Ethics Final Study Questions
As a United States government regulating body, the role of the __________ is to regulate shady advertising and sales practices, in particular, deception and unfair marketing tactics
Federal trade commission (FTC)
_____ set the standards or guidelines for determining what one should do, how one should act, what type of person one should be. Select one: a. Roles b. Attitudes c. Norms d. Social ethics
c. Norms
The primary aim of ethical values is that the well-being promoted through it is not of a/an _____ and _____ nature. a. religious, theological b. altruistic, familial c. personal, selfish d. esoteric, technological
c. personal, selfish
True or False: By agreeing to do business with a multinational corporation, the host country gives up some of its decision-making autonomy regarding basic human rights and, in essence, abdicates its freedom to engage in self-determination.
True
True or False: The race to the bottom refers to developing countries competing to deregulate and provide the least restrictive, least expensive economic setting to win contracts from multinational corporations.
True
True or False: A fiduciary relationship is one characterized by duty and loyalty in the agent-principal relationship in which the agent accepts that the principal's interests take precedence over all else.
True.
Understanding the change in attitude towards studying business ethics includes the understanding that corporate scandals in the recent past have largely affected _____. a. stockholders b. employees c. directors d. stakeholders
d. stakeholders
Determining which audience is most likely to buy is part of a. display ads. b. channel management. c. stealth marketing. d. target marketing.
d. target marketing.
According to the text, Mectizan, a drug manufactured by Merck, is provided as an example to explain a. that a firm's social responsibility includes doing voluntary good. b. that a firm's social responsibility includes not causing harm to others. c. that a firm's social responsibility signifies obedience to the law. d. that a firm's social responsibility entails the prevention of harm.
d. that a firm's social responsibility entails the prevention of harm.
All of the following are characteristics of the circular flow model except a. that to keep up with population growth, the economy must grow. b. that to provide higher standards of living, the economy must grow. c. that to alleviate poverty, hunger, and disease, economy must grow. d. that the economy is not a solution to all social ills and is finite in its ability to grow.
d. that the economy is not a solution to all social ills and is finite in its ability to grow.
Before the passage of governmental regulations regarding environmental issues, according to _____, only those individuals with proof of harm through pollution could raise legal challenges pollution. a. contractual law b. market requirements c. common consensus d. tort law
d. tort law
It is estimated that by 2010, only twenty percent of the workforce will be _____ under the age of 45. a. black men b. Caucasian women c. Asian-American men d. white men
d. white men
In what does one make an appropriate step in corporate decision making with the correct step number? -Determine the facts -Recognize the ethical issues involved -Identify and consider the people that will be affected -Compare and weigh the alternatives -Make a decision
-Determine the facts -Recognize the ethical issues involved -Identify and consider the people that will be affected -Compare and weigh the alternatives -Make a decision
Both businesses and consumers ultimately must strike a __________ between risk and the cost for protection from harm.
Balance
Developing a care ethic can mean greater effectiveness in nurturing relationships and a greater potential for business success.
Care Ethic
What is fair for one is fair for all. And this is non-negotiable, no matter what the circumstances or context.
Categorical imperative
This perspective perceives work in the most negative light—as an unpleasant necessity to be endured that obstructs our human potential as intellectual beings.
Classical interpretation
Which of the following is a requirement for financial and accounting officers under the Sarbanes-Oxley Act of 2002? A. Comply with government rules and regulations B. Disclose information in reports that is full, fair, accurate, timely, and understandable C. Engage in honest and ethical conduct, including fair and timely resolution of conflicts of interest in personal and professional relationships D. All the above
D. All of the above
This perspective focuses on decision making based on the fulfillment of a self-imposed sense of duty and obligation.
Deontology
There are no universal moral standards. The only moral standards against which a society's practices can be judged are its own.
Ethical relativism
According to the United Nations, sustainable development rests on three interdependent and mutually reinforcing pillars. Which of the following is not one of these three pillars?
Free market determination of environmental values
This perspective is related to the neoclassical model of corporate responsibility.
Hedonistic interpretation
This perspective perceives work as a means for developing telos, or natural human potential.
Human fulfillment model
This perspective supports the greatest freedom in individual pursuits relating to employment.
Liberal perspective
The problem with using the perspective to justify the classical model of corporate social responsibility is that the right to corporate ownership is not absolute—there are ethical limitations on the goal of maximizing profit.
Property rights
The problem with using the perspective to justify the classical model of corporate social responsibility is that maximizing consumer satisfaction in the marketplace and thus, maximizing profits, does not always translate to the greatest social good.
Utilitarian
This perspective helps shape business policy by encouraging all employees of E=Infractions to consider all possible options and the consequences for all people who will be affected.
