BLAW320 ch3

The triple bottom line looks at all of the following except a. how decisions impact profits and revenue. b. how decisions impact sustainability and the planet. c. how decisions impact employees and consumers. d. how decisions impact the relationship between the U.S. and other nations.

d. how decisions impact the relationship between the US and other nations

The utilitarian theory of ethics does not require a. a choice among alternatives to produce the maximum societal utility. b. a determination of whom an action will affect. c. an assessment of the effects of alternatives on those affected. d. the acquiring of the means of production by workers.

d. the acquiring of the means of production by workers

Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics in making business and ethical decisions that involve the actions of the firm. According to this standard, an action is morally correct when it produces the greatest good for a. Hale. b. Investor Fund. c. the fewest people. d. the most people.

d. the most people

A cost-benefit analysis is part of a. a duty-based ethics approach. b. corporate social responsibility. c. the principle of rights theory. d. utilitarianism.

d. utilitarianism

Business ethics looks at whether business decisions a. are right or wrong. b. derive from well-known business principles. c. follow legal doctrine. d. align with corporate policy.

a. are right or wrong

Compliance with the law is not always sufficient to determine "right" behavior because a. the law does not codify all ethical requirements. b. company codes are also sources of law. c. business decisions can have negative impacts. d. ethical problems occur in business.

a. the law does not codify all ethical requirements

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget. The techniques were legal but the bridge collapsed, killing several people. Viaduct's actions were a. unethical and may result in legislation to ensure it does not happen again. b. ethical because they were legal and so Viaduct owes no one. c. dangerous and so inherently illegal. d. legal under Sarbanes-Oxley and so Viaduct will face no penalties.

a. unethical and may result in legislation to ensure it does not happen again

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes a. fraud. b. ethical rights and duties. c. federal programs. d. corporate policy.

b. ethical rights and duties

Ethics has to do with how a businessperson making business decisions applies a. legal doctrine. b. moral principles. c. corporate policy. d. financial priorities.

b. moral principles

Duty-based ethical standards are most likely to derive from a. a corporate ethics code. b. a cost-benefit analysis. c. philosophical reasoning. d. the law.

c. philosophical reasoning

Artificial Intelligence Inc. sells to Beta Bots Corporation a promising idea for a technological innovation that is still being developed and that looks very promising. This is a. ethical and legal. b. unethical but legal. c. illegal and unethical. d. unethical and illegal.

a. ethical and legal

When deciding to engage in corporate social responsibility, a key factor when selecting activities is a. how the social activity relates to the business activities of the corporation. b. how much free publicity the corporation will get from the social activity. c. whether the corporation is required to do the social activity by law. d. whether the activity will result in short-term profit increases.

a. how the social activity relates to the business activities of the corporation

Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit from ethical behavior a. if customer service is good. b. if its owners are happy with the revenue. c. under no circumstances. d. if it efficiently allocates its scarce resources.

a. if customer service is good

An ethical code of conduct is not a. law. b. a set of rules that the company can enforce. c. an outline of the company's policies. d. a guide for decision makers facing ethical questions.

a. law

Lucy is a business manager for Manufacturing Company. Ethical issues that Lucy is not likely to encounter include determining a. protocols for company meetings. b. questions of workplace diversity. c. compliance with environmental regulations. d. application of safety standards.

a. protocols for company meetings

Cody makes a business decision based on financial outcomes first, and then attempts to argue that it is ethical as well when it may not be. Cody is a. rationalizing his decision. b. questioning his decision. c. using the utilitarian approach. d. using the stakeholder approach.

a. rationalizing his decision

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by a. taking immediate action in response to unethical conduct. b. imposing sanctions disproportionate to misconduct. c. distributing rewards without regard to ethics. d. ignoring small breaches of company rules.

a. taking immediate action in response to unethical conduct

The National Restaurant Association announces a new industry code of ethics. The effectiveness of this code will be determined by a. the commitment of management to enforcing the code. b. the similarity of the code to the employees' personal values. c. the success of the campaign publicizing the code. d. the relationship between the code and the law.

a. the commitment of management to enforcing the code.

