Chapter 2 GenBA 110 Stacey Lluhilier KSU

The commonly recognized ethical guideline that helps one determine how to make ethical decisions is ____.

the universalization test

Which of the following is an alternative meaning of the primary value of security?

to be safe from those wishing to interfere with one's property rights

Applying the _______ test causes one to consider: "Is what I am about to do the kind of action that, if others followed my example, makes the world a better place for me and those I love?"

universalization

Positive abstractions that capture our sense of what is good or desirable are known as _______________.

values

Which of the following represents our understanding of the purposes we will fulfill by making particular decisions?

values

The W in the WPH framework for business ethics stands for ________.

who, or the identity of the stakeholders

What are 6 examples of stakeholders?

1. Customers 2. Owners or investors 3. Management 4. Employees 5. Community 6. Future generations

What are 6 consequences for unethical business practices?

1. Loss of reputation - what they are known for 2. Loss of credibility - ability to be believed 3. Declining employee productivity 4. Loss of general employee morale or employee retention 5. Significant fines and/or financial loss 6. Bankruptcy or dissolved business

What are 7 reasons to operate an ethical business?

1. Maintain good reputation 2. Keep existing customers and attract new ones 3. Avoid lawsuits 4. Reduce employee turnover 5. Avoid govt. intervention (new laws/regulations) 6. Please customers, employees, society 7. Simply do the right thing

Which of the following are considered stakeholders in a firm?

All of the above (future generations, employees, customers)

What accounting firm assisted in Enron's fraud?

Arthur Anderson

__________ ethics is the application of ethics to the special problems and opportunities businesspeople experience.

Business

The application of ethics to the problems and opportunities experienced by businesspeople.

Business Ethics

Which of the following is not one of the ways the Golden Rule can be interpreted?

Choose short-term profitability over product quality and customer services in all instances.

Charitable donation by corporation.

Corporate philanthropy

Position taken on social and political issues.

Corporate policy

Acting responsibly within society (minimize pollution).

Corporate responsbility

Directly related to company's competencies.

Corporate social initiatives

In 1993, residents of ___________________ sued Chevron for environmental damage, economic losses, and diseases related to toxic contaminants.

Ecuador

To maximize the amount of wealth in society. To get the most from a particular output. To minimize costs.

Efficiency

What company improperly inflated their profitability in order to increase the number of investors? This company used a Ponzi scheme. The top executives who had information of the fraud began quickly selling stock.

Enron

A problem about what a firm should do for which no clear, right decision is available.

Ethical dilemma

The study and practice of decisions about what is good or right.

Ethics

____________ is the study and practice of decisions about what is good or right.

Ethics

To act without restriction from rules imposed by others. To possess the capacity or resources to act as one wishes. To escape the cares and demands of this world entirely.

Freedom

What are the 4 primary values and business ethics?

Freedom Security Justice Efficiency

"Do unto others as you would have them do unto you."

Golden Rule

To receive the products of your labor. To treat all humans identically, regardless of race, class, gender, age, and sexual preference. To provide resources in proportion to need. To possess anything that someone else is willing to grant you.

Justice

Existence of an informed society to hold businesses accountable for decisions.

Public disclosure

To possess a large enough supply of goods and services to meet basic needs. To be safe from those wishing to interfere with your property rights. To achieve the psychological condition of self-confidence such that risks are welcome.

Security

Expectations that the community imposes on firms doing business inside its borders.

Social responsibility of business

What company was in trouble with the FAA safety inspectors?

Southwest Airlines

When using values to determine the overall purpose that a firm has, it is important to do which of the following?

The precise definition of the value that is being discussed.

True or False: The stakeholders of a firm are the many groups of people affected by the firm's decisions.

True

Decisions copied throughout the world, what would happen.

Universalization

_______ stem from tradition, family, culture, reasoning for consequences of choices, sense of duty or obligation and also religion.

Values

________ are the basic unit of business ethics.

Values

The _____ approach to business ethics is a set of guidelines that urges us to consider whom an action affects, the purpose of the action, and how we view the action's morality.

WH

Explain the 2 parts of the WH process of ethical decision making.

Who are the stakeholders? How should the decision be made?

Which of the following is a pertinent question that managers must ask to comply with the WH framework for business ethics?

Whom will my decision affect?

The public disclosure test is a useful ethical guide because _________.

as social beings, we want others to think highly of us.

The universalization test is a useful ethical guide because ___________.

it causes us to consider the effects of others doing what we are about to do.

The legality of a business decision is the ___________ standard that must be met.

minimal

One way to think of the _______ test is to view it as a ray of sunshine that makes our actions visible rather than obscured.

public disclosure

Important business values that influence business ethics include

security, efficiency, and freedom.

The expectation that a community places on the actions of firms inside that community's borders is known as the

social responsibility of business

A manager needs to identify the _______ when making an ethical decision.

stakeholders

Which of the following is not considered in the WH approach to business ethics?

the religious implications of the action

Which of the following refers to the expectations the community imposes on firms doing business within its borders?

the social responsibility of business

If a firm faces a problem for which no clear, right decision is available, it faces an __________ dilemma.

ethical

An ethical ______ is a simple tool that helps determine whether an action is moral.

guideline

A manager needs a doable set of ________ on how to make an ethical decision.

guidelines

The H in the WPH framework for business ethics stands for ________.

how, or the avenues the firm will use to guide it to its ultimate decision.