Deck 5: Ethics of Business: The Theoretical Basis

Question 1

When Julio was a child,he witnessed the suffering his father experienced after being laid off.Today,as a manager,he is determined to never layoff a worker if he can help it.This conviction represents the influence of individual morals on ethical decision-making.

Answer 1

True

Question 2

The Competition Act makes some questionable market practices illegal and thus discourages some managers from becoming involved in such practices.

Answer 2

True

Question 3

Ethical relativism is a form of ethical assessment that is consistent with Level 3.

Answer 3

False

Question 4

Cultural relativism is a type of ethical relativism.

Question 5

The perspective that businesspersons are less ethical than others has been a result of the traditional view of the free enterprise system.

Question 6

The self-interest ethic means that individuals or corporations derive their standards for judging the ethical implications of their actions from the corporate culture in which they work.

Question 7

Most of the influences on ethical standards have a theoretical basis of ethical assessment.

Question 8

Kaler's gradations of self-interest would identify egoism as non-moral.

Question 9

Business ethics is not concerned with rules and guidelines for morally right behaviour.

Question 10

Altruists are ultra-moral.

Question 11

The personal virtue ethic applies to the application of personal traits,such as honesty,to ethical decision-making.Because a corporation isn't a person,this model only describes the behaviour of individual leaders and not the corporation itself.

Question 12

Moral standards are the means by which actions are judged.

Question 13

Value judgments are based on how society interprets the goals of the firm.

Question 14

Ethics is a recent concern for business.

Question 15

Francois was shocked by the hiring practice of his closest competitive rival.He would never have thought of directly recruiting his competitor's employees,but that is precisely what his rival was doing to him."Fine," thought Francois,"If he does it,so will I." This experience represents the influence of colleagues and peers on ethical behaviour.

Question 16

Adam Smith's Wealth of Nations advocated managers and corporations to take selfish actions and be motivated by personal gains in business dealings.

Question 17

Assessment of the ethical implications of business decisions is a three-stage process.

Question 18

Adam,a manager,is concerned with how to translate the rules and principles that guide morally appropriate behaviour into decisions that will affect his firm's product development.He is concerning himself with the ethics of business.

Question 19

Kim is surprised when doing business in another country that the workers seemed to believe that they have a right to have their jobs.His experience in Canada was always that employees didn't feel they "owed" their positions.This experience represents the influence of national and ethnic cultures on ethical behaviour.

Question 20

Some managers assess the moral implications of a decision by its economic consequences and a moral justification is based on the workings of a market system.

Question 21

Universal ethical principles orientation is situated in the post-conventional level of Kohlberg's stages of moral development.

Question 22

The Inter-conventional level is one of Kohlberg's stages of moral development.

Question 23

It is a myth that "People are less ethical than they used to be." Ethical behaviour today is not that different than in the past.

Question 24

In terms of the implications of a decision,after the fact as justifications is typical of Approach 2.

Question 25

A decision maker should always identify stakeholders involved in a decision prior to determining what alternative solutions to the problem are possible.

Question 26

The economic efficiency ethic judges moral implications by economic consequences.

Question 27

A cost-benefit analysis is done on the preferred option in utilitarian analysis and if this is seen as beneficial,no further analysis is required.

Question 28

NTU Restaurants is a leader in the food services sector.Jane applies for a job as a server and is told that she will be working in the kitchen,despite having many years of experience waiting tables.She notices that all the servers are young people,many of whom have no experience in the industry.Jane considers filing a human rights complaint.The ethical implications in this example relate to which aspect of business operations for NTU Restaurants?

A) Employees
B) Society at large
C) Government
D) All of the answers.
E) None of the answers.

Question 29

Moral reasoning is a systematic approach to considering the implications of a moral issue.

Question 30

A food manufacturer is relocating operations to a facility where the product may come in contact with peanuts.Although this manufacturer has never marketed its product as peanut free,the CEO is aware that,amongst parents of children with peanut allergies,their company's product is considered safe.The CEO is aware that this may raise ethical concerns.The CEO is operating at which level of ethical assessment?

