Deck 2: Business Ethics and Social Responsibility

Question 1

Life Principles are set by your parents and do not change over time.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

In analyzing a situation to determine how to act ethically,a business manager should:

A) gather background information by either talking firsthand with the people involved or by talking to those who gained information informally through the company "grapevine."
B) narrowly focus on a single issue.
C) determine whether an alternative violates important values.
D) All of the answers are correct.

Question 5

Researchers who study happiness find that people expect material goods to make them happier than they actually do.

Question 6

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

Question 7

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.

Question 8

Wever,Inc.is considering relocating a facility to Mexico.The interests of the various stakeholders affected by this decision may conflict.

Question 9

Ethics is the study of how people should act.

Question 10

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

Question 11

Ethics is the study of:

A) sovereign immunity.
B) how people should act.
C) respondeat superior.
D) victimization.

Question 12

Unethical behavior is a bar to financial success.

Question 13

Generally,ethical managers have happier,more satisfying lives.

Question 14

Under Utilitarian ethics if a decision maximizes happiness in the most people it is ethical

Question 15

Does ethical behavior maximize profitability?

A) Yes,there is concrete evidence that ethical behavior maximizes profitability.
B) No,there is concrete evidence that unethical companies outperform ethical companies.
C) Although there is no guarantee that ethical behavior pays in the short or long run,there is evidence that the ethical company is more likely to win financially.
D) There is strong evidence that ethical behavior pays financially in the long run,but not in the short run.

Question 16

Society is hurt when business managers behave ethically.

Question 17

There is strong evidence that ethical behavior pays off financially for businesses.

Question 18

Why should ethics be a concern to business?

A) Society as a whole benefits from ethical behavior.
B) People feel better when they behave ethically.
C) Unethical behavior can be very costly.
D) All of the above.

Question 19

Zeno,Inc.is considering relocating its manufacturing facility from Illinois to Mexico City.The stakeholders in this decision might include:

A) Zeno's shareholders.
B) customers.
C) the Illinois community in which Zeno operates.
D) All of the above.

Question 20

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

Question 21

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?

A) Don has committed both unethical and illegal conduct.
B) Don has committed unethical conduct,but it is legal.
C) Don has committed ethical conduct but it is illegal.
D) Don has committed both ethical and legal conduct.

Question 22

Nortron Corporation wants to create an ethical environment in its company.Which of the following has been found to help foster a sense of ethics within an organization?

A) The company may develop a formal,written ethics code.
B) The company may institute a formal ethics training program for the employees.
C) The top executives may provide good examples by behaving ethically themselves.
D) All of the above alternatives have been used by U.S.companies to create an ethical environment in their organizations.

Question 23

In 1919,Henry Ford was sued because:

A) he used corporate profits to support humanitarian and charitable works.
B) he diverted corporate profits for personal gain.
C) the Dodge brothers wanted a bigger role in management.
D) his factory was deemed to be a sweatshop.

Question 24

Unethical behavior in an organization can create:

A) a cynical workforce.
B) a resentful workforce.
C) an unproductive workforce.
D) All of the above.

Question 25

Why do many major corporations actively encourage ethical behavior?

A) Unethical behavior always damages a business.
B) Unethical behavior can quickly destroy a business.
C) Unethical acts are always illegal.
D) All of the above are reasons that corporations actively encourage ethical behavior.

Question 26

Charlie Sheen's drug use and violent behavior:

A) were bad enough that to warrant CBS's firing of him from a hit TV show.
B) have no impact on his job as an actor.
C) enhance his reputation as a "tough guy" and should be tolerated.
D) are false accusations.

Question 27

Who makes up the Stakeholders

A) Shareholders,community,employees,customers
B) CEO & shareholders
C) Landowners,taxpayers,shareholders
D) None of these answers are true

Question 28

Lois is running for political office.She trails the incumbent and decides to start running a series of "attack ads." The attack ads are very effective and one week before the election it appears that she has drawn even with her opponent.Lois admits that the attack ads were exaggerations and contained some distortions.Which statement is correct?

