Business Ethics

Which of the following ethical requirements is the type of responsibility established by the precedents of tort law? A) Duty to not cause avoidable harm to the society B) Duty to find employment for employees injured at work C) Duty to engage in charitable work D) Duty to volunteer for causes related to the environment

A) Duty to not cause avoidable harm to the society The strongest sense of responsibility is the duty not to cause harm. Even when not explicitly prohibited by law, ethics would demand that we not cause avoidable harm. If a business causes harm to someone and, if that harm could have been avoided by exercising due care or proper planning, then both the law and ethics would say that business should be held liable for violating its responsibilities. In practice, this ethical requirement is the type of responsibility established by the precedents of tort law.

Identify a true statement about ethical decision making in business. A) Ethical decision making is not limited to major corporate decisions with dramatic social consequences. B) Every instance of ethical decision making should be based on the law of the land. C) All ethical decisions can be covered by economic, legal, or company rules and regulations. D) Ethical decisions that employees make have to always be based upon clearly established guidelines laid down by the board of directors.

A) Ethical decision making is not limited to major corporate decisions with dramatic social consequences. Ethical decision making in business is not limited to major corporate decisions with dramatic social consequences. At some point, every worker, and certainly everyone in a management role, will be faced with an issue that will require ethical decision making.

Kathy, your best friend and classmate, asks you to help her with a challenging ethical dilemma. Which of the following would be your first step in the decision-making process? A) Identifying the ethical issue B) Considering the available alternatives C) Determining the facts of the situation D) Making the decision

A) Identifying the ethical issue There may be times when you are presented with an issue from the start, say, when a colleague asks you for guidance with a challenging ethical predicament. The issue identification, therefore, becomes the first step, while fact gathering is a necessary step number two.

According to David Vogel, which of the following should a firm be most cautious about when engaging in corporate social responsibility (CSR) activities? A) Investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment. B) Employees may become over-indulgent in activities related to social causes. C) Attrition levels may rise because of indifference among employees engaging in activities related to social responsibility. D) The easily measurable ethical payoff can turn out to be lower than the anticipated levels.

A) Investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment. David Vogel, a political science professor at Berkeley, cautions against investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment.

_____ are fundamental to theories of social justice upon which capitalist economies have been built. A) Liberty and equality B) Fraternity and autocracy C) Kinship and cooperation D) Consideration and kindness

A) Liberty and equality Liberty and equality are fundamental to theories of social justice upon which democratic societies and capitalist economies have been built and, thus, are crucial to an understanding of business ethics. They are also the core elements of most modern conceptions of social justice.

Which of the following statements reflects the approach of a principle-based ethical tradition? A) Obey the law B) Ends justify the means C) Maximize the overall good D) Survival of the fittest

A) Obey the law Ethical principles can simply be thought of as a type of rule, and the principle-based approach to ethics tells us that there are some rules that we ought to follow even if doing so prevents good consequences from happening or even if it results in some bad consequences.

Which of the following is a way of saying that a corporation has a set of identifiable values that establish the expectations for what is normal within the firm? A) Organizational culture B) Organizational policy C) Organizational code D) Organizational structure

A) Organizational culture Talk of a corporation's "culture" is a way of saying that a corporation has a set of identifiable values that establish the expectations for what is "normal" within that firm. These norms guide employees, implicitly more often than not, to behave in ways that the firm values and finds worthy.

_____ typically assert that individual rights and duties are fundamental and thus can also be referred to as a rights-based, or duty-based approach to ethics. A) Principle-based ethics B) Role ethics C) Virtue-based ethics D) Pragmatic ethics

A) Principle-based ethics Principle-based ethics typically assert that individual rights and duties are fundamental and thus can also be referred to as a rights-based, or duty-based (deontological) approach to ethics. It is often distinguished from consequentialist frameworks, which determine ethical decisions based on the consequences of our acts.

Which of the following principles does utilitarianism emphasize? A) Producing the greatest good for the greatest number B) Acting only out of self-interest C) Ensuring that a fair decision is an impartial decision D) Obeying the law and keeping promises

A) Producing the greatest good for the greatest number The emphasis on the overall good, and upon producing the greatest good for the greatest number, makes utilitarianism a social philosophy that opposes policies that aim to benefit only a small social, economic, or political minority. In this way, utilitarianism provides strong support for democratic institutions and policies.

