Ch 2 Polze BLAW
Doing the right thing, in a business setting, will always lead to increased profits. A). True B). False
B
Ethics is the study of jurisprudence, the philosophy of law. A). True B). False
B
Hannah discovered that if her company used a cheaper material in making its clothing it could profit more even though the clothing would not last as long. If she were using a shareholder approach, what would she recommend? A). To use a better material and provide a better product. B). To use the cheaper material and maximize profits. C). To do what was best for both the company and the consumer. D). To let someone else worry about the profits and just do her job.
B
Chris is walking down a crowded street when he sees someone running with a purse and a woman chasing after him yelling that he has stolen her purse. Chris decides not to stop the thief, even though he had an opportunity to trip him up, because someone else will probably stop the thief before he gets away. What ethical trap has Chris fallen into? A). Euphemism B). Conformity C). Blind spots D). Lost in the crowd
D
A group of 10 middle school students played a harmless prank at their school. Their friend Courtney saw the students and knows who played the prank. The principal questions Courtney about the incident and tells her that if he doesn't find out the truth about who did it, the whole school will be punished. If Courtney is applying Utilitarian ethics, what will she do? A). Tell him the truth about who played the prank. B). Refuse to answer his question. C), Lie and say she doesn't know. D). Lie and say that someone she dislikes played the prank.
A
According to the concept of categorical imperative, you should not do something unless you would be willing for everyone else to also do it. A). True B). False
A
An ethical trap: A). is a factor that creates a temptation to engage in unethical behavior. B). is a method of catching unethical behavior at the workplace. C), involves the use of deception as a means to achieving an ethical end. D). involves an ethical act that results in large scale losses to the individual involved in it.
A
Anand and Eleanor, New Hampshire residents, go on vacation in Amsterdam, the capital city of the Netherlands. They are surprised to discover that prostitution, which is illegal in most of the U.S., is legal in Amsterdam and has been since 1830. Anand is disgusted and thinks the practice is immoral and should be banned everywhere because, in his view, it exploits women. Eleanor thinks that prostitution is immoral, but respects that different cultures have different traditions and beliefs. What type of moral framework is each one applying? A. Anand is applying moral universalism, and Eleanor is applying cultural moral relativism. B. Anand is applying cultural moral relativism, and Eleanor is applying moral universalism. C. Eleanor and Anand are both applying the difference principle. D. Anand is applying moral universalism, and Eleanor is applying the difference principle.
A
Andrea, the vice president of production, is in the process of purchasing a new piece of equipment. She has narrowed the decision down to equipment from Westvo and Sontox. Westvo's equipment includes more safety features but costs 10% more. In making the decision, Andrea decided that she would not want to work on the Sontox equipment herself and she would not want others to base a decision on cost rather than safety. Consequently, she purchased the equipment from Westvo. What approach to ethical decision making did Andrea use? A). Categorical imperative B). Positivism C). Utilitarianism D). Relativism
A
At lunch, Peyton told her co-worker Emily that she was leaving work early to get a head start on her vacation. Their boss comes to Emily and asks if she knows where Peyton is. Using the theory of moral universalism how would Emily reply to her boss? A). She left early for her vacation. B). She went home because she was feeling sick. C). I haven't seen her since lunch. D). I saw her a few minutes ago, I think she went to the bathroom.
A
Business should be concerned about ethics for the following reasons: society as a whole benefits from ethical behavior; people feel better when they behave ethically; unethical behavior can be very costly. A). True B). False
A
Caleb notices that his co-worker is using his company cell phone to call his wife at lunch every day even though company policy clearly states that company equipment should not be used for personal activities. Which of the following is the most ethical response for Caleb to make? A). Don't report his co-worker because the choice to act unethically is the co-worker's alone. B). Help the co-worker by showing him how to delete the phone log from the company records. C). Quit his job and find a new one. D). Take a vocal stand and call the co-worker out at the next staff meeting.
