Deck 2: Ethics and Social Responsibility of Business

Question 1

The False Claims Act permits private parties to sue the government on behalf of a corporation.

Answer 1

False

Question 2

In Kantian ethics, the principle of inconsistency postulates treating all ethical cases differently.

Answer 2

False

Question 3

Utilitarianism postulates doing the greatest good for the greatest number of people.

Answer 3

False

Question 4

According to Kantian ethics, one would be obligated to abide by a contract even if that contract turns out to be detrimental to the obligated party.

Question 5

Kantian ethics is based on the premise that people can use reasoning to reach ethical decisions.

Question 6

Kant believed that people owe moral duties that are based on universal rules.

Question 7

The social contract theory is derived from Rawls's social justice theory.

Question 8

Ethical relativism holds that moral standards ought to be based on an individual's feelings of what is right or wrong.

Question 9

According to ethical relativism, an action that is usually thought to be unethical would not be considered unethical if the perpetrator thought it was ethical.

Question 10

According to Rawls's social justice theory, a person who is in a state of "veil of ignorance" is best fit to select the fairest possible ethical principles.

Question 11

Kantian ethics is also known as duty ethics.

Question 12

Under ethical fundamentalism, a person looks to an outside source for ethical rules or commands.

Question 13

The traditional view of social responsibility of business emphasized maximizing profits for employees rather than shareholders.

Question 14

The False Claims Act grants the private party a share in the monetary recovery made in a whistleblower case.

Question 15

Kantian ethics distinguishes between the morality one uses to judge others and the morality one uses on oneself.

Question 16

According to Rawls's social justice theory, moral duties are based on an implied social contract.

Question 17

All laws are framed to meet the highest ethical standards.

Question 18

An ethically wrong state or condition can still be legal.

Question 19

The theory of moral minimum emphasizes correcting social injuries caused by a business.

Question 20

The main criticism for ethical fundamentalism is that it does not allow people to decide what is right or wrong for themselves.

Question 21

Jules Renton, a financial accountant at Valkyrie Aviations, deals with the accounts Valkyrie has with the government. Valkyrie Aviations 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 expose the scam to the government, what Congress enacted statute must he invoke?

A) Business Norms Act
B) Sarbanes-Oxley Act
C) Glass-Steagall Act
D) False Claims Act

Question 22

Which of the following moral theories lays emphasis on morality based on one's moral duties?

A) moral relativism
B) utilitarianism
C) Kantian ethics
D) ethical fundamentalism

Question 23

________ Act is a federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.

A) Business Norms
B) Sarbanes-Oxley
C) Glass-Steagall
D) False Claims

Question 24

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

A) Rawls's social justice theory
B) Kantian ethics
C) Utilitarianism
D) Moral relativism

Question 25

There are no specific governmental laws endorsing a moral minimum of social responsibility on corporations.

Question 26

Which of the following is an apparent disadvantage of utilitarianism?

A) It does not allow people to have subjective notions of right and wrong.
B) It is based on moral duties derived from universal rules.
C) It puts too much emphasis on one book or theory.
D) It treats morality as if it were an impersonal mathematical calculation.

Question 27

Reversibility is a principle of Kantian ethics which says that ________.

A) a person must be allowed to reverse his moral judgment to better suit his needs
B) a person must treat all moral circumstances as one
C) a person must be allowed to selectively choose moral judgments based on the circumstances
D) a person must abide by the rule he or she uses to judge the morality of someone else's conduct

Question 28

The theory of moral minimum stresses on making profit even while causing harm to others.

Question 29

The theory of stakeholder interest compels a corporation to consider the effects of its actions specifically on shareholders.

Question 30

Which of the following cases describes an agreement of ethics and laws?

A) A company outsourcing its jobs to a foreign country.
B) A person being penalized for bribing a judge to rule a case in the person's favor.
C) A company not spending more money to keep its emission rates below the legal standard.
D) A person hiring an illegal alien worker whose family is in destitute.

Question 31

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

A) utilitarianism
B) ethical fundamentalism
C) ethical relativism
D) Kantian ethics

Question 32

Portman, who runs a computer hardware store, had signed a contract with Stewie Inc. to deliver 125 computer monitors. He was to deliver it by the 5th of August, but by the 3rd of August, Portman could not arrange for the monitors, as his usual supplier was not available. Portman then decided to go to another supplier who had a higher selling price rather than cancel the contract with Stewie Inc. as he believed it was his duty to do so. What of the following moral theories matches Portman's behavior?

