PECBE00 1 – Entrepreneurial Management

MODULE 2 – ETHICAL & SOCIAL RESPONSIBILITIES OF THE

ENTREPRENEUR

Instructions: Determine whether the statements below are true or false. Write TRUE if
the statement is correct and FALSE if it is wrong. Provide a brief justification for your
answer. Write your answer on a separate sheet of paper and label it with Activity 3 for
Module 2 in PECBE 001 – Entrepreneurial Management. Do not forget to write your
complete name.

1. Most ethical issues will become evident through stakeholder concerns about an event, activity, or
the results of a business decision. TRUE. THE ISSUE WILL RISE.

2. Misuse of company time and resources is a significant form of observed misconduct in

organizations. TRUE. NO TIME MANAGEMENT.

3. Abusive or intimidating is the most common ethical problem for employees. FALSE.
MANAGERS.

4. To avoid conflict of interest, employees must share and separate their private interests from
business dealings. FALSE. THERE IS NO NECESSITY TO SHARE THEIR
PRIVATE INTERESTS IN BUSINESS DEALINGS.

5. Consumer fraud occurs when consumers attempt to deceive businesses for their gain. TRUE.
THEY ARE FRAUDS.

6. Corporate cultures were built on rewards for taking risks rather than rewards for creating value
for stakeholders. TRUE. THEY ARE AN ORGANIZATION.

7. Determining ethical values is a constant challenge. Over time, problems can become ethical
issues as a result of changing societal values. TRUE. THERE WILL BE A CLASH OF
VALUES.

8. The failure to understand and manage ethical risks played a significant role in financial analysis.
FALSE. FAILURE MEANS INSIGNIFICANT.

9. Fraud or scammers continue to be a controversial issue globally, and existing laws are often to
enforce. TRUE. IT IS A CONTINUOUS ISSUE.

10. Stakeholders trigger ethical issue awareness, and individuals closely discuss it and ask for others'
guidance and opinion. TRUE. THEY DISCUSS TOGETHER.

11. Men in male-dominated workplaces usually have to change their behavior when a woman begins
working there. FALSE. A WOMAN CAN DO WHAT MEN CAN DO.

12. Employers are not liable for the sexual harassment of one of their employees unless that
employee loses specific job benefits or is fired. FALSE. EMPLOYERS ARE LIABLE TO
THEIR EMPLOYEES.

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13. Supervisors can be liable for sexual harassment committed by one of their employees against
another. TRUE. THAT EMPLOYEE IS UNDER HIS/HER SUPERVISION.

14. Employers can be liable for the sexually harassing behavior of management personnel even if
they are unaware of that behavior and have a policy forbidding it. TRUE. THERE IS A
CODE OF ETHICS.

15. When initially receiving a sexual harassment complaint, it is appropriate for a supervisor to
determine if the alleged recipient overreacted or misunderstood the alleged harasser. TRUE.
JUST KEEP THE INTEGRITY.