Chapter 4 Ethics and Ethical Reasoning

1. Bernie Madoff cost his victims approximately $65 billion. A) True B) False

True

11. In 1976, scholars found a positive relationship between economic performance and attention to spiritual values A) True B) False

True

13. With ethical relativism in practice, there would be no universal ethical standards on which people around the globe could agree. A) True B) False

True

15. Virtue ethics focuses on character traits that a good person should have A) True B) False

True

2. Ethics is a concepion of right or wrong conduct. A) True B) False

True

4. About three quarters of employees surveyed in 2007 believed that their companies were considering the environment. A) True B) False

True

5. A New Zealand study found a positive correlation between corporate financial performance and ethical performance. A) True B) False

True

8. A primary reason to for businesses to be ethical is to meet demands of business stakeholders. A) True B) False

True

9. U.S. Corporate Sentencing Guidelines provide strong incentive for businesses to promote ethics at work. A) True B) False

True

10. An ethical egoist acts for the benefit of others and sacrifices self-interest. A) True B) False

False

12. Ethics are always based on religious beliefs. A) True B) False

False

14. It is generally believed that Ancient Romans developed the first ethical theory. A) True B) False

False

3. The percent of employees observing misconduct at work consistently increased from 2000 to 2007. A) True B) False

False

6. In 2006, General Motors began the "Award for Ethcial Courage" program. A) True B) False

False

7. The Sarbanes-Oxley Act was passed in 2004. A) True B) False

False

36. Dennis Kozlowski . A) is a former Wal-Mart vice chairman B) is a former Comcast CEO C) is a former TYCO CEO D) is a former Healthsouth CEO

is a former TYCO CEO

35. Robert Solomon . A) is a philosopher B) was convicted of selling trade secrets. C) was a Senator from Ohio who opposed The Sarbanes-Oxley Act. D) was CEO of the LRN Corporation

is a philosopher

39. St. Thomas Aquinis lived in the . A) 1100s B) 1200s C) 1300s D) 1400s

1200s

20. Businesses are expected to be ethical in their relationships with: A) Stockholders. B) Customers. C) Competitors. D) All of the above.

All of the above

21. Why should business be ethical? A) Most people want to act in ways that are consistent with their own sense of right and wrong. B) Ethical behavior protects business firms from abuse by unethical employees and competitors. C) Society's stakeholders expect it from businesses. D) All of the above.

All of the above.

16. What company has a slogan of "Customer led, ethically guided". A) Citizen's Bank. B) Patrimonio Hoy. C) Co-operative Bank. D) Whole Fodds.

Co-operative Bank.

26. The critical factor in Utilitarian ethical reasoning is: A) Respecting entitlements. B) Comparing costs and benefits. C) Distributing Fair Shares. D) Protecting Human rights.

Comparing costs and benefits.

31. Cross-cultural contradictions arise due to: A) The emergence of a developing country's economic power. B) Religious differences practiced by business executives. C) Differences between home and host countries' ethical standards. D) All of the above.

Differences between home and host countries' ethical standards.

30. Which of these is not a potential conflict of interest A) Doctor ordering tests from a lab he owns. B) Mechanic ordering parts and marking up price. C) Lawyer representing defendant she believes is guilty. D) Auditor analyzing a company who hired her.

Doctor ordering tests from a lab he owns.

24. Which of the following is true regarding personal spirituality? A) Fortune magazine published a 1953 article claiming that American businessmen were becoming more spiritual. B) Eighty eight percent of Americans polled claim that they have occasion to discuss their religious beliefs in the workplace on a daily basis. C) Since 1976, Fortune and Business Week magazines have documented a resurgence of workplace spirituality. D) There are slightly less than 900,000 Bible and prayer groups that regularly meet at the workplace, according to the Fellowship for Companies for Christ International.

Fortune magazine published a 1953 article claiming that American businessmen were becoming more spiritual.

34. The basis of ethics reasoning for early adulthood adolescence is . A) Law-centered reasoning B) Group centered reasoning C) Precision centered reasoning D) None of the above

Group centered reasoning

23. Under the Sarbanes-Oxley Act, corporations are required to: A) Have their CEO and CFO sign off on financial statements as accurate and fair. B) Have their audit committee comprised of only executives employed by the firm. C) Collect reimbursements from the U.S. government if financial restatements occur. D) All of the above.

Have their CEO and CFO sign off on financial statements as accurate and fair.

28. Per the text, which of these was NOT considered a moral value in 4th B.C. A) Honesty B) Courage C) Gentleness D) Wittiness

Honesty

17. Which of the following is NOT a method of ethical reasoning: A) Utilitarian. B) Rights. C) Law and Order. D) Justice.

Law and Order.

32. Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions? A) Legally marketing a pesticide abroad that has been banned in the U.S. B) Circumventing government regulations to ensure company profits. C) Hiring child workers in violation of civil law. D) False and misleading advertising claims.

Legally marketing a pesticide abroad that has been banned in the U.S.

27. Under utilitarian reasoning, the action is ethical if: A) Basic human rights are respected. B) Benefits and costs are fairly distributed. C) Net benefits exceed net costs. D) There is no net job loss.

Net benefits exceed net costs.

25. The Basis of Ethics reasoning for mature adults is: A) Ego-Centered Reasoning. B) Law-Centered Reasoning. C) Principle-Centered Reasoning. D) Society Centered Reasoning.

Principle-Centered Reasoning.

22. Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: A) Increased. B) Reduced. C) Unaffected. D) Decided by the company.

Reduced.

19. People everywhere depend on ethical systems to tell them whether their actions are: A) Legal or illegal. B) Right or wrong. C) Financially attainable or not. D) Logical and in sound judgment

Right or wrong.

33. What video screen manufacture pleaded guilty to price fixing and paid a $585 million fine. A) Vizio B) Sony C) Sharp D) RCS

Sharp

29. Per the text, Benjamin Franklin considered which of these a moral value A) Silence B) Toughness C) Friendliness D) Truthfulness

Silence

18. People's ethical beliefs come from: A) Legislative action and judicial decisions. B) Reading the company's profit and loss statements. C) Their religious background, family, and education. D) The organization's code of ethics.

Their religious background, family, and education.

37. Managers' Values . A) are easily influenced by underlings. B) are key in determining the ethical direction of a company. C) are inflexible. D) are always ego driven

are key in determining the ethical direction of a company.

38. A limitation in rights reasoning is . A) incomplete set of virtues. B) difficult to measure social costs. C) difficult to balance conflicting rights. D) none of the above.

difficult to balance conflicting rights.