Deck 2: Ethics in Business

Question 1

Effective corporate ethical policies must be integrated throughout the firm.

Answer 1

True

Question 2

In today's world,many business leaders find it difficult to create an "ethical tone" that deters unethical conduct in their workplaces.

Answer 2

True

Question 3

It is illegal for a company with a product that is outlawed in one country to look elsewhere for a market.

Answer 3

False

Question 4

Managers must apply the same high ethical standards to themselves and to their employees.

Question 5

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

Question 6

In a corporation,managers are often faced with ethical trade-offs when a certain decision will benefit one group,but harm another.

Question 7

Few companies provide any kind of support such as ethical training programs and seminars to make their ethical codes more effective.

Question 8

Ethical codes of conduct can set the ethi?cal tone of a firm.

Question 9

Some companies set up confidential systems for employees to "raise red flags" about suspected unethical practices.

Question 10

An ethics program can clarify what a company considers to be unacceptable conduct.

Question 11

The main individual beneficiaries of stock buybacks are corporate executives.

Question 12

Destroying records in relation to a bankruptcy proceeding can be in a company's best interest.

Question 13

Ethics is concerned with the fairness or justness of an action.

Question 14

Business ethics is a special kind of ethics,which is separate from traditional ethics philosophy that focuses on what constitutes right and wrong behavior.

Question 15

Business ethics focuses on ethical behavior in the business world.

Question 16

EthicsPoint is an organization through which employees can report unethical behavior as long as they are willing to identify themselves.

Question 17

The legality of an action is always clear.

Question 18

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Question 19

It may be unethical for a company with a product that is outlawed in one country to look elsewhere for a market.

Question 20

Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.

Question 21

Acting in good faith gives a business firm a better chance of defending its actions in court.

Question 22

Corporations can be good citizens by promoting goals that society deems worthwhile.

Question 23

In ethical terms,a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

Question 24

According to utilitarianism,it matters how many people suffer a negative effect from an act.

Question 25

Duty-based ethical standards often come from religious precepts or through philosophical reasoning.

Question 26

Lia works for Media Marketing Company.Her job includes putting "spin" on the firm's successes and failures.In this context,ethics consist of

A)"bad" versus "good" publicity.
B)questions of rightness and wrongness.
C)the firm's quarterly revenue.
D)whatever is legal.

Question 27

In studying the legal environment of business,Professor Dooley's students also review ethics in a business context.Ethics includes the study of what constitutes

A)fair or just behavior.
B)financially rewarding behavior.
C)legal behavior.
D)religious behavior.

Question 28

Mary works in the public relations department of New Trends Sales Company.Her job includes portraying New Trends's activities in their best light.In this context,ethics consist of

A)a different set of principles from those that apply to other activities.
B)the same moral principles that apply to non-business activities.
C)those principles that produce the most favorable financial outcome.
D)whatever saves New Trends's "face."

Question 29

Obeying the law does not necessarily fulfill all ethical obligations.

Question 30

According to utilitarianism,an action that affects the majority adversely is morally wrong.

Question 31

The categorical imperative cannot be applied to many business actions.

Question 32

According to German philosopher Immanuel Kant,individuals should evaluate their actions in light of the consequences that would follow if they were the only members of society that acted in that way.

Question 33

A business firm can sometimes predict whether a given action is legal.

Question 34

Bribery of foreign government officials is both an ethical and a legal issue.

Question 35

John is sales manager for Kleen 'N Brite Products,Inc.Compared to John's personal activities,his business activities most likely involve

A)more complex ethical issues.
B)no ethical issues.
C)simpler ethical issues.
D)the same ethical issues.

Question 36

The business rules and regulations issued by administrative agencies rarely change.

Question 37

Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

Question 38

John is a business manager for a small corporation.Which of the following is not an ethical dilemma that John is likely to encounter?

A)Deciding what kind of pizza to order for a company meeting.
B)Deciding whether to lay off three employees or keep paying their salaries and take a loss in corporate profits.
C)Deciding whether to say something to an employee who has been making rude sexual jokes in the workplace.
D)Deciding what to tell a reporter about the recent drop in corporate stock prices.

Question 39

Absolute mandates such as the commandment "Thou shalt not steal" can be justifiably broken if there is a benevolent motive.

Question 40

An action may be legal and ethical.

Question 41

Megan is in charge of the ethics of Ethical Eggs,Inc.,an organic egg raising company.In addition to an ethical code of conduct,Megan is most likely NOT in charge of

A)an ethics committee.
B)ethical training programs.
C)internal ethical audits.
D)ethical reviews of employees' family members.

