BUS148 Midterm Study

According to Aristotle, --------- is achieved by leading a virtuous life, which is attained over time.

Eudaimonia

All stakeholders must be treated the same. TRUE OR FALSE

FALSE

CSR and greenwashing are the same concepts. TRUE OR FALSE

FALSE

Consumerism

A lifestyle characterized by the acquisition of goods and services.

Universal Values

Ethical principles that apply everywhere despite differences in time, geography, and culture are referred to as

Which of the following is the most ethical action a company can take if a product does not live up to manufacturing claims? A)The company needs to warn consumers and correct the problem to regain consumer trust. B)The company must meet the ethical maximum. C)The company must only issue warning to consumers. D)The company must meet the ethical minimum.

A) The company needs to warn consumers and correct the problem to regain consumer trust

What is "the problem of redistribution"? A) Utility can lead to tyranny. B) Utility might not be agreeable to everyone. C) Utility can lead to peace. D) Utility is not often understood by everyone.

A) Utility can lead to tyranny

Which of the following best relates to prioritizing stakeholders? A)Customers are considered high-priority stakeholders B)Corporations need to manage expectations of customers. C)Corporations need to maintain initial priority of stakeholders. D)Customers are not considered high-priority stakeholders.

A)Customers are considered high-priority stakeholders

Virtue Ethics

An ethical system based upon the exercise of certain virtues is called

Which intellectual, emotional, and social human trait affects all decision-making, including ethical decisions?

BIAS

Which of the following are the opposing views of how large, publicly held corporations should approach social responsibility and ethics? -Business should only behave ethically if it's profitable to do so. -Business should behave ethically, being responsible to all stakeholders. -Business should behave ethically, focusing exclusively on shareholders/investors. -Business should behave ethically, focusing only on environmentalism.

BUSINESS SHOULD BEHAVE ETHICALLY, BEING RESPONSIBLE TO ALL STAKEHOLDERS

STAKEHOLDERS

Clients, customers, suppliers, investors, retailers, employees, the media, the government, the community, competitors and the environment are all considered to be

Unfortunately, the emphasis on consumerism leads to the problem of: A)Diminishing marginal utility B)Diminishing supply chains C)Diminishing demand D)Increasing marginal utility

Diminishing marginal utility.

Which of the following is considered a primary internal stakeholder of a corporation?

EMPLOYEES

In Citizens United v. Federal Election Commission, the Supreme Court ruled 5 to 4 in favor of public corporations using public funds for political advertising. TRUE OR FALSE

FALSE

Laws dictate all ethical responsibilities that a company may owe key stakeholders. TRUE OR FALSE

FALSE

Managerial Ethics is a way of relating to self, employees, and the organization that considers shareholder profits first.: TRUE OR FALSE

FALSE

Sustainability is a short-term approach to the interaction between business activity, environmental responsibility, and societal impact on the environment and other stakeholder: TRUE OR FALSE

FALSE

There is a common agreement among the public that corporate directors have a duty to maximize corporate profits and shareholder value, even if this means skirting ethical rules: TRUE OR FALSE

FALSE

Normative ethical theories

Focus on how people ought to behave on the basis of reason

Which of the following is not a stakeholder in a corporation? goodwill customer shareholder employee

GOODWILL

Businesses that wish to achieve the dual goal of human flourishing and responsible profits should model which ethical behavior?

HUMANISTIC BUSINESS MODEL

In the case of Dodge v. Ford Motor Company, the Michigan Supreme Court ruled in favor of shareholder primacy. What was the decision?

Henry Ford must operate Ford Motor Company primarily to maximize profit for its shareholders.

Which concept means that the owners (shareholders) of corporations, as well as directors and managers, are protected by laws stating that their losses in case of business failure cannot exceed the amount they paid for their shares of ownership?

LIMITED LIABILITY

Which of the following is NOT a step in the MITRE stakeholder process? -Maximize risk at the expense of stakeholders -Identify stakeholders -Gather & analyze appropriate data -Present information to the Board of Directors

Maximize risk at the expense of stakeholders

The triple bottom line places people and the planet on par with ________ in the mission of the organization.

PROFIT

Which of the following examples best demonstrates the burden of the social contract that companies have with stakeholders?

Samsung's recall paid refunds and limited potential lawsuits.

Which legislation was passed in 2002 that mandates reporting transparency by businesses in areas ranging from finance to accounting to supply chain activities?

