Deck 2: Business, Societal, and Ethical Contexts of Law

Question 1

The "Narrow View" of business ethics is a commitment to emphasizes the interests of shareholders in pursuing a course of action in business operations.

Answer 1

True

Question 2

Religious teachings and ethics are separate and distinct and rarely if ever overlap.

Answer 2

This statement is not entirely accurate. Religious teachings and ethics often overlap significantly. Many religions provide a moral and ethical framework for their followers, outlining principles of right and wrong, acceptable and unacceptable behavior. These ethical guidelines are often derived from religious texts, teachings, and traditions. For instance, concepts such as honesty, compassion, respect for others, and responsibility are common in many religions and are also fundamental ethical principles. Therefore, while religious teachings and ethics can be distinct in some aspects, they frequently intersect and influence each other.

Question 3

Under the maximizing profits theory, a company strives to do no harm, as long as the company continues to be profitable.

Answer 3

Not Answer

Question 4

Lin-Mara's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics.

Question 5

Social responsibility is at its highest when the moderate view, or government's hand theory, of corporate social responsibility is utilized.

Question 6

In a community-based nonprofit, any surplus earning that remain are distributed fairly among all the employees.

Question 7

In a benefit corporation the shareholders evaluate the effectiveness and performance of the corporation based upon how much they benefit in profits.

Question 8

Which of following statements is incorrect?

A) Justice should apply equally to all parties
B) Justice has an enforcement mechanism to ensure fidelity to the law
C) Justice considers equally opposing sides
D) Justice is always a clear choice

Question 9

Shirley is deeply faithful to her religion. Therefore, when making business decisions she bases her decisions only in her religious foundation. Which statement is true?

A) She will always be ethically correct as ethics and religious teachings are always the same.
B) It is unethical to allow one's religious teachings to influence their business decisions.
C) Ethics and religious teaching often overlap because they are not separate and distinct in many situations. Therefore, where they overlap, they will be ethical.
D) Since religion is the only foundation for business ethics, she will always be ethical.

Question 10

Monmouth Publishing employs very brilliant attorneys to search through the laws to find legal loopholes that benefit their profit margin. They find a legal loophole which allows them to require a certain sect of employees to work far under minimum wage, often times taking advantage of people. Therefore, they decide to fire all of their current employees in favor of the sect of employees that they can pay under minimum wage. Are they acting unethically?

A) No. As long as they are not breaking the law it is always ethical.
B) Yes. Firing employees for any other reason other than poor working ethic is always unethical.
C) No. The law does not matter when businesses must choose what is ethical as making money is only considered.
D) A particular act can be deemed unethical yet still be legal.

Question 11

John owns Marine Brewery and hires Beth to advise him on business decision making. Beth is very aggressive and believes that society is best served when seek a competitive advantage and that ethical violations will harm the companies, always advises John in a manner that focuses on finding that competitive advantage. Beth employs which type theory of corporate social responsibility?

A) Government hand
B) Citizens hand
C) Invisible hand
D) Judicial hand

Question 12

__________ theory is a moral philosophy that certain rights and moral values are timeless and universal and discoverable through human reason.

A) Divine
B) Virtue
C) Natural
D) Legal

Question 13

In an annual board meeting of Martin Corporation, a board member, Pat, makes the following statement, "As long as we remain profitable, we will strive to act as ethically as possible!" Pat's statement is an example of what type of ethical decision making theory?

A) Moral minimum
B) Do no harm
C) Cost benefit analysis
D) Moral maximum

Question 14

Religious documents, such as the Koran and the Old Testament utilize what type of ethical decision-making regime?

A) Moral equivalency
B) Invisible hand
C) Principles-based approach
D) Ethics-based approach

Question 15

Aristotle was a philosopher who held the theory, to be a virtuous person,

A) A person must only know what is legal
B) Must act virtuous and do virtuous deeds
C) Balance virtue with the cost associated with acting virtuous
D) All men are created equal

Question 16

A recognition that we all have the rights to "life, liberty and the pursuit of happiness" in the Preamble of the Declaration of Independence, according to Natural law, is a recognition of what type of rights?

A) Inherent rights
B) Judeo-Christian rights
C) Explicit rights
D) Moral rights

Question 17

__________, was a medieval theologian developed the theory which state natural law is given by God; it is authoritative over all human beings; and it is knowable through the use of reason.

A) Aristotle
B) Thomas Aquinas
C) Betham Hadar
D) Kant

Question 18

"Act in such a way that you treat humanity, whether in your own person or in the person of any other, always at the same time as an end and never merely as a means to an end." Is a quote by

A) Aristotle
B) Kant
C) John Calvin
D) Thomas Aquinas

Question 19

Brenna confronts Noah at work as he is continually taking packets of printer paper and pens from the office supply closest for his own personal use at home. Noah responds angrily that the employer had plenty of supplies and they would not even notice it. Brenna responded with the question, "But what would happen if everyone at work took some paper and pens?" Brenna's statement illustrates which type of theory of ethical decision making?