A
Darby has been working for 14 months at Holden Associates, a large management consulting firm, earning $75,000 a year while her peers at competing firms are typically paid 20 percent more and receive larger annual bonuses. Darby works at least 60 hours a week—more if she is traveling, and she has had to reschedule her vacation or cancel personal plans several times to meet client deadlines. Holden has a policy that permits any employee who works as late as 8:00 P.M. to eat dinner at company expense. Darby is in the habit of staying until 8:00 P.M. every night, whether or not her workload requires it, and ordering enough food for dinner and lunch the next day. She has managed to cut her grocery bill to virtually nothing. Sometimes she invites her boyfriend (who as a student is always hungry and broke) to join her for dinner. Would a utilitarian believe that Darby doing anything wrong? A. No, Darby is greatly increasing her happiness while having a minimal impact on the company. B. Yes, what Darby is doing is wrong. C. No, the owners of the consulting firm will benefit from Darby's increased productivity and loyalty. D. No, not at all. Most young consultants behave this way. If the company does not like what she is doing, it should change its policies.
A
In a staff meeting, Liam suggest that his company that makes lawn equipment should take a Saturday to mow the lawns of some of the elderly people who live in the town. Liam's boss shares the same attitude about corporate social responsibility as Harvard Professor Michael Porter. Which of the following questions would NOT be one asked by Liam's boss? A). Will this improve our reputation? B). How much gasoline would we have to buy? C). Will it result in us selling more lawn equipment? D). Will I have to pay the employee's overtime?
A
Jackson knows that the car manufacturer he works for is using cheaper parts to make its cars, which have been shown to endanger customer safety. Jackson loves his job, but he chooses to quit because he doesn't like feeling guilty about the product he is making. What type of response did Jackson make? A). Exit B). Participation C). Loyalty D). Voice
A
John, the President of NewWave, is considering relocating a manufacturing facility to Asia. In making this decision, John is using the Utilitarian approach to ethical decision making. Under this approach, John will ask the following question: which alternative causes the greatest good (or least harm) to the most people. A). True B). False
A
Katie has just been hired at a new job. In the first week, several colleagues show her how to report her expenses so that she gets back about $50 extra each month that she didn't actually spend. Katie reasons that if everyone else is doing it, then it must be okay. What ethical trap did she fall into? A). Conformity B). Lost in a crowd C). Following orders D). Euphemism
A
Many business owners and others have argued that corporations should consider all company stakeholders, not just the owner's needs for profits. A). True B). False
A
NewWave is building a new manufacturing facility. It is in the process of deciding what safety features to incorporate into the new machinery. The interests of the various stakeholders affected by this decision may conflict. A). True B). False
A
Of the following, what does NOT make people feel happy in the long run? A). The ability to buy all of the material goods they desire B). Ties to their community C). Good relationships D). Satisfying work
A
Rapper Ice-T's song "Cop Killer" generated significant controversy when it was released. Among other things, its lyrics anticipate slitting a policeman's throat. Such lyrics have become reasonably common today, but they were much less common 20 years ago. When "Cop Killer" was recorded, Time Warner, Inc., was struggling with a $15 billion debt and a depressed stock price. Had Time Warner renounced rap albums with harsh themes, its reputation in the music business—and future profits—might have suffered. This damage might even have spilled over into the multimedia market, which was crucial to Time Warner's future. From a businessperson's point of view, what ethical concerns should Time Warner have considered when it decided to release "Cop Killer"? A). The release could be costly to Time Warner because this could prove to be offensive, and the company, thus, might lose business. B). It is always ethical for businesses to do the wrong thing if it means more profits. C). No ethical concerns should have been considered since Time Warner had the right to release "Cop Killer." D). No ethical concerns should be considered because the public reaction to a song will not harm the business.
A
Research shows that people who think about the right rules for living are... A). less likely to do wrong. B). no more or less likely to do wrong. C). more likely to do wrong. D). less likely to do right.
A
Stakeholders include employees, customers, and the communities and countries in which a company operates. A) True B). False
A
The CEO of First Buy, Inc. made unethical business decisions. First Buy may suffer extremely severe consequences as a result of the CEO's conduct. A). True B). False
A
The Utilitarian approach to decision making is to: A). ask the following question: which alternative causes the greatest good (or least harm) to the most people. B). put short-term profits before all other considerations. C). do unto others as you would have them do unto you. D). ignore ethics.
A
The executives at Cedar Valley furniture read a report saying that the chemicals they use in manufacturing their products can be dangerous and possibly cancer-causing. While none of their employees has gotten sick, there is a very good possibility that their employees are being exposed to dangerous levels of this chemical. Unfortunately, to use a different, safer chemical would cost the company thousands of dollars and force the customers to pay more for the product. What solution would Immanuel Kant propose? A). The company should use an alternative to the chemical to reduce the danger to the employees. B). Chose the solution that provides the greatest good for the largest number of people. C). Leave things as they are until someone gets ill. D). Continue to use the chemical because the substitute would cause a loss of profits.