Which of the following best describes ethics? A) The study of how human beings should properly live their lives B) An academic discipline that originated in the early 1900s C) A descriptive approach such as psychology and sociology D) A descriptive approach that provides an account of how and why people do act the way they do

A) The study of how human beings should properly live their lives Ethics refers not only to an academic discipline, but to that arena of human life studied by this academic discipline, namely, how human beings should properly live their lives.

Which of the following is a factor that distinguishes social sciences, such as psychology and sociology, from ethics? A) Unlike ethics, these disciplines inquire why people act the way they do. B) Unlike ethics, these disciplines are normative rather than descriptive. C) Unlike ethics, these disciplines provide an account of how people should act. D) Unlike ethics, these disciplines give directives about how people should act.

A) Unlike ethics, these disciplines inquire why people act the way they do. Social sciences, such as psychology and sociology, provide an account of how and why people do act the way they. As a normative discipline, ethics seeks an account of how and why people should act a certain way, rather than how they do act.

Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing? A) Whistle-blowing B) Redlining C) Gentrification D) Flyposting

A) Whistle-blowing Whistle-blowing refers to situations where an employee discloses unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing.

A feature of the economic model of corporate social responsibility (CSR) is that it: A) holds pursuit of profit as the sole duty of business. B) expects business to have a strict obligation to contribute to social causes. C) states that profit is independent of optimal allocation of resources. D) prevents shareholders from being at the center of a corporation.

A) holds pursuit of profit as the sole duty of business. The economic model of corporate social responsibility (CSR) holds that businesses' sole duty is to fulfill the economic functions businesses were designed to serve. On this narrow view, the social responsibility of business managers is simply to pursue profit within the law.

Ethics requires that the promotion of human welfare be done: A) in a manner that is acceptable and reasonable from all relevant points of view. B) understanding the religious beliefs of the beneficiary. C) based on the personal opinions of the decision maker. D) based on the level of need of the beneficiaries.

A) in a manner that is acceptable and reasonable from all relevant points of view. From the perspective of ethics, no one person's welfare is more worthy than any other's. Ethical acts and choices should be acceptable and reasonable from all relevant points of view.

If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as _____. A) inattentional blindness B) descriptive ignorance C) change blindness D) normative myopia

A) inattentional blindness Bazerman and Chugh warn of inattentional blindness, which they suggest results from focusing failures. If we happen to focus—or if we are told specifically to pay attention to a particular element of a decision or event—we are likely to miss all of the surrounding details, no matter how obvious.

In the ethical decision-making process, creativity in identifying options is also known as _____. A) moral imagination B) descriptive imagination C) intentional deliberation D) normative imagination

A) moral imagination Creativity in identifying options—also called "moral imagination"—is one element that distinguishes good people who make ethically responsible decisions from good people who do not.

Philosophers often state that ethics is _____, which means that it focuses on people's reasoning about how they should act. A) normative B) circumstantial C) derivative D) clinical

A) normative Philosophers often emphasize that ethics is normative, which means that it deals with our reasoning about how we should act. Social sciences, such as psychology and sociology, also examine human decision making and actions; but these sciences are descriptive rather than normative.

Morality is the aspect of ethics that we can refer to by the phrase "_____." A) personal integrity B) individual rationality C) persuasive rationality D) personal freedom

A) personal integrity Morality is the aspect of ethics that we refer to by the phrase "personal integrity."

The _____ of corporate social responsibility (CSR) holds that just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no strict ethical responsibility to serve wider social goods. A) philanthropic model B) legal model C) ethical model D) integrative model

A) philanthropic model The philanthropic perspective of the economic model holds that, like individuals, business is free to contribute to social causes as a matter of philanthropy. From this perspective, business has no strict obligation to contribute to social causes, but it can be a good thing when they do so.

The practice of attending to the "image" of a firm is sometimes referred to as: A) reputation management. B) branding. C) crisis management. D) gentrification.

A) reputation management. The practice of attending to the "image" of a firm is sometimes referred to as reputation management.

According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they: A) respect human rights and cause no harm. B) contribute to charitable organizations. C) are confident and do charitable work. D) adhere to rules and regulations.

