mgmt 308 Chapter 5 Ethics and Ethical Reasoning

Ethics

A tool to determine right and wrong.

Altruism is accurately characterized by which statements? (Check all that apply.) Multiple select question. acting for the benefit of others looking out for number one sacrificing self-interest ignoring others' ethical principles

Acting for the benefit of others and sacrificing self-interest.

A business conflict of interest is exemplified by which scenarios? (Check all that apply.) Multiple select question. An agent buys parts from the most cost-effective firm that gave money to the agent. An agent buys parts from the supplier next door to his company. An agent receives a substantial fee for buying parts from a certain company. An agent buys parts from a high-cost firm that donated a valuable gift to the agent.

An agent buys parts from the most cost-effective firm that gave money to the agent. An agent receives a substantial fee for buying parts from a certain company. An agent buys parts from a high-cost firm that donated a valuable gift to the agent.

Identify the most accurate definition of ethical relativism. Multiple choice question. Ethical values remain constant over time, even under different circumstances. Ethical beliefs are common across all relatives within an extended family. All of the world's religions document and teach identical moral values. Ethical principles are defined by time, place, circumstances, and personal opinion.

Ethical principles are defined by time, place, circumstances, and personal opinion.

True or false. Ethical relativism proves that ethics are not important to business because there are no universal ethical standards.

False

Identify the reasons that frequently trigger ethical problems in business. (Check all that apply.) Multiple select question. a positive profitability report personal gain and selfish interest common cultural beliefs conflicts of interest

Personal gain and selfish interest and conflicts of interest.

Identify attributes of practical reasons for business to be ethical. (Check all that apply.) Multiple select question. Practical reasons include economic objectives that enhance performance. They promote philosophical theories about what is right and wrong. These are strategic arguments that serve to meet business objectives. Practical and normative arguments for ethics in business are mutually exclusive.

Practical reasons include economic objectives that enhance performance; these are strategic arguments that serve to meet business objectives

True or false: The primary critique of using virtue ethics to solve business dilemmas is that a simple set of values may be insufficient.

True

When a firm faces criminal charges for ethics violations in the United States, which rules are used to compute culpability? Multiple choice question. Sarbanes-Oxley Act U.S. Federal Sentencing Guidelines guiding ethical principles business ethics

U.S. Federal Sentencing Guidelines

Denying basic human rights is normally considered to be unethical under what conditions? Multiple choice question. Using others for your own purpose, while denying them their goals and purposes. Helping others meet their goals while putting most of your own goals on hold. Using others for your own purpose, while allowing them to meet their goals. Treating others impartially while working toward your own goals.

Using others for your own purpose, while denying them their goals and purposes.

The type of ethical reasoning that theorizes that having good moral character directs an individual to good behavior is called ______. Multiple choice question. rights ethics good ethics virtue ethics justice ethics

Virtue ethics

Managers' ethics are most often influenced by which entities? (Check all that apply.) Multiple select question. legal compliance family relationships Immediate work group human rights

legal compliance, family relationships and immediate work group

5th stage of moral development referent is?

moral beliefs beyond social custom

first stage of moral development referent is?

punishment avoidance

2nd stage of moral development referent is?

reward seeking

4th stage of moral development referent is?

society at large

6th stage of moral development referent is?

universal principles

Identify the most basic human rights. (Check all that apply.) Multiple select question. employment, job security due process, be informed life, safety, property freedom, free speech

Life, safety, property, freedom, free speech, due process, being informed

Why are the values held by managers especially important in the workplace? Multiple choice question. Managers serve as organizational role models. Managers generally work alone so their values are not critical. Company staff workers must follow their manager no matter what their values are. Managers set the political tone for an organization.

Managers serve as organizational role models.

When determining a fair distribution, which human factors are taken into consideration? (Check all that apply.) Multiple select question. needs religion abilities efforts

Needs, abilities, efforts

How can a business that is closing offer a fair response to their stakeholders? (Check all that apply.) Multiple select question. Cancel all customer warranties. Pull funding from the local community. Offer pay-out bonuses to managers. Provide training for workers.

Offer pay-out bonuses to managers and provide training for workers.

How can management choose among different ethical approaches that do not lead to the same conclusion? (Check all that apply.) Multiple select question. Consider the organization's culture and ethical climate. Decide based solely on the financial implications. Always put the needs of the firm ahead of all other stakeholders. Assign priorities to each ethical approach.

Consider the organization's culture and ethical climate and assign priorities to each ethical approach.

Utilitarian reasoning is characterized by which statements? (Check all that apply.) Multiple select question. costs outweigh benefits greatest good for the most people cost-benefit analysis benefits outweigh costs

Cost-benefit analysis, benefits outweigh costs, and greatest good for the most people.

Why is it difficult to be sure if a business made the most ethical decision? (Check all that apply.) Multiple select question. Different sources of information may be used. The priority of human rights may be ranked differently. Costs and benefits use consistent measures resulting in the same conclusion. Different values may be applied to make the decision.