A
Utilitarian thinkers believe that: A). moral actions produce the greatest good for the greatest number. B). you cannot measure happiness. C). when assessing whether a decision is the most ethical choice, the end result is immaterial. D). the ends do not justify the means.
A
Which of the following differentiates between law and ethics? A). Law dictates how a person must behave, while ethics deals with how a person should behave. B). Law represents actions regulated toward the greater good of society, while ethics represents actions regulated toward the benefit of the individual. C). The acceptance of law is voluntary, while the acceptance of ethics is mandatory. D). Law governs over ethics, while ethics does not govern over law.
A
Which of the following statements best differentiates the shareholder model of ethics from the stakeholder model of ethics? A). The shareholder model proposes commitment toward only company shareholders, while the stakeholder model proposes an obligation toward broader interests such as the society. B). The shareholder model applies to larger companies, while the stakeholder model applies to smaller companies. C). The shareholder model is in agreement with the deontological theory of ethics, while the stakeholder model is in agreement with the utilitarian theory of ethics. D). The shareholder model prioritizes ethics over the law, while the stakeholder model prioritizes the law over ethics.
A
Which of the following would be a project that Harvard Professor Michael Porter might recommend based on his views of Corporate Social Responsibility (CSR)? A). A company providing job opportunities to unemployed people in the community thus creating a new market for its product. B). According to Michael Porter, companies need not be socially responsible, even if it would earn them a profit. C). A company donating dog food to a humane society in order to maintain its good reputation. D). A company letting its employees off at noon on Fridays.
A
Yoplait has periodically run a "Save Lids to Save Lives" campaign. For every Yoplait lid mailed in, the company makes a donation to a breast cancer charity. During these campaigns, Yoplait gains market share. What would Harvard Professor Michael Porter's response to this campaign be? A). The project is a good one because it helps the community and brings in profits for the company. B). The project should be rejected because Yogurt has nothing to do with breast cancer. C). The project should be rejected because people do not want to save yogurt lids. D). The project is good because it gives Yoplait a good reputation.
A
A co-worker is coming in the door with a large stack of papers but if you stop to help them, you may be late for your meeting. This is an example of which of the following? A). legal decision. B). ethical decision. C). both a legal and an ethical decision. D). neither a legal nor an ethical decision.
B
Avery discovers that her co-worker Matt has stolen thousands of dollars from the company. Which of the following is the most ethical response for Avery? A). Ignore the activity, after all it is Matt's problem, not hers. B). Report Matt to her supervisor. C). Help Matt by showing him how to cover up his theft. D). Quit her job and try to find a more ethical company to work for.
B
Being sincere, honest and loyal is referred to as having: A). self-control. B). integrity. C). fairness. D). courage.
B
Cotton Corral is a large manufacturer of children's clothing based in Detroit, Michigan that recently signed a long-term contract to buy fabric produced by D.D.C., a company that is also based in Detroit. Government investigators recently discovered that D.D.C. has contaminated a local river by dumping dye waste into it. D.D.C.'s behavior has harmed the river and the nearby wildlife. Yet D.D.C. produces beautiful fabric that Cotton's customers love. Ernie, Cotton's CEO, is informed of D.D.C.'s behavior and is unsure if Cotton should continue to use the company's fabric. Ernie believes that a corporation has an obligation to consider the best interests of all company stakeholders, not just the shareholders. What decision is most consistent with his ethical beliefs? A. Cotton should continue to buy from D.D.C. because the two companies have a contract. Otherwise, D.D.C. may drag Cotton into expensive litigation, which would harm Cotton's shareholders. B. Cotton should not buy from D.D.C. until it stops dumping dye because when D.D.C. harms the local environment, it harms Cotton employees and their families. C. Cotton should not buy from D.D.C. because the bad publicity may harm Cotton's shareholders. D. Cotton should continue to buy from D.D.C. as long as customers like the fabric, because this decision will maximize profitability.
