Exam 2: Business Ethics and Social Responsibility

Society is hurt when business managers behave ethically.

Charlie Sheen's drug use and violent behavior:

The observation that "The one and only social responsibility of business is to increase its profits" can be attributed to:

Generally,ethical managers have happier,more satisfying lives.

Paul decided he did not want the new jeans he had purchased from a large discount department store.He had worn them three times and decided he just did not want them because his friends said they weren't "cool." The jeans fit him fine and there is nothing wrong with them.He takes the jeans back to the store and,as is its policy,the store gave him a full refund of his money.Which statement best expresses rationalization for this decision?

E-presto,Inc.has established an EthicsLine.EthicsLine is a toll-free phone number that employees can call any time of the day,any day of the week to discuss ethics and report suspected unethical or improper conduct.Why would E-presto establish the EthicsLine?

Immanuel Kant was a German philosopher who was a proponent of utilitarian ethics.

Does ethical behavior maximize profitability?

The behavior of top executives regarding ethical issues has little effect on the behavior of the employees of the organization.

Which of the following is NOT a stakeholder?

Chelvam is the director of quality control.Chelvam rejected some parts as non-conforming to the specifications.Chelvam's supervisor directs him to accept the parts.Which value might give Chelvam the strength to oppose his supervisor?

A company that engages in unethical behavior may suffer severe consequences.

Why do many major corporations actively encourage ethical behavior?

Tianhui was recently hired as a sales representative by Oxtron,Inc.Before leaving on his first sales trip,a number of the other sales representatives take Tianhui aside and tell him that it is customary for the sales representatives to "pad" (increase)their expense reports each month by 20%.Use utilitarian ethics to decide what Tianhui should do about the expense report he submits to Oxtron.

Deontologists would agree that the increasing medical concern over obesity in the United States justifies federal regulation of high fat,high sugar,low nutrition food advertising during children's television programs.

Don runs a construction company.He hires people to work on his projects and tells them they are all "independent contractors." Legally,they are not independent contractors since Don tells the workers when to come to work,how long to work,what days to work,what they are to do each day,and so forth.At the end of each week,Don pays his workers in cash rather than with a check.Also,he does not withhold any state,federal or local withholding tax (since he claims the workers are independent contractors).Which statement is correct?

Utilitarian ethics holds that decisions should be made on the basis of practicality,and whatever action is most convenient should be favored.

Unethical behavior is a bar to financial success.

Oxtron,Inc.is considering establishing a program that actively encourages ethical behavior.What reasons would support Oxtron's adoption of an ethics program?

John Akers,former chairman of IBM,argues that ethics are not important to economic competitiveness.