A) Level one
B) Level two- value judgment
C) Level two - moral standards
D) Level three
E) None of the answers.

Question 31

Ethical dilemmas should be resolved by the impartial application of some general principle.This is the viewpoint of the ethic of individual rights.

Question 32

The ethic of caring is concerned with equality,not equity.

Question 33

According to Hosmer,ethics remain the same and do not differ among people,cultures,or countries,but morals and values do differ among people,cultures,or countries.

Question 34

Michael is worried about a new product that his company plans to market.He thinks that the marketing campaign planned for the product will lead customers to think that alternate product on the market is inferior,when the products are not substantively different.The potential ethical implications relate to which aspect of the business operation?

A) Suppliers
B) Consumers
C) Competitors
D) All of the answers.
E) Consumers and competitors

Question 35

"Just do the right thing" is a suitable guide for determining acceptable moral behaviour.

Question 36

The ethic of justice is solely based on the one value: fairness.

Question 37

Implicit prejudice is a bias that emerges from unconscious beliefs such as stereotyping.

Question 38

Managers seldom confuse ethics,morals,and values.

Question 39

"It's easy to be ethical" is not a myth.It takes a conscious effort,and a system of checks and balances,but it is achievable by all human beings.

Question 40

"Do unto others as you would have them do unto you." The Golden Rule is reflective of the personal values approach to ethical analysis.

Question 41

The students were frustrated.Every time they asked their professor to give an ethical assessment,she would reply,"It depends".The professor felt that there were no rules or standards to guide behaviour and that every decision depends on the circumstances.The professor is applying _______.

A) ethical relativism
B) cultural relativism
C) individual rights
D) personal virtues ethic
E) ethic of caring

Question 42

The decision to relocate the factory to Mexico was difficult,but the shareholders overwhelmingly agreed with the move.The production manager and the other managerial staff were all offered comparable positions in Canada,but the production workers themselves were laid off.The manager argued that managerial staff should be treated differently than the production employees.The manager's decision violated the principle of ___________.

A) self-interest
B) personal virtues
C) economic efficiency
D) utilitarian
E) universal rule ethic

Question 43

Immanuel is expanding his business and will be contracting with a factory in Vietnam to produce product that he will sell globally from his Canadian head office.He is sensitive to the different cultures and will attempt to ensure that his business practice reflects this awareness.He knows that what is morally appropriate in Canada may not be morally appropriate in Vietnam.Immanuel is applying ______.

A) ethical relativism
B) cultural relativism
C) individual rights
D) personal virtues ethic
E) ethic of caring

Question 44

The manager of OIL Corporation is considering whether to locate a retail gasoline station across the street from a small,independent retailer.OIL Corporation feels that its ethical obligation is to focus on maximizing profit for shareholders.The manager intuitively feels that opening this location will be good for shareholders and that this is a worthy goal for the corporation.The manager is operating at which level of ethical assessment?

A) Level one
B) Level two- value judgment
C) Level two - moral standards
D) Level three
E) None of the answers.

Question 45

The decision to relocate production to a developing nation is complex.There will be certain harms to the current employees in Canada,as well as to the community in which the Canadian factory is located.There are also significant benefits.Some stakeholders,such as the stockholders,will feel these benefits more than others.The future employees in the developing nation will certainly benefit from the relocation.Other options are considered and it is determined that the benefits of relocation outweigh the negatives.The decision is made on the basis of the ___________ principle of ethical reasoning.

A)universal rule
B)personal virtues
C)ethic of caring
D)D.utilitarian
E)economic efficiency

Question 46

Samantha has applied to work at a local movie theatre.She asks to work the night shift,because that is when her boyfriend works.She is told that she cannot work the night shift because she is female.She reminds the employer that discrimination on the basis of sex is illegal.The manager agrees and Samantha is given her choice of shifts.The manager made the decision on the basis of the ______________ ethic.