B
Executives were considering the possibility of moving their company to a different state. They wanted to determine if employees would be willing to relocate, but they did not want the employees to know the company was contemplating a move because the final decision had not yet been made. Instead of asking the employees directly, the CEO hired a firm to carry out a telephone survey. When calling the employees, these "pollsters" pretended to be conducting a public opinion poll and identified themselves as working for the new state's Chamber of Commerce. They asked the employees if they would move, and if they liked working for the company. Then they reported all the information, including who said it, to the company. The CEO told the firm it must keep this a secret. Would the CEO have conducted the poll if he had considered his behavior under the front page test? A). Yes, because the company was trying to receive honest information without alarming the employees. B). No, because the company deceived the employees and the CEO asked the firm to keep this a secret. C). Yes, because the company was trying to figure out how to keep the employees happy. D). Yes, but the company should have contacted the employees directly.
B
Freeport Foods has an opportunity to give back to the community by providing food for several local homeless shelters. While this donation would only cost them a minimal amount of money, it would not increase their profits because the people they are feeding do not have money to spend in their grocery stores. What would Harvard Professor Michael Porter's response be to this opportunity? A). Freeport should provide the food, even if it takes a loss in profits. B). Freeport should not provide the food because it will not generate profit. C). Freeport should do whatever it can to help the people of its community. D). Freeport should provide the food because it will improve its reputation.
B
How would a person apply the Utilitarian principle to telling lies? A). People should never lie. B). It's acceptable to lie if it benefits the greater good for the majority of people. C). It's acceptable to lie most of the time. D). It's acceptable to lie if it is beneficial to a single individual.
B
Hunter really wanted the job as manager of the local bank but he had been fired from a previous job for excessive absenteeism so he left that job off of his resume and reasoned that he had only fudged his job experience. What type of ethical trap did he fall into? A). Blind spots B). Euphemisms C). Lost in the Crowd D). Money
B
Jackson knows that the car manufacturer he works for is using cheaper parts to make its cars, which have been shown to endanger customer safety. Jackson loves his job so he chooses to respond to this unethical behavior by ignoring it and hoping that no one gets hurt. What type of response did Jackson make? A). Voice B). Loyalty C). Exit D). Front Page
B
Jennifer, as the supervisor of her department, was given $75,000 to divide among her department members (including herself) as a pay raise. She decides to give herself $25,000 and divide the remaining $50,000 equally among the other 10 employees in her department by reasoning that she is the boss and therefore has more responsibility and deserves more money. Which type of ethical trap has she fallen into? A). Conflict of interest B). Not being objective about ourselves C). Conformity D). Euphemism
B
Making the ethical choice is always easy. A). True B). False
B
Michael Mudd, a former executive vice-president of Kraft Foods had this to say about his fellow executives: A). One day they just suddenly started acting unethically. B). Little by little, they strayed from the honorable business of feeding people appropriately to the deplorable mission of "increasing shareholder value". C). They acted ethically in their decision to create less healthy food because the company needed to make a profit. D). They always behaved with the best interest of the consumers in mind, even if it meant the company lost profits.
B
Noah noticed that his co-worker was taking an extra 10 minutes for lunch every day. While Noah felt it was unethical, he chose not to report his co-worker because they had just been assigned to the same team project and he wanted to get along with the other team members. What response did Noah have to his co-workers unethical behavior? A). Exit B). Loyalty C). Voice D). Participation
B
Richard told his co-worker Meredith that he had made an error on the report due in 5 minutes. He asked Meredith to stall while he fixed the error. When the boss showed up to get the report, Meredith told him "I'm sure Richard will be here in a few minutes." What type of ethical reasoning did Meredith use? A). Moral Universalism. B). Kantian evasion. C). Deontological ethics. D). Utilitarianism.
B
Several times per month, Riley, a paper supplier, comes by Hayley's to see if she needs to place an order. Riley often gives Hayley a small token such as a pen or a keychain with the paper company's logo. When it comes time to re-order, Hayley gives the order to Riley without realizing that she has favored the paper company over another, less expensive supplier. What ethical trap has Hayley fallen into? A). Conformity B). Conflict of interest C). Rationalization D). Not being objective about ourselves
B
The CEO of an international cruise line is facing an ethical decision regarding the installation of Man Overboard (MOB) technology on the company's fleet of 42 luxury cruise ships. The technology is not required by law, and the cost to install it will surpass $20 million dollars, with additional maintenance fees of up to $2 million dollars per year. The MOB technology detects passengers falling off the ship, although it is not perfected and only works 75% of the time. It also causes multiple false alarms, which delays the cruise itinerary and inconveniences passengers. The cruise line has had an increase in persons falling overboard in the last year, with an annual average of about two individuals being lost at sea. After much consideration, the CEO decides to install the MOB technology despite the costs and limitations. What ethical standard did the CEO likely apply in making this decision? A. The principle of Utilitarianism B. The principle of Deontology C. The principle of Rawlsian Justice D. The principle of Rationalization
B
The categorical imperative approach to ethical decision making is to ask the following question: "Which alternative causes the greatest good (or least harm) to the most people?" A). True B). False
B
The categorical imperative has been criticized by commentators on the practical grounds that benefit and harm are difficult to measure. A). True B). False
B
WP Manufacturing is legally dumping small amounts of waste into the river behind their plant. There have been reports of the fish caught by local fishermen being contaminated. Which of the following is the most ethical response? A). Keep dumping the waste until someone is harmed by it. B). Stop dumping the waste even if it costs more to dispose of it elsewhere. C). Keep dumping the waste as long as it is not illegal. D). Find a river that no one fishes in to dump the waste.
