DSST Business Ethics and Society Study Guide
Updated: Aug 18
The DSST Business Ethics and Society exam assesses your knowledge of business ethics and social and societal issues.
It covers various topics, including globalization, diversity, and social responsibility.
This is the exam for you if you want to test your knowledge of business ethics and society (and pass your DSST exam).
Table of Contents
1. The Importance of Business Ethics
Business ethics are important because they protect the interests of businesses, their employees, and the general public.
Businesses that engage in unethical practices risk damaging their reputation and losing the trust of their employees and customers.
Furthermore, unethical practices can lead to legal penalties, including fines and jail time.
In addition, business ethics help to create a level playing field for businesses by holding all companies accountable to the same standards.
By adhering to high ethical standards, businesses can gain a competitive advantage over those that do not.
Finally, business ethics promote social responsibility and contribute to the common good.
When businesses act ethically, they help to create a fairer and more just society.
Business ethics are essential for protecting businesses, employees, consumers, and society.
DSST Business Ethics and Society Trivia Question #226
2. Moral Philosophies and Business Ethics
A variety of moral philosophies can be applied to business ethics.
Egoism suggests that individuals should pursue their interests regardless of their impact on others.
This could lead to unethical behavior, such as exploiting workers or polluting the environment if it is in the individual's self-interest to do so.
Relativism suggests that there is no absolute morality, so what is considered ethical will vary from culture to culture.
This could lead to companies acting differently in different countries, depending on what is considered ethical in each culture.
Utilitarianism suggests that the right action is the one that produces the most happiness or utility.
This could lead to decisions based on quantitative measures, such as financial profit or efficiency.
Each approach has different strengths and weaknesses, so businesses must consider the most appropriate.
3. Corporations and Stakeholders
The relationship between a corporation and its stakeholders is complex and multi-faceted.
On the one hand, a corporation has a duty to its shareholders to make profits and maximize shareholder value.
On the other hand, a corporation also has obligations to its employees, customers, and the community in which it operates.
Balancing these interests can be difficult, but a corporation must maintain stakeholder relationships.
A corporation's relationship with its shareholders is primarily financial.
Shareholders are interested in making money and expect the corporation to generate profits.
A corporation must, therefore, carefully manage its finances and make decisions that will maximize shareholder value.
At the same time, however, a corporation must also consider other stakeholders' interests when making decisions.
For example, a decision that would benefit shareholders may harm employees or damage the environment.
A corporation must therefore strike a balance between different stakeholder groups when making decisions.
DSST Business Ethics and Society Trivia Question #451
4. Social Responsibilities of a Business
Responsible businesses recognize their activities' impact on society and the environment and take steps to mitigate any adverse effects.
Social responsibility has several aspects, including moral and ethical stances, individual responsibilities within a business, global responsibilities of a business, sustainable business growth, and environmental responsibility.
Moral and Ethical Stances
Moral and ethical stances refer to the standards of behavior that a business sets to be considered a good corporate citizen.
These standards may be set by government regulations or industry codes of conduct, but businesses can also voluntarily adopt them to demonstrate their commitment to social responsibility.
Individual responsibilities within a business refer to how employees are expected to conduct themselves by the company's social responsibility standards.
Global responsibilities of a business refer to how businesses should act to minimize their negative impact on the planet as a whole.
Sustainable Business Growth and Environmental Responsibility
Sustainable business growth and environmental responsibility refer to the need for businesses to operate in a way that will not deplete resources or damage the environment beyond repair.
As you can see, social responsibility is a complex concept with many facets.
5. Regulation of Business
The role of government in business has been a topic of debate for centuries.
Advocates of laissez-faire capitalism
Advocates of laissez-faire capitalism argue that the government should stay out of business altogether.
At the same time, those on the other side of the spectrum believe that the government should have a more active role in regulating businesses and promoting competition.
There is no easy answer, and both sides make valid points.
Ultimately, deciding how appropriate government intervention depends on the specific situation.
Business and Politics
Businesses and the political arena are often closely intertwined.
One controversial issue is the question of whether or not businesses should be allowed to make political contributions.
Another is the issue of conflicts of interest, which can arise when politicians or government officials have financial interests in businesses.
There is no easy solution.
Governmental Control Over Business Activities
The government has a great deal of control over business activities through its power to tax and regulate businesses.
This control can be used to promote competition and protect consumers, but it can also be abused to benefit special interests or harm businesses that are seen as politically unpopular.
DSST Business Ethics and Society Trivia Question #616
6. Employer-Employee Relations
Establishing clear lines of communication and respect between employer and employee is essential.
This includes maintaining confidentiality about sensitive information, following anti-discrimination and affirmative action policies, and avoiding sexual harassment.
Additionally, corporate officers must ensure workplace safety and compliance with labor laws.
Organizations can create a positive and productive work environment by establishing clear employer-employee relations.
7. Ethics of Information
Information's ethical implications are becoming increasingly important in our increasingly connected world.
From marketing and advertising to corporate espionage and cybersecurity, how we use and share information can profoundly impact individuals, businesses, and society.
Privacy issues and concerns are also a significant area of debate regarding information, as more and more companies collect data on everything from browsing habits to purchasing patterns.
And with the rapid advancement of technology, the question of who should control proprietary information and how it should be regulated is also coming into play.
As we navigate this ever-changing landscape, we must be thoughtful and considerate about the ethical implications of our decisions surrounding information.
8. Business Ethics in a Global Economy
Business ethics are a set of moral principles that govern the conduct of business transactions.
These principles include honesty, integrity, fairness, and respect for others.
Business ethics are essential in a global economy because they help ensure that companies treat their employees, customers, and suppliers fairly and respectfully.
They also help to prevent corruption and unethical behavior.
Business ethics are critical in countries with a risk of corruption or where the legal system is less developed than in other countries.
In these cases, business ethics help to ensure that companies still adhere to high standards of behavior.
Fair trade laws and standards
Fair trade laws and standards are other critical aspects of business ethics in a global economy.
These laws and standards help to ensure that companies do not unfairly exploit workers in developing countries.
They also help to protect the environment and to promote sustainable development.
9. Conclusion: DSST Business Ethics and Society
The DSST Business Ethics and Society Exam is a challenging exam covering various topics.
We're happy to offer unlimited practice exams to help you prepare for this unique test.
Try a free practice exam today.
10. Student Resources
DSST Business Ethics and Society Fact Sheet