Question 1

When deciding to engage in corporate social responsibility,a key factor when selecting activities is

Accepted Answer

A)   how the social activity relates to the business activities of the corporation.
B)   how much free publicity the corporation will get from the social activity.
C)   whether the corporation is required to do the social activity by law.
D)   whether the activity will result in short-term profit increases.E) B) and D)
F) A) and B)

Question 2

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by

Accepted Answer

A)   taking immediate action in response to unethical conduct.
B)   imposing sanctions disproportionate to misconduct.
C)   distributing rewards without regard to ethics.
D)   ignoring small breaches of company rules.E) All of the above
F) A) and B)

Question 3

Frances,an executive with GMO Seed & Feed,Inc. ,has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small percentage of users.Using the different ethical philosophies discussed,analyze the decision.

Accepted Answer

When a corporate executive has to decide...

Question 4

Compliance with the law is not always sufficient to determine "right" behavior because

Accepted Answer

A)   the law does not codify all ethical requirements.
B)   company codes are also sources of law.
C)   business decisions can have negative impacts.
D)   ethical problems occur in business.E) None of the above
F) B) and C)

Question 5

Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.

Accepted Answer

A) True 
 B)False

Question 6

Recreation & Sports Equipment Corporation sells a profit-generating product that is capable of seriously injuring consumers who misuse it in a foreseeable way.They are contemplating adding a warning to the product but that warning will increase the cost of the product and they are worried that it may scare some potential customers who might not buy the product.Thinking about the two main theories of the role of business in society,discuss whether Recreation & Sports Equipment Corporation behaves ethically by continuing to sell the product without warning.

Accepted Answer

There are two primary theories of the role of business in society.First,the historical role of business was to maximize profits.The second theory is that business should behave as a corporate citizen.
As a profit maximizer,Recreation & Sports Equipment Corporation should evaluate this decision to minimize costs and maximize profit to the company.Adding a warning would increase the cost (and decrease the profits)of the product.At the same time,a lawsuit because of injury could be very expensive.It is unclear whether the addition of a warning would result in decreased sales.The decision maker should have a professional analysis done of the financial impacts of the lawsuit as well as lost sales caused by either a lawsuit or the addition of a warning.
As a corporate citizen,the company may consider the triple bottom line.There is no information on the "planet" and so that factor won't enter the analysis.The "profit" analysis will be similar to that in the prior paragraph.The "people" analysis would include the impact on the consumers who might be injured by the foreseeable misuse.Because a warning could prevent this injury (either through more responsible use or by elimination of a sale to the consumer who might misuse the product),the corporate citizen model is likely to result in the addition of a warning.

Question 7

Ethics is a branch of philosophy that focuses on morality.

Accepted Answer

A) True 
 B)False  True

Question 8

When profit maximization is the goal,a company does not benefit from ethical behavior.

Accepted Answer

A) True 
 B)False

Question 9

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget.The techniques were legal but the bridge collapsed,killing several people.Viaduct's actions were

Accepted Answer

A)   unethical and may result in legislation to ensure it does not happen again.
B)   ethical because they were legal and so Viaduct owes no one.
C)   dangerous and so inherently illegal.
D)   legal under Sarbanes-Oxley and so Viaduct will face no penalties.E) C) and D)
F) A) and B)

Question 10

An ethical code of conduct is not

Accepted Answer

A)   law.
B)   a set of rules that the company can enforce.
C)   an outline of the company's policies.
D)   a guide for decision makers facing ethical questions.E) B) and D)
F) B) and C)

Question 11

Questions of what is ethical involve the extent to which a company has

Accepted Answer

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.E) A) and B)
F) C) and D) B

Question 12

To avoid unethical practices by a foreign supplier,an effective business practice is to

Accepted Answer

A)   pay foreign employees at U.S.pay rates.
B)   have suppliers sign contracts affirming that they will behave ethically.
C)   routinely monitor the foreign workplaces.
D)   obtain a legislative decree that the supplier is ethical.E) B) and C)
F) A) and D)

Question 13

Outcome-based ethics determines what is ethical by looking at the potential benefits and harms of a given action.

Accepted Answer

A) True 
 B)False

Question 14

In making a business decision,Jin Soo brainstorms possible solutions to his problem and then considers what he should do.If Jin Soo is using the IDDR approach to decision making,he is in the

Accepted Answer

A)   the discussion step.
B)   the decision step.
C)   the inquiry step.
D)   the review step.E) All of the above
F) A) and B)

Question 15

The utilitarian theory of ethics does not require

Accepted Answer

A)   a choice among alternatives to produce the maximum societal utility.
B)   a determination of whom an action will affect.
C)   an assessment of the effects of alternatives on those affected.
D)   the acquiring of the means of production by workers.E) B) and C)
F) B) and D)

Question 16

Business ethics looks at whether business decisions

Accepted Answer

A)   are right or wrong.
B)   derive from well-known business principles.
C)   follow legal doctrine.
D)   align with corporate policy.E) B) and C)
F) A) and C)

Question 17

One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.