B
Which of the following is a False statement about acting ethically? A). Society as a whole will benefit from ethical businesses. B). Ethical behavior guarantees higher profit. C). People feel better when they behave ethically. D). Unethical behavior can be costly.
B
Which of the following is most likely to be a utilitarian business practice? A). A cash flow analysis B). A cost-benefit analysis C). A net present value analysis D). An exploratory data analysis
B
Which of the following scenarios relates to the ethical trap of following orders? A). While on order to take a door-to-door survey of the area, a salesperson decides to fake the results from internet sources and takes the day off. B). On orders to do so from the chief of security of the company he is working for, a security guard on nightshift allows strangers to enter the warehouse he is guarding and pilfer supplies. C). A police officer could have stopped a crime he witnesses while on a family outing, but instead does nothing reasoning that he is off duty and does not have any orders to do so. D). On orders from the team captain, a pitcher throws a screwball to deceive the opposing batter into a strike.
B
Why might improving economic and social conditions overseas be good for a company? A). It would not be good for a company. B). It could create new customers with money to spend. C). It could save them money. D). It could reduce competition.
B
According to the concept of _____, an act is only ethical if it would be acceptable for everyone to do the same thing. A). deontology. B). utilitarianism. C). categorical imperative. D). veil of ignorance.
C
An accountant has decided to steal money from her company in order to help pay for her child's hospital bills. What type of consideration would go into this decision? A). Ethical consideration. B). Legal consideration. C). Both ethical and legal consideration. D). Profit and loss consideration.
C
Because Carson is having a slow month, he decides to take credit for some sales this month that won't happen until next month. He does this for a few months in a row and then realizes he has created a huge problem. What type of ethical trap did Carson fall into? A).Following orders B). Blind Spots C). Short-term perspective D). Conflict of interest
C
Brandon has just found out that he lost his biggest customer to the competition, but he's going to continue to try to get the business back. When his boss asks him about the account, how would Brandon reply if he were employing deontological ethics? A). I'm going to contact them later today. B). We're going to sign the contract soon. C). I lost the account, but I'm trying to get it back. D). I haven't talked to them lately.
C
Carolyn is in a unique position to know that her boss was stealing money from the company but she ignored it and didn't report him because she was afraid of losing her job. Later, her boss had stolen so much money that the company ended up in bankruptcy. What type of ethical reasoning did Carolyn use? A). Conformity B). Lost in the crowd C). Blind spots D). Euphemism
C
Check My Work A sports team's owner is given a videotape of his star player physically striking his girlfriend in an elevator, causing her severe injuries. The player has not been accused of any crime. Each player's employment contract states that a player may be terminated for committing battery. If the owner fires the player, the team will win fewer games, which will result in lower attendance and lower revenues for the stadium and the team. The owner may even have to lay off some employees. The owner has always admired the thinking of John Akers, the former chairman of IBM. What would Akers advise? A. Suspend the player for several games and order the player to take anger management classes. .B Keep the player on the team and impose no sanctions. Firing the player will cost the team millions of dollars. C. Fire the player. The team may suffer financially at first, but if the public has faith in the organization, the team and the league will benefit in the long run. If the owner keeps the tape a secret and the public finds out about his actions, the team - and society - will suffer harm from the loss of public trust. D. Keep the player on the team and try to keep his behavior secret. The owner should announce at a press conference that he plans to donate a large amount of money to a charitable organization for battered women.