A) Moral minimum
B) Values management
C) Narrow view
D) Universalization test

Question 20

After a rather unfortunate visit to the local hair salon, Janet asks John if the hair on the back of her head has been trimmed evenly and smoothly. John observes was not and actually she has many bald spots as a result of her haircut. According to Immanuel Kant's theory of ethical theory of categorical imperative ethical decision making regime, which one of the following statement should John make?

A) "Yes! Your hair looks perfect!"
B) "Yes! Your hair looks unique."
C) "No! Your hair is not trimmed evenly and smoothly."
D) "It is hard to determine what you mean."

Question 21

At a board meeting for Webster Corporation, the members of the board discuss how a fellow board member is addicted to alcohol and it is affecting his work performance and his personal life. As a board, they decide to pay for a very expensive rehabilitative program at a facility several states away in California, with corporate funds. This will be a very expensive endeavor, using about 10% of the current year's profit but they hope that their friend will overcome his addiction. One board member, Nolan, objects to this stating, that if they individually want to pay for his treatment with their own money, they can, but they cannot use corporate funds for this as their only ethical duty is to make as much profit as possible so that stakeholders can decide how they want to spend their money. Nolan is employing what type of ethical decision making view of corporate social responsibility?

A) Maximizing profits theory of Friedman
B) Government hand theory of Adam Smith
C) Moral minimum theory of Sophocles
D) Triple bottom line of Aquinas

Question 22

Under the Moderate View of corporate social responsibility the __________ always represents the aggregate moral views of the public.

A) People
B) Church
C) Government
D) Philosophers

Question 23

Under the theory of Milton Friedman, should a corporation donate money to charitable organizations?

A) Yes. They should always balance the needs of helping society with the need to make money for the stakeholder.
B) Yes. He believed, "First do no harm" which means that the role of the corporation is to help others before helping the corporation.
C) No. While individual people are free to give money to charitable organizations, corporations have an ethical duty to shareholders to make as much money as possible.
D) No, unless after a full background check to ensure that the charitable organization is legitimate.

Question 24

The broadest view of Corporate Social Responsibility is that corporations have a social responsibility to which profit is secondary is called

A) Moral minimum theory
B) Governmental hand theory
C) Invisible hand theory
D) Public theory

Question 25

After the recent fire which substantially damaged Notre Dame in Paris, Corporation X, decides to dedicate half of its profits for the next two years to the rebuilding efforts. Under which corporate social responsibility ethical decision making theory would this most likely be proper?

A) Moral minimum
B) Moral equivalent
C) Moderate view
D) Public theory

Question 26

Which state, in which the majority of corporations are incorporated, asserts that manager can consider non-shareholder interests in scenarios such as mergers as long as there is some connection to providing value to shareholders?

A) Delaware
B) New York
C) Nevada
D) California

Question 27

One advantage of a community-based nonprofit type of corporation is

A) The community supports the endeavor
B) It is tax-exempt
C) Once deemed legitimate, face far less governmental regulations
D) Is always founded on religious doctrine

Question 28

Let's say, Habitat for Humanity, a community-based nonprofit, this year had a surplus of money in that they did not spend all of the money that had raised this year. Which statement below is correct?

A) The surplus will be distributed to the shareholders as dividends.
B) The surplus will be distributed to the board members and officers as a bonus for effective management.
C) The surplus will be reinvested in activities that achieve the company's social mission.
D) Will be taxed as income.

Question 29

A new type of business that requires its board and officers to consider the impact their decisions have on shareholders, society and the environment are called

A) Moral corporation
B) Charitable organization
C) Green corporation
D) Benefit corporation

Question 30

Because of the increased effort for businesses to create a Code of Conduct and a Code of ethics for business decisions

A) There is one clear choice to resolve conflict.
B) It has made ethical decision making to be much simpler
C) Ethical dilemmas faced by employers are still often complex with no clear ethical choice.
D) Must strictly interpret the plain meaning of the codes of ethics and conduct.

Question 31

In the example of MF Global case study, according the a House of Representatives report, John Corzine created an environment in the company

A) Where employees spent a considerable amount of time completing community services.
B) Where no one could challenge his decision, thereby impeding any processes for monitoring conduct.
C) Where the company took into consideration the impact their decision have on shareholders, society and the environment.
D) Where all prospered and was a model of ethical-decision making.

Question 32

An ethical vision to guide the decision and behavior of a business's employees and managers is called

A) A code of conduct
B) A code of morality
C) A code of ethics
D) A code of virtue

Question 33

Mason, an employee at Campbell Corporation, witnesses Bayden, a fellow coworker taking bribes and gifts from clients in violation of their company's code of ethics, conflicts of interest clause. Mason does not report him as he is a very good friend of his. Which statement below is correct for an effective values management program?