Sarbanes-Oxley Act

Which of the following is the best description for what it means to act with integrity? A)Thinking long-term with investments. B) Following the letter of the law. C) Striving to be the best person you can be in all your interactions with others. D) Focus on how people ought to behave on the basis of reason.

Striving to be the best person you can be in all your interactions with others.

What is a measure that accounts for an organization's results in terms of its effects on profits, planet, and people?

TRIPLE BOTTOM LINE

As a function of culture, ethics is not static but changes with each new era. TRUE OR FALSE

TRUE

In the case of Dodge v. Ford Motor Company, Henry Ford said he believed his company was sufficiently profitable to allow it to consider its social responsibility to engage in activities to benefit the public, including its workers and customers. TRUE OR FALSE

TRUE

Moral Agency is the self-awareness, freedom, and ability to make choices based on everyone's differing opinions and perceptions of right and wrong. TRUE OR FALSE

TRUE

Social responsibility does not have to mean being unprofitable. TRUE OR FALSE

TRUE

The categorical imperative implores us to act only according to the maxim whereby you can, at the same time, will or hope that it should become a universal law: TRUE OR FALSE

TRUE

The concept of limited liability means the owners of corporations are protected by laws stating that, in most circumstances, their losses in case of business failure cannot exceed the amount they paid for their shares of ownership. TRUE OR FALSE

TRUE

When a company gives back to the society that permits it to exist, this is an example of:

The Social Contract

Acculturation

The cultural transmission and socialization process that stems from cultural exchange is called

Golden Mean

The desirable "middle" between excess and deficiency.

Enculturation

The process by which humans learn the rules, customs, skills, and values to participate in a society

CORPORATE CULTURE

The shared beliefs, values, and behaviors that create the internal or organizational context within which managers and employees interact is

ETHICS

The standards of behavior to which we hold ourselves in our personal and professional lives

Which of the following statements most accurately describes shareholder primacy? -a company's duty to attract investors -a company's duty to attract capital -a company's duty to society -a company's duty to maximize profits for stockholders

a company's duty to maximize profits for stockholders

A "moral minimum" means which of the following? -promising to earn less profit per share -applying U.S. law regarding child labor globally -committing to having 50 percent of board seats held by women or minorities -actions a firm undertakes to satisfy the base threshold for acting ethically

actions a firm undertakes to satisfy the base threshold for acting ethically

A business organization has: -only a legal duty -only an ethical duty -both a legal and ethical duty -Neither

both a legal and ethical duty

A common law or principle stating that officers, directors, and managers of a corporation are not liable for losses incurred when the evidence demonstrates that decisions were reasonable and made in good faith is known as:

business judgment rule

Which of the following are stakeholders?

entities and people invested and influential in the success of an organization.

BUSINESS ETHICS

guides the conduct by which companies and their agents abide by the law and respect the rights of their stakeholders, particularly their customers, clients, employees, and the surrounding community and environment.

GOODWILL

he positive feeling stakeholders have for any particular company is called

DEONTOLOGY

is a normative ethical theory suggesting that an ethical decision requires us to observe only the rights and duties we owe to others, and to act on the basis of a primary motive to do what is right by all stakeholders.

JUSTICE THEORY:

is the idea that fairness is applied beyond the individual to include the community as well as analysis of social injustice with remedies to correct it.

CSR (Corporate Social Responsibility)

is the practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities.

Which of the following best describes the interplay of promises of businesses to stakeholders and vice versa?

on-time delivery and responsiveness

Mercantilism

relies on the theory that global wealth is static and, therefore, prosperity depends on accumulating it from others.

Corporate law enables businesses to take advantage of a legal structure that: --means the corporation is only liable in the state where its headquarters is located -shields owners from publicity -gives the corporate entity protection from all liability -separates liability from ownership and control

separates liability from ownership and control

Consequentialism

states that our actions are judged solely by their consequences, without regard to character, motivation, or any understanding of good and evil.

HARM PRINCIPLE

states that the only purpose for which power can be rightfully exercised over any member of a civilized community, against their will, is to prevent harm to others.

The concept of CSR or Corporate Social Responsibility is the belief that:

sustainable practices that benefit the community can actually add value to the bottom line.

How is the concept of corporate personhood defined?

the doctrine that a corporation has some of the same legal rights and responsibilities enjoyed by natural persons

SOCIAL CONTRACT:

theory states that the natural state of human beings is freedom, but that human beings will rationally submit to some restrictions on their freedom to secure their mutual safety and benefit.