Utilitarianism
This refers to a policy or a program which in essence, makes the wrongs of yesterday, right today. a. Affirmative action b. First generation policy c. Second generation quest d. Reverse discrimination
a. Affirmative action
_____ explains the nature of economic transactions in the terms of a flow of resources from businesses to households and back again. a. Circular flow model b. The three pillars of sustainability c. Triple Bottom Line d. Bilinear model
a. Circular flow model
Which among the following steps involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders? a. Compare and weigh the alternatives b. Consider the available alternatives c. Identify the ethical issues d. Identify and consider the impact of decisions on stakeholders
a. Compare and weigh the alternatives
_____ argued against the exploitation of natural resources as if they could provide an inexhaustible supply of material. a. Conservationists b. Naturalists c. Animal rights activists d. Biologists
a. Conservationists
From which among the following perspectives does the business have only the responsibility to provide a good or service at an agreed-upon price? a. Contractual standards b. Tort standards c. Strict liability standards d. Target marketing standards
a. Contractual standards
The situation in which two parties come together freely for an exchange, is considered as upholding fundamental principles, according to which of the following ethical frameworks? a. Deontological ethical framework b. Utilitarian ethical framework c. Virtue ethics ethical framework d. Social justice ethical framework
a. Deontological ethical framework
Which among the following prohibits the "interception" or unauthorized access of stored communications? a. Electronic Communications Privacy Act of 1986. b. Computer Security Act of 1987. c. Privacy Act of 1974. d. Computer Fraud and Abuse Act of 1986.
a. Electronic Communications Privacy Act of 1986.
Which among the following can be misunderstood to mean that ethical responsibility is not necessary from a corporation's perspective? a. Enlightened self-interest model of CSR b. "Walk the talk" principle of leadership. c. Social contract model of CSR. d. Corporate citizenship model of CSR.
a. Enlightened self-interest model of CSR
This model presumes that corporations recognize the ultimate value to the organizations in engaging in CSR activities. a. Enlightened self-interest model of CSR. b. Social contract model of CSR. c. Individual sense model of CSR. d. Corporate citizenship model of CSR.
a. Enlightened self-interest model of CSR.
Which among the following has the closest connection to the utilitarian framework of ethics? a. Enlightened self-interest model of CSR. b. "Walk the talk" principle of leadership. c. Moral imagination. d. Corporate citizenship model of CSR.
a. Enlightened self-interest model of CSR.
Which among the following involves the consideration of externalities? a. Judging the true costs of production. b. Voluntary and informed consent. c. Values other than those served by the exchange itself. d. Concern about alleged benefits obtained via market exchanges.
a. Judging the true costs of production.
Which among the following phrases identifies norms that guide employees, implicitly more often than not, to behave in ways that the firm values and finds worthy? a. Organizational culture b. Human resource responsibility c. Organizational management d. Organizational behavior
a. Organizational culture
_____ are those things that we ought, or should, do, even if we would rather not. a. Responsibilities b. Decisions c. Socializations d. Theories
a. Responsibilities
Management assessment of internal controls is an aspect of which among the following provisions of the Sarbanes-Oxley Act that has significantly impacted corporate governance and boards? a. Section 404 b. Section 201 c. Section 407 d. Section 307
a. Section 404
In economic terms, all resources are infinite. Why? a. Since all resources can be replaced by substitutes, i.e., they are 'fungible'. b. Since governmental regulations will ensure that resources are distributed fairly. c. The advent of technology will ensure that all resources are recyclable. d. Since efficient markets will distribute resources efficiently and with care.
a. Since all resources can be replaced by substitutes, i.e., they are 'fungible'.
Which of the following theories has been contended to be most effective when dealing with issues on downsizing within an organization? a. Social contract model of CSR. b. Corporate citizenship model of CSR. c. Enlightened self-interest model of CSR. d. Individual sense model of CSR.
a. Social contract model of CSR.
Why has the U.S. Department of Commerce negotiated a 'Safe Harbor exception'? a. U.S. needed to qualify as having adequate protection as per the EU directive on personal data protection. b. Because it's naval fleet is the best in the world. c. U.S. wants to collaborate with EU's free market profits. d. The law requires that all imports meet the Safe Harbor standards.
a. U.S. needed to qualify as having adequate protection as per the EU directive on personal data protection.
_____ was part of the same social movement that gave rise to modern democratic market capitalism. a. Utilitarianism b. Virtue ethics c. Deontological ethics d. Ethical relativism
a. Utilitarianism
Which of the following focuses on the concept of practices and what type of people these practices are creating? a. Virtue ethics framework of ethics. b. Social justice through fairness framework of ethics. c. Utilitarian framework of ethics. d. Deontological framework of ethics.
a. Virtue ethics framework of ethics.
Knowing what the future might be; creative businesses _____ the present and determine what must be done to arrive to that future. a. backcast to b. chart c. change d. design
a. backcast to
In the context of satisficing, the very fact that a decision was reached by _____ can convince everyone involved that it must be the most reasonable decision. a. consensus b. normative channels c. descriptive channels d. analysis
a. consensus
Changes within the accounting industry arising from the consolidation of major firms and _____ of services such as consulting within single firms have virtually institutionalized conflicts of interest. a. cross-selling b. outsourcing c. higher taxation d. purchasing
a. cross-selling
All of these functions can assume the roles of a gatekeeper except a. engineers. b. auditors. c. accountants. d. financial analysts.
a. engineers.
