Business 148 Study Guide

What is the federal minimum hourly wage?

$7.25

Describe Kant's "Deontology" view of ethics.

...

Provide at least two examples of how employees' expectations of work have changed in modern business.

...

In the Supreme Court ruling Citizens United v. Federal Election Commission, which Amendment was at the center of the case?

First Amendment

Explain an employee's common law duty of loyalty to their employer.

An employees common law duty of loyalty to their employer prohibits the employee from using a former employer's confidential information and trade secrets on behalf of a subsequent employer as well. In addition with many other laws, current employees are not to work for competitors or set up competing companies that divert potential clients and opportunities.

Enacted in 1966, which of the following laws is the most important U.S. law forbidding cruelty to animals in laboratory settings?

Animal Welfare Act

Which of the following statements does not depict deontology?

Deontology is often regarded as a "here and now" philosophy.

Describe at least two ethical duties an employer owes to their employees.

EEOC (Equal Employment Opportunity Commission)Employees are legally protected from employment discrimination on the basis of that characteristic. Protected classes are created by both federal and state law. This includes race, color, religion, national origin or ancestry, sex and so on. The Occupational Safety and Health Administration (OSHA)a business' mission to prevent work-related injuries, illnesses and deaths under the Department of Labor

Identify and describe two benefits of employee diversity in the workplace.

Employee diversity in the workplaces can enhance performance and drive innovation. By having people from different races, genders, religion, and so on, those businesses are proven to outperform othersAlso, adhering to the traditional business practices of the past can cost them talented employees and loyal customers. Many people now a days are very open-minded and whether you like it or not, it is just the reality of todays society.

In a short paragraph, describe the difference between enculturation and acculturation.

Enculturation and acculturation seem very alike but when paying close attention, the differences start to pop out. Acculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange. Enculturation refers to the process by which humans learn the rules, customs, skills, and values to participate in a society. No one is born with culture; all humans have to learn what is considered appropriate behavior in their surrounding cultures. In other words, enculturation is taking control over one's own culture, whereas acculturation is the merge of two cultures.

If you feel harassed, prejudiced against, or disadvantaged in your workplace, you may file a complaint with the ________.

Equal Employment Opportunity Commission

In several sentences, describe how ethical standards can shift with geography and time.

Ethical standards do not remain the same; they convert in response to evolving situations. Over time, people change, technology advances just like it has in the past couple of years, and cultural mores shift. Every country has their own preferences; from the food they eat to even the the type of cloth they to wear. Its normal and keeps things interesting in my opinion.

What does deontology mean?

Ethics is a duty we owe to others.

A trade secret is a form of intellectual property protection and is easier to protect than a trademark or patent.

False

All stakeholders must be treated the same.

False

Athenian philosophical theories of ethics are no longer applicable in contemporary times

False

Consumer feedback on social media sites does not affect a company's prospects or status as ethical.

False

In Richard DeGeorge's humanities model, business ethics would prepare students to do certain specific things.

False

Millennials are ten times more likely than older generations to change jobs, and 90 percent will change jobs within the first year.

False

Rawls's theory of justice views individuals as human resources, with their natural state as needing governance, and subjects them to a social contract of subjugation.

False

The environment is not considered a stakeholder.

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.

False

U.S. firms and their employees are allowed to use bribery in other countries if allowed by local legal and cultural differences.

False

Which seven-step guidelines are designed to help organizations with compliance and reporting?

Federal Sentencing Guidelines

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.

Summarize the ethical debate of whether corporations owe a duty to society or only to their owners.

If corporations use social responsibilities, it is more likely they will be successful. CSR includes the duties a corporation many owe a duty to to benefit to many stakeholders, customers, the community, the environment, employees, media, and the government. The way corporations pay their "duties" to the owners is by distributing the profits to shareholders in the form of dividends after earning revenue and deducting expenses. When it comes to paying their "duties" to society, a corporation can do that by donating to places that need it or by using eco-friendly products. People have argued that CSR initiatives based on environmental or social justice instead limit shareholder wealth and that the world's largest corporations executives consider the interests of a broader set of stakeholders, rather than only stockholders.

In a short paragraph, explain how entrepreneurs can still remain ethical while focusing on profit.

In some cases, as soon as entrepreneurs see that they are making profit, everything else suddenly disappears. Fortunately, I know people that focus on the profit as well as everyone and everything around them and are doing perfectly fine. Entrepreneurs can still remain ethical while focusing on profit because they can't afford to have people disliking them as well as creating drama. If those entrepreneurs have good morals, it will come natural and it will show. Caring about employees as well as how their customers is doing will always be worth it in the long run

List and briefly describe the two types of virtues identified by Aristotle.

Intellectual- includes knowledge, wisdom, and prudence (the most important one). Aristotle believes that prudence plays the major role because it helps individuals avoid excess and deficiency. Moral- Moral virtues have to do with character which include self-control, courage, liberality, magnificence, honor, patience, and amiability. Although, they meant something else in Ancient Greece. According to Aristotle, the difference between the two is that intellectual virtues are acquired completely through learning, whereas the moral virtues are earned through practice and the development of habits.