C
Clare is at the Multiplex, a large movie theater, watching the latest summer blockbuster. After the movie, she starts walking to the lobby of the Multiplex but notices that the theater across the hall is about to play another movie that she really wants to see. Clare would love to see the movie without having to buy another ticket, but she stops herself from sneaking into the theater because she knows that if everyone did this, the Multiplex could go out of business. Clare's thinking is most aligned with that of: A). Rawls. B). Mill. C). Kant. D). Friedman.
C
Daniel's son had to use the internet to do his homework but Daniel's home computer was broken. So he took his work laptop home even though it is against company policy and he could be fired if anyone found out. When his boss saw him coming in with the laptop, he asked him why he had it. Daniel replied that he was taking it to his co-workers office so they could work together on a project. What ethical reasoning did Daniel use? A). Deontological ethics. B). Kantian evasion. C). Moral relativism. D). Utilitarianism.
C
Employees, communities and customers are considered what part of an organization? A). Stockholders. B). Consumers. C). Stakeholders. D). They are not considered a part of an organization.
C
Esteban has been working on his own as an accountant. He is pleased that a major accounting firm downtown has offered him a job. If Esteban leaves his solo practice and joins the large firm, what best describes the impact this change will likely have on him when he is faced with a difficult decision while at work? A). Esteban will behave less ethically because he will be earning more. B). Esteban will behave more ethically because he knows people are watching; he will want to make a good impression and inspire others. C). Esteban will be less likely to take responsibility because he assumes someone else will, and he will be tempted to go with the flow if he sees multiple people engaging in bad behavior. D). No impact. Esteban will remain unchanged in the face of a crowd.
C
Ethical companies tend to have all of the characteristics but one of the following: a). have a better reputation B). higher productivity C). are less profitable D). have more creative employees
C
Joe is asked by his fellow employees to help get their supervisor Brandon fired. Joe is friends with Brandon and feels that Brandon is a tough but fair boss and he doesn't want to help. Finally Joe is promised a big promotion and raise if he will help them get rid of Brandon. Which of the following is the most ethical decision? A). Go along with the group and take the promotion. B). Pretend to go along with the plan but in reality, don't do anything. C). Refuse to participate and try to talk them out of it. D). Ignore the whole thing and see what happens.
C
Justin really wanted to go to lunch with his friends but didn't have any cash, so he took $15 from the petty cash drawer with the intention of putting it back tomorrow when he got paid. He told himself he would only take the money just this one time and it would be fine because he was going to put the money back tomorrow. What type of ethical trap has he fallen into? A). Blind spots B). Conformity C). Rationalization D). Conflict of interest
C
Law is only one set of rules that governs business; _________ is another. A). life principle. B). economic strength. C). ethics. D). profitability.
C
Lucas saw his co-worker, Nathan, taking office supplies out to his car. In order to maintain loyalty, Lucas offered to keep watch for Nathan so that no one else saw him taking the supplies. Did Lucas act ethically? A). Yes, Lucas acted ethically by using loyalty as a response to an unethical action. B). This situation would not call for an ethical decision to be made. C). No, while Lucas was trying to help a friend, he was participating in an unethical activity. D). Yes, because Nathan was only taking office supplies that weren't very costly.
C
Midtown Motors sponsors a "back to school drive" to help raise money for under-privileged students to have school supplies. Every time someone takes a test drive in a car, Midtown motors donates $25 in school supplies to local schools. Lots of people come test drive the cars and Midtown has developed a good reputation for the campaign, but records show that it has no effect on sales. According to Harvard Professor Michael Porter's views on Corporate Social Responsibility (CSR), should Midtown Motors continue the campaign? A). Yes, because it helps the company maintain a good reputation. B). No, because Midtown Motors should just give the money without the test drive. C). No, because it is not profitable to Midtown Motors. D). Yes, because the children need the school supplies.
C
Olivia felt that the CEO of her company was about to make a bad decision. The CEO is planning to alter the financial statements to make it look like the company paid more in taxes than it actually did. This could not only have detrimental effects on the company, but also land the CEO in jail. What should Olivia's response be? A). Loyalty - stick by her boss and keep quiet. B). Participate - help her boss in his plan even though it is wrong. C). Voice - try to convince her boss that he is making a bad decision. D). Exit - leave the company quietly before it starts losing money.
