Top 25 interview questions of Business Ethics and Corporate Governance
Top 25 interview questions of Business Ethics and Corporate Governance
Q1) How Would You Define Business Ethics?
Answer :
Business ethics are the acceptable business policies and practices surrounding controversial issues in the business world, such as bribery, discrimination, governance, social responsibility of the organization, and so forth. These policies do not just apply to one institution but, in most cases, cut across all organizations in a specific industry.
Q2)What Is Ethical Behaviour In A Business Environment?
Answer :
Acting in ways consistent with what society and individuals typically think are good values. Ethical behavior tends to be good for business and involves demonstrating respect for key moral principles that include honesty, fairness, equality, dignity, diversity and individual rights.
Q3) Why is it Important to Have Business Ethics?
Answer :
Business ethics play a critical role when it comes to decision-making in an organization. Whether the decisions are being made by an individual or by a larger group, it is guaranteed that they will be guided and influenced by the culture of the organization. This way, they can make different what is good from bad and will make ethical decisions
Q4) What Makes An Ethics Code Effective?
Answer :
- It must be inclusive (everyone participates, from senior management on down).
- It must be valid (content is consistent with standard ethical principles).
- It must be authentic (policies are enforced and values are reinforced in both word and deed).
Q5) Briefly Describe Some of the Business Ethics Issues You Have Observed
Answer :
Just like the typical problems in any society, the ethical issues in the business world are endless. Some of the significant issues I have observed and are increasing daily are corruption, tax avoidance by organizations, bribery of and by officials, discrimination in the workplace and political donations and lobbying.
Q6) What Are The Advantages Of Business Ethics?
Answer :
Business ethics offer companies a competitive advantage. Consumers learn to trust ethical brands and remain loyal to them, even during difficult periods.
Society benefits from business ethics because ethical companies recognize their social responsibilities.
Q7) What Are Ethical Dilemmas?
Answer :
An ethical dilemma involves a situation that makes a person question what the 'right' thing to do is. Ethical dilemmas make individuals think about their obligations, duties or responsibilities. It is through a dilemma that most employees experience business ethics.
These dilemmas can be highly complex and difficult to resolve. Complex ethical dilemmas involve a decision between right and right (choosing between right or wrong should not be a dilemma!). An example might be where you uncover a friend's misdemeanour: You have a duty to your employer to report it, but also a duty to be loyal to your friend in a situation that could lead to his or her dismissal.
Q8)Briefly Describe What is Ethical Behavior in a Business Environment
Answer :
I believe that ethical behaviour in a business environment is conducting the organization’s activities in a way that is consistent with what the society embraces to be good values. A business organization that portrays good societal values such as honesty, dignity and equality in its operation tend to perform very well and survive in the industry.
Q9)Mention Some of the Guiding Principles of Business Ethics
Answer :
Some of the fundamental principles of business ethics that guide organizations in their day-to-day activities are honesty, integrity, equity and equality, loyalty, compassion, lawfulness, to mention a few.
Q10) What Sustains An Ethics Code?
Answer :
- It’s specific. Guidelines are explained clearly using common scenarios.
- It’s thought-provoking. Employees are taught how to analyze situations and make good choices.
- It’s clear. Legalese, vagueness, jargon, and platitudes are absent. Instead of saying “Avoid improper use of equipment,” explain precisely what is meant with examples and unambiguous language.
- It’s readable. One should not need a user’s guide to wade through its provisions. Improve readability with wide margins, large type, breakout quotes, tight editing, and accurate proofreading.
- It’s concise. The entire U.S. Constitution is shorter than many ethics codes. Avoid complex sentences. Translate dense, multifaceted paragraphs into bulleted or numbered lists.
- It’s realistic. “Absolutely no personal phone calls” is unreasonable. “Accept no gifts or gratuities” is vague.
- It’s enforceable. All provisions should adhere to union agreements, city or government mandates, departmental regulations, Constitutional rights, etc. Implement a process for receiving complaints and investigating charges.
- It’s flexible. Codes should be regularly put to the test. Make changes as needed.
- It’s a process. Most employee cynicism stems from senior management flouting ethical rules. A code’s value is not its prose but the commitment of those who implement it.
Q11) Who Should Be Held Responsible for Business Ethics?
Answer :
Business ethics is everyone’s responsibility. However, for business ethics to be practical, it needs to start from the top management and stakeholders in an organization then flow down to the rest. By walking to the top, they serve as role models and influence the rest of the organization.
Q12) Why Should Boards Change Their Approach Now?
Answer :
Your business can change in a heartbeat — and it probably will. In times of crisis or market fluctuation, the board may need to be more engaged in helping management create solutions. Executive teams who are working to execute strategies, especially in challenging economic times, need their board to be aligned behind a flexible model that’s able to shift based on business needs. A board that’s not aligned can cause the company to become “stuck” — unable to be agile when it needs it most.
Q13) How Can The Board Influence The Corporate Risk Culture?