A) Kantian ethics
B) utilitarianism
C) Rawls's social justice theory
D) moral relativism

Question 33

Consistency is one of the two important principles of ________ upon which its universal laws are based.

A) utilitarianism
B) Kantian ethics
C) Rawls's social justice theory
D) moral relativism

Question 34

Section 406 of the Sarbanes-Oxley Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.

Question 35

The theory of corporate citizenship contends that corporations owe a duty to promote the same social goals as individual members of society.

Question 36

Which of the following statements describes the moral theory of utilitarianism?

A) People must choose the action or follow the rule that provides the greatest good to society.
B) People must follow actions that are in accordance with a specific moral rule or principle from a religious text.
C) People must choose to follow actions of a virtuous person.
D) People must follow actions based on moral duties imparted from one's community.

Question 37

________ is a set of moral principles or values that governs the conduct of an individual or a group.

A) Rationality
B) Evolution
C) Ethics
D) Reason

Question 38

Which of the following moral theories would closely follow the categorical imperative "Do unto others as you would have them do unto you?"

A) Kantian ethics
B) moral relativism
C) utilitarianism
D) Rawls's social justice theory

Question 39

Which of the following is a perceived disadvantage of Kantian ethics?

A) It treats morality as if it were an impersonal mathematical calculation.
B) It does not allow people to have subjective notions of right and wrong.
C) It is based on universal rules that have no common consensus.
D) It distinguishes between the morality one uses to judge others and the morality one uses on oneself.

Question 40

________ 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.

A) Ethical fundamentalism
B) Utilitarianism
C) Ethical relativism
D) Rawls's social justice theory

Question 41

Which of the following moral theories matches the dictum "I will keep the rules if everyone else does?"

A) perspectivism
B) social contract
C) moral relativism
D) utilitarianism

Question 42

What is "maximizing profits" as a social responsibility theory in business?

A) The theory that a corporation must consider the effects its actions have on persons other than its shareholders.
B) The theory that a corporation's duty is to make a profit while avoiding causing harm to others.
C) The theory that a corporation owes a duty to take actions that increases profits for shareholders.
D) The theory that a business has a responsibility solely to its stakeholders that other than shareholders.

Question 43

What is "corporate citizenship" as a social responsibility theory in business?

A) Businesses are responsible to even helping solve social problems that it did not cause.
B) Businesses owe a duty to take actions that increase profits for shareholders.
C) Businesses have a responsibility solely to its stakeholders, and should strive to maximize their well-being.
D) Businesses are obliged to consider the effects its actions have on persons other than its shareholders.

Question 44

The ________ Act enacted by Congress in 2002, requires public companies to adopt codes of ethics, and establishes criminal penalties for companies that partake in violations.

A) Glass-Steagall
B) Sarbanes-Oxley
C) False Claims
D) Business Norms

Question 45

Which of the following theories of morality is Rawls's Social Justice Theory fundamentally derived from?

A) the theory of utilitarianism
B) the theory of ethical fundamentalism
C) the social contract theory
D) the theory of moral relativism

Question 46

________ is a moral theory which asserts that fairness is the essence of justice.

A) utilitarianism
B) Kantian ethics
C) Rawls's social justice theory
D) moral relativism

Question 47

Which of the following is a perceived disadvantage of Rawls's social justice theory?

A) It allows for those in advantageous positions to suppress people in least advantageous positions.
B) It doesn't consider the fact that people would not want to maximize benefits for the least advantaged persons.
C) It only allocates people in advantageous positions to set up rules on morality.
D) It postulates that there are no universal ethical rules to guide a person's conduct.

Question 48

ULab Inc., a biotechnology firm, recently had a fire in one of their offices which resulted in the office building being gutted. The employees were not trained for a fire drill, and the 10-storey building had no fire escape route which resulted in many employees being hospitalized for physical injuries, burns and toxic smoke inhalation. What important social responsibility theory was ULab negligent of by not training their employees in case of a fire and not installing a fire exit?

A) corporate citizenship
B) moral minimum
C) stakeholder interest
D) maximizing profits

Question 49

A social responsibility theory of business which says that a corporation's duty is to make a profit while avoiding causing harm to others is referred to as ________.

A) stakeholder interest
B) corporate citizenship
C) maximizing profits
D) moral minimum

Question 50

________ is a moral theory which holds that individuals must decide what is ethical based on their own feelings about what is right and wrong.

A) Ethical relativism
B) Kantian ethics
C) Utilitarianism
D) Rawls's social justice theory

Question 51

If Steve Templeton decides to not close the plant in Kantron, what business social responsibility will Steve Templeton be achieving?

