BA 3500 Quizzes

Which of the following best describes a business stakeholder? Multiple Choice 1. only the minority shareholders in a business entity 2. only those who have acquired significant shares in a firm 3. anyone who audits a firm 4. anyone who affects or is affected by decisions made within a firm

anyone who affects or is affected by decisions made within a firm

The failure of decision makers to notice gradual variations over time is known as ________.

change blindness

Utilitarianism determines ethical and unethical acts by their ________. 1. legality 2. consequences 3. fairness 4. nuances

consequences

________ and an ongoing ethics audit allow organizations to uncover silent vulnerabilities that could pose challenges later to the firm, thus serving as a vital element in risk assessment and prevention. 1. A mission statement 2. Monitoring 3. Statements of values 4. Ombudsperson

monitoring

Which of the following statements is true about the stakeholder theory? 1. It begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others. 2. It argues that the narrow economic model successfully provides an accurate descriptive and a reasonable normative account of business management. 3. It holds that business firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model. 4. It suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

1. It begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

Identify a true statement about social responsibility. 1. It refers to what a business should or ought to do for the sake of the society, even if it comes with an economic cost. 2. It refers to the responsibility of an organization to fulfill the terms of contract with its employees and lenders. 3. It refers to the steps taken by an organization to avoid internal malpractices or misconduct. 4. It refers to the responsibility that society has to ensure a business's success.

1. It refers to what a business should or ought to do for the sake of the society, even if it comes with an economic cost.

Identify a true statement about the integrative model of corporate social responsibility (CSR). 1. It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model. 2. It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged. 3. It recognizes that some stakeholders have different power and impact on decisions than others. 4. It argues that every business should adopt the principles of benefit corporations and devote all their activities to service of social goals.

1. It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model.

Which of the following ethical requirements is the type of responsibility established by the precedents of tort law? 1. duty to not cause avoidable harm to the society 2. duty to find employment for employees injured at work 3. duty to engage in charitable work 4. duty to volunteer for causes related to the environment

1. duty to not cause avoidable harm to the society

In which of the following situations is the distinction between compliance-based and values-based corporate cultures most evident? 1. advertising 2. accounting and auditing 3. packaging and labeling 4. printing

2. accounting and auditing

The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of ________. 1. Kantian tradition 2. virtue ethics 3. principle-based ethics 4. utilitarianism

2. virtue ethics

Which of the following is a challenge associated with ethical pay offs? 1. It ruins the reputation that triggered it. 2. It is very small in comparison to profits. 3. It is very difficult to measure ethical pay offs. 4. It can easily be duplicated by competitors.

3. It is very difficult to measure ethical pay offs.

Identify a true statement about the philanthropic perspective of the economic model of corporate social responsibility. 1. It argues that business has an ethical duty to respect the rights of consumers to such things as safe products and truthful advertising, even when not specified in law. 2. This approach holds that as long as managers comply with the moral minimum and cause no harm, they have a responsibility to maximize profits. 3. This approach is especially common with small, privately owned businesses where the owners also often play a prominent leadership role within their local community. 4. It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged.

3. This approach is especially common with small, privately owned businesses where the owners also often play a prominent leadership role within their local community.

Which of the following approaches emphasizes the need to follow legal rules regardless of unfavorable consequences? 1. virtue ethics 2. utilitarianism 3. principle-based ethics 4. egoism

3. principle-based ethics

The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by 1. utilizing a small percentage of profit on social causes. 2. doing charitable work to build a good reputation within the community. 3. pursuing social ends as the very core of an organization's mission. 4. emphasizing the importance of achieving the desired economic goals.

3. pursuing social ends as the very core of an organization's mission.

Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the ________. 1. financial framework 2. classical tradition 3. rights-based ethical framework 4. stockholder theory

3. rights-based ethical framework

Which of the following statements is true about ethical cultures? 1. Workplace ethical cultures have no impact on decision making. 2. Subordinates are expected not to act unless directed by superior authorities. 3. Decisions are expected to be taken based on laws and not on ethical values. 4. Employees are expected to act in responsible ways, even when the law does not require it.

4. Employees are expected to act in responsible ways, even when the law does not require it.

Which of the following is a necessary part of being an ethical business leader? 1. achieving goals through threats, intimidation, harassment, and coercion 2. guiding, directing, and escorting followers to their common destination, even if it means employing unfair methods 3. refraining from placing her or his own ethical behavior above any other consideration 4. creating a corporate culture in which employees are empowered and expected to make ethically responsible decisions

4. creating a corporate culture in which employees are empowered and expected to make ethically responsible decisions

A beverage manufacturing company proceeds to launch its latest energy drink in the market in spite of research findings that suggest that the drink could result in nausea, dizziness, and vomiting after considerable consumption. In this example, the beverage manufacturing company is failing to fulfill its responsibility to ________. 1. support charities 2. do volunteer work 3. discourage corporate philanthropy 4. not cause harm to others

4. not cause harm to others

The ________ goes against the ethical principle of obeying certain duties or responsibilities, no matter the end result. 1. rights-based framework of ethics 2. duty-based framework of ethics 3. deontological framework of ethics 4. utilitarian framework of ethics

4. utilitarian framework of ethics

Identify a true statement about culture. 1. The specific culture within an organization can be defined easily and objectively. 2. Culture, in business and elsewhere, is considered static in nature. 3. Attitude and behavior comprise the biggest fraction of the elements that determine culture. 4. A firm's culture can be its sustaining value, offering it direction and stability during challenging times.

A firm's culture can be its sustaining value, offering it direction and stability during challenging times.

T or F Inattentional blindness is the inability to recognize ethical issues.

False

T or F Utilitarians would object to child labor as a matter of principle.