C
Rachael, the wife of one of six physician-partners in a medical group, is the practice manager, earning an under-market rate compensation of $45,000 per year. When the group expands and doubles its staff, Rachael gives herself a raise to $65,000—the typical salary for a practice this size—without informing the partners. She tells another practice manager that the physicians have been talking about raising her salary for awhile, but they've all been too busy to "make it happen." Besides, she reasons, the practice would be impossible to manage without her. Are Rachael's actions justified? A. Yes, because the partners were going to give her raise anyway. B. Yes, because her compensation was below the market rate. C. No, because she did not consult the group partners. D. No, because a $20,000 increase is excessive
C
Vikas earns too much for his own children to qualify for free school lunches, but he does not object to the state providing them for children from low income families even though this program increases the taxes he must pay. He recognizes that his and his children's life prospects are very different from those of the families receiving free lunches. He also knows that he would want his children to have free lunches if his family needed them. Vikas' thinking is most closely aligned with: A). Moral Relativism. B). Utilitarianism. C). Rawlsian Justice. D). the Difference Principle.
C
Which of the following ethical traps involves the use of incorrect terminology to rationalize unethical behavior? A). Conformity B). Veil of ignorance C). Euphemism D). Following orders
C
Which of the following illustrates an ethical trap? A). A government official using his position to intimidate people B). A soldier following the orders of his commander to fire upon the advancing enemy C). A man stealing a book by convincing himself that the library can afford more D). A professional poker player getting his opponent to fold his hand by bluffing through the game
C
Which of the following scenarios relates to the deontological theory of ethics? A). The fire squad of a city prioritizes putting out the fire in a building occupied by government officials over an adjacent one with civilians in it. B). A professional poker player gets his opponent to fold his hand by bluffing through the game. C). The chief of the police force of a city orders the arrest of a mafia criminal, even though he has been threatened with repercussions to his family. D). The Pittsburg Pit-vipers and the Detroit Dacoits decide to settle their differences in a match at the Milwaukee stadium, so that neither has the home-ground advantage over the other.
C
Aaron's primary customer demanded that Aaron give him large gifts in order to keep him as a customer. Which of the following would be the most ethical decision for Aaron to make? A). To give him the gifts in order to keep the company profitable. B). This is not an ethical question, it is a legal one. C). To give him smaller gifts and hope that satisfies him. D). To refuse to give him the gifts even though you might lose his business.
D
According to John Stuart Mill, a correct decision is one that: A). maximizes overall yield and minimizes overall risk. B). maximizes overall productivity and minimizes overall inefficiency. C). maximizes overall efficiency and minimizes overall waste. D). maximizes overall happiness and minimizes overall pain.
D
All the employees who work for Mr. Blanton at Blanton Accounting decided to decorate his office for his birthday as a joke with decorations making fun of his age. Instead of laughing, Mr. Blanton was furious and threatened to fire everyone who was involved. The custodian, Ben, knows that everyone participated. If he was employing Utilitarian ethics, what would Ben do if Mr. Blanton questions him about the incident? A). Utilitarian ethics would not apply to this situation. B). Tell the truth and hope he doesn't really fire anyone. C). Tell the truth about who did it. D). Lie and tell Mr. Blanton he doesn't know.
D
Caitlin has just been hired by Holder Bank. She observes several co-workers, as well as her supervisor, behaving unethically over the first month of her employment. After a few weeks, a co-worker asks her to cover for him because he's going to the back to take a nap. She thinks about telling her boss, but she knows that he regularly naps at work, too. What is she likely to do after seeing their behavior? A). Confront them about their activity even if it means she gets fired. B). Call them out by name at the next staff meeting. C). Quit her job. D). Go along with the behavior.
D
Ethan has noticed that some of his co-workers have begun lying to customers about small things such as delivery dates and shipping costs. He is uncomfortable working in this environment so he tries to talk to the co-workers and convince them that they are not acting in the best interest of the company. What response did Ethan exercise in response to the unethical activity? A). Exit B). Participation C). Loyalty D). Voice
D
Grace is president of Mayweather Farm, one of the largest pork producers in the U.S. A business consultant tells Grace that if she moves the pigs into small pens and feeds them cheap, hormone-filled food, the Farm would gross 20 percent more each year. There is little research about housing pigs in tiny pens, but such a life seems less enjoyable for the pigs, and Grace has read medical studies that say hormones are dangerous to both pork consumers and pigs. Analyze Grace's options using the beliefs of Milton Friedman. A). Friedman would advise Grace to ignore the consultant's advice because, if the public found out what she was doing, her reputation might be tarnished. B). Friedman would advise Grace to ignore the consultant's advice because it is unethical. C). Friedman would advise Grace to accept the consultant's advice because the medical studies are not supported by enough evidence. D). Friedman would advise following the consultant's advice if it did not violate the law because it would increase shareholder profits.
