Business & Finance

Business Ethics Scenarios: Applied Judgment

Evaluate real-world business situations by selecting the most ethically defensible action from the options.

#ethics#governance#decision-making#compliance#stakeholder theory#accountability#corporate culture

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Total Questions

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medium

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Quiz Questions

Answer all questions below and test your knowledge.

1
A software developer at a tech company discovers their employer's new app secretly collects extensive personal data from users' phones beyond what is stated in the privacy policy. The developer is concerned but fears retaliation if they report it. According to whistleblowing principles, what is the most appropriate initial step?
Question 1
2
A multinational corporation is operating in a country where small 'facilitation payments' to low-level government officials are a common, though technically illegal, practice to expedite routine services like permits. The company's global code of conduct strictly prohibits bribery. What is the most ethically sound approach?
Question 2
3
A marketing team is about to launch an advertising campaign for a new health supplement. Preliminary internal studies show mildly positive results, but a more rigorous, independent study found the benefits to be statistically insignificant. The team plans to use only the positive internal data in its ads. Which ethical principle is most directly violated?
Question 3
4
A company's factory is the primary employer in a small town. Upgrading to more efficient, automated equipment would significantly increase profits and environmental performance but require laying off 40% of the workforce. A strict utilitarian analysis focused on consequences would most likely support which action?
Question 4
5
A manager learns that a high-performing employee has been consistently overstating their sales numbers by small margins to meet quarterly targets. The employee is a top performer and well-liked. According to a rules-based (deontological) ethical framework, what is the manager's primary obligation?
Question 5
6
During a supply chain audit, a company finds that a key supplier uses subcontractors that allegedly employ child labor. The supplier's contract has a clause forbidding this. The supplier promises to fix the problem but requests six months to transition. The company's own production would be severely disrupted if it terminated the contract immediately. What is the most responsible immediate action?
Question 6
7
A CEO is considering whether to voluntarily disclose a product defect that poses a very small, statistical risk to users. A full recall would be extremely costly. Legally, disclosure is not yet required. A stakeholder theory approach would prioritize which consideration?
Question 7
8
An investment firm has an opportunity to invest heavily in a rapidly growing industry that is legal but controversial (e.g., certain weapons manufacturing, high-interest payday lending). The firm's stated values include 'promoting societal well-being.' Which action best aligns ethical reflection with fiduciary duty?
Question 8
9
A board member receives a confidential briefing that a new regulatory change, not yet public, will greatly benefit a competitor. The board member's close friend is a major investor in that competitor. Sharing the information would be illegal insider trading. The friend directly asks for advice on whether to buy more stock. What is the ethically obligatory response?
Question 9