False

T or F Virtue ethics directs us to act on the basis of moral principles such as respecting human rights.

False

Which of the following statements is true about whistle-blowing? 1. It involves the disclosure of ethical activities. 2. It occurs internally when stakeholders report wrongdoing to legal authorities. 3. It can expose and end unethical activities. 4. It is safe and seldom causes any harm to the whistle-blower or the business.

It can expose and end unethical activities.

Identify a true statement about the field of business ethics. 1. It is rooted in the more general principle of social ethics. 2. It is not a multidisciplinary field. 3. It is mainly relevant to decision making within an organization. 4. It involves decisions at the individual, at the organizational, and at a broader social and governmental level.

It involves decisions at the individual, at the organizational, and at a broader social and governmental level.

Which of the following is true about communicating unethical behavior in a corporate structure? 1. Reporting ethically suspect behavior is a simple thing to do. 2. Employees are always comfortable in raising questions against superiors. 3. Reporting individuals can face retaliation from superiors. 4. Whistle-blowing is the most preferred mechanism for communicating ethical behavior.

Reporting individuals can face retaliation from superiors.

The failure of personal ethics among companies like Enron and WorldCom led to the creation of the

Sarbanes-Oxley Act.

Which of the following statements is true about value-based cultures? 1. They emphasize obedience to the rules as the primary responsibility of ethics. 2. They are only as strong and as precise as the rules with which workers are expected to comply. 3. They reflect the traditional approach of classifying corporate culture. 4. These cultures are perceived to be more flexible and far-sighted corporate environments.

These cultures are perceived to be more flexible and far-sighted corporate environments.

Which of the following is true of effective leaders? 1. They are always ethical in their leadership styles. 2. They might be able to achieve their goals through threats, intimidation, harassment, and coercion. 3. They employ methods that empower subordinates to take the initiative and to solve problems for themselves. 4. They are unlikely to lead using more amenable interpersonal means such as modeling ethical behavior or persuading.

They might be able to achieve their goals through threats, intimidation, harassment, and coercion.

T or F A critical element of comparing and weighing the alternatives is the consideration of ways to mitigate, minimize, or compensate for any possible harmful consequences.

True

T or F One of the major challenges to an ethics based on rights points to practical problems in applying a theory of rights to real-life situations.

True

Which of the following is true about values? 1. Values are the highest standards of appropriate and proper behavior. 2. Corporate scandals prove the fact that individuals have personal values, but institutions lack values. 3. Values cannot lead to unethical results. 4. Values are underlying beliefs that cause us to act or to decide in a certain way.

Values are underlying beliefs that cause us to act or to decide in a certain way.

The sum of relatively set traits, dispositions, and habits of an individual is defined as the individual's ________. 1. character 2. moral imagination 3. principle 4. psychological egoism

character

Identify the step of the ethical decision-making process that involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders. 1. comparing and weighing the alternatives 2. making the decision 3. identifying the ethical issues 4. monitoring and learning from the outcomes

comparing and weighing the alternatives

In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical. 1. determining the facts 2. considering the available alternatives 3. identifying the ethical issues 4. identifying and considering impact of decision on stakeholders

considering the available alternatives

Utilitarianism's fundamental insight is that we should decide what to do by 1. considering the moral character of individuals. 2. following the rules, regardless of consequences. 3. acting only out of a self-interest. 4. considering the consequences of our actions.

considering the consequences of our actions.

The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referred to as 1. decision making for social responsibility. 2. corporate cultural responsibility. 3. organizational ethical responsibility. 4. institutional morality.

decision making for social responsibility.

Social sciences such as psychology and sociology are different from ethics owing to the fact that they are ________.

descriptive in nature

Identify the view which holds that people act only out of a self-interest. 1. altruism 2. egoism 3. utilitarianism 4. libertarianism

egoism

In the ethical decision-making process, once one examines the facts and identifies the ethical issues involved, one should next ________.

identify stakeholders

Telling organizations that their ethical responsibilities end with obedience to the law 1. is just inviting more legal regulation. 2. is enough to maintain an ethical business environment. 3. reduces the frequency of corporate scandals. 4. eliminates ambiguity while making personal ethics-related decisions.

is just inviting more legal regulation.

Identify the final step in the ethical decision-making process. 1. listing out the eventualities that may result from the decision 2. monitoring and learning from outcomes 3. corresponding with the stakeholders 4. identifying new ethical dilemmas to tackle

monitoring and learning from outcomes

In the context of ethical decision making in managerial roles, ________ lies at the heart of an individualized ethical decision-making process. 1. theoretical reasoning 2. personal integrity 3. lack of transparency 4. inattentional blindness

personal integrity

When making a decision, selecting the alternative that meets the minimum decision criteria is selected is known as ________.

satisficing

Which of the following explains the term "satisficing"? 1. striving to select only the best alternative 2. following simplified decision rules. 3. selecting the alternative simply because it is the easy way out 4. selecting the alternative that meets minimum decision criteria

selecting the alternative that meets minimum decision criteria

In a general sense, anyone who affects or is affected by decisions made within a firm can be called a business ________.

stakeholder

T or F Ethical theories are patterns of thinking, or methodologies, to help us decide what to do.

true

Which of the following is a goal of a business ethics class?

understanding how and why people behave unethically

If we judge a leader solely by the results produced, we are following the ________ ethical tradition. 1. deontological 2. virtual 3. Kantian 4. utilitarian

utilitarian

Matthew manages the sales team at an information technology (IT) firm. His focus is to conduct business in accordance with his firm's mission and vision, while making as much money as possible for the firm and conforming to the basic rules of the society. He ensures that his actions embody ethical custom. In this scenario, Matthew's view of corporate social responsibility is most likely rooted in the ________ tradition.

utilitarian