ethics

Reasoning that faults executive compensation as greedy, distasteful, and as motivated by narrow self-interest adopts a(n) _____ on ethics, which implies that a greedy person who does distasteful and selfish things will not lead a fulfilling life.

virtue-based perspective

Efficient markets guarantee that an ethically worthy outcome has been achieved.

False

The stakeholder theory of corporate social responsibility is totally incompatible with the utilitarian ethical theory because the stakeholder concept requires balancing the interests of all the parties affected by business decisions.

False

The free market, or neoclassical, theory of corporate social responsibility relies on utilitarianism and the concepts of individual rights to freedom and property for its ethical justification.

True

_____ is an ethical tradition that directs one to make decisions based on the overall consequences of one's acts.

Utilitarianism

_____ ethics directs one to consider the moral character of individuals and how various character traits can contribute to, or obstruct, a happy and meaningful human life.

Virtue

Identify the fundamental questions of ethics that people should ask individually. (Check all that apply.)

What kind of person should one be? How should one act? How should one live life? What should one do?

According to Herman Daly, we need

a major paradigm shift in how we understand economic activity

As the supply of resources needed to sustain human life declines and as demand for those resources increases with the increase in worldwide population and consumption, business will need to _____.

adopt sustainable practices to ensure long-term survival

Identify the versions of the principle of categorical imperative given by Kant that are less abstract. (Check all that apply.)

Ethics requires one to treat all people as ends and never only as means. One is required to treat people as subjects, not as objects.

Identify the statement that challenges the perspective that ad hoc attempts to repair market failures are environmentally inadequate.

External costs should be internalized, and property rights should be assigned to unowned goods such as wild species.

The Brundtland understanding of environmental sustainability treats the natural environment as

a resource that humans need for economic and social development

For sustainable practices to be socially satisfactory, they must

address the real needs of people and other necessities

Kant's formulations regarding categorical imperative restates the commitment to treat people as _____.

capable of thinking and choosing for themselves

One of the challenges to the ethics of utilitarianism is the problems raised from outside a utilitarian perspective that _____.

challenge the plausibility of the entire utilitarian project

A corporate ethical culture would be one in which employees are

empowered and expected to act in ethically responsible ways even when not required by the law

True or false: All ethically relevant environmental issues fall under the category of environmental sustainability.

False

True or false: Attempts to shift focus on to the "expected" utility of an act is to accept utilitarianism.

False

True or false: Virtue ethics emphasizes the fact that sometimes the correct path is determined not by its consequences but by certain principles or duties.

False

Identify the fundamental questions of ethics that people should ask about themselves collectively. (Check all that apply.)

How should a society be structured?, How should people live together in community?

Identify a true statement on the circular flow model.

In this model, the origin of resources is never explained.

Identify a true statement on the third principle of sustainable business practice that requires a greater paradigm shift in business management.

It causes a change that will reinforce principles of both ecoefficiency and biomimicry.

Identify a true statement on the circular flow model.

It explains the nature of economic transactions in terms of a flow of resources from businesses to households.

Identify a true statement about an inappropriate influence in business, according to the economic model of corporate social responsibility.

It is the influence aimed at protecting the interests of business.

Identify an example of products that is focused by the old economy.

Light bulb

A variety of situations in which the pursuit of profit will not result in a net increase in consumer satisfaction are known as

Market Failures

Identify a precise formulation of a utilitarian-based market principle for management

Maximize profit whenever doing so produces the greatest overall good for the greatest number of people.

According to a U.N. report authored by then-prime minister Gro Brundtland of Norway, what is the fundamental idea of sustainability?

No economic activity could be sustained if one ignored the environmental context in which that activity occurs.

_____ emphasizes the fact that sometimes the correct path is determined not by its consequences but by certain principles or duties.

Principle-based ethics

Which of the following are examples of situations in which cooperation has a more optimal outcome than competition?

Prisoners' dilemma cases

A broad consensus developed in the United States in the 1970s that

unregulated markets are inadequate to deal with environmental challenges

Identify a true statement according to the economic model of corporate social responsibility.

The ethical goal of economy is to maximize happiness, understood as optimizing the satisfaction of individual preferences or wants.

is the obvious remedy for social harms resulting from market failures as it is the appropriate mechanism for addressing social goods that are unattainable through individual choice

The law

is the obvious remedy for social harms resulting from market failures as it is the appropriate mechanism for addressing social goods that are unattainable through individual choice.

The law

According to the circular flow model, payments are sent back to households in the form of wages, salaries, rents, profits, and interests during the process. Identify the next step in this process.

These payments are received by households in exchange for the labor, land, capital, and entrepreneurial skills used by business for production.

A version of utilitarianism public policy holds that there are experts who can predict the outcome of various policies and carry out policies that will attain one's ends. Identify the features of such experts. (Select all that apply.)

