Exam 1: Ethics, Social Responsibility, and the Law

____________ sees law and morality as united in a common and fundamental bond.

Ethical rules of conduct developed by various professions are often easy to understand and follow.

Law is a means of civil management.

Ethical theories are all based on the assumption that people want to live ethical lives.

All business entities are considered "legal persons" under federal and state statutes.

The ethic of ____________ must be practiced by individuals because individuals can never foresee the result of their actions.

If George believes in a "state of nature", where people must fend for themselves rather than give up the freedom to do as they please, and in return receive a guarantee that other individuals will curb their behavior, he would most likely be rejecting the ____________ ethical theory.

____________ consist of rules of conduct established by the government of a society to maintain harmony, stability, and justice.

According to ____________, whether an action is moral or not depends on the ultimate effects of that action.

The traditional legal view held that corporate managers could not be sued for making a decision that hurt the corporation's profits.

Amanda Hutchins sued her managers for making merger decisions that caused shareholders to lose money. The managers argued that they made decisions based on the long-term benefits of the merger to everyone involved, including the local community and the state. Hutchins argued that the shareholders' profits should be the managers' first priority. Analyze the case and the possible ruling of the court.

Living an ethical lifestyle means simply doing what is legal.

Rational ethics, often referred to as objective ethics, states that people's ethical decisions can be judged only by understanding their situations.

Amalgamated Enterprises is considering closing its plant in a small U.S. town where its average wages are $10 per hour, and moving production to a foreign country where average wages for the same work will be $2 per hour. Amalgamated is the largest employer in the community. What theories of social responsibility may Amalgamated's management consider in making a final decision about the plant?

Julia decides not to dump her used motor oil in the creek that runs behind her garage since that would damage individuals who live downstream and upset the peace and harmony in which she has lived with these neighbors. Name and explain the ethical system Julia has used to make this decision.

Joe believes that there are absolute standards of right and wrong. Joe's belief is an example of market value ethics.

Law consists of values that govern a society's attitudes toward right and wrong.

In the Classic Cases-Declaration of Independence, the text argues that Jefferson derived his four central truths of social contract from John Locke's famous book, Leviathan.

Michael is the corporate manager at Hatch & Jake Pvt. Ltd. He is asked to always consider if the benefits to the shareholders outweigh the costs to the corporation. Michael takes the action only if the shareholders' benefits offset corporate costs. Discuss.

If the only question a corporate manager asks before she takes an action is whether the benefit to the shareholders will outweigh the cost to the corporation, she would most likely using a(n) ____________ ethical model.