Deck 8: Ethics and Social Responsibility of Business

Question 1

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

Answer 1

B

Question 2

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

A) Ethical fundamentalism
B) Utilitarianism
C) Ethical relativism
D) Kantian ethics

Answer 2

B

Question 3

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.

Answer 3

A

Question 4

Which of the following statements is true regarding the relationship between law and ethics?

A) All ethical standards have been enacted as law.
B) Ethics establish a minimum degree of conduct while the law demands more.
C) Ethics and the law are completely unrelated to each other.
D) Law establishes a minimum degree of conduct while ethics demand more.

Question 5

The ________ 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 Act
B) Sarbanes-Oxley Act
C) Glass-Steagall Act
D) False Claims Act

Question 6

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 7

Charlotte works as a teacher in Africa.Every Sunday,she visits nearby villages and convinces families to send their children to school.She arranges accommodation for these children and helps them with their education.In a recent interview,Charlotte mentioned that she looks up to Mother Teresa not only for inspiration but also to resolve ethical dilemmas.Charlotte's approach to ethics is characteristic of ________.

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

Question 8

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 9

Which of the following is true of utilitarianism?

A) It proposes rules that provide the greatest good for the greatest number of people.
B) It has been criticized for not providing universal ethical rules to guide a person's conduct.
C) It proposes universal ethical rules based on consistency and reversibility.
D) It proposes rules that provide the greatest good to society.

Question 10

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 treats morality as if it were an impersonal mathematical calculation.
C) It puts too much emphasis on one book or theory.
D) It is based on moral duties derived from universal rules.

Question 11

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

A) moral minimum
B) corporate citizenship
C) stakeholder interest
D) utilitarianism

Question 12

The Whistleblower Statute is also known as the ________.

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

Question 13

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 14

________ 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 15

Which of the following is the difference between ethical fundamentalism and utilitarianism?

A) Ethical fundamentalism focuses on outside source for ethical rules, while utilitarianism focuses on rules that provide greatest good to society.
B) Ethical fundamentalism focuses on moral rules based on a social contract, while utilitarianism focuses on universal rules based on consistency and reversibility.
C) Ethical fundamentalism focuses on rules that provide greatest good, while utilitarianism focuses on outside source for rules.
D) Ethical fundamentalism focuses on rules based on individual feelings, while utilitarianism focuses on outside source for rules.

Question 16

Which of the following is characteristic of ethical fundamentalism?

A) It treats morality as if it were an impersonal mathematical calculation.
B) It dictates that people must choose the action or follow the rule that provides the greatest good to society.
C) It doesn't permit people to determine right or wrong for themselves.
D) It leaves ethical choices to individuals.

Question 17

Which of the following is an example of utilitarianism?

A) Maxtel Apparels decides to shut down one of its plants because its functioning was threatening other plants.
B) Turner, Inc., a leather factory, pollutes a river in the town in which it operates but offers damage relief for people affected by the river pollution.
C) Raul, a football player, decides to cheat in the upcoming match just because the rival team follows a similar approach.
D) Matt looks up to his religious book to guide his life in the righteous way.

Question 18

________ 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 19

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?

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

Question 20

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?

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

Question 21

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

A) Reversibility
B) Relativity
C) Perspectivism
D) Utilitarianism

Question 22

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 23

Kantian ethics is also referred to as ________ ethics.

A) relativistic
B) utilitarian
C) duty
D) nihilistic

Question 24

According to ethical relativism,________.

A) ethics fundamentally 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 always choose an action or follow a rule that provides the greatest good to society

Question 25

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 26

Which of the following is a criticism 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 27

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 28

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 29

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.

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

Question 30

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 moral relativism theory

Question 31

What does the "veil of ignorance" require under the social contract theory of mortality?

A) Ethical obligations could be decided by less intelligent members of society so that they can be understood by all.
B) Ethical obligations in society should not be made public, because if they were, individuals would strive to merely do the minimum.
C) Ethical obligations could be determined by persons who do not yet know their place in society.
D) Ethical obligations could be determined by the lower 50% of the population economically.

Question 32

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

A) It treats morality as if it were an impersonal mathematical calculation.
B) It doesn't set any universal rules to guide a person's conduct.
C) It doesn't consider the fact that people would not want to maximize benefits for the least advantaged persons.
D) It only assigns people in advantageous positions with the responsibility of setting up rules on morality.

Question 33

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

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

Question 34

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 35

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

A) Nihilism
B) Consistency
C) Egoism
D) Relativism

Question 36

________ 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 37

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 38

________ 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 39

Which of the following is an example of ethical relativism?

A) a person basing his actions on the teachings of a religious figure
B) a person basing her actions on her own feelings
C) a person basing his moral duties on a political treatise
D) a person basing her moral duties on an implied social contract

Question 40

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) from choosing what's best for the society as a whole

Question 41

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?

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

Question 42

Under the theory of ________,if a business corrects the social injury it causes,it has met its duty of social responsibility.

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

Question 43

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

A) A company decides to continue operations in its unprofitable factory for the benefit of its employees.
B) A leather company minimizes its toxic output to counter complaints of environmental damage from local residents.
C) A company decides to increase the price of its products in order to maximize the profit for its shareholders.
D) A company donates 20 percent of its quarterly profits to flood victims in another country.