They are familiar with the specifics of how society works. They are usually trained in social sciences such as economics. They can determine which policy will maximize the overall good.

If the productive activities used in the classical model of economics continue, the entire model will prove unstable because these activities may move resources through the system at a rate that outgrows the productive capacity of the earth or the earth's capacity to absorb their wastes and by-products.

True

Market solutions to environmental pollution fallaciously presume that what is good and rational for a collection of individuals is necessarily good and rational for a society. As a result, important ethical and policy questions can be missed and that can lead to serious environmental harm. Under the market model, for example, restricting sales of sports utility vehicles (SUVs) and treating them as trucks with higher gas mileage standards or increasing taxes on gasoline would never be considered. Group startsTrue or F

True

As there are important ethical questions on market practices that remain unasked from within market transactions, one must conclude that markets are

incomplete as a means to attaining the overall social good

According to the economic model of corporate social responsibility, business's only responsibility is to

maximize profit within the law

If a society wishes to address the concerns on what is good and rational for a collection of individuals or society, it will need to rely on _____.

public decision-making mechanisms

Market failure occurs in situations in which pursuit of _____ results in a worse outcome than what would have occurred had the parties' behavior been coordinated.

rational self-interest

An unconditional ethical directive is inappropriate for a utilitarian theory because utilitarians always

remain ready to revise their principles in light of changing consequences

By maximizing the profit within the law, a business _____.

respects the property rights of business owners

Identify the true statements about the neoclassical model of corporate social responsibility.

According to this model, business managers must first meet certain moral obligations, which, once met, open the door to the pursuit of profit. This model helps distinguish between ethical imperatives to cause no harm, to prevent harm, and to do good. Norman Bowie claims this model as something of a consensus that has emerged in the past 10 years regarding the social responsibility of business.

A reactionary strategy by markets to prevent harm through information supplied by the existence of market failures is ill-advised when public policy involves

irreplaceable public goods such as public health and safety

Challenges to the utilitarian defense of the economic model of corporate social responsibility focus on the appropriateness of the goal of ensuring maximum satisfaction of consumer demands as

legitimate ethical goals

A second phase in the evolution of business strategy toward biomimicry is referred to as

life-cycle responsibility

In life, unlike utilitarianism, it is said that the ends do not justify the means, which means that there are certain principles, duties, and obligations one should follow _____.

no matter what the consequences or a lack of net increase in overall happiness

One version of utilitarianism public policy holds that there are experts who can

predict the outcome of various policies and carry out policies that will attain one's ends

An ethical defense of the economic model of corporate social responsibility appeals to the rights of

private owners rather than to the alleged beneficial consequences of markets

In the strategic model of corporate social responsibility, social responsibility is woven into the fabric of the firm where the distinction between social ends and private ends breaks down, so that one

serves the ends of shareholders by serving social ends

Certain situations are called market failures because in such cases markets

fail to do what they were designed to do

Which of the following statements are true of the view of business ethics that builds on ethical relativism? (Check all that apply.)

It holds that business ethics is little more than personal opinion. It holds that it is hopeless to think that we can ever reach agreement on contentious ethical issues.

Which of the following statements are true of the view of business ethics that holds that business ethics is unnecessary? (Check all that apply.)

It holds that it is enough that business obeys the law It holds that business ethics distracts from business's main purpose.

Who are the stakeholders in a decision?' and 'how will the stakeholders be harmed or benefited?' are some of the questions that must be made when one needs to

identify the people who are affected by a situation

According to the ethical defense of the economic model that appeals to the rights of private owners, managers have an overriding obligation to

maximize profits

Utilitarianism is typically identified with the policy of _____.

maximizing the overall good or of producing the greatest good for the greatest number

In the words of the World Commission on Environment and Development, sustainable practices must be able to _____ if it is to be economically satisfactory.

meet the needs of the present without compromising the ability of future generations to meet their own needs

In the neoclassical model of corporate social responsibility, the pursuit of profit is constrained by an obligation to obey a(n)

moral minimum

The condition of universality, not unlike the Golden Rule, _____ making it a strong requirement of impartiality and equality for ethics.

prohibits one from giving one's personal point of view more importance than the points of view of others

The _____________ model of corporate social responsibility begins with the insight that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

stakeholder

According to a U.N. report authored by then-prime minister Gro Brundtland of Norway, ____________ was defined as the ability "to meet the needs of the present without compromising the ability of future generations to meet their own needs."

sustainability

The ocean fishing industry is an example of an argument for a "business case" pursuing sustainable practices which suggests that _____.

sustainability is a prudent long-term strategy

The earliest phase in the evolution of business strategy toward biomimicry has been described as _____.

take-make-waste

Challenges to the utilitarian defense of the economic model of corporate social responsibility focus on _____.

the adequacy of free markets as means to the ends of maximally satisfying consumer demand

