BLW 302 Chapter 3 ethics

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

false

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

True

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes

Ethical rights and duties

Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired) instead of subjective impacts on stakeholders.

False

Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.

False

The study of ethics goes no further than the requirements of the law to evaluate what is right for society.

False

The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.

False

Under the "stakeholder view," no group ever has a greater stake in company decisions than the shareholders do.

False

"Be honest and treat people fairly." In regard to business ethics, implementing this motto is

Important in all circumstances

Ethics focuses on how persons making business decisions apply

Moral principles

Cloud Source LLC sells to Distribution Inc. a promising idea for a technological innovation that looks promising but that is still being developed. This is

ethical and legal.

An overemphasis on long-run profit maximization is a common reason for ethical problems that occur in business.

false

Because it may be unclear how a court will interpret and apply a law, companies can ensure decisions are viewed as ethical by documenting their own interpretation of the law.

false

Because social media is so widespread, it is legal and ethical for a company to have social media policies limiting employees from criticizing the company.

false

Conduct that is legal is ethically unquestionable.

false

Judging a job applicant based on what an online search reveals about the applicant's activities outside the w

false

Once a law is passed to codify an ethical requirement, the ethical aspect of the action is no longer important.

false

Outcome-based ethics deals with traditional standards of behavio

false

Rationalization is the process of making a logical decision based in evidence and an analysis of the ethical dimensions of the decision.

false

Under the categorical imperative, an unethical decision that would have only a small impact is acceptable as long as no one else in society acts the same way.

false

Under the principle of rights theory, the key factor in a decision is how the result may harm the rights of the company to make money.

false

Data Inc. adheres strictly to the goal of maximizing profits. Data will benefit from ethical behavior

if customer service is good

Ethical issues that a business manager is not likely to encounter include

protocols for company meetings

When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except

publicize the options you rejected with your reasons.

Basil and other managers employed by Creosote Company are most likely to find that unethical behavior in the workplace can be deterred by

taking immediate action in response to unethical conduct.

The National Association of Manufacturers (NAM) announces a new industry code of ethics. The effectiveness of this code will be determined by

the commitment of NAM's members to enforcing the code.

Considering the triple bottom line requires looking at how business decisions impact all of the following except

tripple bottom - people profits planet

Corporate social responsibility may increase a business's reputation or goodwill.

true

It can be difficult to predict with certainty how a court will apply a given law to a particular action.

true

One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior.

true

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

true

The Sarbanes-Oxley Act was enacted to reduce the number of unethical business decisions by requiring the accountability of publicly traded companies.

true

company codes of conduct outline company policies on particular issues and how employees are expected to act.

true

Ethical decision makers should test and reflect on the outcome of their decisions.

ture

Build-It Inc. applied an inexpensive but untested technique to brace a transit tunnel wall. The technique was legal but the tunnel collapsed, killing several commuters. Build-It's action was

unethical because the technique was untested.

Congress does not pass laws based on ethics.

False

Decision makers need to consider what they can and will do before they consider what they should do.

False

Business ethics looks at whether business decisions

Right and wrong

As part of the IDDR approach described in the text, it is important to list many possible actions and analyze them using several different ethical theories.

True

Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.

True

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

True

Duty-based ethics is based in the idea that every business has certain duties to others.

True

Global businesses need to be conscious of the impact of different religious principles on ethics.

True

The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it.

True

When making ethical decisions, a business should evaluate the financial implications.

True

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

Ture

Underscoring the importance of ethics is that the law is not always easy to interpret or apply because laws

Underscoring the importance of ethics is that the law is not always easy to interpret or apply because laws

With respect to what society will tolerate, a company's compliance with the law, and no more, is

The lowest ethical level