Ethical Principles in Business

question 83

Multiple Choice

Ethical principles in business

• A) are generally less stringent than the ethical principles for society at large.
• B) are generally more stringent than the ethical principles for society at large.
• C) are not materially different from ethical principles in general.
• D) concern the rules each company's top management and board of directors make about "what is right" and "what is wrong."
• E) deal chiefly with the actions and behaviors required to operate companies in a socially responsible manner.

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Definitions:

ISO 9000 Certification

A family of quality management standards designed to help organizations ensure they meet customer and stakeholder needs within statutory and regulatory requirements.

External Failure Costs

Costs incurred when a customer receives a defective product.

Appraisal Costs

Costs related to identifying defective units before they are shipped to customers.

Optimum Quality Level

The level of quality at which the total cost associated with quality management (including prevention, appraisal, and failure) is minimized.