Within one tradition, one's ethical duty is explained in terms of a principle that the German philosopher Immanuel Kant called _____.

the categorical imperative

The costs of externalities, borne by parties who are not a part of the exchange between seller and buyer, cause

the exchange price to show an imbalance between true costs and benefits

The principle-based approach denies the utilitarian belief that the ends do justify the means and holds that _____.

there are some things that one should, or should not, do regardless of the consequences

Virtue ethics is a tradition within philosophical ethics that seeks a full and detailed description of _____.

those character traits, or virtues, that would constitute a good and full human life

A housing developer who designs a neighborhood with cluster housing, green spaces, habitat corridors, and biking trails instead of the traditional "cookie-cutter" development pattern can be an example of a business manager who _____.

utilizes methods to improve efficiency of resources

If one wishes to attain the optimal distribution of costs and benefits in market exchanges failing due to externalities, the market

will need to be regulated and controlled so as to internalize externalities

There is no reason to believe that ad hoc attempts to repair market failures, such as determining shadow prices for unpriced social goods, or exempting social goods from the market, or using the law to address social goods that are unattainable through individual choice, are socially inadequate.

False

Identify the acts that were passed as part of the national consensus for addressing environmental problems in the United States.

Federal Water Pollution Act of 1972 the Endangered Species Act of 1973 the Clean Air Act of 1970

According to the circular flow model, business produces goods and services in response to the market demands of households during the process. Identify the next step in this process.

Goods and services are shipped to households in exchange for payments back to business.

Identify a guiding principle, mentioned in Natural Capitalism, offered for the redesign of business.

The productivity of natural resources must and can be dramatically increased.

Which of the following models of corporate social responsibility conceives of social responsibility as part of the very mission, or strategic vision, of a firm?

The strategic model

Identify a true statement about free market defenders.

They support legislation to create shadow prices for unpriced social goods or for exempting such goods from the market.

Identify the statement that does not meet Natural Capitalism's principles for the redesign of business to meet its environmental responsibilities.

To serve the needs of the poorest 75 percent of the world's population, the standard growth model would increase economic growth by a factor of 5 to 10.

Defenders of the narrow view of corporate social responsibility argue that internalizing external costs and assigning property rights to unowned goods, such as wild species, are appropriate responses to market failures.

True

In the context of corporate social responsibility, identify the factors that should be taken into consideration while making a business decision.

Who should pay the costs for each business decision? Who should benefit from the business decision?

Utilitarianism has had, and continues to have, an enormous influence on _____.

business

According to Kant, one's primary duty is to act only in those ways in which the maxim of one's acts could be made a universal law where the maxim of one's acts _____.

can be thought of as the intention behind one's acts

Utilitarians are committed to

considering all the consequences to all affected parties

A service-based economy perceives _____.

consumer demand as a demand for services

Immanuel Kant tells that one should act only according to those maxims that _____.

could be universally accepted and acted on

"The end justifies the means." This statement _____.

denies a fundamental ethical principle that states that the ends do not justify the means

An ethics of virtue seeks to _____ that will lead one to live a meaningful and happy human life. For virtue ethics, the acquisition of the same becomes a fundamental question for ethics.

develop the character traits and habits

According to Natural Capitalism, the guiding principle that productivity of natural resources must and can be dramatically increased constitutes a further development of what is known as _____.

ecoefficiency

Herman Daly makes an effective case for an understanding of

economic development

In order to achieve ecoefficiency, business managers must _____.

find ways to meet consumer demand with fewer resources

One of the challenges to the ethics of utilitarianism is the problem raised from within a utilitarian perspective that involves

finding a defensible version of utilitarianism

The ___________ - ______________ problem refers to sacrificing the first generation as a means of learning about market failures and thereby preventing future harms in the market.

first generation

Following Adam Smith, the economic model of corporate social responsibility argues that the best means for attaining the ethical goal of economy of maximizing happiness is by adopting a _____ economic system.

free market

Externalities, such as pollution and resource depletion, provide examples of market failures as they

give cases of efficiently functioning markets failing to achieve optimal results

In the circular flow model, resources are owned by _____ from which they, like labor, capital, and entrepreneurial skill, can be sold to business.

households

Providing stock options to sales staff to motivate them to increase the number of individual sales in a month and thus improving an organization's overall profits is an example of _____.

utilitarianism

Which statement does not support the claim that an unconditioned ethical directive such as the one the economic model of corporate social responsibility demands of business management is inappropriate for utilitarian theory?

A more precise formulation of a utilitarian-based principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial.

Identify the pillars of sustainability that are often used to judge sustainable practices. (Check all that apply.)

Economical satisfaction Environmental satisfaction Social satisfaction

Pharmaceutical companies that lobby for permission to advertise their products using vague terms and visuals on the side-effects and their severity are an example of

an inappropriate influence