Which of the following describes the efficacy of legislation like the California Transparency in Supply Chains Act?

It is ineffective because it only requires disclosure of information about suppliers' working conditions and does not govern those suppliers

Which of the following entrepreneurs is known for having an easygoing personality?

Kerrie Laird

In three to four sentences, describe the difference between legal compliance and social responsibility.

Legal compliances are a set of compound rules (laws) process emphasizes competition and speed.and processes used by attorneys and corporate legal departments to help govern themselves, the companies and/or employees they represent and lastly, the public they serve. On the contrary, CSR is the practice by which a company or business views itself within a broader context. CSR ensures that a company is engaging in sound ethical practices and policies in accordance with the company's culture and mission, above and beyond any mandatory legal standards

Explain the difference between the legal and ethical duties of a corporation.

Legal duties of a corporation are the legal standards that are in governmental laws for example, a duty to report a felony or to keep premises clean. As for ethical duties, they are standards based on human principles of right from wrong. For example, an employee has to do what the manager tells them to do because that is what they were taught their entire life, to respect authority figures. Also, the manager of a company's ethical duty is to hire people that seems best for the job and not based on the color of their skin.

Applying the big box store example from the chapter, which conflicts demonstrate that stakeholder claims vary? (Select all that apply.)

Local governments are seeking to institute tax advantages to attract business competition. Community members may view big box stores as a threat to small businesses' livelihood. Consumers support big box stores that offer quality goods and reasonable prices

Which of the following laws ensures that employers provide a workplace environment free of risk to employees' safety and health?

OSHA

Do companies have the responsibility to market their products with integrity? What is the responsibility of the producer and the consumer?

Of course companies have the responsibility to market their products with integrity because without them, the business would be no where. Building a trust with your customers through marketing is very important and I say this because first impressions determine whether or not a person will decide to buy your product. Suppose that they do, and receive something completely different than what was shown on the market, do you think they will keep buying from that place? No.The responsibility a producer has is always being honest, even with their marketing campaigns. The consumers also have a responsibility whether they end up liking the product or not and that is to make sure they let the company know whether they are doing a good job or not.

How can entrepreneurs best ensure their customer-service vision is passed on to employees?

Provide training to all employees.

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 does an entrepreneur typically need to be willing to do to start a business?

Select a product or service that will be sustainable.

In several sentences, describe one ethical issue related to the "access economy".

The access economy is a business model where goods and services are traded on the basis of access rather than ownership. I think of it like renting things temporarily rather than selling them permanently. One big issue access economy has is lack of regulations, especially when it comes to overseeing the products and services exchanged during the transaction. Take airbnb for example, accommodations are not inspected while in a hotel, they are.

Why does a Kantian view typically not govern most management decisions?

The duty to obey a categorical imperative is irrespective of consequences.

Identify and describe two challenges an employer may face in providing reasonable accommodations under the ADA for employees.

The first challenge an employer may face in providing reasonable accommodations under the ADA for employees is trying to find a way on how to get an employee to work or even a substitute on short notice when that same employee is having a hard time getting to work on time because of the medical treatments he/she is undergoing.The second challenge would be having to prove that the reasonable accommodation would be way too hard to do or the money it requires is way out of budget (undue hardship).

Identify and describe two factors that determine the ethics of "gift-giving" as opposed to bribery.

The main difference between a bribe and a gift is intent. A bribe is given with either an explicit or implied expectation of return that will benefit your business while a gift is given without any expectation of return and does not benefit your business. Also, a bribery is very unethical and can look bad for the business.

Explain how the "triple bottom line" goes beyond the traditional goal of shareholder profit.

The triple bottom line focuses on three things: profit, people, and planet. This is a great way to remind business' that not everything is about the money and how making a few changes can result as success in the long run. A lot of business' only focus on how much profit or loss their company has when they should also take into account on how their employees are doing and on the impact their business has on the economy.

Explain how owners benefit from doing business as a corporate entity.

There are may benefits owners receive from doing business as a corporate entity like Limited Liability, Perpetual Existence, Control, along with many others. The main reason for forming a corporation is to limit the liability of the owners. Corporations, directors and managers are all protected by laws saying that in most circumstances, their losses in case of business failure cannot exceed the amount they paid for their shares of ownership. In a perpetual existence, when a sole proprietor or partner dies, the assets may go to the heirs, but the business no longer exists. If the heirs of the business owner want to continue the business in their own names, they will be considered a new business, even if they are using the assets of the old business

Which is the primary law prohibiting religious discrimination in the private sector workplace?

Title VII

Why do businesses care about ethics?

To uphold honorable standards of behavior

"Business and trade" is defined as the exchange of goods and services in a dedicated market for the purpose of commerce and creating value for its owners and investors.

True

Consumer responsibility is diminished if advertising is directed toward children.

True

Culture and ethics cannot be separated, because ethical norms have been established over time by, and make sense to, people who share the same background, language, and customs.

True

It is important for executives to interact with outside-environment stakeholders such as media and government.