Question 42

Housemate,Inc.,makes and sells a variety of household products.With a fair amount of certainty,Housemate's decision makers can predict whether a given business action would be legal in

A)all situations.
B)many situations.
C)no situations.
D)practically no situations.

Question 43

Flexo Trucking Company transports hazard?ous waste.Garn is a Flexo driver,whom the company knows drives longer hours than federal regula?tions permit.One night,Garn exceeds the limit and has an accident.Spilled chemicals contaminate Hill City's water source,forcing the residents to move away.Flexo acted unethically because

A)Flexo showed reckless disregard for Hill City's residents and others.
B)Garn exceeded the federal time limit.
C)harm was caused by an unfortunate accident.
D)Hill City should have better protected its water source.

Question 44

Margaret is the top manager of Pecans,Inc.She sets strict ethical standards for all employees.Margaret,however,often takes some of the company's best nuts and sells them from her house.The ethical tone at Pecans,Inc.is

A)likely to be good because Margaret has set such strict standards for her employees.
B)not likely to be good because although Margaret sets strict ethical standards for the other employees,she does not follow them.
C)not related to either Margaret's ethical standards or her own unethical behavior.
D)not likely to be good because employees tend to resent strict ethical standards.

Question 45

SuperMeds Corporation has just developed a new drug that controls severe acne.The drug is not approved by the FDA for use in the United States because it contains a chemical known to produce negative side effects after many years of continuous use.SuperMeds finds that it can profitably sell the drug in Mexico because the questionable chemical is not banned there.Whether it is ethical to sell the drug in Mexico depends on

A)the number of years before side effects show up.
B)the number of potential customers.
C)which legal standards are applied.
D)which ethical standards are applied.

Question 46

In business deals,Fiona,the chief executive officer of Glazed Donuts,Inc.,follows duty-based ethical standards.These are most likely derived from

A)a corporate ethics code.
B)a cost-benefit analysis.
C)philosophical reasoning.
D)the law.

Question 47

Global Distribution Corporation suggests that its employees apply the "Golden Rule" to ethical issues that arise at work.This re?quires that the employees

A)categorize the issues according to legality,morality,and profitability.
B)consider only the benefits that would accrue to them personally.
C)look only at the result,regardless of the means to attain it.
D)consider how they would like to have other treat them in a similar situation.

Question 48

David,the chief accounting officer of Texas Fencing Corporation,wants to be sure that all the company's accounts are legal and ethical.Sometimes,however,he is unsure exactly what is legal and what is illegal.David should

A)not worry about what is legal or illegal as long as the corporate executives benefit in the short run.
B)try his best to not do anything illegal and keep documentation showing that he always acts in good faith.
C)not worry about what is legal or illegal as long as it benefits the shareholders.
D)not worry about what is legal or illegal as long as it benefits the chief executive of the corporation.

Question 49

Eden,the chief executive officer of Flo-Thru Piping Corporation,wants to en?sure that Flo-Thru's activities are legal and ethical.The best course for Eden and Flo-Thru is to act in

A)good faith.
B)ignorance of the law.
C)regard for the firm's shareholders only.
D)their own self interest.

Question 50

As CEO of Alabama Archery Supplies,William always considers how he would like to be treated by others in the same situation before making a decision.William tends to make decisions based on

A)the categorical imperative.
B)the Golden Rule.
C)the principle of rights.
D)the Ten Commandments.

Question 51

In making business decisions,Glenda,personnel manager for HVAC Maintenance,Inc.,applies her belief that all persons have fundamental rights.This is

A)a religious rule.
B)the categorical imperative.
C)the principle of rights.
D)utilitarianism.

Question 52

Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian re?lig?ious ethical standards.With respect to their application,these standards are

A)absolute.
B)analytical.
C)discretionary.
D)utilitarian.

Question 53

Sharon,the human resources director for Tempo Corporation,at?tempts to comply with the law in dealing with applicants and employ?ees.One of the challenges Sharon faces is that the legality of an action is

A)always clear.
B)never clear.
C)sometimes clear.
D)usually clear.

Question 54

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

A)operators only.
B)operators,owners,suppliers,the community,or society as a whole.
C)owners only.
D)suppliers,the community,or society as a whole only.

Question 55

Top Toys Corporation has an online forum where employees can post new toy ideas or reviews.Thomas posts a racially offensive video on the forum.Top Toys should

A)do nothing because Thomas has the First Amendment right to free speech.
B)do nothing because acknowledging Thomas's video will give it credibility.
C)take action against Thomas to show that racial discrimination is unacceptable in the firm.
D)take action against Thomas because videos can consume considerable bandwidth on a company server.