In making a business decision, Jin Soo brainstorms possible solutions to his problem and then considers what he should do. If Jin Soo is using the IDDR approach to decision making, he is in the a. the discussion step. b. the decision step. c. the inquiry step. d. the review step.

a. the discussion step

Under the principle of rights theory, a key factor in determining whether a business decision is ethical is how that decision a. compares to religious principles. b. affects the rights of others. c. causes consequences that would follow if everyone acted the same way. d. supports the right to make a profit.

b. affects the rights of others

Questions of what is ethical involve the extent to which a company has a. a legal duty beyond those duties mandated by ethics. b. an ethical duty beyond those duties mandated by law. c. any duty beyond those mandated by both ethics and the law. d. any duty when it is uncertain whether a legal duty exists.

b. an ethical duty beyond those duties mandated by law

ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly and that the environmental impact of the corporation is minimal. This is the concept of a. the moral minimum. b. corporate social responsibility. c. the categorical imperative. d. the triple bottom line.

b. corporate social responsibility

Holdings Corporation, a top-performing company, may be more likely to behave unethically if a. its customers focus solely on the firm's profitability. b. employees feel they are expected to continually perform at a high level to keep their jobs. c. the company mandates a four-part analysis for each corporate decision being made. d. the firm begins to focus on being good corporate citizens.

b. employees feel they are expected to continually perform at a high level to keep their jobs

According to the theory of corporate social responsibility, any decision by the management of Precision Processing Corporation should consider how a proposed action may affect only the a. firm's officers and shareholders. b. firm's officers, shareholders, and suppliers, as well as the community, or society as a whole. c. firm's shareholders. d. firm's suppliers, the community, or society as a whole as well as the news media and local government.

b. firm's officers, shareholders, and suppliers, as well as the community, or society as a whole

Cynthia is the chief financial officer of Digital Corporation. In that capacity, when she is unsure whether a certain business action is legal, she should act a. in her own best interest. b. honestly and responsibly. c. in the short-run interest of Digital. d. to maximize profit.

b. honestly and responsibly

When adopting duty-based ethics, corporations often demonstrate the duties they owe a. through required government disclosure forms. b. in their mission statements and strategic plans. c. by adopting a corporate religion. d. in the biographies of corporate leaders.

b. in their mission statements and strategic plans

Ethics is important because laws may not always be easy to interpret or apply. This is because a. laws are very organized and structured and so are complicated to read. b. laws represent the will of the people and that will is often changing. c. laws are created by the political process and are the result of compromise. d. laws often have definition provisions to explain the meaning of terms.

b. laws represent the will of the people and that will is often changing

With respect to what society will tolerate, a company's compliance with the law, and no more, is a. the highest ethical level. b. the lowest ethical level. c. the only ethical level. d. irrelevant.

b. the lowest ethical level

If a company strictly complies with existing laws, the firm will a. fulfill all business ethics obligations. b. fulfill no business ethics obligations. c. fulfill some business ethics obligations. d. not need to fulfill any business ethics obligations.

c. fulfill some business ethics obligations

When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except a. recognize that there is an ethical issue in the decision. b. apply ethical theories to reasonable alternatives. c. publicize the options you rejected with your reasons. d. reflect on the outcome of the decision once it is made.

c. publicize the options your rejected with your reasons

To avoid unethical practices by a foreign supplier, an effective business practice is to a. pay foreign employees at U.S. pay rates. b. have suppliers sign contracts affirming that they will behave ethically. c. routinely monitor the foreign workplaces. d. obtain a legislative decree that the supplier is ethical.

c. routinely monitor the foreign workplaces

Caryn is faced with making a business decision. As she thinks about the problem, she feels that there is no easy answer. She continues to think about what is making her uncomfortable about the situation before brainstorming possible solutions. If Caryn is using the IDDR approach to decision making, she is engaged in a. the discussion step. b. the decision step. c. the inquiry step. d. the review step.

c. the inquiry step

Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees using it and to the public once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and avoidance of disease to people in making her decision, she is likely using a. religious principles. b. the categorical imperative. c. the principle of rights theory. d. utilitarianism.

c. the principle of rights theory

"Be honest and treat people fairly." With respect to business ethics, implementing this motto is a. not important. b. only important in democratic societies. c. very important. d. only important with large customers.

c. very important