A) respect human rights and cause no harm. According to philosopher Norman Bowie, as long as managers comply with the moral minimum and cause no harm, they have a responsibility to maximize profits.

When a firm engages in socially responsible activities with a prime focus on reputation: A) social responsibility tends to become a form of social marketing. B) the measure of positive reputation gained is impossible to calculate. C) profits have to be sacrificed for social causes. D) it always loses employee loyalty.

A) social responsibility tends to become a form of social marketing. The problem with a focus on reputation is that social responsibility then can become merely social marketing. That is, a firm may use the image of social responsibility to garner customer support or employee loyalty while the facts do not evidence a true commitment.

In which of the following situations is the distinction between compliance-based and values-based corporate cultures most evident? A) Advertising B) Accounting and auditing C) Packaging and labeling D) Printing

B) Accounting and auditing The distinction between compliance-based and values-based cultures perhaps is most evident in accounting and auditing situations, but it can also be used more generally to understand wider corporate cultures. A compliance-based culture emphasizes obedience to the rules as the primary responsibility of ethics.

Which of the following is a similarity between utilitarianism and stakeholder theory? A) Both place organizational benefits above other considerations. B) Both consider the consequences of management decisions for the well-being of all affected groups. C) Both contribute to society in ways that go beyond the narrow obligations of law and economics. D) Both strive to focus only on consumers.

B) Both consider the consequences of management decisions for the well-being of all affected groups. Utilitarianism requires management to consider the consequences of its decisions for the well-being of all affected groups. Stakeholder theory requires the same.

In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical. A) Determining the facts B) Considering the available alternatives C) Identifying the ethical issues D) Identifying and considering impact of decision on stakeholders

B) Considering the available alternatives Once we have examined the facts, identified the ethical issues involved, and identified the stakeholders, we need to consider the available alternatives. Creativity in identifying options—also called "moral imagination"—is one element that distinguishes good people who make ethically responsible decisions from good people who do not.

Identify a true statement about the stakeholder theory. A) It holds that a firm's financial goals must be balanced against, and perhaps even overridden by, environmental considerations. B) It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. C) 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. D) It suggests that firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.

B) It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. Stakeholder theory argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. While it might have been true over a century ago that management had an overriding obligation to stockholders, the law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, and individuals with disabilities.

Which of the following statements is true of the common view of corporate social responsibility (CSR)? A) It has its roots in the deontological tradition and Keynesian economics. B) It holds that the primary responsibility of managers is to serve shareholders. C) It holds that profit is independent of optimal allocation of resources. D) It states that business has a strict obligation to contribute to social causes.

B) It holds that the primary responsibility of managers is to serve shareholders. The common view of corporate social responsibility (CSR) has its roots in the utilitarian tradition and in neoclassical economics. As agents of business owners, the contention is that managers do have social responsibilities, but their primary responsibility is to serve shareholders.

Which of the following is true about the Sarbanes-Oxley Act? A) It specifically asked for lenient penalties in sentencing recommendations. B) It required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist. C) Its mandatory nature violated the Sixth Amendment right to a jury trial. D) It did not support the United States Sentencing Commission's guidelines to create both a legal and an ethical corporate environment.

B) It required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist. The Sarbanes-Oxley Act required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist. Several stock exchanges followed suit and also required codes of business conduct and ethics from its publicly held companies.

Which of the following situations could result in the business culture becoming a determining factor in ethical decision making? A) Lack of competition B) Law providing incomplete answers C) Lack of strong leadership D) Stagnant or decreasing profits

B) Law providing incomplete answers In situations where the law provides an incomplete answer for ethical decision making, the business culture is likely to be the determining factor in the decision.

_____ 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. A) A mission statement B) Monitoring C) Statements of values D) Ombudsperson

B) Monitoring Monitoring 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. By engaging in an ongoing assessment, organizations are better able to spot these areas before other stakeholders (both internal and external) spot them.

_____ refers to shortsightedness about values. A) Inattentional blindness B) Normative myopia C) Change blindness D) Descriptive myopia

B) Normative myopia Some writers have called the inability to recognize ethical issues normative myopia, or shortsightedness about values. Normative myopia does not occur only in business, but in a business context, people may be especially likely to focus on the technical aspects of the task at hand, and thus fail to recognize the ethical aspect.