Question 56

Richard suspects his supervisor of unethical accounting practices.However,he does not want to lose his job if he reports the supervisor and the supervisor finds out who reported him.An important feature of online reporting systems like EthicsPoint is

A)the employee reporting the unethical behavior can do so anonymously.
B)the employee reporting the unethical behavior is financially compensated if he loses his job as a result of the report.
C)the employee reporting the unethical behavior must give his full name when making the report.
D)the employee reporting the unethical behavior must have another employee supporting him.

Question 57

Julia,the head executive of Fine Woolen Sweaters,Inc.,is a committed Christian who strongly adheres to the Ten Commandments.One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter.Julia is likely to

A)punish the employee for stealing even though the employee's motive was benevolent.
B)view the employee's actions as justified because the employee was clothing the poor.
C)contribute more sweaters to the homeless shelter.
D)gently reprimand the employee without suggesting that the employee's actions were unethical.

Question 58

Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kennedy strictly complies with existing laws,the firm will

A)fulfill all business ethics obligations.
B)fulfill no business ethics obligations.
C)fulfill some business ethics obligations.
D)not need to fulfill any business ethics obligations.

Question 59

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging indi?vidual actions most likely include all of the following except

A)an individual's conscience.
B)business rules and procedures.
C)loopholes in the law or company policies.
D)promises to others.

Question 60

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

A)a legal duty beyond those duties mandated by ethics.
B)an ethical duty beyond those duties mandated by law.
C)any duty beyond those mandated by both ethics and the law.
D)any duty when it is uncertain whether a legal duty exists.

Question 61

Carrie Ann works at Paper Products,Inc.She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother.Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not be affected.Carrie Ann then considers what would happen if every employee took some stationery home and decides not to take any.Carrie Ann is being influenced by

A)the categorical imperative.
B)the Golden Rule.
C)the Ten Commandments.
D)duty-based ethics.

Question 62

In deciding questions of corporate social responsibility,Valley Disposal & Recycling,Inc.,is concerned with

A)how the corporation can best fulfill any ethical duty to society.
B)the effect on corporate profits of ignoring any ethical duty to society.
C)whether the corporation owes any ethical duty to society.
D)all of the choices.

Question 63

Hailey,a lawyer on the staff of International Group,always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context.Hailey is applying

A)the utilitarian theory of ethics in business contexts.
B)religious beliefs in business contexts.
C)Kantian ethics in business contexts.
D)the principle of rights theory of ethics in business contexts.

Question 64

A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that its decision will have on

A)one group as opposed to another.
B)the firm's competitors.
C)the government.
D)the U.S.Chamber of Commerce.

Question 65

Ryan,the owner of SuperMart Stores,Inc.,adheres to the "principle of rights" theory.Under this theory,a key factor in determining whether a business decision is ethical is how that decision affects

A)the right determination under a cost-benefit analysis.
B)the rights of others.
C)the "right" thing to do.
D)the right to make a profit.

Question 66

Cost-benefit analysis is part of

A)duty-based ethics.
B)Kantian ethics.
C)rights-based ethics.
D)utilitarian ethics.

Question 67

Olaf,an executive with Pharma Product Distribution,Inc.,has to decide whether to market a product that might have undesirable side effects for a small per?centage of users.How should Olaf de?cide whether to sell the prod?uct? How does the standard of ethics that is applied affect this answer?

Question 68

Bob,research manager for CornAgri Products,Inc.,ap?plies utilitarian eth?ics to determine that an action is morally cor?rect when it produces the greatest good for

A)Bob.
B)CornAgri.
C)the fewest people.
D)the most people.

Question 69

Bilt-Well Construction Corporation makes a side payment to a govern?ment official in Nigeria to obtain a contract.In the United States,this is

A)illegal and unethical.
B)illegal but not unethical.
C)unethical but not illegal.
D)legal and ethical.

Question 70

MeatMen,Inc.spends a great deal of money and effort to ensure that all employees are safe on the job,that all products are safe for consumers,and that the environmental impact of the corporation is minimal.MeatMen appears to strongly believe in the concept of

A)the moral minimum.
B)corporate social responsibility.
C)"grey areas" in the law.
D)government oversight.

Question 71

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way.Does the firm owe an ethical duty to take this product off the market? What con?flicts might arise if the firm stops selling this product?

Question 72

Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach,to be considered socially responsible when making a business decision,Applied must take into account the needs of

A)its consumers,the community,and society only.
B)its employees and owners only.
C)its employees,owners,consumers,the community,and society.
D)no one.