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Chapter 09 Ethics, Corporate Social Responsibility, Environmental
Sustainability, and Strategy Answer Key
Multiple Choice Questions
Ethical principles in business
How do ethical principles apply to businesses?
Ethical principles as they apply to the conduct of personnel and business decisions
Although exposing children to hazardous work and long work hours is unquestionably deplorable,
which of the following, if true, leads to a moral dilemma?
The results of strategies that cannot pass the test of moral scrutiny often are NOT manifested in
The contentions that (1) many of the same standards of what’s ethical and what’s unethical resonate with
peoples of most societies regardless of local traditions and cultural norms and (2) to the extent there is
common moral agreement about right and wrong actions, common ethical standards can be used to
judge the conduct of personnel at companies operating in a variety of country markets and cultural
circumstances, are defining beliefs of which of the following?
The school of ethical universalism holds that
According to the school of ethical universalism
Which of the following is true of the school of ethical universalism?
If one concurs with the school of ethical universalism, then one believes that
The strength of the beliefs underlying ethical universalism is that
The contention that since there are cross-country or cross-cultural differences in ethical standards, it is
appropriate to judge behavior as ethical/unethical in the light of local customs and social mores should
take precedence over a single set of ethical standards or what may be applicable in a company’s home
market
The school of ethical relativism holds that
Which of the following is true of ethical relativism?
If one accepts the tenets of the school of ethical relativism, then which of the following is NOT true?
Which of the following statements about the ethical relativism school of thinking is FALSE?
According to the advocates of ethical relativism,
A belief in ethical relativism leads to the conclusion that
The degree of cross-country variability in paying bribes and kickbacks to grease business transactions
Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical
conduct and that are serious about enforcing this prohibition
According to the ethical relativism school of thinking,
Which of the following is NOT true about why codes of conduct based on ethical relativism are
ethically dangerous for multinational companies?
Companies that adopt the principle of ethical relativism in providing ethical guidance to company
personnel
The contention that ethical standards should be governed both by (1) a limited number of universal
ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and
behavior in all situations and (2) the circumstances of local cultures, traditions, and shared values that
further prescribe what constitutes ethically permissible behavior and what does not are the basic
principles of
The contention that ethical standards should reflect the collective views of multiple societies in
establishing a set of universal ethical principles (that are widely recognized as laying legitimacy to
ethical boundaries on actions and behavior in all situations) and in allowing inclusion of a set of
prevailing customary actions of local cultures or groups (with their traditions and shared values), that
further prescribe to what represents ethically permissible behavior and what does not, constitutes the
basic principles of
According to integrated social contracts theory, the ethical standards a company should try to uphold
Which of the following regarding integrated social contracts theory is NOT true?
Which one of the following is NOT a key element of integrated social contracts theory?
Integrated social contracts theory maintains that
The strength of integrated social contracts theory is that it
According to integrative social contracts theory, the ethical standards a company should try to uphold
The litmus test of a company’s code of ethics is
Which of the following is NOT a key question that senior executives must ask whenever a new strategic
initiative is under review?
Senior executives can ensure compliance with the ethical code of conduct by considering whether
Unethical managerial behavior tends to be driven by such factors as
Which of the following factors does NOT necessarily drive unethical managerial behavior?
Which of the following is NOT NECESSARILY a consequence of pursuing a strategy that has
unethical or shady components?
Which of the following would increase the likelihood of ethical lapses as well as poor long-term
company performance?
Which of the following activities does NOT reflect short termism?
Short-termism is defined as