Which of the following is a right granted to an employee on the basis of legislation or judicial rulings? A) The right to a specific health care package B) The right to bargain as part of a union C) The right to pension funds D) The right to a bonus

B) The right to bargain as part of a union Legal rights granted to employees on the basis of legislation or judicial rulings are a right to a minimum wage, equal opportunity, to bargain collectively as part of a union, to be free from sexual harassment, and so forth. The other two categories of employee rights common in business are entitlements on the basis of contractual agreements and rights grounded in moral entitlements.

Identify the true statement about ethics based on rights. A) Rights and duties can be easily defined. B) There is no agreement on the scope and range of rights. C) Application of theory to real-life situations is easy. D) There exists a well-defined line between rights and desires.

B) There is no agreement on the scope and range of rights. The first major challenge to an ethics based on rights is that there is no agreement about the scope and range of such rights. Which good things qualify as rights, and which are merely things that people want? Critics charge that there is no way to answer this.

Which of the following is a true statement about norms? A) They are underlying beliefs that cause people to choose one way or another. B) They are standards of appropriate and proper behavior. C) They consist of guidelines for bringing about positive behavioral change. D) They provide benchmarks of desirable societal conditions.

B) They are standards of appropriate and proper behavior. Norms are standards of appropriate and proper (or "normal") behavior. They establish the guidelines or standards for determining what we should do, how we should act, what type of person we should be.

The second step in the development of guiding principles for a firm is to: A) ask oneself what one stands for or what the company stands for. B) articulate a clear vision regarding the firm's direction. C) identify clear steps as to how the cultural shift will occur. D) believe that the culture is actually possible and achievable.

B) articulate a clear vision regarding the firm's direction. The second step in the development of guiding principles for the firm is the articulation of a clear vision regarding the firm's direction.

The means used to motivate others and achieve one's goals plays a key role in distinguishing between: A) silent leaders and visible leaders. B) effective leaders and ethical leaders. C) informal leaders and formal leaders. D) silent leaders and ethical leaders.

B) effective leaders and ethical leaders. One key difference between effective leaders and ethical leaders lies with the means used to motivate others and achieve one's goals.

According to the economic model of corporate social responsibility (CSR), the sole social responsibility of a business is to: A) go beyond legal responsibilities to cater to the needs of the society. B) fulfill the economic functions that it was designed to serve. C) think beyond economic ends that have to be met to help society. D) analyze the defects in society and design products to overcome these defects.

B) fulfill the economic functions that it was designed to serve. The economic model of corporate social responsibility (CSR) holds that businesses' sole social responsibility is to fulfill the economic functions they were designed to serve. On this narrow view, the social responsibility of business managers is simply to pursue profit within the law.

Unlike the goals of a more evolved and inclusive ethics program, the goals of a traditional compliance-oriented program include: A) maintaining brand and reputation. B) minimizing the risks of litigation and indictment. C) recruiting and retaining desirable employees. D) helping unify a firm's global operations.

B) minimizing the risks of litigation and indictment. The goals of a traditional compliance-oriented program may include meeting legal and regulatory requirements, minimizing risks of litigation and indictment, and improving accountability mechanisms. The goals of a more evolved and inclusive ethics program may entail a broader and more expansive application to the firm, including maintaining brand and reputation, recruiting and retaining desirable employees, helping to unify a firm's global operations, creating a better working environment for employees, and doing the right thing in addition to doing things right.

The crux of normative ethics is that these disciplines: A) branch away from social ethics to personal ethics. B) presuppose some underlying values. C) should always involve the study or discipline of ethics. D) describe what people do.

B) presuppose some underlying values. Normative disciplines presuppose some underlying values.

According to Norman Bowie, the "moral minimum" that we expect of every person—either acting as individuals or within corporate institutions—is: A) basic spirituality. B) respect for human rights. C) contribution to charity. D) accountability.

B) respect for human rights. Philosopher Norman Bowie argues that, beyond the economic view's duty to obey the law, business has an equally important ethical duty to respect human rights. Respecting human rights is the "moral minimum" that we expect of every person, whether they are acting as individuals or within corporate institutions.

