BUS 251-Chapter 2 Assessment

Ethical dilemmas faced by managers

Are often complex, with no clear ethical choice.

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

Natural

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

it is tax-exempt

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?

"No! Your hair is not trimmed evenly and smoothed"

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?

Delaware

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?

Thomas Aquinas

_______, 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.

Thomas Aquinas

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 particular act can be deemed unethical yet still be legal

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

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

Janet is on the board of directors of a public company. The board is deciding on a new health care plan that would cost its workers more than its current plan, but would save the company millions. After asking herself how she would feel if this decision was announced to the public on social media, Janet decided to vote against changing the health plan. The approach Janet used in making her decision is referred to as the

broadcast new test

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

corporate inversion

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?

ethics and religious teaching often overlap because they are not separate and distinct in many situations. Therefore, where they overlap, they will be ethical

Each of the following is a key component in the creation and implementation of a company's values management program except

identifying the values that the companies peer competitors promote

The categorical imperative test consists of

individuals making ethical decisions with an eye toward potential consequences if everyone in society acted similarly.

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?

invisible hand

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?

maximizing profits theory of Friedman

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?

public theory

That corporations have a social responsibility and that profitability should be secondary reflects

the broad view, or good corporate citizenship

Nobel Prize-winning economist Milton Friedman believed that

the only responsibility a business has it to maximize shareholder wealth

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

triple bottom line