A) individual rights
B) personal virtues
C) ethic of caring
D) utilitarian
E) justice

Question 47

It isn't enough just to be honest.It is also important that managers and corporations act with compassion.To relocate a factory without considering the harm that would cause to one's community would be unethical.This position supports the ________________ principle of ethical analysis.

A) self-interest
B) personal virtues
C) ethic of caring
D) utilitarian
E) economic efficiency

Question 48

LZY Corporation has been accused of misleading advertising.The product displayed in their television advertisement does not look like the product consumers purchase in stores.The claim is made that LZY Corporation is not a good corporate citizen in that the advertising is deceptive and corporations should be honest in their advertising.This complaint implies an application of the ____________ principle of ethical analysis.

A) self-interest
B) personal virtues
C) ethic of caring
D) utilitarian
E) None of the answers-individuals are ethical, not corporations.

Question 49

The partnership had reached a point where both Jane and Jack decided to terminate their relationship.Every day at work,all they would do was fight in front of the customers and employees.Jack was so annoyed that he was prepared to walk away and personally saw nothing wrong with that.He knew Jane was prepared to leave him with the debts and just walk away and he thought that he should do it before she did.Because of the debts held by the company,however,he knew that he couldn't just walk away.Jack is influenced by ___________ in determining what behaviour is ethical in his particular circumstance.

A) individual morals
B) the legal system
C) colleagues or peers
D) All responses are correct.
E) None of the answers.

Question 50

Dave is unhappy with the downsizing decision made by his firm.He has been employed for many years with the company and he thought that his seniority would have protected him.He believes that he is the only long-term employee to be released and wonders why the policy didn't apply to him.Dave's concern is regarding _________ justice.

A) Procedural
B) Corrective
C) Retributive
D) Distributive
E) None of the answers.

Question 51

The hamlet of Smallville had one small store that provided all the basic necessities to the residents.The chain that owned the store decided to shut down the store as the hamlet was too small to allow the store to generate sufficient profits.The people of the town were upset and claimed that the damage that it caused them outweighed the harm caused to the chain by the reduced income.The store was closed.The store management applied the principle of _________ ethic to this decision.

A) self-interest
B) personal virtues
C) justice
D) utilitarian
E) economic efficiency

Question 52

"It doesn't seem fair that I have to pay employees even if they don't work on the statutory holiday," lamented Wesley,"but,I guess that I have no choice." This example shows the influence of a(n) ______________ ethic on decision-making.

A) economic efficiency
B) personal virtues
C) ethic of caring
D) utilitarian
E) government requirements

Question 53

The University of Michigan awards admission on the basis of a point system.Students are given points for academic performance,community involvement,athleticism,etc.The students with the highest point totals are offered admission.The University of Michigan had a policy whereby applicants could be awarded points if they self-identified as belonging to particular minority ethnic groups.Supporters of this policy stated that it helped correct the wrongs caused by historic discrimination against minority groups in terms of their opportunities to gain university admission.The U.S.Supreme Court ruling in 2003 struck down the awarding of points on the basis of minority status.The awarding of 'points' to remedy past discrimination is consistent with the _________ justice principle.

A) Procedural
B) Corrective
C) Retributive
D) Distributive
E) None of the answers.

Question 54

Students who cheat on this test will receive an "F." This policy,if enacted at your university,would be consistent with the ____________ justice principle.

A) Procedural
B) Corrective
C) Retributive
D) Distributive
E) None of the answers.

Question 55

Daniel was considering whether or not he should submit the copy for the annual shareholder's report.He believes that the information does not fully disclose the truth regarding a planned merger.He wonders to himself: "What would my mom say if she found out what I was condoning?" Daniel is applying which principle of ethical analysis?