Philosophical ethics argues that a key test of _____ is whether or not a decision would be acceptable from the point of view of all parts involved. a. ethical legitimacy b. responsibility c. morality d. normative studies
a. ethical legitimacy
Individual codes of conduct regarding how one should live, how one should act, what one should do, what kind of a person should one be, etc. is sometimes referred to as: a. morality. b. independence. c. leadership. d. rational motives.
a. morality.
In the text, researchers answered help-wanted ads in Boston and Chicago newspapers by submitting their resumes to ascertain that discrimination against a. names exists. b. gender exists. c. accent exists. d. residential neighborhood exists.
a. names exists.
The COSO standards for internal controls shifted audit, compliance, and governance from a _____ to concern for the organizational environment. a. numbers orientation b. critical requirement orientation c. stakeholder perspective d. risk assessment mode
a. numbers orientation
The _____ depend upon the existence and enforcement of a set of rules that define who has a right to undertake which activities on their own initiative and how the returns from those activities will be allocated. a. private property right b. privacy c. legal system d. government administration
a. private property right
From a utilitarian perspective, individual rights to privacy may be outweighed by a right to control information in the case where a. public safety is at risk. b. it is a very high paying job. c. the proposed benefit to the employer is high. d. productivity of employees directly depends on the number of hours they put in.
a. public safety is at risk
According to Daly, an economic system needs to be able to _____ not only the by-products of the production process, but also the products themselves. a. recycle or re-use b. design c. monitor d. patent
a. recycle or re-use
According to the text, factions arguing for greater global production, that creates economic growth, and provides a positive impact on more stakeholders, including better working conditions, would likely support the existence of a. sweatshops. b. organic farming. c. cost-effectiveness. d. cost-benefit analysis.
a. sweatshops.
Marketing practices targeted at elderly populations for goods such as Medicare supplemental insurance, funerals etc. are subject to criticism since a. that population is vulnerable and could be susceptible to marketing abuse. b. interest gained on such investments are not profitable enough. c. they are recreational in nature. d. it does not abide by the principles of welfare economics.
a. that population is vulnerable and could be susceptible to marketing abuse.
One of the drawbacks associated with prior intimation of monitoring to the employees results in a. the 'Hawthorne Effect'. b. the 'Placebo Effect'. c. the 'Halo Effect'. d. the 'Experimenter Effects'.
a. the 'Hawthorne Effect'.
If the basis for finding an invasion of privacy is often the employee's legitimate and reasonable expectation of privacy, then a situation where there is no real expectation of privacy occurs when a. the employee has actual notice. b. the employer is covered under the ECPA. c. the work requires transference of sensitive data. d. the employee belongs to a minority group.
a. the employee has actual notice.
The claim that society creates a strong incentive for businesses to produce safer goods and services supports a. the strict product liability standard. b. the negligence standard. c. the reasonable person standard. d. the consenting and informed decision standard.
a. the strict product liability standard.
The American Marketing Association defines marketing as "an organizational function and a set of processes for creating, communicating, and delivering _____ to customers and for managing customer relationships in ways that benefit the organization and its stakeholders." a. value b. quality c. technology d. the best deals
a. value
The _____ relies on the judgment of accounting professionals in carrying out their duties rather than stipulating specific rules. a. American Accounting Association b. AICPA Code of Professional Conduct c. Securities and Exchange Commission d. Institute of Internal Auditors
b. AICPA Code of Professional Conduct
Which among the following are responsible for ensuring that decisions and transactions conform to the law? a. Accountants b. Attorneys c. Auditors d. Analysts
b. Attorneys
This type of CSR often exists when a strong leader with a sense of responsibility and connection to the community leads an organization. a. Social contract model of CSR. b. Corporate citizenship model of CSR. c. Enlightened self-interest model of CSR. d. Individual sense model of CSR.
b. Corporate citizenship model of CSR.
Which among the following duties of board members underlines the fact that directors of a company need not actually be an expert or run the company? a. Duty of good faith b. Duty of care c. Duty of loyalty d. Duty of guidance
b. Duty of care
This, among many, provides explicit guides and resources detailing appropriate behavior as well as offering legal direction and parameters for both employees and employers. a. Title VII of the United States Civil Rights Acct of 1964 b. Equal Employment Opportunity Commission c. Occupational Safety and Health Administration d. Portability of Health Coverage
b. Equal Employment Opportunity Commission
Which among the following professions entails the highest probability of consumers being consenting, but not informed? a. Insurance b. Healthcare c. Automobiles d. Law
b. Healthcare
Which among the following is responsible for the fact that theoretical reason and science play an important role in any study of ethics? a. Importance associated with considering available alternatives b. Importance associated with determining facts c. Importance associated with identifying ethical issues d. Importance associated with considering impact of decisions on stakeholders
b. Importance associated with determining facts
According to Socrates, this leads to an unexamined life not worth living. a. Non-ethical behavior b. Passivity c. Cultural superstition d. Lack of standards
b. Passivity
_____ can serve as proxies for success, to some extent, or at least would be unlikely to occur in a company known for ethical lapses. a. Achievable objectives b. Quantifiable measurements c. Strong leadership d. Ethical codes of conduct
b. Quantifiable measurements
This signifies the fact that no group could function if members were free at all times to decide for themselves what to do and how to act. a. Ethical standards b. Social contract c. Social mores d. Personal norms
b. Social contract
Among which of the following would both law and ethics say that business should be held liable for violating its responsibilities? a. The social responsibility of a firm to prevent harm when one is not the cause for it. b. The social responsibility of a firm to not cause harm to others. c. The social responsibility of a firm to obey the law. d. The social responsibility of a firm to do good.
b. The social responsibility of a firm to not cause harm to others.
