Business Ethics Chapter 6

Identify the likely consequences of an employer's decision to downsize a firm. (Check all that apply.) -Terminated employees tend to build a positive perception of the firm's commitment to corporate social responsibility. -Terminated employees are likely to give poor recommendations of the business. -Surviving employees are likely to be less efficient in customer service than before. -Surviving employees who fear layoff are most likely to improve their productivity.

-Terminated employees are likely to give poor recommendations of the business. -Surviving employees are likely to be less efficient in customer service than before.

Match the tests used by courts to decide whether a worker is an employee or an independent contractor with their descriptions.

The common-law agency test: This test is a persuasive indicator of independent contractor status that provides the employer the ability to control the manner in which the work is performed. The economics reality test: This test is used by courts to consider whether the worker is economically dependent on the business or, as a matter of economic fact, is in business for himself or herself.

According to the free-market approach to workplace health and safety, which of the following urges employers to maintain a reasonably safe and healthy workplace?

The threat of compensation for injured employees

Identify a true statement about the utilitarian approach on the ethics of workplace relationships. -This approach suggests that employees are treated well as a means to improve workplace harmony and productivity. -This approach suggests that employers decide to treat employees well out of a sense of duty and rights. -This approach is used by employers as a means to discourage misconduct reporting at workplaces. -This approach is used by employers to encourage various types of sweatshops.

This approach suggests that employees are treated well as a means to improve workplace harmony and productivity.

True or false: Basic fairness applied through due process requires that an employer's authority over employees should be used justly.

True Reason: Due process in the workplace acknowledges an employer's authority over employees. Basic fairness, implemented through due process, demands that this power be used justly.

True or false: Historically, an ethical rationale for the employment-at-will (EAW) rule was that private property owners have the right to control their property by controlling who works for them.

True Reason: The ethical rationale for the employment-at-will (EAW) rule, both historically and among contemporary defenders, has both utilitarian and deontological elements. An ethical basis for the EAW rule was the rights of private property owners to control their property by controlling who works for them.

An employer can create a culture where employees are treated well out of a sense of duty and rights, regardless of the utilitarian or self-interested consequences in productivity. This approach _____.

places emphasis on all employees' rights and duties

The courts have cautiously construed legal precedent in the decades after Title VII of the United States Civil Rights Act was passed in 1964 and established the _____.

prohibited classes of discrimination

The Occupational Safety and Health Administration (OSHA) is a U.S. federal agency that _____.

publishes and implements safety and health regulations for U.S. businesses

Decisions made or actions taken against individuals who are historically considered to be in power or the majority, such as white men, or in favor of a traditionally nondominant group is known as __________ ____________.

reverse discrimination

When diversity is used in connection with the corporate environment, it often encompasses _____.

the values of respect, tolerance, inclusion, and acceptance

Which of the following are ways in which affirmative action arises in the workplace? (Check all that apply.) -Courts requiring "judicial affirmative action" to remedy a finding of past discrimination where -Executive Order 11246 does not apply -Through legal requirements -Through requests made by local minority communities -Employers being free to formulate their own policies where Executive Order 11246 does not apply

-Courts requiring "judicial affirmative action" to remedy a finding of past discrimination where Executive Order 11246 does not apply -Through legal requirements

Which of the following are required to justify voluntary affirmative action plans such as focused recruiting activity or the elimination of discrimination that might be caused by hiring criteria that exclude a particular group in the workplace? (Check all that apply.) -Change in federal structure -Established underrepresentation of a particular group -Lack of political support for members of the majority group -A finding of past discrimination

-Established underrepresentation of a particular group -A finding of past discrimination

Which of the following are true of the employment-at-will (EAW) doctrine? (Check all that apply.) -It necessitates all employees to serve a minimum notice period of one month before leaving their jobs. -It allows an employee to quit work without any notice in the absence of a written contract. -It requires employers to establish just cause before dismissing an employee. -It enables employers to dismiss employees at any time and for any reason unless an agreement states otherwise.

-It allows an employee to quit work without any notice in the absence of a written contract. -It enables employers to dismiss employees at any time and for any reason unless an agreement states otherwise.

Identify the features of affirmative action. (Check all that apply.) -It can take place only in political arenas. -It can take place in employment environments, education, or other arenas. -It is the intentional exclusion of historically dominant groups. -It is the intentional inclusion of previously excluded groups.

-It can take place in employment environments, education, or other arenas. -It is the intentional inclusion of previously excluded groups.

Identify the true statements about due process in the workplace. (Check all that apply.) -It enables employers to tell employees what to do, and when, and how to do it. -It acknowledges the authority of an employer over its employees. -It invalidates the just cause requirement for the employment-at-will doctrine. -It enables employers to fire employees for no cause or for morally wrong causes.