Accepted Answer

A) True 
 B)False

Question 18

The National Restaurant Association announces a new industry code of ethics.The effectiveness of this code will be determined by

Accepted Answer

A)   the commitment of management to enforcing the code.
B)   the similarity of the code to the employees' personal values.
C)   the success of the campaign publicizing the code.
D)   the relationship between the code and the law.E) A) and C)
F) B) and D)

Question 19

The first step in making an ethical decision is to understand the problem.

Accepted Answer

A) True 
 B)False

Question 20

When adopting duty-based ethics,corporations often demonstrate the duties they owe

Accepted Answer

A)   through required government disclosure forms.
B)   in their mission statements and strategic plans.
C)   by adopting a corporate religion.
D)   in the biographies of corporate leaders.E) A) and B)
F) A) and C)

Exam 3: Ethics in Business

When deciding to engage in corporate social responsibility,a key factor when selecting activities is

Correct Answer
verified

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by

Correct Answer
verified

Frances,an executive with GMO Seed & Feed,Inc. ,has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small percentage of users.Using the different ethical philosophies discussed,analyze the decision.

Correct Answer
verified
When a corporate executive has to decide...
View Answer

Compliance with the law is not always sufficient to determine "right" behavior because

Correct Answer
verified

Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.

Correct Answer
verified

Ethics is a branch of philosophy that focuses on morality.

Correct Answer
verified
True

When profit maximization is the goal,a company does not benefit from ethical behavior.

Correct Answer
verified

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget.The techniques were legal but the bridge collapsed,killing several people.Viaduct's actions were

Correct Answer
verified

An ethical code of conduct is not

Correct Answer
verified

Questions of what is ethical involve the extent to which a company has

Correct Answer
verified
B

To avoid unethical practices by a foreign supplier,an effective business practice is to

Correct Answer
verified

Outcome-based ethics determines what is ethical by looking at the potential benefits and harms of a given action.

Correct Answer
verified

In making a business decision,Jin Soo brainstorms possible solutions to his problem and then considers what he should do.If Jin Soo is using the IDDR approach to decision making,he is in the

Correct Answer
verified

The utilitarian theory of ethics does not require

Correct Answer
verified

Business ethics looks at whether business decisions

Correct Answer
verified

One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.

Correct Answer
verified

The National Restaurant Association announces a new industry code of ethics.The effectiveness of this code will be determined by

Correct Answer
verified

The first step in making an ethical decision is to understand the problem.

Correct Answer
verified

When adopting duty-based ethics,corporations often demonstrate the duties they owe

Correct Answer
verified

Exam 3: Ethics in Business

When deciding to engage in corporate social responsibility,a key factor when selecting activities is

Correct AnswerverifiedShow Answer

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by

Correct AnswerverifiedShow Answer

Frances,an executive with GMO Seed & Feed,Inc. ,has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small percentage of users.Using the different ethical philosophies discussed,analyze the decision.

Correct AnswerverifiedWhen a corporate executive has to decide...View AnswerShow Answer

Compliance with the law is not always sufficient to determine "right" behavior because

Correct AnswerverifiedShow Answer

Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.

Correct AnswerverifiedShow Answer

Ethics is a branch of philosophy that focuses on morality.

Correct AnswerverifiedTrue

When profit maximization is the goal,a company does not benefit from ethical behavior.

Correct AnswerverifiedShow Answer

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget.The techniques were legal but the bridge collapsed,killing several people.Viaduct's actions were

Correct AnswerverifiedShow Answer

An ethical code of conduct is not

Correct AnswerverifiedShow Answer

Questions of what is ethical involve the extent to which a company has

Correct AnswerverifiedB

To avoid unethical practices by a foreign supplier,an effective business practice is to

Correct AnswerverifiedShow Answer

Outcome-based ethics determines what is ethical by looking at the potential benefits and harms of a given action.

Correct AnswerverifiedShow Answer

In making a business decision,Jin Soo brainstorms possible solutions to his problem and then considers what he should do.If Jin Soo is using the IDDR approach to decision making,he is in the

Correct AnswerverifiedShow Answer

The utilitarian theory of ethics does not require

Correct AnswerverifiedShow Answer

Business ethics looks at whether business decisions

Correct AnswerverifiedShow Answer

One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.

Correct AnswerverifiedShow Answer

The National Restaurant Association announces a new industry code of ethics.The effectiveness of this code will be determined by

Correct AnswerverifiedShow Answer

The first step in making an ethical decision is to understand the problem.

Correct AnswerverifiedShow Answer

When adopting duty-based ethics,corporations often demonstrate the duties they owe

Correct AnswerverifiedShow Answer

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When a corporate executive has to decide...
View Answer

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True

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B

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