Deck 4: Business Ethics and Leadership

Question 1

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)If current management is not maximizing profits, it is violating the utilitarian imperative to maximize the overall good.
C)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.
D)All of the above.

Answer 1

All of the above.

Question 2

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.

Answer 2

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 3

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 hyper norms 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.

Answer 3

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 hyper norms governing any and all social contracts.

Question 4

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 5

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 means.

Question 6

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 to know how to consider the consequences for all the parties that will be affected by an act.
D)All of the above.

Question 7

How can you describe the thinking and outlook of transformational leaders?

A)Strategic
B)Operational
C)Functional
D)Developmental

Question 8

The biggest challenge in planning for change is:

A)Who will be affected by the change?
B)Anticipating its unintended, unexpected outcomes
C)Deciding who should implement the change
D)Communicating why the change is needed

Question 9

What are the key characteristics of transactional leaders?

A)Guiding, mentoring and motivating
B)Guiding, commanding and motivating
C)Guiding, demonstrating and motivating
D)Guiding, mentoring and demonstrating

Question 10

The organization will never be able to make the necessary changes without

A)Top management commitment
B)Employees
C)Workers
D)None of the mentioned

Question 11

Personal characteristics to be a successful entrepreneur includes

A)Understanding environment
B)Creating management options
C)Encourage open discussion
D)All of the above

Question 12

A set of reasons for engaging in a particular behavior, especially human behavior is known as:

A)Values
B)Vision
C)Entrepreneurship
D)Motivation

Question 13

It all depends on the variables of a situation" best describes the

A)Classical approach
B)Human relations approach
C)Systems approach
D)Contingency approach

Question 14

If you believe in making decisions for the good of most people, you can be described as following which school of thought?

A)Utilitarianism
B)Teleology
C)Deontology
D)Egoism

Question 15

Corporate social responsibility that extends beyond legal mandates can help meet societal expectations in the absence of

A)Statutory devices
B)Social tool
C)Cost tool and Techniques
D)Science tool

Question 16

Which statement is true?

A)Skills are not enduring due to fatigue
B)The final proof of sincerity and seriousness is uncompromising emphasis on integrity of character in a job
C)The mental contents of the good person are called moral and ethical values
D)All of the above

Question 17

The process of evaluating a firm's________________ is to determine its effect on a society.

A)operating procedures
B)code of conduct
C)Policies compliance
D)All of the above