Corporate Social Responsibility (CSR), Business Ethics and Values in Management Questions

Question 1

Define CSR.

Accepted Answer

CSR (Corporate Social Responsibility) means the responsibility of business to contribute to society and environment while conducting business ethically and legally, not only focusing on profit.

Question 2

What is business ethics?

Accepted Answer

Business ethics are moral principles and standards that guide what is right or wrong in business behaviour and decisions.

Question 3

Who is a stakeholder?

Accepted Answer

A stakeholder is any person or group that affects or is affected by the organisation’s activities (e.g., employees, customers, suppliers, community, government, shareholders).

Question 4

What is meant by Triple Bottom Line?

Accepted Answer

Triple Bottom Line means measuring business performance on **People**, **Planet**, and **Profit** (social, environmental and financial results).

Question 5

What is whistleblowing?

Accepted Answer

Whistleblowing is reporting unethical or illegal practices within an organisation through proper channels.

Question 6

State any one ethical value in management.

Accepted Answer

**Integrity** is an ethical value which means honesty and consistency between words and actions.

Question 7

Explain the need/importance of CSR. (Any three points)

Accepted Answer

CSR is important because:

- It builds **trust and reputation** by showing responsible behaviour.
- It reduces **social and environmental risks** (pollution control, safety).
- It improves long-term **sustainability** and stakeholder relations.

Thus, CSR helps both society and business in the long run.

Question 8

Explain stakeholder approach in CSR with a small table.

Accepted Answer

The **stakeholder approach** means a firm should consider the impact of decisions on all stakeholders, not only shareholders.

| Stakeholder | Expectation |
|---|---|
| Employees | fair pay, safety |
| Customers | quality, honesty |
| Community | jobs, low pollution |

By balancing these expectations, the company achieves responsible and sustainable performance.

Question 9

Differentiate between ethics and values.

Accepted Answer

Ethics and values are related but different:

| Basis | **Ethics** | **Values** |
|---|---|---|
| Meaning | standards of right/wrong behaviour | beliefs that guide behaviour |
| Nature | rules/principles for decisions | personal/organisational priorities |
| Example | do not bribe, be honest | integrity, fairness |

Values shape ethical choices, and ethics provides standards for action.

Question 10

Explain any three tools used to manage ethics in an organisation.

Accepted Answer

Ethics management tools include:

- **Code of conduct**: written rules on acceptable behaviour.
- **Ethics training**: workshops/case discussions to build ethical judgement.
- **Whistleblower mechanism**: safe reporting of wrongdoing with protection.

These tools create an ethical culture and reduce misconduct.

Question 11

Explain any three ethical values/principles in management with examples.

Accepted Answer

Any three **ethical values/principles** (with examples):

- **Integrity**: telling the truth in reports; no manipulation of accounts.
- **Fairness/justice**: equal opportunities; no discrimination in promotion.
- **Transparency**: clear and honest communication to customers; no hidden charges.

| Value | Example |
|---|---|
| Integrity | honest reporting |
| Fairness | merit-based promotion |

These values build trust and reduce unethical practices in the organisation.

Question 12

What is greenwashing? How can it be avoided? (Any two measures)

Accepted Answer

**Greenwashing** means making **misleading claims** that a company is environmentally responsible without real action.

Avoidance (any two measures):
- Use **transparent reporting** with evidence (metrics, audits) instead of vague claims.
- Implement real sustainability actions: pollution control, waste reduction, energy efficiency.
- Follow recognised standards/certifications and disclose data.

| Problem | Avoidance |
|---|---|
| False claims | verified reporting |
| No real action | measurable initiatives |

Thus, honesty and measurable actions prevent greenwashing and build stakeholder trust.

Question 13

Explain CSR and its benefits to business and society (exam-style).

Accepted Answer

CSR (Corporate Social Responsibility) means a business should operate with **legal compliance**, **ethical behaviour**, and responsibility towards society and environment. It goes beyond profit-making to include sustainable practices.

### Benefits to business
- Improves **brand image** and customer trust.
- Enhances **employee morale** and retention.
- Reduces **legal and environmental risks**.

### Benefits to society/environment
- Better **community development** (education, health, skill programs).
- Reduced **pollution** and responsible resource use.
- Fair treatment of stakeholders.

| CSR focus | Example |
|---|---|
| People | safe workplace, community programs |
| Planet | waste management, energy saving |

### Conclusion
CSR builds long-term sustainability by balancing **People–Planet–Profit** and strengthening stakeholder relationships.

Question 14

Explain an ethical dilemma in business and how a manager should handle it (use a simple flow).

Accepted Answer

An **ethical dilemma** occurs when a manager must choose between two options where values conflict (e.g., profit vs product safety).

### Example dilemma
A company discovers a defect in a product. Recalling it will be costly and delay sales, but selling it risks customer safety.

### How to handle (exam flow)
Identify issue → Identify stakeholders → List options → Apply ethical principles (safety, honesty, fairness) → Choose best ethical option → Document and communicate

| Option | Ethical impact |
|---|---|
| Sell anyway | harms customers; unethical |
| Recall and fix | protects customers; builds trust |

### Conclusion
A manager should choose the ethically correct decision (recall/fix) because long-term trust and safety are more valuable than short-term profit.

Question 15

Explain corporate governance and its role in promoting ethical behaviour and CSR.

Accepted Answer

Corporate governance is the system of **rules, processes and structures** by which a company is directed and controlled. It ensures **accountability**, **transparency** and protection of stakeholder interests.

### Role in promoting ethics and CSR
- Board oversight ensures ethical policies and responsible decisions.
- **Transparent disclosures** and audits reduce fraud and misreporting.
- Strong governance supports CSR reporting and sustainability goals.

| Governance mechanism | Ethical/CSR outcome |
|---|---|
| Independent audit | reliable reporting |
| Board committees | better oversight |
| Code of conduct | ethical culture |

### Conclusion
Good governance creates an ethical environment where CSR becomes part of strategy rather than only publicity.

Corporate Social Responsibility (CSR), Business Ethics and Values in Management

8 more questions to unlock