Deck 1: Business Ethics: Key Principles, Safeguards, and Challenges

Question 1

Which of these are key principles of the code of ethics?

A)Objectivity
B)Familiarity
C)Professional behavior
D)A and C

Answer 1

A and C

Question 2

If you face an ethical dilemma, what should your first step be in resolving the issue?

A)Contact the regulators
B)Stay quiet
C)Check your facts
D)None of the above

Answer 2

Check your facts

Question 3

In which of these areas might you face pressures?

A)Working with colleagues from different functional areas within the organization
B)Meeting reporting deadlines
C)Allocating bonuses
D)all of the above

Answer 3

all of the above

Question 4

Which of these are safeguards for upholding high ethical standards?

A)Having written orders to do something
B)Companies' internal codes, policies and education
C)Corporate governance regulations
D)b and c

Question 5

How does CIMA support its members and students?

A)Setting standards and disciplinary process
B)Making decisions for them
C)Offering helplines globally
D)a and c

Question 6

The most influential theory of corporate responsibility of the past century is:

A)The moral minimum model.
B)The classical model.
C)The social contract theory.
D)The stakeholder theory.

Question 7

The ethical roots of the classical model of corporate social responsibility are found in which statement:

A)The idea that the interests of stakeholders are as important as the interests of a corporation's stockholders.
B)The free market theory which holds that managers are ethically obliged to take as much money as possible for their stockholders because to do otherwise would undermine the very foundations of our free society.
C)The ethical imperative to cause no harm.
D)The ethical imperative to prevent harm.

Question 8

Which of the following reasons might a free market economic theorist use to justify the hostile takeover of a company?

A)The takeover target company's stock is undervalued. That is evidence that the resources are being inefficiently used.
B)The organization seeking to take over the target company will maximize profits for the stockholders and will be serving the public's interests because it is only by satisfying consumer (public) demand that a business can make profits.
C)If the takeover target's managers are using their stockholders' money to serve interests other than those of the stockholders, they are stealing from them.
D)All of the above.

Question 9

Which statement does not support the claim that an unconditioned ethical directive such as the one the classical model of corporate social responsibility demands of business management is inappropriate for utilitarian theory?

A)Markets can work to prevent harm only by first-hand experience with harms that have to occur before they can be remedied.
B)It is claimed that once market failures are adequately addressed by the government, business just needs to obey the law that addressed them. Business, however, has the ability to inappropriately influence government policy and the law.
C)Business has the ability to influence consumers' desires by helping shape those desires through advertising.
D)A more precise formulation of a utilitarian- based principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial.

Question 10

According to the private property defense of the classical model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view?

A)Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom.
B)The connection between ownership and control that exists for personal property does not legally exist for corporate property.
C)Investors buy their stocks with the hope of maximizing return on their investment.
D)Stockholders in publicly traded corporations are better understood as investors rather than owners.

Question 11

Which statement is true of Bowie's Kantian approach to business ethics?

A)People have a duty both to not cause harm and to prevent harm.
B)Both causing no harm and preventing harm override other ethical considerations.
C)While it is ethically good for managers to prevent harm or do some good, their duty to stockholders overrides these concerns.
D)A narrow interpretation of Bowie's "cause no harm" imperative makes the duties faced by management under the neo-classical model significantly different from the classical model.

Question 12

Select the reasons, historically speaking, why the modern corporation was established as a legal entity:

A)Social benefits flow from corporate institutions.
B)Corporations provide an efficient means for raising large amounts of capital needed to produce and distribute socially desired goods and services.
C)Corporations distribute risks widely over large populations, minimizing the risk to any one individual.
D)All of the above.

Question 13

Which statement does not challenge the notion of a hypothetical social contract between society and corporations?

A)If the social contract presupposes an amoral beginning, it seems to offer few guarantees that certain fundamental ethical rights will be protected under the contract.
B)Micro-social contracts can be developed within particular local communities that establish the specific ethical rights and responsibilities within that community as long as they fit within the general limitations of the hypernorms governing any and all social contracts.
C)It is difficult to specify exactly what responsibilities will be drawn from this hypothetical contract.
D)If the theory already begins with certain fundamental rights and responsibilities, then the social contract may be irrelevant to providing an ethical justification for business' responsibilities.

Question 14

Which statement represents a challenge to Evan's and Freedman's defense of the stockholder theory against the classical model of corporate social responsibility?

A)The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, the disabled.
B)Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers' fiduciary responsibility.
C)Stakeholder theory cannot ANSWER the question as to how, exactly, a manager should go about balancing the diverse and competing claims of all parties.
D)There is no guarantee that when managers produce profits they will serve the interests of either stockholders or the public.

Question 15

Which statement correctly reflects the free market view of business social responsibility?

A)In addition to making a profit, businesses are just as responsible for seeing to the well-being of their employees and the communities in which they operate
B)No one other than the managers and owners of a business may claim to have any stake in the business decisions managers make.
C)In the process of providing goods and services to customer who need and want them and maximizing profits for its shareowners, a business fulfills its social responsibility
D)A business is responsible for maximizing profits for its shareowners, but, in special circumstances, may have to sacrifice profits in the interest of the community whose citizens depend on it for employment.

Question 16

Which statement correctly describes the relationship between philosophical ethics and ethos?

A)Individuals who obey the conventions, mores, and rules of their cultures are already acting ethically. No further philosophical reflection is required.
B)Philosophical ethics distinguishes what people do value from what they should value.
C)What people do value and should value are, for all practical purposes, the same.
D)Philosophical ethics is too abstract to be useful in everyday life situations. Following the mores and customs of one's culture is a more dependable way to make moral decisions.

Question 17

Which of the following intellectual disciplines provides absolute proof of its conclusions?

A)The social, biological, meteorological, and medical sciences.
B)Ethical judgments based on well-reasoned arguments from sound moral principles.
C)The applied sides of engineering, chemistry, and physics.
D)None of the above.

Question 18

Identify the statement that is consistent with utilitarian ethical theory:

A)Adhering to a set of principles may well forbid an act that would otherwise provide overall net good consequences.
B)No act is ever morally right or wrong in all cases, in every situation. It will all depend on the act's consequences.
C)Some actions like murder, theft, rape, and lying are wrong of their very nature, the kind of acts they are. No amount of net good consequences could ever justify them.
D)The end never justifies the me

Question 19

Which statements are legitimate challenges to utilitarian ethical theory?

A)The end may justify the means.
B)There is no consensus among utilitarians on how to measure and determine the overall good.
C)It is difficult for the utilitarian to find a balance between individual freedom and the overall goo
D)The more utilitari

Question 20

Which of the following reasons accounts for utilitarianism's dominance among policy makers and administrators?

A)It seems obvious that policy questions should be judged by results and consequences.
B)Policy experts at all levels are focused on results and getting things done.
C)Efficiency is simply another word for maximizing happiness.
D)All of the above.