Exam 8: Ethics and Social Responsibility of Business

Social responsibility requires businesses to act with awareness of the consequences and impact that their decisions will have on others.

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.If Steve Templeton decides to close the plant in Kantron,what important business social responsibility will Steve Templeton accomplish?

According to the corporate citizenship theory,businesses ________.

A government or political party that strictly derives its ethics and laws based on a specific religious book is an example of ________.

Which of the following is a criticism of ethical relativism theory?

________ is an ethical theory where a person adheres to rules or commands that are from an outside source,like a book or a central figure.

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as narrow the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.If Steve Templeton,after wagering all the factors,finds that the loss to the employees and the community is far greater than the one incurred by the shareholders,and decides to keep the plant open in Kantron,which of the following moral theory matches Steve Templeton's approach in keeping the plant open?

According to ethical relativism,________.

Which of the following is a criticism of Kantian ethics?

Which of the following is an example of stakeholder interest theory?

According to ________,keeping a promise to abide by a contract is a moral duty even if that contract turns out to be detrimental to the obligated party.

How are ethical rules established in Kantian ethics?

Which of the following is true of utilitarianism?

Explain moral minimum theory with an example.

The Sarbanes-Oxley Act of 2002 was enacted to prevent firms from engaging in financial frauds.

Which of the following is a moral theory of business ethics?

________ is a moral theory which says that people owe moral duties that are based on universal rules.

A company deciding to stop operations in its unprofitable manufacturing unit for the sake of saving money for its shareholders is an example of stakeholder interest theory.

One criticism of stakeholder interest theory is that it puts too much emphasis on maximizing shareholder wealth without focusing on employees.

Jules Renton,a financial accountant at Valkyrie Aviation,deals with the accounts Valkyrie has with the government.Valkyrie Aviation are in contract with the government to deliver a new bomber plane called Spearhead.While reviewing the Spearhead account,Renton noticed that Valkyrie has been Falsely billing the government for Spearhead's production.If Renton chooses to be a whistleblower and exposes the scam to the government,what Congress enacted statute must he invoke?