A) Self-interest
B) Personal virtues
C) Ethic of caring
D) Utilitarian
E) Mother knows best

Question 56

The financial analyst for a mining company is asked to estimate the return on investment for a new business opportunity.She informs the CEO that she thinks that ethical issues require consideration because the company's behaviour will be judged on the basis of environmental impact.Ethical judgments,she suggests,should be made applying which level of ethical assessment?

A) Level one
B) Level two- value judgment
C) Level two - moral standards
D) Level three
E) None of the answers.

Question 57

There are very few parking places near the campus entrances.The university institutes a lottery to equalize the chances for all students and faculty to gain the benefit of parking in these lots.It is seen as fairer that way,even though the other parking spaces on campus are allocated on a 'first come,first served' basis.The lottery system is consistent with the _____________ justice principle.

A) Procedural
B) Corrective
C) Retributive
D) Distributive
E) None of the answers.

Question 58

"What's in it for me?" asked David.David is most concerned with the reward that he will receive for moral behaviour.David is most probably in the ________ stage of moral development,according to Kohlberg.

A) Pre-conventional, stage 1
B) Pre-conventional, stage 2
C) Conventional, stage 3
D) Conventional, stage 4
E) None of the answers.

Question 59

James thinks that he should not consider the needs or interests of others before making ethical decisions.On Kaler's scale of gradations of self-interest and morality,James would be considered ______.

A) ultra-moral
B) ordinarily moral
C) quasi-moral
D) quasi-egoism
E) egoism

Question 60

Portia is the manager of a building supply company.A builder ordered a particular grade of granite,but Portia is short in her supply and substitutes another product.She believes that what she is doing is ethical because the product is comparable and she isn't making extra money on the deal.Portia is applying the ________ principle of ethical analysis.

A) self-interest
B) personal virtues
C) ethic of caring
D) utilitarian
E) economic efficiency

Question 61

Summarize the influences on ethical behaviour.

Question 62

Which implicit bias exists when an individual shows favouritism towards an association to which they are a member?

A) Prejudice
B) Favouritism
C) Overclaiming credit
D) Conflict of interest

Question 63

Ignoring the ethical implications of a decision is amoral according to which approach?

A) Approach 1
B) Approach 2
C) Approach 3
D) Approach 4

Question 64

What are the three myths pertaining to business ethics?

Question 65

Discuss the three levels of assessing ethical implications.

Question 66

Discuss Kohlberg's Post-Conventional Level stages.

Question 67

Which is the most appropriate of the approach to consider ethical implications?

A) Approach 1
B) Approach 2
C) Approach 3
D) Approach 4

Question 68

Describe what is meant by the universal rules ethic in term of how it applies to manager or corporations.

Question 69

According to Kohlberg's stages of moral development,it is believed that most managers use ____________ and ___________.

A) exchange; obedience
B) conformity; obedience
C) conformity; law and order
D) law and order; social contract
E) social contract; universal ethical principles

Question 70

Discuss Kohlberg's Pre-Conventional Level stages.

Question 71

"I will follow the law and allow the employee to have parental leave," said the human resource manager."The law is there for a reason and I have a duty to uphold the law." The human resource manager is most probably operating at the _________ stage of moral development.

A) Mutual interpersonal expectations, relationships, and conformity orientation
B) Law and order orientation
C) Social contract orientation
D) Universal ethical principles orientation
E) Punishment and obedience orientation

Question 72

Compare implicit prejudice bias to overclaiming credit bias.

Question 73

Explain how economic efficiency influences a corporation.

Question 74

When ethical principles are chosen as a basis of what is considered right,regardless of society's views,the _____________ orientation has been used.

A) Law and order
B) Mutual interpersonal
C) Social contract
D) Universal ethical principles
E) Exchange

Question 75

Identify the four forms of justice.

Question 76

Challenges to ethics in business include the following 'myths',except:

A) 'Just do the right thing.'
B) It is easy to be ethical.
C) 'Bad apples' are the cause of unethical behaviour.
D) People are less ethical than they used to be.
E) Most people are amoral.