In a strict liability case, if it can be proved that a business was as careful as possible
about its product or service, it is not held liable for the harm that results from its use.
Responsibility for the circumstances that can encourage ethical behavior and can
discourage unethical behavior falls predominantly to the business management and
executive team.
Values that are fundamental across culture and theory are not hypernorms.
Normative myopia occurs only in business.
Utilitarians would object to child labor as a matter of principle.
Ethical theories are patterns of thinking, or methodologies, to help us decide what to do.
Employment security is the most significant aspect of work from the employee’s ethical
perspective.
According to Donaldson and Dunfee, the right to personal freedom is an example of a
hypernorm.
In legal contexts, due process is the right to be protected against the arbitrary use of
authority.
The social web model views business as a citizen of the society and, like all members of
a society, business must conform to the normal ethical duties and obligations that we all
face.
In a general sense, a business stakeholder is one who has made substantial financial
investments in the business.
Virtue ethics emphasizes the more affective side of our character.
The direct costs of unethical business practice are more visible today than they have
ever been before.
Insider trading is considered patently fair and ethical because it encourages employees
to work hard to get access to company information.
Norms appeal to certain values that would be promoted or attained by acting in a certain
way.
There is a role for science and theoretical reason in any study of ethics.
Inattentional blindness is the inability to recognize ethical issues.
A philosophical and reasoned ethics must provide justifications for why a human being
should act and decide in a particular prescribed way.
A principle-based framework defines a set of rules that enforces us to act or decide in
certain ways.
Which of the following terms refers to shortsightedness about values?
a. Inattentional blindness
b. Normative myopia
c. Change blindness
d. Descriptive ignorance
Which of the following ways can lead market failure to serious environmental harm?
a. Creating abundant markets to create a price for important social goods
b. Making no distinction between individual decisions and group consequences
c. Inexistence of externalities in the economic exchange system
d. Assigning property rights to unowned goods
While approaching an ethical issue in marketing, the utilitarian tradition would want to
know:
a. the degree to which individuals freely participate in an exchange.
b. the degree to which the transaction provided actual as opposed to merely apparent
benefits.
c. about other values that are affected by the exchange.
d. about the personal characters of the parties that are involved in the exchange.
The simple situation in which two parties come together and freely agree to an
exchange is ethically legitimate only prima facie because:
a. investigation proves that a simple exchange does not involve unethical situations.
b. a simple exchange involves the consent of both parties involved, which leaves no
room for unethical acts.
c. certain conditions must be met before it can be concluded that autonomy has been
respected and mutual benefit has been achieved.
d. exchange occurs on mutual consent and for mutual benefit, parties get involved in an
exchange only if they see their benefit.
According to the _____ law of thermodynamics (the conservation of matter/energy),
neither matter nor energy can truly be ‘created,’ it can only be transferred from one form
to another.
a. first
b. second
c. third
d. fourth
Which of the following scenarios gives rise to conflicts of interests in corporate
governance?
a. Senior executives determining the compensation received by board members
b. Board members hand-selecting employees in their company
c. A CEO not chairing the board of directors
d. The absence of cross-fertilization of boards
The _____ ethical tradition would see a simple situation of an agreement for an
exchange between two parties as upholding respect for individuals by treating them as
autonomous agents capable of pursuing their own ends.
a. role-based
b. rights-based
c. rules-based
d. strategy-based
According to Bazerman and Chugh, inattentional blindness results from _____.
a. ignorance
b. passivity
c. thoughtlessness
d. focusing failures
Philosophically, the right of _____ is the right to be protected against the arbitrary use
of authority.
a. continuance
b. freedom of association
c. due process
d. self-determination
With regard to health and safety at workplace, _____ can be defined as the probability
of harm.
a. obstacles
b. impediments
c. risks
d. barriers
According to the libertarian versions of social justice, _____ is the central element of
social justice.
a. equality
b. government control
c. individual liberty
d. employment
The Title VII of the _____, passed in 1964, created the prohibited classes of
discrimination.
a. International Labour Act
b. United States Civil Rights Act
c. Equal Employment Opportunity Commission Act
d. Uniform Employment Termination Act
During the process of downsizing, allowing a worker to remain in a position for a
period of time once she or he has been notified of impending termination might not be
the best option. Identify the correct justification for this statement.
a. Workers will interpret early notice as an effort to allow them time to come to grips
with the loss of their jobs.
b. Terminated workers will not be inclined to put their best effort, which might result in
lost revenues.
c. Workers who are not terminated will have a bad impression about the organization
for terminating their coworkers.
d. Terminated workers may interpret early notice as an effort to get the most out of them
before departure.
Which of the following theories recognizes the fact that every business decision affects
a wide variety of people’”benefiting some and imposing costs on others?
a. Stakeholder theory
b. Integrative theory
c. Altruistic theory
d. Institutional theory
The U.S. Department of Commerce negotiated a Safe Harbor exception:
a. because the U.S. would not qualify as having adequate protection.
b. so that the European Union could get access to personal information.
c. so that each European country could maintain its own standard of information
gathering and protection while trading with the U.S.
d. because the law required that all imports to the European Union meet the Safe
Harbor standards.
Which of the following statements is inferred from Rawls’s theory of justice?
a. Decisions taken my seniors should be acceptable to everyone.
b. A decision which is partial is considered an unfair decision.
c. Each individual in the society should be treated differently.
d. Rights to liberty depend on the economic status of individuals.
The first step in constructing a personal code or mission for a firm is to:
a. articulate a clear vision regarding the firm’s direction.
b. ask oneself what one stands for or what the firm stands for.
c. believe that the culture is actually possible, achievable.
d. identify clear steps as to how the cultural shift will occur.
Before environmental legislation was enacted, the primary legal avenue open for
addressing environmental concerns was _____ law.
Explain the implications of giving ‘˜notice’ about monitoring.
Explain the ethical source of privacy using the perspective of property rights.
The _____ movement made the case that business had good reasons for conserving
natural resources, reasons that paralleled the rationale to conserve financial resources.
How can an ethical culture have a direct effect on the bottom line of an organization?
Discuss the various aspects associated with employment at will (EAW).
Discuss the constraints of the concept of negligence, and explain the reasonable person
concept.
Discuss the ethical issues associated with advertising.
Explain the importance of moral imagination with an example.
According to the economic model of CSR, _____ is a direct measure of how well a
business firm is meeting society’s expectations.