Standards are fundamentally a social approach that can address public policy questions
ignored by markets.
‘Enlightened self-interest’ presumes that good ethics is also good business.
In the ethical decision-making process, the issue identification step always follows the
fact gathering step.
Socially responsible activities are never done for building the reputation of a firm
within the philanthropy model.
The utilitarian tradition in ethics would have the strongest objections to manipulation.
Consumer vulnerability occurs when a person has an impaired ability to make an
informed consent to the market exchange.
Ethics attempts to answer the question of how we should live, but it does not give
reasons to support its answers.
According to a principle-based ethical framework, social contract functions to organize
and ease relations between individuals.
If a firm decides to retain employees on the basis of longevity with the firm, and the
retained employees are mostly of the male gender, then legally, the firm will not be
violating any regulations.
Stakeholders include only those groups and/or individuals within an organization
affected by an internal decision, policy or operation of a firm or individual.
Before the introduction of environmental legislation in the 1970’s, the primary legal
avenue open for addressing environmental concerns was contractual law.
A firm’s ethical reputation can provide a competitive advantage in the marketplace with
customers, suppliers, and employees.
The model of economy, in consistency with the second law of thermodynamics, implies
that:
a. the amount of re-usable products decreases with an increase in production.
b. the economy exists beyond a finite biosphere.
c. wastes are not produced at each stage of economic activity.
d. the amount of usable energy decreases over time.
In the ethical decision-making process, identify the steps that might arise in reverse
order, depending on the circumstances.
a. Identifying the ethical issues; considering the impact of the decision on stakeholders
b. Determining the facts; identifying the impact of the decision on stakeholders
c. Identifying the impact of the decision on stakeholders; considering the available
alternatives
d. Determining the facts; identifying the ethical issues
Which of the following is involved in environmental problems according to the
market-based approach to resolving environmental challenges?
a. Lack of knowledge of producing renewable resources
b. Inability of businesses to produce and sell limited resources
c. Lack of use of appropriate substitutes for limited resources
d. Allocation and distribution of limited resources
Which of the following situations could result in the business culture becoming a
determining factor in ethical decision making? a. Lack of competition b. Law
providing incomplete answers c. Lack of strong leadership d. Stagnant or decreasing
profits
Individual codes of conduct based on one’s value structures regarding how one should
live, how one should act, what one should do, what kind of a person should one be etc.
is sometimes referred to as _____.
a. morality
b. independence
c. leadership
d. rationality
Which of the following is true about the European Union’s Directive on Personal Data
Protection?
a. It prohibits EU firms from transferring personal information to a non-EU country
unless that country maintains ‘adequate protections’ of its own.
b. It is also known as the European Union Safe Harbor Act.
c. It encourages member countries to maintain myriad standards for information
gathering and protection.
d. It states that United States in the only non-member country that maintains ‘adequate
protection’ of personal data.
Corporate culture:
a. is fashioned by a shared pattern of beliefs, expectations, and meanings that influence
and guide the thinking and behaviors of the members of that organization.
b. shapes the people who are members of the organization, but it is not shaped by the
people who comprise that organization.
c. is not influenced by unspoken standards and expectations.
d. is generally easy to modify.
In the philanthropic model of CSR, situations where a business supports a social cause
for the purpose of receiving a business benefit in return are not much different from:
a. the economic model of CSR.
b. the stakeholder theory of CSR.
c. the integrative model of CSR.
d. the sustainability theory of CSR.
Enlightened self-interest would be a valuable theory to introduce and apply in the
_____ approach to health and safety.
a. market controlled
b. integrative
c. acceptable risk
d. government-regulated
The _____ discipline provides an account of how and why people do act the way they
do.
a. descriptive
b. supererogatory
c. normative
d. stipulative
If we are told specifically to pay attention to a particular element of a decision or event,
we are likely to miss all of the surrounding details, no matter how obvious. According
to Bazerman and Chugh, this phenomenon is known as _____.
a. inattentional blindness
b. descriptive ignorance
c. change blindness
d. normative myopia
Marketing practices targeted at elderly populations for goods such as supplemental
health insurance, funerals etc. are subject to criticism because:
a. that population is vulnerable.
b. interest gained on such investments are not highly profitable.
c. they target the considered and rational desires of the consumers.
d. they do not abide by the principles of welfare economics.
The means used to motivate others and achieve one’s goals plays a key role in
distinguishing between:
a. silent leaders and visible leaders.
b. effective leaders and ethical leaders.
c. informal leaders and formal leaders.
d. silent leaders and ethical leaders.
Which of the following elements distinguish good people who make ethically
responsible decisions from good people who do not?
a. Normative imagination
b. Moral obligation
c. Ethical goal orientation
d. Moral imagination
The for-profit organizations that prioritize social entrepreneurship and sustainability as
a central part of their strategic mission are pursuing the _____ model of CSR.
a. integrative
b. economic
c. social web
d. philanthropic
Which of the following is true about the Sarbanes-Oxley Act?
a. It specifically asked for lenient penalties in sentencing recommendations.
b. It required public companies to establish a code of conduct for top executives and, if
they did not have one, to explain why it did not exist.
c. Its mandatory nature violated the Sixth Amendment right to a jury trial.
d. It did not support the United States Sentencing Commission’s guidelines to create
both a legal and an ethical corporate environment.
When can we conclude that an activity has an ‘acceptable level of risk?’
a. If it can be determined that the probability of harm involved in a specific work
activity is manageable.
b. If the probability of harm involved in a specific work activity is acceptable by
insurance and workers’ compensation laws.
c. If it can be determined that the probability of harm involved in a specific work
activity is equal to or less than the probability of harm of some more common activity.
d. If the employers are willing to compensate the harm caused to workers for a specific
activity.
Sara, an employee of PentaComp Inc., passed on confidential information of her
company to her friend. Her friend benefitted from selling PentaComp’s stock based on
the information shared by Sara. In this scenario, Sara can be convicted of _____.
a. insider trading
b. falsifying documents
c. underreporting income
d. evading taxes
An employer is held liable for damages caused by an accident involving an employee
driving the company car on company business. Identify the law underlying this
decision.
a. The doctrine of caveat emptor
b. The doctrine of respondent superior
c. Implied warranty of merchantability
d. The doctrine of caveat lector
In an ethical decision-making process, creativity in identifying options is called ‘_____.’
Right to a minimum wage, equal opportunity, to bargain collectively as part of a union,
and to be free from sexual harassment are examples of _____ rights.
Executive compensation packages based on _____ create huge incentives to artificially
inflate stock value.
Summarize the influences of diversity within a workplace.
The _____ model does not differentiate natural resources from the other factors of
production.
Discuss the importance of precedents for most laws concerning business.