A manager honoring a commitment, although resulting in unfavorable consequences, is highlighting the difficulties associated with which type of ethical framework? a. Virtue ethics framework of ethics. b. Utilitarian framework of ethics. c. Social justice through fairness framework of ethics. d. Deontological framework of ethics.
b. Utilitarian framework of ethics.
Which among the following frameworks of ethics becomes less practical with an increase in the number of people, animals, etc that could be affected by decisions made? a. Virtue ethics framework of ethics. b. Utilitarian framework of ethics. c. Social justice through fairness framework of ethics. d. Deontological framework of ethics.
b. Utilitarian framework of ethics.
The Americans with Disabilities Act is an example best describing the fact that a. societies valuing freedom welcome laws that require more than the ethical minimum. b. a perspective that compliance is enough relies on a misleading understanding of law. c. obedience to law is sufficient to fulfill one's ethical duties. d. laws cannot anticipate every new business dilemma that might be faced.
b. a perspective that compliance is enough relies on a misleading understanding of law.
Those beliefs and principles that provide the ultimate guide in a company's decision-making are called a. transactions. b. core values. c. historical milestones. d. committee values.
b. core values.
The study of ethics is different from the study of psychology and sociology in that the latter fields are a. narrative in nature. b. descriptive in nature. c. quasi-experimental in nature. d. developmental in nature.
b. descriptive in nature.
Certified public accountants who have a professional responsibility to the public, work for clients whose financial interests are not always served by full, accurate, and independent _____. a. overseeing committees. b. disclosure of financial information. c. board of directors. d. employees.
b. disclosure of financial information.
Values that are fundamental across culture are called a. moral freeness. b. hypernorms. c. global norms. d. universalities.
b. hypernorms.
Values that are fundamental across culture are called a. moral freeness. b. hypernorms. c. global norms. d. universalities.
b. hypernorms.
Which among the following is not a characteristic of the standard of foreseeability? a. it would hold people liable only in the case of actual foreseeability. b. it would not be sufficient to say, "I never thought about that!" c. it merits punishment as it borders on intentional harm. d. it implies that unthoughtful people cannot be negligent.
b. it would not be sufficient to say, "I never thought about that!"
The Triple Bottom Line approach involves the measurement of business success of sustainable businesses and sustainable economic development in terms of all of the following factors except a. economic sustainability. b. legal sustainability. c. ethical sustainability. d. environmental sustainability.
b. legal sustainability.
Ethically acceptable means of influencing others includes all of the following except a. persuading. b. manipulation. c. informing. d. advising.
b. manipulation.
Monitoring one's actions accordingly when faced with similar challenges in the future, and to evaluate the implications of one's decisions are all an ongoing part of a. comparing and weighing alternatives based on consequences. b. monitoring and learning from the outcomes of the decisions. c. comparing and weighing alternatives based implications for personal integrity. d. identifying stakeholders and the effect of the decision on them.
b. monitoring and learning from the outcomes of the decisions
According to the universal principle of Kantian philosophy, the ethical obligation of _____ should guide employment interactions. a. family responsibilities b. respect for people c. honesty d. core customs
b. respect for people
In accordance to the criticism aimed at studying business ethics, many viewed it as a mixture of _____ and personal opinion that could interfere with the functioning of a business. a. abstract thinking b. sentimentality c. religious connotations d. rigidity
b. sentimentality
In the government-regulated ethics approach to workplace health and safety, _____ can be applied to overcome market failures that result from the lack of information. a. experience b. standards c. ethics d. creativity
b. standards
A responsibility is based on an aspect of some relationship, and is empty of content until a. that relationship is nurtured. b. that relationship is described and specified. c. it is realized in financial terms. d. the subjects involved in the relationship are ethically sound.
b. that relationship is described and specified.
According to Daly, the emphasis of economic growth as the goal of economic policy will inevitably fail unless it is realized that a. the population of the world needs to be controlled. b. the economy is a subsystem within earth's biosphere. c. resources are infinite. d. efficient markets need to be stabilized to ensure higher economic returns.
b. the economy is a subsystem within earth's biosphere.
In order for the board to assess their success according to FSG standards, all of the following are necessities except Select one: a. the evaluation of their training and development materials. b. the evaluation of their personal annual financial statements. c. the evaluation of their individual evaluation processes. d. the evaluation of their governance structure and position descriptions.
b. the evaluation of their personal annual financial statements.
