978-0133832396 Chapter 1

Chapter 1

Velasquez Test Bank

1. Which of the following is one of the advantages of ethical decision-making as a long-term

business strategy?

a. Ethical behavior will increase short-term profits.

b. Ethical behavior will provide positive press opportunities.

c. Ethical behavior can ensure positive employee relationships.

d. Ethical behavior can provide significant competitive advantage.

2. Which of the following is defined as standards of what a group or individual feels is right or

wrong, or good or evil?

a. Morality

b. Ethics

c. Standards

d. Values

3. Which of the following best describes the criteria by which we judge manners and rules of

behavior?

a. Ethical norms

b. Moral norms

c. Nonmoral standards

d. Standard values

Skill Level: Understand the concepts

Difficulty Level: Moderate

4. Which of the following can be described as an example of a moral standard?

a. Do not be late for a meeting.

b. Do not harm others.

c. Do not use a work computer for personal use.

d. Do not discuss pay issues with others.

5. Which of the following best describes the basis for moral standards?

a. Moral standards are based on authority.

b. Moral standards deal with serious issues.

c. Moral standards are based on personal experiences.

d. Moral standards are based on personal beliefs.

6. Which of the following best describes ethical standards?

a. Norms of behavior in a society

b. Laws that govern acceptable behavior

c. How reasonable moral standards are when applied to your life

d. Universal standards based on impartial rules

7. Ethical issues about the economic, political, or legal aspects that a business operates under

are referred to as _____ issues.

a. corporate

b. individual

c. governmental

d. systemic

8. Because companies intentionally engage in actions such as production and sales, some

people believe they should be held morally responsible for their decisions and actions. This view

considers companies as having to act as

a. moral agents.

b. machines.

c. individuals.

d. regulators.

9. There have been several arguments against business ethics. Which argument best supports

the idea that when an organization makes money, it improves society, so business ethics are not

needed?

a. If it’s legal, it is ethical.

b. Profits benefit all.

c. The Loyal Agent states it.

d. Conflict is not unusual.

10. Which of the following best describes an organization’s obligations toward society?

a. Ethics

b. Morals

c. Values

d. Corporate social responsibility

Answer: D

Topic: Moral Reasoning and Moral Decision Making

Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision–

making in business ethics

Skill Level: Understand the concepts

Difficulty Level: Moderate

11. Which theory of corporate social responsibility says that an organization should be run with

the best interests of anyone who can benefit from the organization in mind?

a. Shareholder theory

b. Normative theory

c. Stakeholder theory

d. Law of Agency theory

12. With which area are many of the ethical issues related to information technology concerned?

a. Privacy

b. Costs

c. Accessibility

d. Biology

13. Technology now allows for the altering of cells in plants, humans, and animals in a process

called

a. genetic engineering.

b. nanotechnology.

c. biotechnology.

d. information engineering.

Difficulty Level: Moderate

14. The process of sharing goods, services, knowledge, and cultures across national borders is

referred to as

a. multinationalism.

b. relativism.

c. hypernorms

d. globalization.

15. According to World Bank reports, which of the following is a disadvantage of globalization?

a. Business operations can move to countries with lower labor costs.

b. Inequalities increase between and within nations.

c. Consumers have access to lower priced goods.

d. Developed nations only grew at about 2 percent per capita.

16. Which of the following best describes the idea that ethical standards are true based on a

particular culture or society, and will change based on the society in which we find ourselves

working?

a. Traditionalism

b. Globalization

c. Relativism

d. Microsocial norms

17. Which of the following best describes hypernorms as moral standards?

a. Norms that differ from one community to the next

b. Norms that can only be applied if the community accepts those norms

c. Norms that a community accepts because it follows rules of microsocial norms

d. Moral standards that should be applied to all people in all societies

18. According to Kohlberg, during which stage of moral development will a child behave in a

specific way in the hopes that others will behave the same way toward him or her?

a. Interpersonal concordance orientation

b. Social contract orientation

c. Instrumental and relative orientation

d. Punishment and obedience orientation

19. According to Kohlberg, during which stage of moral development does one realize there are

conflicting moral views and believes there is a fair way to reach consensus about them?

a. Social contract orientation

b. Universal moral principles orientation

c. Law and order orientation

d. Interpersonal concordance orientation

20. Which of the following component of moral reasoning is based on an individual’s

conclusions about people, policies, institutions, or behaviors?

a. Factual information

b. Facility for moral judgment

c. Ability for emotional reasoning

d. Understanding of moral standards

Learning Objective: 1.4: Explain the deep foundations and structure of moral reasoning

Skill Level: Analyze it

Difficulty Level: Difficult

21. Which criteria are used to evaluate moral reasoning?

a. Standards universal to all cultures

b. Factual evidence limited only to that which supports the conclusion

c. Logic and evidence

d. Clearly defined choices

22. What condition of moral responsibility has been met when a person fails to prevent an injury

or wrong when he or she knew there was a potential for injury?

a. Causality

b. Duty

c. Obligation

d. Freedom

23. Which of the following is used to reduce, but not eliminate, responsibility for a wrong?

a. Causality

b. Freedom of choice

c. Mitigating factors

d. Knowledge

24. A person might find it difficult to avoid a wrong because of coercion or a threat. What type

of moral defense could be used to reduce responsibility?

a. Level of contribution

b. Ignorance

c. Differing moral standards

d. Mitigating factors

25. Which of the following describes the level of moral responsibility when there is an absence

of causality, knowledge, or freedom?

a. The individual is morally responsible.

b. Moral responsibility is mitigated.

c. The organization is morally responsible.

d. Moral responsibility is completely eliminated.

26. Discuss reasons why ethics are an important part of an organization.

27. Discuss the concept of organizations acting as moral agents and being held responsible for

moral decisions.

Sample Answer: There are two views on the idea that organizations can be held responsible for

moral decisions. One view is that when an organization acts intentionally, then it is a moral

agent. The organization is an agent with moral rights and obligations, and it is responsible for its

actions, just like humans. The other view is that companies act as machines and should not be

considered to have moral duties. This argument claims businesses are like machines where

members blindly conform to formal rules that may or may not have to do with morality. Just as a

machine cannot be faulted for failing to act morally, neither can an organization when it is

considered to be a machine.

Topic: Moral Reasoning and Moral Decision Making

Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision–

making in business ethics

28. Compare the shareholder view of corporate social responsibility to the stakeholder view of

corporate social responsibility.

29. Discuss the ethical concerns that have surfaced regarding information technology and

property rights.

30. As a senior manager operating in another country, how should you enforce U.S. ethical

standards in a culture that has different standards?

31. Discuss the ways emotions and moral reasoning work together.

32. Identify and explain the three components of moral reasoning.

33. Why is it important that companies have a good understanding of the relationship between

blame and moral responsibility?

that we do not mistakenly punish, penalize, or blame innocent persons. Determining moral

responsibility can alleviate shame or guilt when a person is not morally responsible. When an

organization knows and practices moral responsibility, it may refrain from trying to rationalize

conduct and accept responsibility for what was done. It helps the company avoid blaming an

individual and using rationalization and self-deception for poor business actions.

Topic: Moral Responsibility and Blame

Learning Objective: 1.5: Assess the factors that define and refine the concept of moral

responsibility