The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of _____. A) Kantian tradition B) virtue ethics C) principle-based ethics D) utilitarianism

B) virtue ethics Virtue ethics directs us to consider the moral character of individuals and how various character traits can contribute to, or obstruct, a happy and meaningful human life.

Identify the social role from the following? A) Student-body president B) Manager C) Citizen D) Librarian

C) Citizen Some of our roles are social: friend, son or daughter, spouse, citizen, neighbor. Some are institutional: manager, teacher, student-body president.

_____ are beliefs and principles that provide the ultimate guide to a company's decision making? A) Historical milestones B) Mission statements C) Core values D) Vision statements

C) Core values A company's core values are those beliefs and principles that provide the ultimate guide to its decision making.

Which of the following is true of a market version of utilitarianism? A) Questions of safety and risk are determined by experts. B) Social science determines policies to maximize the overall good. C) Individuals calculate for themselves what risks they wish to take. D) A government regulator determines the safety standards in the marketplace

C) Individuals calculate for themselves what risks they wish to take. A free and competitive consumer market will insure that people will get the level of safety that they want. Individuals calculate for themselves what risks they wish to take and what trade-offs they are willing to make in order to attain safety.

Which of the following is true of moral imagination? A) It occurs when decision makers fail to notice gradual variations over time. B) It denotes reasonable ethical judgments that a person makes without regard for facts. C) It distinguishes good people who make ethically responsible decisions from good people who do not. D) It refers to the positive impact a hypothetical decision is projected to have on the stakeholders involved in the decision.

C) It distinguishes good people who make ethically responsible decisions from good people who do not. Once we have examined the facts, identified the ethical issues involved, and identified the stakeholders, we need to consider the available alternatives. Creativity in identifying options—also called "moral imagination"—is one element that distinguishes good people who make ethically responsible decisions from good people who do not.

_____ understandings of social justice argue that freedom from coercion by others is the most central element of social justice. A) Anarchist B) Egalitarian C) Libertarian D) Conservative

C) Libertarian Libertarian understandings of social justice argue that individual liberty—freedom from coercion by others—is the most central element of social justice. This means that a just society is one in which individuals are free from governmental intrusion as long as they are not harming others.

Which step in the ethical decision-making process occurs once you have considered how a decision affects stakeholders by comparing and weighing the alternatives? A) Identifying the ethical issues involved B) Monitoring and learning from outcomes C) Making a decision D) Identifying key stakeholders

C) Making a decision Once you have considered how a decision affects stakeholders by comparing and weighing the alternatives, you make the required decision.

Which of the following is emphasized by a compliance-based culture? A) Reliance on personal integrity of employees for decision making B) Use of values as the principle for decision making C) Obedience to rules as the primary responsibility of ethics D) Reinforcement of a set of values rather than a set of rules

C) Obedience to rules as the primary responsibility of ethics A compliance-based culture emphasizes obedience to the rules as the primary responsibility of ethics.

The _____ holds that just as charity is a good thing and something that should be encourage, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics. Identify the model of corporate social responsibility (CSR) that reflects this line of thought. A) Integrative model B) Stakeholder theory C) Philanthropic model D) Legal model

C) Philanthropic model The philanthropic perspective of the economic model holds that just as charity is a good thing and something that we should be encouraged, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics. Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods.

Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility? A) Philanthropy done for reputational reasons is not fully ethical. B) Philanthropy done for solely financial benefits is not truly an act of social responsibility. C) Philanthropy done for reputational reasons and financial ends is ethically responsible. D) Philanthropy is considered a social contribution rather than an investment.

C) Philanthropy done for reputational reasons and financial ends is ethically responsible. From the perspective of the narrow view of economic model of corporate social responsibility (CSR), only philanthropy done for reputational reasons and financial ends is ethically responsible. Because business managers are the agents of owners, they have no right to use corporate resources except to earn owners greater returns on their investment.

Which of the following approaches emphasizes the need to follow legal rules regardless of unfavorable consequences? A) Virtue ethics B) Utilitarianism C) Principle-based ethics D) Egoism

C) Principle-based ethics Ethical principles can simply be thought of as a type of rule, and this approach to ethics that tells us that there are some rules that we ought to follow even if doing so prevents good consequences from happening or even if it results in some bad consequences. Rules or principles (e.g., "obey the law," "keep your promises," "uphold your contracts") create duties that bind us to act or decide in certain ways.

