Lesson 3.4.4

3.4.4 Business ethics and corporate social responsibility Quiz: Pearson Edexcel Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.4.4, Business ethics and corporate social responsibility: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 3: Business decisions and strategy, written with Revision Ninja.

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The 20 questions

  1. What is the primary focus of Corporate Social Responsibility?

    • Minimising production costs
    • Wider stakeholder welfare
    • Maximising shareholder dividends
    • Increasing market share

  2. Which business decision typically creates a direct trade-off with short-term profit?

    • Asset stripping
    • Ethical sourcing
    • Price skimming
    • Cost cutting

  3. Why is high executive compensation frequently treated as a corporate governance ethical issue?

    • Mandatory government limits
    • Guaranteed tax reduction
    • Reduced share liquidity
    • Concerns over pay fairness

  4. Which action is an example of Corporate Social Responsibility?

    • Paying corporation tax
    • Maximising dividend payouts
    • Paying minimum wage
    • Voluntary emission cuts

  5. What type of decision is paying fair wages across a supply chain?

    • Statutory
    • Purely financial
    • Protectionist
    • Ethical

  6. What is a primary benefit to a firm of adopting CSR policies?

    • Guaranteed profit margins
    • Improved brand reputation
    • Lower production costs
    • Reduced wage bills

  7. What is a main financial drawback for a firm adopting CSR?

    • Increased short-term costs
    • Reduced brand equity
    • Higher tax rates
    • Lower customer retention

  8. Choosing cheaper suppliers with poor working conditions demonstrates a trade-off between profit and what?

    • Market share
    • Business ethics
    • Legal compliance
    • Brand loyalty

  9. A CSR programme costs 30,000 pounds and the firm's profit before the programme was 600,000 pounds. What share of profit does the programme cost?

    • 50%
    • 10%
    • 0.5%
    • 5%

  10. Large executive pay rises alongside stagnant worker pay highlight concerns over what?

    • Ethical pay gaps
    • Gearing ratios
    • Labour productivity
    • Working capital

  11. What risk is created by heavily relying on short-term performance-related pay?

    • Higher labour turnover
    • Decreased gearing
    • Excess capacity
    • Unethical short-termism

  12. A firm publishes a sustainability report with independently checked figures. Which CSR principle does this most directly show?

    • Transparency
    • Vertical integration
    • Price discrimination
    • Monopoly power

  13. Closing a factory without notice to protect profits prioritises shareholders over which group?

    • Financial auditors
    • Wider stakeholders
    • External regulators
    • Trade creditors

  14. What term describes CSR used purely for promotional image without genuine operational change?

    • Greenwashing
    • Whistleblowing
    • Benchmarking
    • Social auditing

  15. Excessive executive compensation out of line with company performance can damage what?

    • Gearing ratio
    • Current ratio
    • Employee morale
    • Tax liabilities

  16. Giving staff share ownership aligns employee interests with which group?

    • Shareholders
    • Regulators
    • Suppliers
    • Competitors

  17. How does genuine CSR create long-term strategic value for a firm?

    • Guarantees monopoly power
    • Reduces interest rates
    • Eliminates tax liabilities
    • Enhances brand equity

  18. How can maintaining high ethical standards reduce long-term business costs?

    • Eliminating fixed costs
    • Avoiding legal fines
    • Reducing interest charges
    • Avoiding corporation tax

  19. Which reward decision is most likely to be judged as ethically poor?

    • Cutting staff pay
    • Offering share options
    • Paying living wages
    • Introducing productivity bonuses

  20. Why might consumers react more strongly than shareholders to unethical business behaviour?

    • Higher dividends
    • Lower gearing
    • Brand switching
    • Increased liquidity

All Pearson Edexcel Business quizzes