True

Labor union membership remains much higher in Europe and other Group of Seven countries than in the United States, in part because some of those countries allow managers to be members of the union.

True

Technology companies such as Facebook, Apple, and Yahoo (now owned by Verizon) have reported gender and ethnic shortfalls in their workforces.

True

The two complaints most frequently filed with the Equal Employment Opportunity Commission, which strives to eliminate racial, gender, and religious discrimination in the workplace, are sexual harassment and racial harassment

True

Unless key leaders have a vision for the organization and themselves, and a path to achieving it, there can be no balance of beliefs about profitability and responsibility, or integration of business with culture.

True

Which is the best example of a recent company crisis caused by poor leadership?

Uber

List and briefly describe the three normative theories of ethics.

Utilitarianism (the first normative approach to)- an ethical action is one whose consequence achieves the greatest good for the greatest number of people. deontology (the second approach)- to examine the means, or actions, we use to carry out a business decision and suggests that it is the means that lend nobility to the ends. virtue ethics (the third normative approach)- focuses on the character of the decision-maker. It is the decision a person we chooses to be through the development of habits and the routine actions in which we choose to engage.

What is the ethical issue behind issuing disaster insurance?

What constitutes a reasonable profit may be unfair.

Which of the following is a resource made available to employees, in addition to salary?

amenities

What research did the BBC Earth Lab cite to prove or disprove that subliminal advertising is real?

backmasking messages

An ethical financial advisor must ________.

be truthful about all fees

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

bias

Which of the following is considered the most important internal stakeholder of a corporation?

board of directors

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

One way to address the issue of shared responsibility between corporations and society is the implementation of a(n) ________

cap and trade system

What is a "pay-to-pollute" system that charges a fee or tax to those who discharge carbon into the air?

carbon tax

In several sentences, describe one ethical draw-back of job-sharing.

companies that intentionally keep hours at less than 29 to avoid more costly regulations like the ACA While there are many disadvantages of job-sharing including need for additional supervisory time, possible disruption of work flow, scheduling challenges for training and meeting, but the worst one in my opinion is communication. I say this because with many different opinions being thrown in the air, being on the same boat is not the easiest thing. Misunderstanding and lack of communication tend to happen even more.

Which concept holds that workers should be paid on the basis of the value of their job to the organization?

comparable worth

Which of the following is not an example of a diffused shareholder?

competitors

It is in a business's best interest to promote human flourishing within the organization by providing ________. Select the best answer.

comprehensive training

Which of the following is especially important for developing and maintaining employee loyalty to the brand?

empowerment

Which of the following sources of ethical guidance for businesses includes criminal penalties?

federal law

Which of the following describe original position? (Select all that apply.)

how to distribute resources fairly and evenly a hypothetical situation in which rational people can arrive at a contract

To achieve a greater degree of diversity in the workplace, managers' goals should encompass which of the following?

inclusion

Business ethics exists on which of the following three levels? Select the best answer.

individual, organizational, and societal

In 1968, Securities and Exchange Commission v. Texas Gulf Sulphur Co. implicated the employees of a Texas mining company and was the first famous case example of ________.

insider trading

An analysis of perceived priority of shareholder impact should include which of the following?

interests and goals of 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

Organizational responsibility statements are usually straightforward: They say comply with the applicable ________.

local, state, national, and international laws and regulations

Which of the following are Starbucks' stakeholders? (Select all that apply.)

milk producers urban and suburban communities coffee and tea growers

According to Donaldson and Preston, what are the three theoretical approaches to considering stakeholder claims?

normative, descriptive, and instrumental approaches

What are some ethical concerns about advertising? (Select all that apply.)

people do not need some of the promoted products or services. Some ads exaggerate or distort what goods or services deliver.

Which is the best example of a novelty craze?

pet rocks

A diverse workforce yields many positive outcomes for a company. Which of the following are well-documented outcomes? (Select all that apply.)

positive customer experiences extensive pool of talent

Which of the following are factors included when applying a legal definition of diversity? (Select all that apply.)

religious beliefs gender physical abilities

Which commercial transaction in the New World exemplifies the complexity that results when different cultures, experiences, and ethical codes come into contact?

the "purchase" of Manhattan

Most business organizations hold three different kinds of beliefs about themselves. Which of the following is not a belief that businesses hold?

the belief that business is not culturally neutral

How do children view advertising?

the same as information from trusted adults

Which of the following definitions best describes mercantilism?

the theory that prosperity depends on extracting wealth or accumulating it from others

Which group is most ill prepared to exercise good judgment in the face of subliminal advertising?

the very young

Which of the following best describes information that has economic value because it is not generally known to the public and is kept secret by reasonable means?

trade secrets

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

triple bottom line

How does consumer thought affect purchasing?

via the notion of what constitutes necessity as opposed to luxury

An employee who works in the graphic design department of a large advertising agency most likely cannot moonlight after business hours for a friend's ________.

web design business

Which of the following are considered intellectual virtues? (Select all that apply.)

wisdom or sophíā eudaimonia or happiness knowledge or epistḗmē