-It enables employers to tell employees what to do, and when, and how to do it. -It acknowledges the authority of an employer over its employees.

Which of the following statements are true of the free-market approach to workplace health and safety? (Check all that apply.) -It assumes an equivalency between workplace risks and other types of risks when there are actually significant differences between them. -It favors compensating injured workers when it can be proved that employers were liable for causing the harms. -It holds that individual bargaining with employers leads to the optimal distribution of safety and income in competitive and free labor markets. -It states that a workplace is safe if the risks are acceptable in comparison to the risks related to other common work activities.

-It favors compensating injured workers when it can be proved that employers were liable for causing the harms. -It holds that individual bargaining with employers leads to the optimal distribution of safety and income in competitive and free labor markets.

Which of the following are true of due process in legal contexts? (Check all that apply.) -It allows subjectivity and case-by-case exercise of statutory authority in legal proceedings. -It refers to the procedures that police and courts must follow while applying their authority over citizens. -It specifies the conditions under which courts and police can exercise their authority over citizens. -It empowers police to enforce law and order without being challenged by regulatory bodies.

-It refers to the procedures that police and courts must follow while applying their authority over citizens. -It specifies the conditions under which courts and police can exercise their authority over citizens.

Which of the following are examples of reverse discrimination? (Check all that apply.) -Jaclynn, an African American CEO of a start-up, formulates a policy that favors hiring of African Americans over individuals from other races. -Cameron, an African American owner of a restaurant, frames a policy that favors Asians over African Americans. -Christopher, an African American store manager, hires only African Americans even though they are less qualified than candidates from other races. -Deliana, an African American recruitment manager, is biased in recruiting white women for a coveted post in her company.

-Jaclynn, an African American CEO of a start-up, formulates a policy that favors hiring of African Americans over individuals from other races. -Christopher, an African American store manager, hires only African Americans even though they are less qualified than candidates from other races.

In the context of the exceptions to the employment at will rule, which of the following reverse the burden of proof and require employers to show cause to justify the dismissal of an employee? (Check all that apply.) -Violations of civil rights laws -Strict liability -Just cause -Due process rights

-Just cause -Due process rights

Which of the following are true of the U.S. Occupational Safety and Health Administration (OSHA)? (Check all that apply.) -OSHA regulations are biased in favor of health and safety as they require businesses to prove that high standards are not economically feasible. -OSHA requirements necessitated U.S. employers to achieve the optimal level of safety in the workplace rather than ensuring feasible levels of safety. -Regulations established by OSHA ensured that businesses that failed to meet workplace safety standards were closed. -When first established, OSHA's regulations were aimed at achieving the safest feasible standards.

-OSHA regulations are biased in favor of health and safety as they require businesses to prove that high standards are not economically feasible. -When first established, OSHA's regulations were aimed at achieving the safest feasible standards.

Identify the true statements about the ethical rationale for the employment-at-will (EAW) doctrine. (Check all that apply.) -Total discretion over employment allows managers to make efficient decisions that contribute to the greater overall good. -It is mandatory for an employee to oppose unfair dismissals and termination based on the constitutional rights. -A manager is in the best position to know what is best for his or her firm, and the law should not interfere with those decisions. -The freedom to terminate employment relationship is mutual, and both employers and employees are mutually responsible for each other's livelihood.

-Total discretion over employment allows managers to make efficient decisions that contribute to the greater overall good. -A manager is in the best position to know what is best for his or her firm, and the law should not interfere with those decisions.

Identify the cases when sensitivity to the potential for conflict caused by diversity is necessary. (Check all that apply.) -When negative stereotypes previously ruled interactions between particular groups -When differences have been resolved previously -When past stereotypes are considered irrelevant -When differences are new or strong

-When negative stereotypes previously ruled interactions between particular groups -When differences are new or strong

Which of the following is true of the common-law agency test requirement for a worker to be classified an employee? -An employer must be economically dependent on the worker to accomplish the objectives of his or her business. -An employer need not necessarily regulate the work but must basically have the right or ability to regulate the work. -An employer controls or directs the result of the work done and not the methods of achieving the results. -A worker must essentially be in business for himself or herself as a matter of economic fact.

An employer need not necessarily regulate the work but must basically have the right or ability to regulate the work.

Match the exceptions to the employment-at-will (EAW) rule with their descriptions.

Civil rights laws: These laws prevent dismissal of employees on the basis of membership in certain prohibited classes such as race, sex, disability, age, national origin, religion, or ethnic background. Labor laws: These laws stop employers from dismissing employees for union activities.

