14.1 Business Ethics

Question 1

The concept of business ethics that requires judging decisions without regard for personal opinions or feelings is

A. Integrity.
B. Social justice.
C. Fairness.
D. Relativism.

Answer 1

C. Fairness.

Fairness is often used interchangeably with justice. However, although justice is viewed as a standard of rightness, fairness emphasizes judging a decision without the interference of one’s personal opinions or feelings. Within business ethics, fairness means applying the same rules, standards, or criteria in the same situations. A person’s bias should be minimized when making decisions.

Question 2

While entering the workplace, Mike found $20 on the ground. Mike can either (a) keep the $20 for himself or (b) find the individual who dropped the money. Mike chose to look for the individual who dropped the money. What term can be used to describe Mike’s actions?

A. Fiduciary responsibility.
B. Fairness.
C. Due diligence.
D. Integrity.

Answer 2

D. Integrity.

Integrity is an individual’s moral compass that guides behavior. Often, core principles of integrity are virtue, compassion, honesty, loyalty, and objectivity. Mike’s actions were compassionate. Thus, we can conclude that Mike acted with integrity.

Question 3

Which business ethics concept most likely applies to an organization’s need to know its business partners?

A. Fairness.
B. Fiduciary responsibility.
C. Ethical due diligence.
D. Teleology.

Answer 3

C. Ethical due diligence.

Due diligence is a thorough evaluation of an organization or individual to assess potential risks. Ethical due diligence should be considered by organizations. Without knowing its business partners, an organization cannot uphold its own ethical standards.