A) Lois has engaged in unethical behavior.
B) Lois has engaged in ethical behavior since she has an obligation to her supporters to run a campaign that will help her get elected.
C) It is not possible to determine whether Lois's attack ads were ethical or unethical.
D) Assuming Lois's attack ads were unethical,her conduct is justified and proper if she to gets elected.

Question 29

John discovered his company's accountant was "skimming" money from the business.The accountant agreed to pay John a one-time payment of $25,000 not to report the skimming to company officials.The accountant promised she would pay the money back when she could.John accepted the money and never reported what he knew.A year later the accountant was fired when the embezzlement was discovered.She was also prosecuted for theft.The payment to John was never discovered.Which statement is correct?

A) John's act was unethical and illegal.
B) John's act was unethical but not necessarily illegal.
C) John's act was ethical since he believed the accountant would return the money; however,it was illegal.
D) Based on the facts,John's conduct was both ethical and legal given the special circumstances of this case.

Question 30

Ethical companies:

A) tend to earn higher returns than companies that engage in wrong-doing.
B) tend to have more creative employees than companies that engage in wrong-doing.
C) are guaranteed to be more profitable in the long run than companies that engage in wrong-doing.
D) All of the above..
E) Both (a) and (b).

Question 31

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 like them.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 is correct?

A) Paul's conduct was ethical as long as he was within the time frame for returns.
B) Paul's conduct was unethical.
C) This is not an issue of ethics since people do this all the time.
D) Paul's conduct was ethical since the store has a legal duty to return his money when he returned the jeans.

Question 32

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?

A) Ethical behavior improves productivity.
B) Ethical behavior increases job stability.
C) Unethical behavior can destroy a business.
D) All of the above are reasons that would justify establishing an EthicsLine.

Question 33

Research has shown that the least important motivation for managers in behaving ethically is:

A) they want to feel good about themselves.
B) they want to feel good about the decisions they make.
C) they value their reputation.
D) profitability.

Question 34

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

A) Justice Potter Stewart.
B) John Akers.
C) Milton Friedman.
D) Jeffrey Sachs.

Question 35

Which of the following is NOT a stakeholder?

A) a business competitor.
B) shareholders.
C) employees.
D) the environment.

Question 36

Deontological ethics bases it value of what when evaluating the right decision

A) Results of doing something
B) Hapiness in doing something
C) Reason for doing something
D) The rules

Question 37

What is ethics

A) Always telling the truth
B) The study of how people should act
C) Following the law
D) none of these answers is true

Question 38

Which of the following are alternatives in dealing with issues of ethics in advertising?

A) Try,in a general way,to minimize racism,sexism,and other exploitation.
B) Include,as part of the development process,a systematic,focused review of the underlying messages contained in advertisements.
C) Refuse to create ads that are potentially demeaning,insensitive,or dangerous,recognizing that such a stand may lead to a loss of clients.
D) All of the above are alternatives in dealing with issues of ethics in advertising.

Question 39

The Chief Executive Officer of Ticor,Inc.must decide about the disposal of toxic waste materials.Which of the following considerations should help the CEO reach an ethical business decision?

A) Toxic waste disposal law.
B) The harm the disposal could cause to the environment.
C) The impact on the business if the decision is publicly disclosed through the news media.
D) All of the above.

Question 40

What is the purpose of a corporation?

A) Make the shareholders money.
B) Include consideration of the welfare for all stakeholders
C) Both answers are true
D) Neither answer is true

Question 41

Li is the vice president of marketing for Felson,Inc.,a manufacturer of children's clothing Felson is considering building a factory in a developing country,where there are few restrictions on working conditions,wages,or maximum work hours. Which viewpoint: utilitarian or deontological would support this move? Why?

Question 42

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.

Question 43

Identify and discuss six values that are almost universal.

Question 44

Oxtron,Inc.arranged for two employees,Kaiya and Gary,to attend "The Business Ethics 2008 Conference: Maintaining Credibility" in New York City.Although Gary goes to New York,he does not participate in the conference.Instead,he takes in the local attractions.Kaiya fully participated in the conference.Using ethical standards,describe what Kaiya should do about Gary's failure to participate in the conference.

Question 45

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