The fact that future generations, neighbors, etc. will bear the brunt of environmental pollution, it goes to show that market failure can occur through means of a. lack of ability to create a price for important social goods. b. the existence of externalities c. the distinction between individual decisions and group decisions. d. the distinction between individual decisions and group consequences.
b. the existence of externalities
One of the major challenges associated with ethical decision-making is better understood by realizing that decisions involve a. religious aspects to the process. b. the interests of multiple stakeholders. c. social norms beset by public expectations. d. financial obligations.
b. the interests of multiple stakeholders.
Since employers cannot be responsible for providing an ideally safe and healthy place, discussions about these factors revolve around a. the tangible risks faced by the employees. b. the relative risks faced by the workers. c. the relative cost of health coverage for the organization. d. the optimum security against workplace risk chart.
b. the relative risks faced by the workers.
All of the following are universal characteristics of a market except that a. they must function within the law. b. they must adhere to corporate social responsibility norms. c. they must assume full information. d. they must be free from fraud and deception.
b. they must adhere to corporate social responsibility norms.
Most statutes or common law decisions, provide for employer defenses for all of the following except a. those rules that are reasonable and rationally related to the employment activities of a particular employee. b. those rules that are treats one group differently from another considering lifestyle practices. c. those rules that are necessary to avoid a conflict of interest or the appearance of conflict of interest. d. those rules that constitute a 'bona fide occupational requirement'.
b. those rules that are treats one group differently from another considering lifestyle practices.
The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the a. Tripartite Goals. b. three pillars of sustainability. c. Three Pronged charter. d. shoulder of sustainability.
b. three pillars of sustainability.
All of the following are methods of managing human resources through monitoring except a. to ensure compliance with affirmative action requirements. b. to ensure the avoidance of reverse discrimination suits. c. to prevent loss of productivity to inappropriate technology use. d. to administer workplace benefits.
b. to ensure the avoidance of reverse discrimination suits.
A firm builds a type of _____ when it creates a good image for itself. a. knowledge curve b. trust bank c. ingenuity source d. safe loop
b. trust bank
New technology does not necessarily impact our _____, but instead simply provides new ways to gather information on which to base them. a. moral obligations b. value judgments c. responsibilities d. ethical perspectives
b. value judgments
The flipside of a diverse workplace is that it can potentially increase several areas of _____. a. technological concerns b. values tension c. gender discrimination d. managerial lapses
b. values tension
The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of a. philosophical ethics. b. virtue ethics. c. deontological ethics. d. utilitarianism.
b. virtue ethics.
Which of the following terms refers to policy outlining actions taken to redress the harms of past and present discrimination and inequality for the purpose of providing assistance beyond the requirements of legislation for equal opportunity and nonpassive discrimination? a. Equal opportunity b. Overt discrimination c. Affirmative action d. Preferential treatment
c. Affirmative action
Advertising is a $200 billion a year industry in the United States alone. What does this prove? a. Business can influence the establishment of the law. b. Environmental protection extends only as far as the law extends. c. Business can influence consumer choice. d. Economic growth is environmentally and ethically benign.
c. Business can influence consumer choice.
The importance of the need for firms to be ahead of the sustainability curve is underlined by which among the following reasons for businesses to pursue the strategy of sustainability? a. Sustainability is a prudent long-term strategy. b. Significant cost savings can be achieved through sustainable practices. c. Competitive advantages exist for sustainable businesses. d. Sustainability is a good risk management strategy.
c. Competitive advantages exist for sustainable businesses.
Which among the following elements of COSO comprises of policies and procedures that support the control environment? a. Ongoing monitoring b. Information and communications c. Control activities d. Risk assessment
c. Control activities
Identify the distinguishing feature between cost-benefit analysis, and cost-effectiveness. a. Cost-effectiveness is a longer procedure to implement. b. Cost-effectiveness uses ethical criteria before setting the standards. c. Cost-benefit analysis uses economic criteria in setting the standards. d. Cost-effectiveness uses economic criteria before setting the standards.
c. Cost-benefit analysis uses economic criteria in setting the standards.
Which among the following entails an incentive to redesign products so that they can be recycled efficiently and easily? a. Biomimicry b. Service-based economy c. Cradle-to-cradle responsibility d. Ecoefficiency
c. Cradle-to-cradle responsibility
Which among the following supports the theory that profits is a measure of optimal allocation of resources? a. Moral imagination. b. "Walk the talk" principle of leadership. c. Enlightened self-interest model of CSR. d. Social contract model of CSR.
c. Enlightened self-interest model of CSR.
According to Bill George, which among the following tenets ensuring appropriate and ethical governance by the board encourages the perseverance of authenticity and credibility of the board's communications? a. Committees b. Independence c. Executive sessions d. Selection
c. Executive sessions
Which among the following approaches to health and safety at the workplace would be considered paternalistic in decision-making? a. Health and safety as government-regulated ethics. b. Health and safety as ideals. c. Health and safety as acceptable risk. d. Health and safety as market controlled.
c. Health and safety as acceptable risk.
