BUSI Ethics test

Duty Based Ethics that focuses on the principle of rights

-Consumer -Suppliers -Employees

Which three of the following may contribute to a lack of ethics in a workplace?

-Unrealistic production or sales goals -Managers who do not actively discuss ethics -Unethical activities by management

Triple Bottom Line

-corporate profits -impact of profits on -people

Why is it important to monitor the employment practices of foreign suppliers?

Because corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the American company, and harm its reputation.

The idea that individuals should evaluate their actions in light of the consequences that would follow if everyone in society acted in the same way is known as the:

Categorical Imperative

Third step of Bucklin's approach

Decision

Second step of Bucklin's approach

Discussion

The listing of alternatives and evaluation of them using ethical theories occurs in the

Discussion

Fifth step of Bucklin's approach

Evaluation

All shareholders are stakeholders and all stakeholders are shareholders.

FALSE

Business ethics are consistent only with short-run profit maximization.

FALSE

Managers who set unrealistic production or sales goals decrease the probability that employees will act unethically.

FALSE

Religious ethical principles allow managers to make decisions with few possible negative consequences

FALSE

If a company chooses to do something that is legal, that decision also will always be ethical.

False

has prohibited U.S. businesses from bribing foreign officials.

Foreign Corrupt Practices Act (FCPA)

First step of Bucklin's approach

Inquiry

Fourth step of Bucklin's approach

Justification

The key to setting an ethical tone for a business

Manager's attitude

The law that requires companies to set up confidential systems so that "red flags" can be raised about suspected illegal and unethical business practices is the:

Sarbanes-Oxley Act.

Customers, creditors, suppliers, employees and the community in which a business operates are all:

Stakeholders

Businesses may face many ethical issues with regard to social media.

TRUE

Corporate social responsibility combines a commitment to good corporate citizenship with a commitment to making ethical decisions, improving society, and minimizing environmental impact.

TRUE

The FCPA does not prohibit payments to low-level employees of foreign nations who exercise little (or no) discretion in their jobs, but merely process paperwork.

TRUE

The application of the principle of rights, or rights theory, often involves conflicting rights.

TRUE

The justification stage is used to explain the decision and rationalize why a bad decision may actually be good.

TRUE

The utilitarian approach to decision making has been seen as problematic by some because even the greatest good to the greatest number may create unacceptable harm to the few.

TRUE

The application of morals and ethics to a situation is usually called ethical _________ . This study is typically divided into two major categories. The first, _________ ethics, is often founded in religion or philosophy. The second, ______________ ethics, focuses on the impacts of a decision on ____________ .

The application of morals and ethics to a situation is usually called ethical REASONING. This study is typically divided into two major categories. The first, DUTY-BASED ethics, is often founded in religion or philosophy. The second, OUTCOME-BASED ethics, focuses on the impacts of a decision on STAKEHOLDERS.

An in-depth understanding of ethics is important to the long-term viability of a business because unethical decisions will negatively and directly impact all of the following except which one? a. The business's customers b. The business's suppliers c. The business's image d. The business's number of products

The businesses number of products

When making decisions, a business should evaluate the __________ implications of each option, the __________ relations impact, the safety risks for _________ and _________ , and the ____________ implications

When making decisions, a business should evaluate the LEGAL implications of each option, the PUBLIC relations impact, the safety risks for CONSUMERS and EMPLOYEES , and the FINANCIAL implications

Corporate Social Responsibly

a NEW concept that IS NOT imposed by corporations by law

Companies must keep detailed records that

accurately and fairly reflect foreign payments.

Utilitarian Approach

action is morally right when it creates the least amount of harm for the fewest people.

Corporate social responsibility is most successful when a company undertakes activities that:

are significant and related it its business operations

Under the theory of corporate social responsibility, many corporations publish reports outlining how they are good corporate citizens. These are often called:

corporate sustainability reports.

Most companies try to link laws and ethics by

creating company codes of ethics

the agreement of a plan of action happens in the

decision

Business Ethics Does NOT focus on: a. the decisions that businesses must make and whether they are right or wrong. b. how businesses are treated under international laws and customs. c. how business people apply moral principles in making decisions. d. the duties and responsibilities that exist or should exist for businesses.

how businesses are treated under international laws and customs.

Immanuel Kant

identified several general guiding principles for moral behavior

The inquiry analysis

identifying the parties and collecting the relevant facts

Cost-Benefit Analysis

involves assessing the negative and positive effects of alternative actions.

Utilitarianism

is a philosophical theory developed by two British philosophers, Bentham and Mill.

Compliance with the law is sometimes called the

moral minimum

In Profit Maximization

resources flow to where they are most highly valued by society, allowing businesses to focus on their strengths.

A company may not have a social media policy that prohibits making negative statements about the company or any of its employees because

the government protects employees' rights to engage in "concerted activities

Ethics can be defined as the study of

what constitutes right and wrong behavior