A) moral minimum
B) corporate citizenship
C) maximizing profits
D) stakeholder interest

Question 52

How are ethical rules established in Kantian ethics?

A) by a set of universal rules that are based on consistency and reversibility
B) by following principles that have been derived from holy books
C) by an individual's feelings on what is right and wrong
D) by choosing the alternative that's best for society as a whole

Question 53

How are ethical rules established in Rawls's social justice theory?

A) by a set of universal rules based on consistency and reversibility
B) from an original position of a veil of ignorance
C) by the ruling class or people in advantageous positions
D) by following what's best for the society as a whole

Question 54

Which of the following moral theories will help an anthropologist study ancient societies with an impartial and unprejudiced mindset, especially when it relates to ethics and customs followed by ancient societies to that being followed in present societies?

A) Rawls's social justice theory
B) utilitarianism
C) Kantian ethics
D) ethical relativism

Question 55

If Steve Templeton decides to close the plant in Kantron, what important business social responsibility will Steve Templeton accomplish?

A) moral minimum
B) corporate citizenship
C) maximizing profits
D) stakeholder interest

Question 56

Sinbad Cola, a soft drink manufacturer, recently opened a plant in Buron. The wastages from the plant were dumped in the Buron Sea, situated a mile away from the plant. Dumping of wastes in the sea resulted in water pollution, which negatively affected the Buron fishing business, and also resulted in groundwater contamination. Sinbad Cola compensated by bringing contamination levels down with additional filters, and paying damages to the local fisheries. Which theory of business social responsibility did Sinbad Cola meet when they compensated for their harmful wastage disposal methods?

A) moral minimum
B) stakeholder interest
C) corporate citizenship
D) maximizing profits

Question 57

________ is a social responsibility theory of business which says that a corporation must consider the effects its actions have on persons other than its shareholders.

A) Corporate citizenship
B) Maximizing profits
C) Moral minimum
D) Stakeholder interest

Question 58

According to ethical relativism, ________.

A) ethics rely on duties based around universal rules which one is morally bound to follow
B) each person is presumed to have entered into a social contract with all others in society to obey moral rules
C) there are no universal ethical rules to guide a person's conduct
D) people must choose an action or follow a rule that provides the greatest good to society

Question 59

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?

A) Kantian ethics
B) Rawls's social justice theory
C) ethical fundamentalism
D) utilitarianism

Question 60

Conch Corporation, a global oil and gas company, has plans to open a subsidized postsecondary vocational school in the town of Cristen, where one of their offices is situated. The plan was put to vote and approved despite some objection from shareholders. The school is being opened in collaboration of the local government, and the objective is to help the youth of that neighborhood, especially dropouts, learn a vocational skill. What social responsibility theory describes Conch Corporation's move to open the school?

A) moral minimum
B) maximizing profits
C) corporate citizenship
D) stakeholder interest

Question 61

Under the moral theory of ________, if a person meets his or her own moral standard in making a decision, no one can criticize him or her for it.

Question 62

What is theory of moral minimum in social responsibility for businesses?

Question 63

The ________ theory of social responsibility compels corporations to correct social injuries it causes.

Question 64

The social responsibility theory of ________ tries to protect the interest of people, besides shareholders, who are connected to a corporation.

Question 65

What is ethical relativism?

Question 66

Under the moral theory of ________, a person looks to an outside source for ethical rules or commands.

Question 67

Give an account of the relationship between ethics and law.

Question 68

Give an account the social responsibility of businesses and list out its four main theories.

Question 69

The social responsibility theories of businesses attempt to infuse a code of ________ in corporate behavior and its responsibilities.

Question 70

The legislative and judicial branches of government have established laws that enforce the ________ of social responsibility on corporations.

Question 71

The moral theory that dictates people choose the action or follow the rule that provides the greatest good to society is referred to as ________.

Question 72

The ________ Statute is a federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.

Question 73

________ is a moral theory with origins in the works of Jeremy Bentham and John Stuart.

Question 74

The social responsibility theory of ________ instructs corporations to solve social issues, even ones that it may have not caused.

Question 75

Section 406 of the ________ Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.

Question 76

Explain the two principles used to derive the universal rules of Kantian ethics?

Question 77

________ is one of the two principles of Kantian ethics that states that the actor must abide by the rule he or she uses to judge the morality of someone else's conduct.

Question 78

According to Rawl's social justice theory, ________ is considered the essence of justice.

Question 79

Rawl's social justice theory is based on the ________ theory of morality proposed by John Locke and Jean-Jacques Rousseau.

Question 80

Kantian ethics is also referred to as ________ ethics.