Which among the following is indicative of the ethical concern over alleged benefits obtained through market exchanges? a. An informed shopping decision b. Internet shopping c. Impulse buying d. Advertising
c. Impulse buying
Identify which is not a factor of consideration while understanding the concept of 'freedom' to make a choice. a. Degree of voluntariness b. Anxiety and stress c. Length of warranty d. Vulnerable populations
c. Length of warranty
Identify, among the following, one that is not a cognitive barrier to responsible, ethical decision-making. a. An ignorance that is willful and intentional b. Considering limited alternatives c. Not following simplified decision rules d. Satisficing
c. Not following simplified decision rules
In the broadest sense, which among the following can help explain ethical disagreements? a. Socio-economic differences b. Economic background c. Perceptual differences d. Subcultural influences
c. Perceptual differences
Which among the following is not part of the "Four Ps" of marketing? a. Product b. Promotion c. Planning d. Placement
c. Planning
Immanuel Kant argued that there is one fundamental ethical principle that one has to follow, no matter what the consequence. Identify it. a. Speak the truth always. b. Remain loyal to family. c. Respect the dignity of individuals. d. Always help the poor.
c. Respect the dignity of individuals.
A survey has reported that more than half the firms believe that _____ gives investors and other stakeholders more confidence in their financial reports. a. Section 407 b. Section 307 c. Section 404 d. Section 201
c. Section 404
According to the text, the presumption of which among the following factors leads to an entrenchment of the firm, rather than its enhancement? a. The decision-making skills of the board. b. The ethical nature of the firm's leaders. c. The prioritization of the stakeholders. d. Employee understanding of the mission.
c. The prioritization of the stakeholders.
Which among the following methods of constraining a business's activities is beyond dispute? a. The social responsibility of a firm to prevent harm when one is not the cause for it. b. The social responsibility of a firm to not cause harm to others. c. The social responsibility of a firm to obey the law. d. The social responsibility of a firm to do good.
c. The social responsibility of a firm to obey the law.
The European Commission has defined CSR as "a concept whereby companies decide voluntarily to contribute to a better society and _____." a. better opportunities b. equality of treatment c. a cleaner environment d. a freer market system
c. a cleaner environment
Identify one of the parameters that will contribute to greater acceptance and approval of drug testing programs by workers. a. a task force made up of employees only. b. programs offering treatment that includes termination for first-time offenders. c. a completely random program. d. programs that distinguish supervisors from employees.
c. a completely random program.
When it is claimed that people that 'pay' for wrongs are unfairly burdened and should not bear the responsibility for the acts of others, they are opposing to a. reverse discrimination. b. judicial activity within organizations. c. affirmative action. d. legitimate power.
c. affirmative action.
A condition that leads to greater consumption leading to greater unhappiness is called _____. a. circularity model b. binge shopping c. affluenza d. splurge happiness
c. affluenza
According to Daly, over the long term, resources and energy cannot be used, nor waste produced, at rates which the biosphere cannot replace or absorb them without harming its ability to sustain life. This is termed as a. economic limitations. b. economic agendas for the future. c. biophysical limits to growth d. un-expendable boundaries.
c. biophysical limits to growth
Stakeholder participation, independent verification, and transparency are some of the criteria to ensure that _____ actually serves as tools, rather than public relation gimmicks. a. organizational vision statement b. good press c. codes of conduct d. employee preference
c. codes of conduct
All of the following are ways through which affirmative action can arise at the workplace except a. through legal ways. b. through judicial affirmative action. c. consultant based affirmative action plans. d. voluntary affirmative action plans.
c. consultant based affirmative action plans.
While considering the fact that anyone can make unethical choices, the questions that are most difficult to answer are often those that are most important to answer in a. understanding the perspective of the stakeholders. b. analyzing the financial liabilities. c. defining who we are. d. justifying the decision to the media.
c. defining who we are.
One aspect of the circular flow model does not differentiate natural resources from other factors of production. Thus it a. does not respect that resources can be sold. b. means that resources are not infinite. c. does not explain the origin of resources. d. thus it means that households cannot own these resources.
c. does not explain the origin of resources.
Markets can work to prevent harm only through information supplied by the existence of market failures. This is termed a. normative myopia. b. cause-and-effect. c. first-generation problem. d. primary market effect.
c. first-generation problem.
When someone is susceptible to some specific physical, psychological, or financial harm, it is termed a. specified vulnerability. b. general susceptibility. c. general vulnerability. d. standard dangers.
c. general vulnerability.
The events that led to Enron's demise brought into focus the necessity of the _____ and the responsibility of auditors as never before. a. confluence of principles b. integration of auditors c. independence of auditors d. autonomous governance
c. independence of auditors
Learning about the history of ethics through the works of Aristotle, Immanuel Kant etc, involves an approach to ethics that focuses on the a. descriptive nature of ethics. b. accountability of human choices. c. informational content of the class. d. reasoning behind the action/ decision.
c. informational content of the class.
The fact that it may no longer be reasonable to be offended by intrusions into one's private life, that used to be considered unacceptable, is dealt under the category of a. reverse obligation. b. security of privacy. c. intrusion into seclusion. d. property rights.
c. intrusion into seclusion.