Question 44

Which of the following is the difference between Kantian ethics and ethical relativism?

A) Kantian ethics is based on rules that require consistency and reversibility, while ethical relativism suggests decisions based on individual feelings.
B) Kantian ethics is based on rules that provide the greatest good to the society, while ethical relativism suggests rules based on an implied social contract.
C) Kantian ethics is based on rules from an outside source, while ethical relativism is based on rules that require consistency and reversibility.
D) Kantian ethics suggests rules based on an implied social contract, while ethical relativism is based on rules from an outside source.

Question 45

Which of the following is a criticism of stakeholder interest theory?

A) The duty of a corporation to do good to the society cannot be expanded beyond a certain limit.
B) The conflicting interests of different people related to a business are difficult to harmonize.
C) The focus of a business is only on maximizing the wealth of its shareholders.
D) It is difficult to establish laws that guarantee minimum safety standards.

Question 46

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 with 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 47

Which of the following is an example of corporate citizenship theory?

A) Milky Way Footwear donates shoes to underprivileged children in an orphanage in its hometown.
B) Panorama Leathers pollutes a river with waste water from its tannery but compensates the people affected by the polluted river.
C) Crimson, Inc. decides to keep running its unprofitable factory for the benefit of its employees.
D) Amfin Pharmaceuticals increases the prices of its drugs to maximize its profits.

Question 48

Which of the following is true of the Sarbanes-Oxley Act?

A) It penalizes companies that violate ethical standards that are not enacted by the rule of law.
B) It prevents companies from acting only in the interest of maximizing the wealth of its stakeholders.
C) It requires public companies to disclose whether it has a code of ethics for senior financial officers.
D) It penalizes companies that fail to contribute toward social issues.

Question 49

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 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 50

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 51

Which of the following terms refers to a theory of social responsibility of business?

A) moral minimum
B) ethical fundamentalism
C) utilitarianism
D) moral relativism

Question 52

According to the corporate citizenship theory,businesses ________.

A) are responsible for solving social problems that it did little to cause
B) owe a duty to take actions that increase profits for shareholders
C) have a responsibility solely to its stakeholders, and should strive to maximize their well-being
D) are obliged to consider the effects its actions have on persons other than its shareholders

Question 53

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 54

The theory of maximizing profits states that ________.

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

Question 55

Which of the following is a major criticism of corporate citizenship theory?

A) The laws that guarantee minimum safety standards are difficult to establish.
B) The conflicting interests of different people related to a business are difficult to harmonize.
C) The focus of business is only on maximizing the wealth of shareholders.
D) The duty of a corporation to do good to the society cannot be expanded beyond certain limits.

Question 56

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 57

Which of the following is true of maximize profits theory?

A) It requires an organization to correct the social injury it causes.
B) It considers the interests of people other than shareholders to be unimportant.
C) It considers the interests of all people associated with a business to be important.
D) It requires an organization to solve social issues that it did little to cause.

Question 58

________ 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 59

Which of the following is the difference between maximize profits theory and moral minimum theory?

A) Maximize profits theory calls for actions to make profits at all cost, while moral minimum theory calls for actions to make profit without harming others.
B) Maximize profits theory calls for actions with all stakeholder interest, while moral minimum theory calls for actions to solve other social problems.
C) Maximize profits theory calls for actions to make profit without harming others, while moral minimum theory calls for actions to solve other social problems.
D) Maximize profits theory calls for actions with all stakeholder interest, while moral minimum theory calls for actions to make profits at all cost.

Question 60

The 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 61

Ethics and the law remain unrelated in most of the cases.

Question 62

According to the social contract theory,moral rules are used to solve conflicting interests in society.

Question 63

According to Kantian ethics,a person is under no moral obligation to abide by a contract if it turns out to be detrimental to the obligated party.

Question 64

Ethical fundamentalism dictates that people must choose the action or follow the rule that provides the greatest good to society.

Question 65

Businesses organized in the United States are not subject to laws of other countries in which they operate.

Question 66

Utilitarianism focuses on rules that provide minimal good to the greatest number of people.

Question 67

Ethical relativism establishes ethical rules based on an implied social contract people have with each other.

Question 68

According to social contract theory,each person is presumed to have entered into a social contract with all others in society to obey moral rules.

Question 69

One criticism of utilitarianism is that it treats morality as if it were an impersonal mathematical calculation.

Question 70

Ethics refers to a set of moral principles or values that governs the conduct of an individual or a group.

Question 71

Kant's philosophy and ethics is based on the premise that people should avoid reasoning when arriving at ethical decisions.

Question 72

Ethical relativism theory holds that individuals must follow an outside source for ethical rules or commands.

Question 73

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

Question 74

A person deriving his or her ethics from a religious book is an example of ethical fundamentalism.

Question 75

According to Rawls' social justice theory,universal rules are based on consistency and reversibility.

Question 76

The moral minimum theory argues that a corporation's duty is to make a profit even at the cost of causing harm to others.

Question 77

Kantian ethics is also known as moral relativism.

Question 78

Rawls' social justice theory can be described as wanting fairness in justice.

Question 79

A company that pollutes a river without providing any compensation to those affected is said to have violated its social responsibility as proposed by the maximize profits theory.

Question 80

The maximize profits theory holds that the interests of all stakeholders related to an organization are important.