Identify a true statement about diversity in workplaces in the United States. -The U.S. law requires boards to give 30 percent of their supervisory seats to women. -Currently, the U.S. workforce is notably more diverse than ever before. -The U.S. law requires that any public company with five or more directors must have at least one female board member. -The S&P 500 reports that 40 percent of board positions in public companies were held by women.

Currently, the U.S. workforce is notably more diverse than ever before.

Identify a true statement about discrimination in the workplace in the United States. -Acts of discrimination are overt rather than covert. -Discrimination is restricted to differences in employment opportunities to immigrants. -Discrimination occurs not only with respect to race, but also with regard to gender. -Acts of discrimination are restricted to women.

Discrimination occurs not only with respect to race, but also with regard to gender.

Larry and Co, a multinational advertising agency, is forced to close its services in various regions due to financial constraints. As part of cost-cutting efforts, the company terminates many employees offshore and at the headquarters. Which of the following measures is exemplified in the given scenario?

Downsizing

Which of the following is an important aspect of the exceptions to the employment at will (EAW) rule? -Courts rely on EAW only when dismissed employees prove that they are economically dependent on their employer. -EAW is prioritized unless the dismissed employee demonstrates one of the recognized exceptions to the rule. -Employers are bound by the EAW rule to demonstrate just cause for the dismissal of an employee. -EAW is the default position on which courts rely when a dismissed worker's status is determined as an independent contractor.

EAW is prioritized unless the dismissed employee demonstrates one of the recognized exceptions to the rule.

True or false: Health and safety of employees are valuable in and of themselves. The intrinsic value of an employee's life corresponds to the lost wages of that employee if he or she had lived.

False Reason: Lost wages do not measure the intrinsic value of an employee's life. It is something that financial compensation simply cannot replace.

Which of the following is true of the instrumental value of an employee who dies in a workplace accident? -It is calculated, in part, by the lost wages the employee would have earned if he or she lived. -It is quantified on the basis of the employee's contributions to the firm during his or her tenure at the workplace. -It is measured by the contributions the employee would have made to the community had he or she lived. -It is estimated on the basis of the amount company had invested in the employee for training purposes.

It is calculated, in part, by the lost wages the employee would have earned if he or she lived.

Identify a true statement about a firm's decision to downsize. -It results in a decrease in the tax benefits received by the firm. -It leads to a negative stakeholder perception of the firm's commitment to corporate social responsibility. -It helps substantially reduce the short-term financial costs of the firm. -It leads to a phenomenal increase in the affective commitment of surviving employees.

It leads to a negative stakeholder perception of the firm's commitment to corporate social responsibility.

Match the major elements of the acceptable risk approach to workplace health and safety with their descriptions.

Risk: It refers to the likelihood of harm in a workplace. Relative risk: It involves a comparison of the likelihood of harm involved in various activities.

In the context of the acceptable risk approach to workplace health and safety, match the descriptions of relative risk of work activities with the conclusions derived.

The chance of harm for a specific work activity is EQUAL TO OR LESS THAN the chance of harm for similar, more common activities: The activity is safe. The chance of harm for a specific work activity is GREATER THAN the chance of harm for similar, more common activities: The activity is hazardous.

A policy or a program that aims to remedy past discrimination through the implementation of proactive measures to secure equal opportunity is referred to as __________ __________.

affirmative action

Employees of federal contractors with 50 or more employees are liable to be subjected to Executive Order 11246. Executive Order 11246 requires _____.

affirmative action efforts to secure equal opportunity

One of the concerns about diversity in the workplace involves _____.

assimilating diverse viewpoints into a preexisting corporate culture

The term "_________" refers to the reduction of human resources at an organization through terminations, retirements, corporate divestments, or other means.

downsize (or downsizing)

Philosophically, the right of ______ __________ is the right to be protected against the arbitrary use of authority.

due process

An employer can create a culture where employees are treated well out of a sense of duty and rights, regardless of the utilitarian or self-interested consequences in productivity. The followers of this approach argue that _____.

employees should not be treated as mere machines hired to make profits for their employers

A form of affirmative action in the workplace involves voluntary affirmative action plans. These are plans that _____.

employers make to overcome barriers to equal opportunity

The doctrine known as _____________ _________ __________ (EAW) holds that, in the absence of a particular contractual or other legal obligation that specifies the length or conditions of employment, all employees are employed "at will."

employment at will

According to the utilitarian approach to the ethics of workplace relationships, employees are treated well by employers because _____.

it fosters high levels of innovation among employees

The standard for terminations or discipline that requires the employer to have sufficient and fair cause before reaching a decision against an employee is known as _________ ___________.

just cause