Advertising provides information for market exchanges and therefore contributes to _____ and to overall happiness. a. consumer surplus b. producer surplus c. market efficiency d. welfare economics
c. market efficiency
The idea that the definition of 'should have known' expanding to include an expectation of monitoring is attributed to businesses a. protecting proprietary information and guarding against thefts. b. protecting their investment in equipment and bandwidth. c. protecting against legal liability. d. administering workplace benefits.
c. protecting against legal liability.
The right to privacy, founded in the individual's universal right to autonomy, is restricted by a social contract in our culture which prevents us from infringing on someone else's right to his or her personal autonomy. This is referred to as a. obligatory independence. b. fundamental privacy. c. reciprocal obligation. d. social autonomy.
c. reciprocal obligation.
Utilitarian thinking would promote the following policies except to: a. deregulate private industry. b. protect property rights. c. regulate advertising. d. allow for free exchanges.
c. regulate advertising.
The interrelatedness of natural systems has helped mankind understand the wide range of dependence on ecosystems. This fact has increased the importance of a. understanding the moral nature of animals. b. governmental regulations for ethical behavior. c. self-interested reasoning. d. innovation.
c. self-interested reasoning.
One helpful exercise for considering the effects of a decision on others is to a. conduct a private debate. b. speak to a trusted friend. c. shift one's role. d. practice everyday, what one preaches.
c. shift one's role.
The reason the Constitution's Fourth Amendment protection applies only to public sector workplace is because a. unions exist only in private sector organizations. b. the private organization does not cater to appeals of unreasonable search or seizure. c. the Constitution applies only to the state. d. it is illegal by common law to trespass on private property.
c. the Constitution applies only to the state.
The claim that external costs should be internalized and that the full costs of a product should be paid for by those who use the product is part of a. the standard that strict liability will act as an incentive for better product safety. b. the standard that businesses are most able to pay for damages. c. the accountability standard for businesses liable for product safety. d. the standard that the government, thus taxpayers, are liable for product safety.
c. the accountability standard for businesses liable for product safety.
Different types of values are typically distinguished in terms of a. the history of its inceptions. b. the importance associated to it by a majority. c. the ends they serve. d. the geographic reach and acceptance of that value.
c. the ends they serve.
Although there are many justifications for ethics in business, the primary thrust of the discussion revolves around a. the publicity it generates. b. consumer preferences. c. the return on investment d. employee preferences.
c. the return on investment
A conflict of interest exists where a person holds a position of _____ that requires that she or he exercise judgment on behalf of others, but where her or his personal interests and/or obligations conflict with those of others. a. responsibility b. expertise c. trust d. knowledge
c. trust
The approach that animals with a central nervous system feel pain is akin to the _____ ethical framework which asserts an ethical responsibility to minimize pain. a. social justice b. virtue ethics c. utilitarian d. deontological
c. utilitarian
One sector of economists that view profit maximization as a central idea to corporate social responsibility are a. social justice through fairness framework of ethics. b. deontological framework of ethics. c. utilitarian framework of ethics. d. virtue-based framework of ethics.
c. utilitarian framework of ethics.
What might a producer do while considering lost production that results from a trip to the market? a. Have a sale for the product b. Increase advertising of the product c. Increase the price of the products d. Hire a retailer for the product
d. Hire a retailer for the product
An organization that, in an attempt to avoid discrimination suits filed against it, intentionally hires a lot of black women, and a few disabled people. Which among the following is most likely to occur? a. The performance of the organization will increase. b. The organization will win an award for equity. c. There will be an increase in the number of diversity training sessions. d. A white man or a woman will file a reverse discrimination suit
d. A white man or a woman will file a reverse discrimination suit
Which among the following evaluate a company's financial prospects or creditworthiness, so that banks and investors can make informed decisions? a. Accountants b. Attorneys c. Auditors d. Analysts
d. Analysts
Which among the following states is the only one that requires employers to notify workers when they are being monitored? a. Ohio b. Illinois c. Michigan d. Connecticut
d. Connecticut
What according to Ambrose Bierce is "an ingenious device for obtaining individual profit without individual responsibility"? a. Leadership b. Utilitarianism c. Equal opportunities d. Corporation
d. Corporation
According to which among the following techniques, would OSHA be persuaded to aim for an optimal, and not, the highest feasible, level of safety? a. Risk assessment analysis b. Cost utility analysis c. Cost affectivity analysis d. Cost benefit analysis
d. Cost benefit analysis
Which among the following is not a condition to be adhered to ensure that a willing exchange between two parties is ethically legitimate? a. Degree to which participants are respected as free, autonomous beings, and not a means to an end. b. Degree to which the transaction provided actual, as opposed to merely apparent benefits. c. What other values might be at stake in the transaction. d. Degree to which both parties are providing a benefit other than to themselves.
d. Degree to which both parties are providing a benefit other than to themselves.
Which ethical framework is based on the foundations of rules and the need for them to be followed, no matter the consequences? a. Virtue ethics framework of ethics. b. Social justice through fairness framework of ethics. c. Utilitarian framework of ethics. d. Deontological framework of ethics.
d. Deontological framework of ethics.