Answer :
An organization’s success is, in large part, driven by how wisely it takes risks and how effectively it manages the risks it faces. The enterprise’s culture comes into play here because people tend to do what they are rewarded to do. When selecting, evaluating, and compensating the CEO, the board sets the tone of the organization’s risk culture. It’s important to think through all potential implications - ntentional and unintentional - of executive rewards to make sure the board is encouraging people to take risks intelligently. Similarly, the board should also understand how incentive programs implemented throughout the organization may influence the risk culture below the C-Suite.
Q14) According to you what are the most critical ethical issues in business today?
Answer :
The leaders and institutions need to re-conceive of how they build for growth. This requires abandoning the kind of short-term thinking and short-sighted decision making that got into our current economic troubles and instead focus on building a sustainable enterprises. Therefore sustainability is a long-term, integrated platform for innovation, growth and significance that requires a long-term commitment to how a company relates to people, to its communities and to the larger societies that give it permission to operate, and to the environments in which it conducts business.
Q15) Corporate Governance mean the same tithing to everyone, everywhere?
Answer :
Definitely not , There are mainly two fundamental approaches to governance. 1. The stakeholder model – In this model it assigns rights and responsibilities to a broad group of constituencies, “stakeholders,” including: banks, bondholders, employees, the government and local communities or society at large. 2. The shareholder model – It maintains that ownership is key and therefore the shareholder is the primary focus of governance
Q16) What Are Core Values?
Answer :
If an organisation wants to take ethics seriously, it needs to identify the core values or principles to which it wishes to be committed and held accountable. It then needs to translate those values into guidance for all employees so that they are helped with discretionary decisions i.e. when there are no rules or when facing an ethical dilemma. These form the foundation for a set of corporate ethical commitments and the organisation’s approach to corporate responsibility.
Commonly used value words found in introductions/preambles to codes of ethics include: responsibility, integrity, honesty, respect, trust, openness, fairness and transparency. Organisations may also articulate a set of business values, such as quality, profitability, efficiency, reliability and customer service.
Q17) Mention Some Disadvantages of Business Ethics
Answer :
While business ethics are suitable for a business, there are downsides to it that we must acknowledge. I believe that an organization whose main aim is to make profits would be disadvantaged since business ethics reduces their freedom to maximize profits.
Q18) What are Business Practices?
Answer :
These are the procedures followed by any organization in handling their activities to achieve their goals.
Q19Which rewards does good Corporate Governance reap?
Answer :
Clearly, good corporate governance requires policies, practices, procedures and systems that helps to strengthen the corporation, thereby reaping internal benefits such as clear governance policies, practices and procedures, improved oversight and supervision; sound organizational management; heightened risk awareness; management and mitigation; compliance with regulatory and self-regulatory requirements; appreciation and recognition of corporate citizenship; strong corporate reputation; and good triple-bottom line performance. Such that these internal benefits in turn create and reap external benefits, like better marketing of the corporation’s products and services; liquidity of the corporation’s bonds and shares; maintenance of corporate reputation; and improved access to capital.
Q20) What Is The Meaning Of Social Ethics?
Answer :
The meaning of social ethics is a set of rules or guidelines, based around ethical choices and values, that society adheres to. Many of these rules are often unspoken and instead expected to be followed.
Q21) What is the primary objective of Corporate Governance?
Answer :
Effective corporate governance, helps the corporation function more effectively over the long term, to the benefit of all stakeholders – This is done by identifying, analysing and managing risks; pursuing opportunities; mitigating negative impacts; and therefore by improving triple bottom line performance (planet, people and profit).
Q22)What Social Responsibility Does a Business Have?
Answer :
Every business organization and individuals have a social responsibility to act in a way that benefits the society as a whole. There is a duty placed on everyone to maintain a balance between the economy and the ecosystems in the society. Therefore, it is unethical to only think of the benefits that you will enjoy. Society should always be at the back of our minds as we work.
Q23) How Does The Board's Role In Oversight Of Risks Factor In?
Answer :
Risk oversight should not be viewed as a process unto itself — it’s the foundation for everything the board and management do to properly govern the organization and make sound decisions. Many boards frame their activities for the oversight of risk into two areas: oversight of enterprise risk programs (risk management), and oversight of critical risks and risk decisions (risk governance). The latter includes setting risk appetite and risk tolerances, and monitoring strategic risks and related trends.
Q24) What is the typical duties of boards of directors?
Answer :
Here are some duties performed by board of directors.
1. Governing the organization by establishing broad policies and objectives
2. Selecting, appointing, supporting and reviewing the performance of the chief executive
3. Ensuring the availability of adequate financial resources
Q25) What's The Board's Role In Corporate Governance And How Does That Differ From Management's Role?
Answer :
In most circumstances, the board plays an oversight role. However, depending on the issue or the company’s situation, the role of the board can swing from overseer to active participant. Typically, we see boards more actively involved in strategy and CEO succession than, say, operations and planning. Still, finding the right balance can be difficult. While there’s no right answer, it’s important that board members and executive management agree on how involved the board will be in key areas.