D
H. B. Fuller Co. is a leading manufacturer of industrial glues. Its mission statement says the company "will conduct business legally and ethically." But now it is under attack for selling its shoemakers' glue, Resistol, in Central America because many homeless children in these countries have become addicted to the fumes. Glue manufacturers in Europe have added a foul-smelling oil to their glue that discourages abusers. Fuller fears that the smell may also discourage legitimate users but wants to continue selling its product into Central America. From an ethical point of view, what should Fuller do? A). Pull the product from the Central American market. B). Add the foul-smelling oil. C). Do nothing; it's a Central American problem. D). Consider working with retailers in Central America to sell only to professionals.
D
How did Immanuel Kant feel about lies when applying his Kantian theory of ethics? A). Lies are acceptable if they are for the greater good. B). Kant's theory would not apply to lies. C). Lies are acceptable under certain circumstances. D). Lies are always unacceptable.
D
In Porter's view of Corporate Social Responsibility (CSR), when should a company undertake a CSR project? A). Any time it has the ability to help. B). If it gives the company a good reputation. C). Whenever the community is in need. D). Only if the project is profitable for the company.
D
Jackson knows that the car manufacturer he works for is using cheaper parts to make its cars, which have been shown to endanger customer safety. Jackson loves his job so he chooses to respond to this unethical behavior by trying to convince the supervisors to make a safer car. What type of response did Jackson make? A). Loyalty B). Participation C). Exit D). Voice
D
Kimberly knows that her co-worker Maria is late for work this morning because she stayed out late last night at a party and overslept. When their boss comes by asking where Maria is, what would Kimberly say to her boss if she were employing the Kantian tactic of palter? A). She's late because she overslept. B). She said she was going to the post office, maybe she got delayed. C). I saw her a few minutes ago, maybe she went to the bathroom. D). I haven't seen her since we left work yesterday.
D
Leah has been making personal copies on the company copy machine. When her boss realizes that someone has been misusing the machine, he calls a meeting and asks who has been using the machine for personal copies. What would Leah say if she were employing a categorical imperative view? A). "Are you sure that someone is misusing the machine?" B). She would not say anything, she would just keep quiet. C). "Maybe the copy counter is broken." D). "I was using the machine to make personal copies."
D
One year on Halloween, the Jones family left a big bowl of candy on their doorstep, and put a sign beside it that read, "Take one piece please!" Most children ignored the sign and took several pieces. The next year, the Jones family left the same bowl but added the Ten Commandments to the sign that said, "Take one piece please." Almost every child opted to take just one piece. What ethics concept could best be used to explain this phenomenon? A). Cultural moral relativism B). Conformity C). Competition D). Life Principles
D
Oxtron, Inc. is considering establishing a program that actively encourages ethical behavior. What reasons would not support Oxtron's adoption of an ethics program? A). Society as a whole benefits from ethical behavior. B). People feel better when they behave ethically. C). Unethical behavior can be very costly. D). All of these are reasons for an adoption of an ethics program.
D
Scott, the president of Nent, Inc, decided to relocate a manufacturing facility to Asia. He based his decision on the fact that moving the facility to Asia will cause the greatest good to most people. What approach to ethical decision making did Scott use? A). Categorical imperative B). Positivism C). Utilitarianism D). Realism
D
The observation that "The one and only social responsibility of business is to increase profits" can be attributed to: A). Kenneth Lay. B). Immanuel Kant. C). William C. Ford, Jr. D). Milton Friedman.
D
What motivates managers to care about ethics? A). Profitability B). Their decisions have minimal effect; therefore, ethics is not a major issue of concern for managers C). Value of their reputation for some nebulous financial gain D). Feeling good about themselves and the decisions they make
D
Which of the following is true about corporate social responsibility (CSR)? A). Corporations do not have a responsibility to the society in which they do business. B). CSR is based completely on a company's reputation. C). Everyone views CSR in the same way. D). CSR is the company's obligation to contribute positively to the world around it.
D
Which of the following would be a stakeholder? A). An employee who works for the company. B). A citizen who lives nearby the company facilities. C). A customer who purchases products from the company. D). All of these choices would be stakeholders.
D
