Business 18
Which of the following is a minimum standard that Tom Donaldson said a multinational company should observe?
Freedom of movement
is considered the founder of utilitarianism.
Bentham
In the late 1800s, New Jersey and ------- changed their laws to make incorporating relatively easy. These two states allowed incorporation "for any ------purpose."
Delaware, Legal
A ------, although it may be condoned in some countries, does not represent honest business behavior and disrespects free-market capitalism.
A bribe,
Shareholders
owners
Ethics is the study of what is right and wrong from an individual's subjective moral viewpoint.
false
Whenever we use the word "good," we always mean "morally" or "ethically" good.
false
officer
hired by director
director
hired by owners
Which statement is true according to Aristotle and Virtue theory?
Aristotle rejected wealth, pleasure, and fame as the distinguishing feature of humans as opposed to other species.
Identify the six core values that almost everyone agrees are important to them.
Fairness Fairness Caring Caring Responsibility Responsibility Trustworthiness Trustworthiness Citizenship Citizenship Respect
According to most observations about corporations, ethics, and corporate culture, the best ethics codes tend to be compliance driven.
false
Which statement is true for the relationship between rights and duties in positive law?
If you have a right of free expression, the government has a duty to respect that right by providing remedies that support that right.
One of the main proponents of deontology was _________________.
Immanuel Kant
believes that taxing the rich to help the poor is coercion and violates people's right to do what they want with the things they own.
Nozick
Michael Josephson, a noted American ethicist, believes that a current set of ___________ has been identified and can be meaningfully applied to a variety of personal and corporate decisions.
core values
Social justice theorists worry about ----- justice.
distributive
Which of the following are "core values," according to Josephson?
Trustworthiness Trustworthiness
Actions by top-level managers—acting on behalf of the company—should align with the shareholders, but in a culture all about winning and money, managers sometimes act in ways that are self-aggrandizing and that do not serve the interests of shareholders. This is often known as the " _____________ problem."
agency
According to the stakeholder theory, _____.
all the stakeholders to a corporate decision deserve some kind of moral consideration
A manager's fiduciary duty refers to resisting hostile takeover bids.
false
Kant has two notable formulations of what he calls "the categorical i--------." The first one is, "Act only according to that maxim whereby you can, at the same time, will that it should become a -------- law." The second is, "Act in such a way that you treat -------, whether in your own person or in the person of any other, never merely as a means to an end, but always at the same time as an end."
imperative, universal, humanity
Donaldson and Dunfee's ------social contracts theory stresses the importance of studying the rules of smaller communities, along with the larger social contracts made in states and nation-states.
integrative
According to utilitarianism, _____.
results, not rules, are emphasized
In Milton Friedman's view, the most important stakeholders will always be the ------
shareholders
Hobbes and Locke are generally regarded as the preeminent _____ theorists.
social contract
----of a corporation include its employees, suppliers, customers, and the community.
stakeholders
The manager's fiduciary duty refers to _____.
the moral duty managers have to act as responsible agents to the owners
Stakeholders can be economically dependent without having ownership.
true
The agency problem in corporate governance is about how to get managers' interests well-aligned with the shareholders' interests.
true
What is legal is not necessarily ethical, and what is ethical is not necessarily legal.
true