28.
The utilitarian rule states that an ethical decision ________.
A.
best protects the rights of people affected
B.
produces the greatest good for the greatest number of people
C.
distributes benefits and harms in a fair way
D.
is one that can be communicated with no reluctance
The utilitarian rule is that an ethical decision is one that produces the greatest good for
the greatest number of people.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Utilitarian Approach
29.
According to which of the following rules is an ethical decision one that best maintains
people’s fundamental privileges?
A.
B.
Moral rights
C.
Utilitarian
D.
Practical
Under the moral rights rule, an ethical decision is one that best maintains and protects the
fundamental or inalienable rights and privileges of the people affected by it.
AACSB: Ethics
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
30.
The adage “Do unto others as you would have them do unto you” is a(n) ________
principle.
A.
justice
B.
utilitarian
C.
moral rights
D.
existentialism
Under the moral rights rule, an ethical decision is one that best maintains and protects the
fundamental or inalienable rights and privileges of the people affected by it. The adage
“Do unto others as you would have them do unto you” is a moral rights principle that
managers should use to decide which rights to uphold.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
31.
According to which of the following rules is an ethical decision one that distributes
rewards and harms in a fair way?
A.
Justice rule
B.
Moral rights rule
C.
Utilitarian rule
D.
Practical rule
The justice rule is that an ethical decision is one that distributes benefits and harms
among people and groups in a fair, equitable, or impartial way.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
32.
One managerial implication of the justice model is that managers should base their
decisions on ________.
A.
whatever stockholders want because they own the company
B.
what provides the maximum benefit to most stakeholders
C.
whatever promotes a fair distribution of outcomes to stakeholders
D.
a consensus of international opinion
The ethical dilemma for managers is to determine the fair rules and procedures for
distributing outcomes to stakeholders. The justice rule is that an ethical decision is one
that distributes benefits and harms among people and groups in a fair, equitable, or
impartial way.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
33.
Employees who are similar in their level of skill, performance, or responsibility should
receive similar pay; allocation of outcomes should not be based on differences such as
gender, race, or religion. This is an example of which rule of ethical decision making?
A.
Justice rule
B.
Moral rights rule
C.
Utilitarian rule
D.
Practical rule
The ethical dilemma for managers is to determine the fair rules and procedures for
distributing outcomes to stakeholders. The justice rule is that an ethical decision is one
that distributes benefits and harms among people and groups in a fair, equitable, or
impartial way.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
34.
When a manager has no hesitation about communicating to people outside the company
regarding a decision made because the typical person in a society would think it is
acceptable, this logic is explained by the ________ rule.
A.
justice
B.
moral rights
C.
utilitarian
D.
practical
The practical rule is that an ethical decision is one that a manager has no hesitation or
reluctance about communicating to people outside the company because the typical
person in a society would think it is acceptable.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
35.
The practical rule states that an ethical decision ________.
A.
best protects the rights of people affected
B.
produces the greatest good for the greatest number of people
C.
distributes benefits and harms in a fair way
D.
is one that can be communicated with no reluctance
The practical rule is that an ethical decision is one that a manager has no hesitation or
reluctance about communicating to people outside the company because the typical
person in a society would think it is acceptable.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
36.
When making an ethical decision, asking the questions “Would my family members and
friends approve of this decision, and am I willing to see the decision communicated to all
people and groups affected?” is part of the ________ rule.
A.
justice
B.
moral rights
C.
utilitarian
D.
practical
A business decision is probably acceptable on ethical grounds if a manager can answer
yes to each of these questions: (1) Does my decision fall within the accepted values that
typically apply in business activity today? (2) Am I willing to see the decision
communicated to all people and groups affected by it—for example, by having it reported
in newspapers or on television? (3) Would the people with whom I have a significant
personal relationship, such as family members, friends, or even managers in other
organizations, approve of the decision?
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
37.
Which rule for ethical decision making seeks to produce the greatest good for the greatest
number of people?
A.
B.
Utilitarian
C.
Moral rights
D.
Practical
The utilitarian rule is that an ethical decision is a decision that produces the greatest good
for the greatest number of people.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
Topic: Utilitarian Approach
38.
Why is it so important that managers, and people in general, should act ethically and
temper their pursuit of self-interest by considering the effects of their actions on others?
A.
Because giving excessive importance to oneself with no consideration of societal
interests leads to disaster for each individual and for the whole society because scarce
resources are destroyed
B.
Because ethical issues are seldom clear-cut, since the rights, self-interests, goals, and
incentives of different stakeholders often conflict
C.
Because a manager has no reluctance about communicating an ethical decision to
people outside the company since the typical person in a society would think it is
acceptable
D.
Because if all companies make the right choices, all stakeholders will benefit in the
long run
The relentless pursuit of self-interest can lead to a collective disaster when one or more
people start to profit from being unethical because this encourages other people to act in
the same way. The pursuit of individual self-interest with no consideration of societal
interests leads to disaster for each individual and for the whole society because scarce
resources are destroyed.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
39.