Identify an effective way of creating clear and successful reporting schemes. A) Leaders empowering subordinates to take decisions without providing guidance B) Managers ignoring the risk and taking a wait-and-see attitude C) Reinforcing the organization's values through its compensation and reward structure D) Discouraging running drills or rehearsals of challenging events

C) Reinforcing the organization's values through its compensation and reward structure The most effective way to ensure clarity and thereby ensure a successful reporting scheme is to consistently and continuously communicate the organization's values and expectations to all stakeholders. In addition, a culture that allows sufficient time for reflection in order to reach responsible decisions is most likely to encourage consideration of appropriate implications.

No group could function if members were free at all times to decide for themselves what to do and how to act. Which of the following functions to organize and ease relations between individuals? A) Autocracy B) Self-rule C) Social contract D) Personal norms

C) Social contract Legal rules, organizational rules, role-based rules, and professional rules can be thought of being a part of a social agreement, or social contract, which functions to organize and ease relations between individuals. No group could function if members were free at all times to decide for themselves what to do and how to act.

Which of the following should an organization do in order to have an effective compliance and ethics program? A) The organization should refrain from promoting and consistently enforcing its compliance and ethics program. B) It should ensure that people who have previously engaged in unethical activities are placed in charge of programs. C) The organization should establish standards and procedures to prevent and detect criminal conduct. D) Low-level personnel must be assigned to have responsibility for the program.

C) The organization should establish standards and procedures to prevent and detect criminal conduct. For an effective compliance and ethics program, the organization should communicate its standards and procedures to prevent and detect criminal conduct. The organization shall communicate its standards and procedures to all members of the organization through training or other means appropriate to such individuals' respective roles and responsibilities.

Social sciences such as psychology and sociology are different from ethics owing to the fact that they are _____. A) conjectural in nature B) clinical in nature C) descriptive in nature D) normative in nature

C) descriptive in nature Social sciences, such as psychology and sociology, also examine human decision making and actions; but these sciences are descriptive rather than normative. This is due to the fact that they provide an account of how and why people act the way they do—they describe; as a normative discipline, ethics seeks an account of how and why people should act a certain way, rather than how they act.

Focusing failures result in moments where we ask ourselves, "How could I have missed that?" According to Bazerman and Chugh, this phenomenon is known as: A) change blindness. B) descriptive ignorance. C) inattentional blindness. D) normative myopia.

C) inattentional blindness Bazerman and Chugh warn of inattentional blindness, which they suggest results from focusing failures. These focusing failures then result in a moment where we ask ourselves, "How could I have missed that?"

The _____ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment. A) annual report B) vision statement C) mission statement D) income statement

C) mission statement The mission statement or corporate credo serves as an articulation of the fundamental principles at the heart of the organization and those that should guide all decisions, without abridgment.

Individual codes of conduct based on one's value structures regarding how one should live, how one should act, what one should do, and what kind of a person should one be is sometimes referred to as _____. A) rationality B) independence C) morality D) leadership

C) morality How should we live? This fundamental question of ethics can be interpreted in two ways. "We" can mean each one of us individually, or it might mean all of us collectively. In the first sense, this is a question about how I should live my life, how I should act, what I should do, and what kind of person I should be. This meaning of ethics is based on our value structures, defined by our moral systems; and, therefore, it is sometimes referred to as morality.

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

C) pursuing social ends as the very core of an organization's mission. Much of the corporate social responsibility (CSR) literature assumes a tension between the pursuit of profit and social responsibility. But, of course, there have always been organizations that turn this tension around, organizations that pursue social ends as the very core of their 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 _____. A) financial framework B) classical tradition C) rights-based ethical framework D) stockholder theory

C) rights-based ethical framework 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, in the rights-based ethical framework, is unjust.

