93.
_____ has as its primary goal the creation of sustainable economic development and
improvement of quality of life worldwide for all organizational stakeholders.
94.
Economic growth and development that meet present needs without harming the needs of
future generations is known as _____.
5-99
95.
_____ is a process of analyzing all inputs and outputs, through the entire “cradle-to-grave”
life of a product, to determine the total environmental impact of the production and use of
a product.
Scenario A: An insurance company faces an ethical dilemma. A faulty computer program
designed to evaluate insurance claims has been denying a high number of valid claims. A
meeting has been arranged where senior management would decide how to handle the
situation. The people at the table have varying views of what action to take and why.
Han wants to report the error and reimburse the affected customers immediately because
he believes he could end up being fired if the company’s reputation suffers because of the
issue.
Jamila wants to report the error because it is the honest thing to do, and therefore
necessary.
After hearing his colleagues’ opinions, Keith says he is willing to do whatever the more
experienced managers in the group recommend.
Several other managers believe the company should correct the problem going forward but
not do anything about the customers who lost out on past payments.
96.
Which of the following best describes the ethical system used by Jamila to make her
decision?
97.
Which of the following best describes the ethical system used by Han to make his
decision?
5-101
98.
Which of the following best describes the ethical system used by Keith to make his
decision?
5-102
99.
Assume the meeting ends with the managers deciding not to do anything about the
customers who are owed money for past claims. Lori, an employee who was present in the
meeting, disagrees with the decision and gives an anonymous tip to a newspaper reporter
about the unethical behavior. Which of the following best describes the action taken by
Lori?
Scenario B: Suppose a manager faces a question regarding how to handle a defective
piece of equipment that his company sold. Telling the customer would cost him a
substantial amount of money. At the same time, if the equipment fails, it could lead to
serious injury of the customer. The manager is going to choose between three options
presented by colleagues:
Option 1: Keep quiet about the defect.
Option 2: Talk to others and see what they would have done in the same situation.
Option 3: Disclose the defect and suggest alternatives because it is the honest thing to do.
100.
Which of the following terms best describes the ethical approach used in option 1?
101.
Which of the following terms best describes the ethical approach used in option 2?
5-104
102.
Which of the following options best describes the ethical approach used in option 3?
Scenario C: Diana and Eli, managers from different departments at Greater Midwest Credit
Union, are discussing the troubling behavior of a credit union employee. Diana says that it
is the responsibility of high-level managers to take steps and prevent legal wrongdoing by
punishing offenders. However, Eli believes that every individual should take personal
responsibility for his or her own behavior and that everyone needs to understand how to
do the right thing.
103.
In Scenario C, each of the managers tends to be responsible for creating a different _____
in their respective departments.
104.
Which of the following types of ethics program does Diana prefer for the company?
5-106
105.
Which of the following types of ethics program does Eli prefer for the company?
Scenario D: Lily and Amare are colleagues who witnessed one of their team members,
Elspeth, making a personal purchase over the Internet, which is prohibited in their
company. The management had previously announced that those who report wrongdoing
of fellow employees will be rewarded. Lily decided not to report Elspeth’s act to the
management since it was done after hours. However, Amare decided to do so with the
hope of being rewarded.
106.
In Scenario D, according to Kohlberg’s model of cognitive moral development, Lily can be
categorized as being in the _____ stage.
107.
In Scenario D, according to Kohlberg’s model of cognitive moral development, Amare can
be categorized as being in the _____ stage.
Scenario E: Senior management at Futura Development is attending a corporate retreat,
and the first item for discussion is corporate social responsibility (CSR). The group has
discussed this before and then shot it down because it generally costs Futura’s
shareholders in the form of reduced distributions. But the new VP, Gwen, is about to
explain why she believes CSR will actually benefit the shareholders and Futura
management alike. Her team begins the presentation with a discussion of CSR, both its
current definition and reconciliation of past views. Sergei then discusses the importance
of being a good global corporate citizen by supporting the local school system. Madison
takes the floor to make the case for doing what is expected by global stakeholders even
though there are no laws requiring those actions. Finally Gwen wraps the discussion up by
defining why Futura should take legal responsibility for the firm’s performance.
108.
In Scenario E, Sergei’s presentation most likely focuses on the _____ responsibility of the
firm.
109.
In Scenario E, Madison’s presentation most likely focused on the _____ responsibility of
the firm.
110.
Gwen’s presentation most likely centered on taking which of the following actions?
Essay Questions
111.
Explain the terms ethical issue, business ethics, and moral philosophy.
Answers will vary.
112.
Discuss the five basic types of ethical systems and provide an example for each.
Answers will vary.
113.
Describe Kohlberg’s model of cognitive moral development. Give an example for each of
the stages.
Answers will vary.
114.
Explain the requirements of the Sarbanes-Oxley Act, and describe how some executives
have reacted to it.
Answers will vary.
115.
Contrast compliance-based ethics programs and integrity-based ethics programs.
Answers will vary.
116.
Making ethical decisions takes moral awareness, moral judgment, and moral character.
Define each term and explain how you would use it in business.
Answers will vary.
117.
Explain the process for ethical decision making.
Answers will vary.
118.
Write an essay on whistleblowing.
Answers will vary.
119.
Explain the pyramid of global corporate social responsibility and performance.
Answers will vary.
120.
Define transcendent education and explain the five higher goals associated with it.
Answers will vary.
121.
Build a case for the convergence of profit maximization and corporate social
responsibility.
Answers will vary.
122.
Explain how environmental issues and sustainability can be business opportunities rather
than burdens.
Answers will vary.
123.
Explain the idea of a risk society.
Answers will vary.
124.
Explain life-cycle analysis and how organizations are using it to pay more attention to the
total environmental impact.
Answers will vary.
125.
Discuss ecocentric management.
Answers will vary.