A) Coworkers have no obligation to report violations of the company's code of ethics.
B) All employees have a duty to report violations of law or the company's code of ethics to a superior manager.
C) Coworkers are only required to report violations of the law, but not a code of ethics violation because those issues are too complex for someone to understand.
D) Only senior managers have a duty to report violations of the law or the code of ethics.

Question 34

What is name of the company wherein several employees created millions of unauthorized bank and credit card accounts in clients' names without their consent or notice to boost the employees' sales figures?

A) Bank of America
B) AIG
C) Wells Fargo
D) Enron

Question 35

To deal with the often complex and time-consuming matters of ethical decision making, Kania Corporation created a separate unit staffed by lawyers and non-lawyers to help it follow rules and regulations and maintain the company's culture of values and ethics. This is known as a(n)

A) Ethics board
B) In-house Counsel
C) Litigation reduction department
D) Compliance department

Question 36

Bundy's Bicycle Corporation, a U.S. corporation, had a windfall year in profits and is looking for legal loopholes to avoid paying taxes on it massive profit. To avoid taxes Bundy's merges with a foreign business, simply to avoid paying for taxes in a process called

A) Corporate inversion
B) Corporate reading
C) Corporate evasion
D) Corporate taxation

Question 37

Corporate inversion, while legal, is often criticized by many as being unethical because:

A) It creates a veil of secrecy around the corporate ethical structure.
B) It creates a system where it encourages the sales force of a corporation to make profits the only motivating factor, disregarding the social impact on others.
C) It creates a system that discourages employees from reporting unethical conduct.
D) It exploits legal expertise by using a legal loophole to benefit large corporations by not having to pay U.S. taxes, thereby depriving society of the revenues to fund public works.

Question 38

Which legal philosopher asserted that natural law is asserted by God, that it is authoritative over all human beings and it is knowable through the use of reason?

A) Immanual Kant
B) Aristotle
C) Thomas Aquinas
D) John Rawls

Question 39

Which type of legal theory ethics states that if people negotiate from a veil of ignorance people will negotiate ethical principles that are fair to all?

A) Virtue ethics
B) Consequence-based ethics
C) Principals-based ethics
D) Contracts-based

Question 40

Jerry, in making his business decisions always attempts to determine what will make the greatest number of people happy and least number of people hurt. Therefore, with that in mind, he fires the senior most employee, Reid, at his business only because he makes the most money. Jerry then takes Reid's salary and divides it up between the remaining 20 people. All 20 people are thrilled with their raises, but Reid obviously is not. What type of Ethical Decision-Making Regime does this most closely represent?

A) Community standards
B) Consequence-based
C) Principals-based
D) Contracts-based

Question 41

When a corporation looks not only to the profits it can make, but also evaluates its decisions based upon the effect on the environmental and social value this is called

A) Social licensing
B) Enlightened self-interest model
C) Triple bottom line
D) Mandatory evaluation theory

Question 42

The Society of Corporate Compliance and Ethics (SCCE) is an organization that

A) Offers training to help employers comply the rules and regulations to maintain the overall ethical culture of the corporation.
B) Offers guidance to corporations who work to utilize legal loopholes.
C) Offers certification to top corporate executives and board members to verify that they are trained in ethical compliance.
D) Serves as a confidential reporting agency for whistleblowers.

Question 43

Ethical dilemmas faced by managers

A) Involve one clear ethical choice
B) Should only be determined by following the law to determine what is ethical
C) Are most often simple and easy to reach
D) Are often complex, with no clear ethical choice

Question 44

Sarah worked for Southwestern Botanical Gardens and loved her job and loved her coworkers. Five years ago, her employer did not pay her for a week's work, thereby breaching her employment contract, because funds were very low. She decided that she would let it slide because she wanted to see the company make it through a difficult time. However, times have changed and the management has changed and the current managers does not value its employees or its central mission as it had previously. Moral is low and employees are leaving left and right. Sarah, wants to leave now in protest and she is considering suing for the old breach of contract case she could have pursued five years ago just to punish them and get as much money out of the company. When Sarah approaches an attorney about this, he informs her that she can no longer bring the lawsuit because she waited too long and it would be unfair to hold them currently responsible for past bad action. To which law is the attorney referring meant to avoid this situation?

A) Statute of repose
B) Statute of limitations
C) Statute of frauds
D) Statutes of timeliness

Question 45

Natural law relies on __________ to determine universal and timeless rules of moral behavior.

A) Reason
B) Religion
C) Laws made by man
D) Cost benefit analysis

Question 46

When a company is attempting to create code of ethics and effective values management structure, what are the four key characteristics?