that a "one-size-fits-all" template for judging the ethical appropriateness of
business actions and the behaviors of company personnel is total inappropriate.
- whether certain actions or behaviors are ethically right to wrong depends not he ethical
norms of the country or culture in which they take place
Integrative social contracts theory
provides a middle position between the opposing views of ethical universalism and
ethical relativism
- ethical standards a company should try to uphold are governed by both (1) a limited
number of universal ethical principles that are widely recognized as putting legitimate
ethical boundaries on behaviors in all situations and (2) the circumstances of local
cultures, traditions, and values that further prescribe what constitutes ethically
permissible behavior.
self-dealing
occurs when managers take advantage of their position to further their own private
interests rather than those of the firm.
short-termism
the tendency for managers to focus excessive attention on short-term performance
objectives-is that it doesn't create value for customers or improve the firm's
competitiveness in the marketplace; that is, it sacrifices the activities that are the most
reliable drivers of higher profits and added shareholder value in the long run
two reasons a company's strategy should be ethical
1. because a strategy that is unethical is morally wrong and reflect badly on the
character of the company and its personnel
2. because an ethical strategy can be good business and serve the self-interest of
shareholders
Corporate social responsibility
refers to a company's duty to operate in an honorable manner, provide good working
conditions for employees, encourage workforce diversity, be a good steward of the
environment, and actively work to better the quality of life in the local communities
where it operates and in society at large.
CSR strategy
, defined by the specific combination of socially beneficial activities the company opts to
support with its contributions of time, money, and other resources
sustainable busienss practices
those that meet the needs of the present without compromising the ability to meet the
needs of the future
environmental sustainability strategies
entail deliberate and concerted actions to operate businesses in a manner that protects
natural resources and ecological support systems, guards against outcomes that will
ultimately endanger the planet, and its therefore sustainable for centuries.
In general, business ethics consists of _______
The application of ethical principles and standards to the actions and decisions of
business organizations
Adherents of ethical universalism are likely to believe that _______
common agreement about right and wrong is the basis for ethical standards that apply
to all businesspeople
Ethical universalism ________
allows for a single set of standards
Differences in which of the following cause variations in ethical standards across
cultures?
1. social customs
2. religious beliefs
3. core values
Adherents of the concept of ethical relativism believe that _______
1. holding a common template for judging the ethics of business actions everywhere is
ethically problematic
2. given actions are ethically right or wrong depending on the ethical norms of the
country in which they take place
True or false: ethical principles in business differ substantially from general
ethical principles in society.
false
Although many people would agree that child labor is lamentable, others have
noted that which of the following are true?
1. labor opportunities for children are preferable to a life of begging, drug trafficking, or
prostitution
2. many poor families throughout the world require financial contributions from their
children in order to survive
According to the concept of ethical universalism, fundamental concepts of right
and wrong ______
transcend culture, society, and religion
In some cultures, the practices of bribing customs officials and paying kickbacks
to customers have been justified on the ground that they _____
are similar to tipping a server in a restaurant
Which of the following are strengths of the concept of ethical universalism?
1. the concept of ethical universalism helps multinational companies set ethical
standards that apply to all personnel