Amanda and Jeremy argue about the employment of children in tobacco farms in a certain part of the world. Jeremy is of the view that this practice is ethical. He supports this view by stating facts about how the economic and social gains from employing children in these farms outweigh the long-term economic losses due to the health problems and lack of education suffered by these children. Jeremy is most likely an adherent of _____. A) virtue ethics B) deontological ethics C) utilitarianism D) classicism

C) utilitarianism Utilitarian thinking would advise us to consider all the likely consequences of a practice of employing young children in factories. Thus, one might argue on utilitarian grounds that child labor is ethically permissible because it produces better overall consequences than the alternatives.

The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory role, holding that their mandatory nature: A) was only applicable to individuals and not to organizations. B) provided arbitrary punishments. C) violated the Sixth Amendment right to a jury trial. D) encouraged internal whistle-blowing.

C) violated the Sixth Amendment right to a jury trial In its 2005 decision in U.S. v. Booker, the Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory role, holding that their mandatory nature violated the Sixth Amendment right to a jury trial.

Which of the following statements commits the ethical oversight known as normative myopia? A) "I skipped the red light because I was so involved in our debate." B) "The only reason they did not notice the pilferage happening is because it involved the theft of such small quantities of goods over a long period of time." C) "I hope Brad has learnt his lesson after getting drunk and crashing his car." D) "I strongly believe in the saying, 'finders keepers, losers weepers.'"

D) "I strongly believe in the saying, 'finders keepers, losers weepers.'" The statement "I strongly believe in the saying, 'finders keepers, losers weepers'" commits an ethical oversight. It does not take into account the fact that the object that was found may actually belong to someone else. In business contexts, it can be easy to become so involved in the financial aspects of decisions that one loses sight of the ethical aspects. Some writers have called this inability to recognize ethical issues normative myopia, or shortsightedness about values.

A critical element of this step in the ethical decision-making process will be the consideration of ways to mitigate, minimize, or compensate for any possible harmful consequences or to increase and promote beneficial consequences. Which step is this? A) Monitoring the outcomes B) Considering available alternatives C) Identifying the ethical issues D) Comparing and weighing alternatives

D) Comparing and weighing alternatives A critical element of weighing the alternatives will be the consideration of ways to mitigate, minimize, or compensate for any possible harmful consequences or to increase and promote beneficial consequences.

Which of the following is a traditional approach to corporate culture? A) Values-based B) Integrity-based C) Customer-based D) Compliance-based

D) Compliance-based Compliance-based culture is a traditional approach to corporate culture.

In the ethical decision-making process, identify the steps that might arise in reverse order, depending on the circumstances. A) Identifying relevant ethical issues; considering the impact of a decision on stakeholders B) Determining the facts of the situation; identifying the impact of the decision on stakeholders C) Identifying the impact of the decision on stakeholders; considering available alternatives D) Determining the facts the situation; identifying relevant ethical issues

D) Determining the facts the situation; identifying relevant ethical issues The first step in making decisions that are ethically responsible is to determine the facts of the situation. Identifying the ethical issues involved is the next step in making responsible decisions. Certainly, the first and second steps might arise in reverse order, depending on the circumstances.

"We ought to stop at a red light, even if no cars are coming and I could get to my destination that much sooner." Identify the ethical approach that follows this line of thought. A) Virtue ethics B) Utilitarianism C) Role ethics D) Ethics of principles

D) Ethics of principles The ethical principles approach to ethics tells us that there are some rules that we ought to follow even if doing so prevents good consequences from happening or even if it results in some bad consequences.

Which of the following causes inattentional blindness according to Bazerman and Chugh? A) Perceptual differences B) Moral exclusions C) Perceptual barriers D) Focusing failures

D) Focusing failures Bazerman and Chugh warn of inattentional blindness, which they suggest results from focusing failures. If people happen to focus on a particular element of a decision or event, they are likely to miss all of the surrounding details, no matter how obvious.

_____ ensure the integrity and proper functioning of the economic, legal, or financial systems. A) Social functions B) Administrative functions C) Marketing functions D) Gatekeeper functions

D) Gatekeeper functions Professionals within business have important roles to play within political and economic institutions. Many of these roles, often described as "gatekeeper functions," insure the integrity and proper functioning of the economic, legal, or financial system.

_____ is one element that distinguishes good people who make ethically responsible decisions from good people who do not. A) Normative myopia B) Inattentional blindness C) Change blindness D) Moral imagination

D) Moral imagination Once we have examined the facts, identified the ethical issues involved, and identified the stakeholders, we need to consider the available alternatives. Creativity in identifying options—also called "moral imagination"—is one element that distinguishes good people who make ethically responsible decisions from good people who do not.