A person’s confidence and faith in another person’s goodwill is called ________.
A.
trust
B.
esteem
C.
ethics
D.
moral scruple
Trust is the willingness of one person or group to have faith or confidence in the goodwill
of another person, even though this puts him/her at risk (because the other might act in a
deceitful way).
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Trust
40.
Which of the following can be defined as the esteem or standing that individuals or
organizations gain when they behave ethically?
A.
Trust
B.
Reputation
C.
Ethics
D.
Moral scruples
Reputation is the esteem or high repute that people or organizations gain when they
behave ethically.
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Trust
41.
Because the stakeholders’ ability to earn a living and obtain resources in the long run
depends on how they behave, they must protect their valuable ________.
A.
reputation
B.
moral scruples
C.
trust
D.
effectiveness
Reputation the esteem or high repute that people or organizations gain when they behave
ethically, is an important asset. Stakeholders have valuable reputations that they must
protect because their ability to earn a living and obtain resources in the long run depends
on how they behave.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
42.
Which of the following is a likely result of loss of trust?
A.
Withholding information becomes the norm to keep the stakeholders’ interests safe.
B.
Increases in efficiency and effectiveness of production and trade
C.
Stakeholders contribute to a higher standard of living and well-being.
D.
Increase in company performance
When trust exists, stakeholders are likely to signal their good intentions by cooperating
and providing information that makes it easier to exchange and price goods and services.
When one person acts in a trustworthy way, this encourages others to act in the same
way. Over time, as greater trust between stakeholders develops, they can work together
more efficiently and effectively, which raises company performance. As people see the
positive results of acting in an honest way, ethical behavior becomes a valued social norm,
and society in general becomes increasingly ethical.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Trust
43.
Formal standards and rules, based on beliefs about right or wrong, that managers can use
to help themselves make appropriate decisions with regard to the interests of their
stakeholders are ________.
A.
honor codes
B.
codes of ethics
C.
moral codes
D.
existentialist guidelines
Codes of ethics are formal standards and rules, based on beliefs about right or wrong, that
managers can use to help themselves make appropriate decisions with regard to the
interests of their stakeholders.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
44.
Which of the following emanate from a particular community’s unwritten attitudes, values,
and norms that influence how people interact with each other?
A.
Societal ethics
B.
Professional ethics
C.
Individual ethics
D.
Organizational ethics
Societal ethics are standards that govern how members of a society deal with each other
in matters involving issues such as fairness, justice, poverty, and the rights of the
individual. Societal ethics emanate from a society’s laws, customs, and practices, and from
the unwritten attitudes, values, and norms that influence how people interact with each
other.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
45.
An example of how societal ethics vary among societies might be how they view ________.
A.
murdering a boss
B.
bombing a competitor’s factory
C.
missing a meeting
D.
bribing a public official
In many economically poor countries bribery is standard practice to get things done, such
as getting a telephone installed or a contract awarded. In the United States and many
other Western countries, bribery is considered unethical and often illegal.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
46.
Standards that govern how members of a particular community deal with each other in
matters involving issues such as fairness, justice, poverty, and the rights of the individual
are ________ ethics.
A.
fundamental
B.
professional
C.
individual
D.
societal
Societal ethics are standards that govern how members of a society deal with each other
in matters involving issues such as fairness, justice, poverty, and the rights of the
individual.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
47.
People in a particular country may automatically behave ethically because they have
internalized values and norms that specify how they should behave in certain situations.
This is an example of which code of ethics?
A.
Professional ethics
B.
Individual ethics
C.
Societal ethics
D.
Organizational ethics
Societal ethics are standards that govern how members of a society deal with each other
in matters involving issues such as fairness, justice, poverty, and the rights of the
individual.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
48.
Standards that govern how members of an organization, managers or workers, make
decisions when the way in which they should behave is not clear-cut are ________ ethics.
A.
professional
B.
individual
C.
societal
D.
organizational
Professional ethics are standards that govern how members of an organization, managers
or workers, make decisions when the way in which they should behave is not clear-cut.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
49.
Which of the following result due to differences in personalities, values, and attitudes?
A.
Societal ethics
B.
Occupational ethics
C.
Individual ethics
D.
Organizational ethics
Individual ethics are personal values (both terminal and instrumental) and attitudes that
govern how individuals interact with other people. Many decisions or behaviors that a
person finds unethical may be acceptable to another person because of differences in
their personalities, values, and attitudes.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
50.
Family, friends, personality, and experience are sources of ________ ethics.
A.
societal
B.
occupational
C.
individual
D.
organizational
Sources of individual ethics include the influence of one’s family, peers, and upbringing in
general, and an individual’s personality and experience.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics