Business Ethics Self-Test
Instruction
Self-test offers true or false questions to help you identify your baseline knowledge of Business Ethics. Let's start! Please choose one answer from the multiple-choice given to each question by indicating your answer with "X".
Questions A & B will help us to characterize the pool of respondents to this questionnaire.
A. In which country do you reside?
_________________________________
B. Which of the following best describes your professional
affiliation?
____ Government Agency/Public Institution
____ Non-Governmental Organization (NGO)
____ Media/Journalist
____ Academic/Researcher/Teaching
____ Consultant
____ Private Sector
____ International Organization
____ Other
1. Since business transactions in a market economy can be viewed as “exchanges between rational, autonomous actors,” companies should focus on maximizing their own self-interest without regard to the interest of the other party, and therefore, there is no need to worry about business ethics.
1. True
2. False
2. Companies should not be concerned about their social standing. Since “the business of business is business,” non-market relationships are not important for the company.
1. True
2. False
3. Is a code of ethics like a company mission statement?
1. Yes
2. No
4. Should sound ethical principles and high organizational integrity be considered competitive corporate assets and a foundation for corporate excellence?
1. Yes
2. No
5. An emphasis on business ethics could considerably reduce the efficiency and effectiveness of the decision-making process and thus have a negative impact on the company’s organizational functioning and performance.
1. True
2. False
6. Financial performance is the only factor that determines corporate market relationships and investor interest. Corporate value systems can add little to this.
1. True
2. False
7. Why do “good” managers make bad choices? Because they believe that….
a) the activity is not “really” illegal or immoral.
b) the activity is in the best interest of the individual or corporation.
c) the activity will never be discovered.
d) the activity helps the company, so the company will condone it.
1. None of the above.
2. a and b
3. c and d
4. b and d
5. All of the above.
8. Progress in global communication has no particular impact on a corporation’s commitment to ethical business conduct.
1. True
2. False
9. Since human beings are fundamentally decent, employees relying on conscience alone can make sound ethical decisions.
1. True
2. False
10. Ethics is learned in childhood (somewhere between age six and eight). Therefore, training programs and involvement of management/company have little influence:
1. True
2. False
11. Is ethical behavior controlled by personal or corporate influences?
1. Business ethics is primarily a question of personal scruples and an individual’s value system, and companies should not bear the responsibility for an individual’s misconduct.
2. Business ethics is primarily influenced by overall corporate business practices and has nothing to do with the individual’s value system.
3. Business ethics is influenced both by the individual’s value system and the overall corporate practices.
12. Do you think that leadership is really one of the key pre-conditions for sound business ethics practices?
1. It is not of any particular relevance.
2. It is important but not a key pre-condition.
3. It is of key importance.
13. In many developed countries and the USA in particular, the rise of company litigation and liability has drastically increased in the last decade:
1. True
2. False
14. Since a company should focus on meeting the existing legal requirements and on minimizing the consequences of unethical behavior, they and/or their respective industry groups should not go beyond what is required by law in designing their ethics program.
1. True
2. False
15. The slogan, “If it’s legal, it’s ethical” is right. As long as corporate behavior is within the law there cannot be any serious consequences for company business activities.
1. True
2. False
16. If there is no legal obligation for management to disclose unethical conduct in its organization, then management is not obliged to take appropriate action for unethical behavior among its subordinates.
1. True
2. False
17. Clearly written laws and legal compliance are sufficient to ensure ethical behavior.
1. True
2. False
18. Should companies, i.e. management, bear the responsibility for unethical behavior of an individual in a workplace?
1. Yes
2. No
19. Senior management is primarily responsible for the “ethical behavior” of their companies and therefore boards of directors should not bear any responsibility in this area.
1. True
2. False
20. The corporation’s main effort should be on avoiding illegal practices and providing employees with detailed guidelines on how to achieve this.
1. Yes
2. No
END OF THE TEST