If one's personal information on e-mails is respected as property, using the example of Google, it can be said that a. Google scans users' e-mails with their consent. b. users are aware that personalized advertisements are possible only through scanning. c. e-mails are not considered as property. d. Google uses individual property rights without consent.
d. Google uses individual property rights without consent.
Among which of the following scenarios is it vital to be aware of the various implications associated with refusing to hire persons based on any 'bad feelings' about them? a. In a start-up organization. b. In an organization known for ethical responsibility. c. In a campus-recruitment drive. d. In a culturally diverse organization.
d. In a culturally diverse organization.
This standard is the one most used in legal cases and seems to better capture the ethical goals of the very concept of negligence. a. Negligence b. Rational ignorance c. Strict liability d. Reasonable person
d. Reasonable person
This inclines one to act or to choose one way rather than another. a. Norms b. Morality c. Social ethics d. Values
d. Values
The second line in The Natural Step's funnel represents a. resources necessary to sustain life. b. resources that are biodegradable. c. the biosphere limits. d. aggregate worldwide demand.
d. aggregate worldwide demand.
The 'Tripartite' part of the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy refers to all of the following except a. critical cooperation necessary from governments. b. critical cooperation necessary from employers' and workers' organizations. c. critical cooperation necessary from multinational enterprises involved. d. critical cooperation necessary from the suppliers and agents associated with the firm.
d. critical cooperation necessary from the suppliers and agents associated with the firm
Even if it may not be the best decision made, using a simple _____ might appear to relieve one of accountability for the decision. a. analogy b. decision criteria c. manner of satisficing d. decision rule
d. decision rule
Rawls' system of social justice as fairness is founded on all of the following except a. the veil of ignorance. b. unanimous agreement. c. institutionalized fairness. d. equal distribution of benefits of a society.
d. equal distribution of benefits of a society.
Specifically, in some people, a set of _____ inclines them to, without deliberation, act ethically. a. moralities b. do's and don'ts c. codes d. ethical habits
d. ethical habits
At its most basic level, _____ is/ are concerned with how we act and how we live our lives. a. laws b. regulations c. values d. ethics
d. ethics
Role-based duties concerned with professionals in business (lawyers, accountants, financial analysts, bankers etc.) are often termed as _____. a. work culture b. code of conduct c. activity alerts d. gatekeeper functions
d. gatekeeper functions
Under the aegis of the Sarbanes-Oxley Act and COSO control environment, the internal audit and compliance professionals are also becoming more accountable for financial stewardship, resulting in all of the following except a. greater accountability. b. greater transparency. c. greater emphasis on effort to prevent misconduct. d. greater loyalty.
d. greater loyalty.
The threat of compensation acts as an incentive for employers to maintain a reasonably safe and healthy workplace environment most in the situation where the approach to a. health and safety is as acceptable risk. b. health and safety is as an ideal. c. health and safety is government-regulated ethics. d. health and safety is market controlled.
d. health and safety is market controlled.
In the book, a statement made by Plato has been correlated to the firm's a. knowledge management abilities. b. core competence. c. ethical responsibilities. d. image or reputation.
d. image or reputation
Many analysts contend that the rampant corruption in financial institutions is evidence of a complete failure a. of the objective of the company. b. of the social ethical structure. c. of the venture capitalist industry. d. in the corporate governance structure.
d. in the corporate governance structure.
One sector that uses genetic information as a form of monitoring includes a. finance sector. b. automotive sector. c. manufacturing sector. d. insurance sector.
d. insurance sector.
The focus on preference can actually make social responsibility a. a part of the law. b. profit oriented. c. a global phenomenon. d. merely social marketing.
d. merely social marketing.
Fundamentally, the concept of _____ is central to the deontological tradition. a. social justice b. normative analysis c. personal ethics d. moral rights
d. moral rights
The Enterprise Risk Management - Integrated Framework, expands on the prior framework in that it intentionally includes "_____" as one of its interrelated components. a. development and validation b. risk assessment and reduction c. research and analysis d. objective setting
d. objective setting
Philosophical ethics seeks foundations that all reasonable people can accept, regardless of their a. educational background. b. economical background. c. cultural background. d. religious background.
d. religious background.
The practice of caring for the 'image' of a firm is sometimes referred to as a. publicity subsistence. b. image orientation. c. façade creation. d. reputation management.
d. reputation management.
Two general and connected understandings of privacy have been identified as a right to be 'let alone' within a personal space, and privacy as the a. right to understand one's emotions. b. fundamental duty of every citizen. c. right to control information about others. d. right to control information about oneself.
d. right to control information about oneself.
A study done by the Center for Innovation in Management has ascertained that in the bigger picture, _____ appears to minimize shareholder risk, enhance reputation, and deepen brand loyalty. a. empathy b. monitoring c. higher salaries d. social capital
d. social capital
From the perspective of _____, structural changes including the provision of legal protection or sanction to shield professionals from conflicts of interest would be an appropriate response to the accounting scandals of recent years. a. philosophical ethics b. law c. public opinion d. social ethics
d. social ethics