Different sources of information may be used, the priority of human rights may be ranked differently, different values may be applied to make the decision,

Basis of ethics reasoning: Stage 1 Childhood and Stage 2 Adolescence

Ego-centered reasoning

Which of the U.S. Sentencing Guidelines applies only after an ethics violation occurs? Multiple choice question. Monitoring and auditing ethical procedures for reporting purposes. Establishing and training ethical standards to reduce criminal conduct. Assigning a high-level, risk-free officer for compliance responsibility. Enforcing standards through appropriate disciplinary actions.

Enforcing standards through appropriate disciplinary actions

Basis of ethics reasoning: Stage 3 Early adulthood

Group-centered reasoning

Why do critics of the Sarbanes-Oxley Act believe the law is no longer effective? Multiple choice question. Fewer corporations are committing to implementing an ethical work culture. The law already worked, and very few executives now break the law. The Securities and Exchange Commission has refused to enforce the Act. The Act has not totally eliminated fraudulent financial reports over the past 15 years.

The Act has not totally eliminated fraudulent financial reports over the past 15 years.

Why do some people support the "Right to Try" experimental drugs for terminally ill patients, as seen in the example Exhibit 5.A? (Check all that apply.) Multiple select question. Pharmaceutical companies have power over consumers. The end result overrides the means. Drugs are too expensive to ignore. Patients should have a right to choose.

The end result overrides the means and patients have a right to choose.

Why do some argue against the "Right to Try" experimental drugs for terminally ill patients? Multiple choice question. Patients have a right to free medication whether approved or not. The law requires insurance companies to pay for experimental drugs. Patients have no right to medication that is not federally approved. The law requires drug companies to provide experimental drugs.

Patients have no right to medication that is not federally approved.

Basis of ethics reasoning: Stages 5 and 6 Mature adulthood

Principle-centered reasoning

One factor in determining the moral intensity of an ethical issue is how close the decision maker feels to the people affected by the decision, a factor that is known as ______. Multiple choice question. proximity probability temporal immediacy social consensus

Proximity

Select the normative reasons for business to be ethical. (Check all that apply.) Multiple select question. to promote personal morality to comply with legal requirements to enhance business performance to prevent or minimize harm

To prevent or minimize harm, and to promote personal morality.

Notions of right and wrong derive from which sources? (Check all that apply.) Multiple select question. artistic resources religious beliefs math and science books family and friends

Religious beliefs and family and friends

A conflict of interest is accurately defined by which statement? Multiple choice question. An obligation to the company takes place over self-interest. Self-interest is at odds with an obligation to act in the best interest of others. An obligation to others takes place over self-interest. Self-interest occurs over optional interests of others.

Self-interest is at odds with and obligation to act in the best interest of others.

Basics of ethics reasoning: Stage 4 Adulthood

Society-and law-centered reasoning

Researchers have consistently found that most managers typically rely on criteria associated with reasoning at _____. (Check all that apply.) Multiple select question. Stage 2 Adolescence Stage 5 Mature adulthood Stage 3 Early adulthood Stage 4 Adulthood

Stage 3 Early adulthood and Stage 4 Adulthood

Within utilitarian reasoning, why is it difficult to measure the costs and benefits? Multiple choice question. Corporate sales and profits must be measured in monetary terms. Intangible things like employee morale and job satisfaction are hard to quantify. Social and environmental costs are often overly precise, skewing calculations. It is not difficult to measure costs and benefits within utilitarian reasoning.

Intangible things like employee morale and job satisfaction are hard to quantify.

Select all of the statements that are true about the Sarbanes-Oxley Act (SOX). (Check all that apply.) Multiple select question. It eliminates strict auditing rules unless an ethics violation has occurred. It states that executives never have to pay back bonuses, even when earnings are fraudulent. It makes executives responsible for the accuracy of financial reports. It enforces high ethical standards in business dealings.

It makes executives responsible for the accuracy of financial reports, and It enforces high ethical standards in business dealings.

Ethnocentric mentality

"Foreigners have a funny notion of what's right and wrong."

Favoritism mentality

"Help yourself and those closest to you!"

Egotistical mentality

"I want it!"

Bottom-line mentality

"We have to beat the others at all costs!"

Ethical Principles

A guide to moral behavior.

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which example? Multiple choice question. A large quantity of food contaminated with salmonella was distributed to stores. A manager made a personal phone call during work hours. Sexual harassment has become less socially acceptable since the "#MeToo" movement. An employee stole a box of paper clips from the supply closet.

A large quantity of food contaminated with salmonella was distributed to stores.

In a recent survey, what did the public report as the most serious offense between a company and its customers? Multiple choice question. violations of trust bad customer service high product prices poor financial performance

Violations of trust

3rd stage of moral development referent is?

social groups