Which of the following qualities would an effective decision maker display when considering the available alternatives for ethical decision making? A) Reciprocal obligation B) Servant leadership C) Social entrepreneurship D) Moral imagination

D) Moral imagination When considering the available alternatives in the ethical decision-making process, moral imagination is important not only to consider the obvious options with regard to a particular dilemma, but also the much subtler ones that might not be evident at first glance. This is the one element that distinguishes good people who make ethically responsible decisions from good people who do not.

Which of the following explains the term "satisficing"? A) Striving to select only the best alternative B) Following simplified decision rules C) Selecting the alternative simply because it is the easy way out D) Selecting the alternative that meets minimum decision criteria

D) Selecting the alternative that meets minimum decision criteria We often select the alternative that satisfies minimum decision criteria, otherwise known as satisficing.

Which of the following is an approach advocated while teaching ethics? A) Teachers should consider acceptance of customary norms as an adequate ethical perspective. B) Teachers should understand that their role is only to tell the right answers to their students. C) Teachers should teach ethical dogma to a passive audience. D) Teachers should challenge students to think for themselves.

D) Teachers should challenge students to think for themselves. Ethics teachers must challenge students to think for themselves. The teacher's role should not be to preach ethical dogma to a passive audience, but instead to treat students as active learners and to engage them in an active process of thinking, questioning, and deliberating.

Which of the following is the pursuit of the highest standard for what we should believe? A) Practical reason B) Emotional reason C) Notional reason D) Theoretical reason

D) Theoretical reason Theoretical reason is the pursuit of truth, which is the highest standard for what we should believe. According to this tradition, science is the great arbiter of truth.

What is the term used to describe a potentially damaging or ethically challenged corporate culture? A) Caustic B) Pyrophoric C) Corrosive D) Toxic

D) Toxic A potentially damaging or ethically challenged corporate culture is sometimes referred to as a "toxic" culture.

_____ is commonly identified with the policy of "maximizing the overall good." A) Stoicism B) Deontology C) Pragmatism D) Utilitarianism

D) Utilitarianism Utilitarianism is commonly identified with the principle of producing "the greatest good for the greatest number." It states that people should act in ways that produce better consequences than the alternatives they have considered.

The final step in the development of corporate codes of conduct or mission statements is to: A) ask oneself what one stands for or what the company stands for. B) articulate a clear vision regarding the firm's direction. C) identify clear steps as to how the cultural shift will occur. D) believe that the culture is actually possible and achievable.

D) believe that the culture is actually possible and achievable. To have an effective code that will successfully impact culture, there must be a belief throughout an organization that this culture is actually possible and achievable. If conflicts remain that will prevent certain components from being realized, or if key leadership is not on board, no one will have faith in the changes articulated.

Utilitarianism's fundamental insight is that we should decide what to do by: A) considering the moral character of individuals. B) following the rules, regardless of consequences. C) acting only out of a self-interest. D) considering the consequences of our actions.

D) considering the consequences of our actions. Utilitarianism's fundamental insight is that we should decide what to do by considering the consequences of our actions.

Dramatic examples of tyrannical regimes in history demonstrate that: A) just societies can only be achieved through strict enforcement of ethical codes. B) obedience to the law almost always makes people apathetic towards their ethical duties. C) societies valuing freedom welcome laws that require more than the ethical minimum. D) one's ethical responsibility may run counter to the law.

D) one's ethical responsibility may run counter to the law. Holding that obedience to the law is sufficient to fulfill one's ethical duties begs the question of whether the law, itself, is ethical. Dramatic examples from history, including Nazi Germany and apartheid in South Africa, demonstrate that one's ethical responsibility may run counter to the law.

In a general sense, anyone who affects or is affected by decisions made within a firm can be called a business _____. A) insider B) analyst C) nominee D) stakeholder

D) stakeholder In a general sense, a business stakeholder will be anyone who affects or is affected by decisions made within the firm, for better or worse. Failure to consider these additional stakeholders will have a detrimental impact on those stakeholders, on stockholders, specifically, and on the firm's long-term sustainability as a whole.