Introduction to Business Ethics: Meaning, Nature, Importance, Values and Ethics vs Law Questions

Question 1

Define business ethics.

Accepted Answer

Business ethics is the application of **moral principles** and standards of **right and wrong** to business decisions and behavior (concept).

Question 2

What do you mean by "values" in business ethics? (Write one example.)

Accepted Answer

**Values** are beliefs about what is important and desirable in behavior (e.g., **honesty**, fairness, respect) (concept).

Question 3

Ethics is the same as law. (True/False)

Accepted Answer

False. **Law** is enforceable by the state, while **ethics** is a moral standard that often goes beyond legal compliance (concept).

Question 4

Write the meaning of a code of conduct (one line).

Accepted Answer

A **code of conduct** is a written set of guidelines stating acceptable and unacceptable behavior for employees in an organization (concept).

Question 5

State any one importance of business ethics.

Accepted Answer

Business ethics builds **trust** and **reputation**, which supports long-term customer loyalty and sustainable profits (any one point) (concept).

Question 6

An ethical dilemma means a situation with conflicting values. (True/False)

Accepted Answer

True. An **ethical dilemma** occurs when values/principles conflict (e.g., profit vs safety) and the right choice is not obvious (concept).

Question 7

Differentiate ethics and law (any three points) using a table.

Accepted Answer

Difference between ethics and law (exam-style):

| Basis | **Ethics** | **Law** |
|---|---|---|
| Nature | moral standards | rules made by government |
| Standard | often **beyond law** (higher expectation) | minimum compulsory standard |
| Enforcement | conscience/culture/social pressure | courts/police/penalties |

Any three differences are sufficient.

Question 8

Explain any three characteristics (nature) of business ethics.

Accepted Answer

Any three characteristics:

- **Normative**: tells what ought to be done (right vs wrong) (concept)
- **Practical/applied**: used in real decisions (pricing, HR, marketing) (concept)
- **Dynamic**: changes with society, technology and expectations (overview)
- **Stakeholder-oriented**: considers impact on customers/employees/society (concept)

Write any three with 1-line explanation.

Question 9

State any three areas covered under the scope of business ethics (use a table with examples).

Accepted Answer

Scope (any three areas) (concept):

| Area | Ethical concern | Example |
|---|---|---|
| **Marketing** | truthful ads, fair pricing | no misleading claims |
| **HR** | fairness and dignity | equal opportunity hiring |
| **Finance/Accounts** | honest reporting | no manipulation of statements |
| **Operations** | quality & safety | product testing and recall |

Write any three with correct examples.

Question 10

Explain the importance of business ethics (any three points).

Accepted Answer

Importance (any three):

- builds **trust** and reputation with customers and society (concept)
- improves employee morale and reduces conflicts/fraud (concept)
- reduces legal risk by encouraging compliance and responsible conduct (overview)
- supports long-term sustainability and stakeholder confidence (concept)

Write any three points.

Question 11

What is an ethical dilemma? Write the steps to handle it and draw a simple flowchart.

Accepted Answer

An **ethical dilemma** is a situation where values/principles conflict and the correct decision is not obvious (concept).

Steps (any three/four):
- identify the issue and facts
- identify stakeholders
- list alternatives
- test options (law + fairness + harm)
- decide and review impact (concept)

Flowchart:

```text
Issue/Facts -> Stakeholders -> Options -> Tests -> Decision -> Review
```

Question 12

Differentiate morality, values and ethics (any three points) using a small table.

Accepted Answer

Differences (concept):

| Term | Meaning | Example |
|---|---|---|
| **Morality** | personal/social beliefs about right & wrong | "lying is wrong" |
| **Values** | what is important/desirable | honesty, respect |
| **Ethics** | reasoned principles/standards guiding conduct | fair dealing, transparency |

Write any three distinctions with examples.

Question 13

Explain business ethics: meaning, nature and importance (exam-style).

Accepted Answer

### Meaning
**Business ethics** means applying **moral principles** (right and wrong) to business decisions and conduct (concept).

### Nature (any three)
- **Normative**: guides what ought to be done (concept)
- **Practical/applied**: used in real business situations (concept)
- **Dynamic**: evolves with society and technology (overview)
- **Stakeholder-oriented**: considers impacts on others (concept)

### Importance (any four)
- builds **trust** and reputation
- improves employee morale and discipline
- reduces unethical practices (fraud/bribery)
- supports long-term sustainability and good governance (concept)

Conclusion: Ethics strengthens responsible decision-making and supports sustainable success (concept).

Question 14

Differentiate ethics and law and explain "legal but unethical" with examples (exam-style) using a table.

Accepted Answer

### Ethics vs law (table)

| Basis | **Ethics** | **Law** |
|---|---|---|
| Source | moral values | government rules |
| Standard | higher expectation | minimum standard |
| Enforcement | conscience/culture | courts/penalties |
| Coverage | grey areas | defined rules |

### Legal but unethical (meaning + examples)
A decision may be **legal** yet **unethical** if it violates fairness/trust (concept). Examples:
- hiding charges in fine print while advertising "no extra charges"
- aggressive sales tactics that exploit vulnerable customers (overview)

Conclusion: Law is compulsory, but ethics guides responsible behavior beyond compliance.

Question 15

Explain ethical culture in organizations and how it is built (tone at the top, code, training, rewards and whistleblowing) with a table.

Accepted Answer

### Meaning
An **ethical culture** is a workplace environment where doing the right thing is expected, supported and rewarded (concept).

### How it is built (table)

| Element | What it means | Practical example (concept) |
|---|---|---|
| **Tone at the top** | leaders model ethics | leaders refuse bribes and act transparently |
| **Code of conduct** | written guidance | gift limits, conflict-of-interest rules |
| Training & communication | awareness and clarity | onboarding ethics training |
| Rewards & discipline | align incentives | reward ethical behavior; penalize violations |
| Whistleblowing | safe reporting channels | anonymous hotline + protection |

Conclusion: Strong culture reduces misconduct and supports trust and governance (concept).

Basis	Ethics	Law
Nature	moral standards	rules made by government
Standard	often beyond law (higher expectation)	minimum compulsory standard
Enforcement	conscience/culture/social pressure	courts/police/penalties

Introduction to Business Ethics: Meaning, Nature, Importance, Values and Ethics vs Law

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