Directions :Read the following passage carefully and answer the questions given below it.
Ethics concern an individual’s moral
judgements about right and wrong. Decisions taken within an
organization may be made by individuals or groups, but whoever makes
them will be influenced by the culture of the company. The decision to
behave ethically is a moral one; employees must decide what they think
is the right course of action. This may involve rejecting the route that
would lead to the biggest short-term profit. Ethical issues include the
rights and duties between a company and its employees, suppliers,
customers and neighbours, its fiduciary responsibility
to its shareholders. Issues concerning relations between different
companies include hostile take-over and industrial espionage.
Related issues include governance; corporate; political contributions;
legal issues such as the ethical debate over introducing a crime of
corporate manslaughter; and the marketing of corporations’ ethics
policies.
Business ethics reflects the
philosophy of business, one of whose aims is to determine the
fundamental purposes of a company. If a company’s purpose is to maximize
shareholder returns, then sacrificing profits to other concerns is a
violation of its fiduciary responsibility. Business ethics is also known
as corporate ethics, a form of applied ethics or professional ethics
that examines ethical principles and moral or ethical problems that
arise in a business environment. It applies to all aspects of business
conduct and is relevant to the conduct of individuals and entire
organizations. Business ethics has both normative and descriptive
dimensions. As a corporate practice and a career specialization, the
field is primarily normative. Academics attempting to understand
business behaviour employ descriptive methods. The range and quantity of
business ethical issues reflects the interaction of profit-maximizing
behaviour with non-economic concerns. Ethical behaviour and corporate
social responsibility can bring significant benefits to a business. For
example, they may: attract customers to the firm’s products, thereby
boosting sales and profits. It makes employees want to stay with the
business, reduce labour turnover and therefore increase productivity. It
attracts more employees wanting to work for the business, reduce
recruitment costs and enable the company to get the most talented
employees and also attract investors and keep the company’s share price
high, thereby protecting the business from takeover. While unethical
behaviour or a lack of corporate social responsibility, by comparison,
may damage a firm’s reputation and make it less appealing to
stakeholders. Unethical behaviour can also result in bad publicity,
resulting in a bad name that will always be associated with the company
even if they attempt to utilize a more ethical code of conduct. If a
company has unethical behaviour and is charged by the courts, they can wind up paying fines, court fees and may even receive some jail time, many companies eventually go bankrupt and
close their doors due to the high cost of unethical behaviours.
Unethical behaviour also decreases productivity of a company. If you are
working in a company with bad ethical behaviours, it is difficult for
the employees to trust each other, or their supervisors. When people
work in an environment where they do not trust anyone, they are not
going to do their best work, if they continue to work there at all.
Unethical behaviour can cause employees to lose the faith in the company
and become more likely to call in sick more often or not even show up
at all. Once a company is known for having unethical behaviours, the
effects can be permanent. All of the years spent building a good
reputation can be quickly torn down with only one unethical incident, destroying the company’s reputation possibly forever.
1. What is meant by Manslaughter ?
1) A kind of heinous crime
2) It's all about foul play.
3) Legally killing of one human being by another.
4) Killing without malicious forethought
5) None of these
2. What is/are the dimensions of Business ethics ?
1) Corporate ethics
2) Applied ethics or professional ethics
3) Normative and descriptive
4) 1) and 2)
5) None of these
3. What can be the worst impact of unethical behaviour in corporate world ?
1) It can reduce the loyalty of customer towards the product.
2) It will reduce productivity.
3) It may damage firm's reputation and make it less appealing to stake holders.
4) A company can be charged by the counts and order to close down it
with a fine or jail or both. Thus, company becomes insolvent.
5) Both 1 and 3
4. Once a company is known for having unethical behaviours, the effect can be-
1) Permanent
2) Negligible
3) Determined
4) Partial
5) None of these
5. Which of the following is definitely true in the context of the passage ?
1) Profit maximization directly proportional to ethical behaviour.
2) People having ethical behaviour always in loss at their working place.
3) Corporate culture does not understand business behaviour.
4) Both 2 and 3
5) None of these
Direction : Choose the word which is most nearly the SAME in meaning as the word printed in bold as used in the passage.
6. FIDUCIARY
1) Employee
2) Depositary
3) Guardian
4) Collector
5) Store keeper
7. ESPIONAGE
1) Spying
2) Information
3) Reforms
4) Norms
5) Requirement
8. TORN DOWN
1) Restored
2) Solvent
3) Bulldoze
4) End
5) Demolish
Direction : Choose the word which is most OPPOSITE in meaning of the word printed in bold as used in the passage.
9. WIND-UP
1) Start
2) Neglect
3) Conclude
4) Unsettled
5) Normalized
10. BANKRUPT
1) Successful
2) Saved
3) Rich
4) Solvent
5) Complete
Answers:
1. 4
2. 3
3. 4
4. 1
5. 1
6. 2
7. 1
8. 5
9. 1
10. 4
