Chapter 5

Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to ensure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

in good faith.

Corporations can demonstrate corporate social responsibility by promoting goals that society deems worthwhile.

true

Managers must apply the same standards to themselves as they do to the company's employees.

true

Originally, the only goal or duty of a corporation was to maximize profits.

true

Religious rules generally are absolute with respect to the behavior of their adherents.

true

The study of business ethics is concerned with the purposes of a business and how that business achieves those purposes.

true

In making business decisions, Ridgeline Utility Service Company and other corporations should strive to be "good citizens" by evaluating

all of the choices.

Corporate Security Company provides other firms with security services. Questions of what is ethical involve the extent to which Corporate Security has

an ethical duty beyond those duties mandated by law.

Ryland, an officer for Sports Park, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must

avoid unethical behavior regardless of the consequences

Ricardo suspects his supervisor Simone of unethical accounting practices. But Ricardo does not want to report Simone if she will find out who reported her and fire Ricardo. An important feature of online reporting systems like EthicsPoint is that an employee reporting unethical behavior

can do so anonymously.

Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of

corporate social responsibility.

According to utilitarianism, it does not matter how many people suffer a negative effect from an act.

false

Ethics is as well defined as the law.

false

Ethics is based more on research than judgment.

false

Given today's global communications network, most companies can assume that their actions in other nations will go unnoticed.

false

Comfort Foods Corporation makes and markets its products nationwide. To be considered socially responsible when making a business decision, Comfort Foods must take into account the needs of

its employees, owners, customers, creditors, suppliers, and the community.

Discount Mart Corporation contracts with companies in developing nations to produce goods, because the wage rates in those nations are significantly lower than those in the United States. Discount Mart takes steps to avoid bad publicity by monitoring its suppliers' workplaces to make sure that the employees are not mistreated. Discount Mart is

not acting unethically.

Steaks n' Fries Restaurant Company's decision makers view a particular risk in the consumption of Steaks n' Fries' products as open and obvious. Continuing to market the products without explicitly telling consumers of the risk could be justified from a perspective of

outcome-based ethics.

In studying the business law, students also review ethics in a business context. Ethics includes the study of what constitutes

right or wrong behavior.

Acting in good faith gives a business firm a better chance of defending its actions in court.

true