Business Ethics Final

A good will, according to Kant, is one that wants all people to flourish as human beings. a) True b) False

False

According to Camerer, modern psychology teaches us that people care only about their own wealth and won't sacrifice to help or hurt others. a) True b) False

False

According to Savan, advertising touches our lives infrequently a) True b) False

False

According to the Aristotelian approach to ethics, every social institution has exactly the same moral purpose - to promote all aspects of each person's human flourishing. a) True b) False

False

According to the Aristotelian approach to ethics, there is no such thing as human nature. a) True b) False

False

All three approaches to justice that Sandel discusses in Chapter 1 ultimately lead to the same conclusions about what is right and what is wrong. a) True b) False

False

The argument that markets are good because they are necessary for liberty and the argument that markets are good because they produce good outcomes are (completely) compatible - they can both be (completely) right. a) True b) False

False

The fact that market mechanisms supply us with the most of the things we need to survive means that markets must be morally good a) True b) False

False

T/F According to Stone, managers should always seek to maximize profits because this goal serves as a "polestar"- pursuing it leads to benefits for all stakeholders.

False - Stone rejects the polestar argument - Friedman is the one who makes the polestar argument - Seeking the polestar ignores other options where one might be able to obtain greater benefit

The median wealth of white households today is roughly _____ times that of Hispanic or African-American households.

10

Friedman's argument for shareholders primacy is based on a) Libertarianism b) Utilitarianism c) Feminism d) Teleology

A) libertarianism Friedman argues shareholders are free and independent. By rejecting shareholder primacy one is coercing them and taking away their freedom if one makes choices other than the choices they would have made.

Surveys have indicated that male managers frequently assume that women...

All of the above. (too emotional to be good managers, lack the necessary drive to succeed in business, place family demands above work considerations)

According to Freeman, which of the following parties are among the stakeholders in a firm's success? A) a firms's Stockholder B) a firms's bondholder C) a firms's employees D) the local community E) All of the above

E) All of the above Friedman has stakeholder theory as opposed to stockholder Stakeholders are anyone who is impacted by a firm. Anyone who is possibly affected by whatever the firm does is a stakeholder. If the firm can impact the life of someone that someone becomes a stakeholder, therefore all of the above are stakeholders.

Which of the following are among considerations Bok says would-be whistleblowers should take into account before blowing the whistle? A) the truth of the accusation to be made B) the harms and benefits whistleblowing will bring to the public C) the harms and benefits whistleblowing will bring to the firm and its employees D) the harms and benefits whistleblowing will bring to the whistleblower E) all of the above

E) all of the above According to Bok, all of these need to be taken into account because whistleblowing should not occur unless it is absolutely necessary and should only be done as a worst case scenario.

T/F In an agent-principal relationship, the agent is bound to act in the interests of the principal, no matter what the principal wants.

False Breaks down when agent crosses legal lines If the principal asks the agent to murder someone the agent clearly is not bound to act in that interest. Therefore there are limitations which include breaking the law or immoral acts which limit the obligations of the agent to the principal.

T/F According to Shaw, most proponents of affirmative action policies think that non-discrinimation polices are sufficient on their own to rectify race and gender-based hiring inequalities.

False Shaw says people support things because they believe it to be right, regardless of their beliefs on social issues.

T/F According to Shaw, affirmative action is a form of reverse job discrimination.

False Shaw states affirmative action is a beneficial possible way to deal with the unjust racial system prevalent in America today.

T/F According to Duska, an individual cannot be loyal to a group of any kind.

False - Duska argues that you can't be loyal to a business - however you can be loyal to other groups such as family - says you can whistle blow Duska says loyalty must be deserved and earned, it cannot be automatically expected from people. Although, according to Duska, it is acceptable to one's family, one is not obligated to be loyal to a group unless they are first loyal to those in the group. Therefore group loyalty is possible, but not the primary source of loyalty. Duska also states there is no obligation to loyalty to a corporation.

T/F According to the ideology of colorblind racism, racial inequalities are explained by the biological inferiority of racial minorities.

False Colorblind racism is modern racism based on social circumstances and says racial inequalities are based on different things, not biological features.

T/F According to Freidman, shareholders are only ever interested in profits for themselves.

False Shareholders of non-profit organizations do not simply desire profit. The key in this question is the "only-ever" phrase Only false because Example ( if you invest in a company bc environmental, you still can. However, primarily interested in profit)

According to Bentham, we should just maximize pleasure - moral concepts like rights, liberty, etc. are all either unnecessary or mistaken. a) True b) False

True

According to Camerer, people over-weight (assign too much importance to) small probabilities a) True b) False

True

According to Hausman & McPherson, giving someone cash rather than something you buy for them with that cash maximizes that person's preference satisfaction a) True b) False

True

According to Sandel, cannibalism between consenting adults poses the ultimate test for the libertarian principle of self-ownership and the idea of justice that follows from it. a) True b) False

True

According to Sandel, the freedom issues raised in contemporary discussions about morality are largely rooted in deontological ethical theory. a) True b) False

True

According to libertarians, taking money from people - even for a good cause, even if they are very wealthy - is coercive and so violates their liberty to do with their money whatever they please. a) True b) False

True

According to the Aristotelian approach to ethics, social institutions have moral purposes. a) True b) False

True

According to the moral psychology readings (NPR, Fisman & Galinsky, Bazerman & Tenbrunsel, Kahneman), people sometimes fail to attend to things they care about and so act against their own considered moral evaluations. a) True b) False

True

One form of Kant's Categorical Imperative says to act only on that maxim whereby you can at the same time will that it should become universal law. a) True b) False

True

The formation goal of this course is a response to the fact that students' personal judgements about morality are likely incomplete and perhaps even inconsistent. a) True b) False

True

Tullberg's narrow responsibility view of product liability emphasizes, in particular, the compensation aspect of product liability judgments a) True b) False

True

Which of the following is not a criticism of the welfare/outcome argument for free markets? a) Freedom is not an absolute value - outcomes matter b) Markets can distribute benefits in a way that leaves some people without much c) Markets satisfy preferences, but some preferences shouldn't be satisfied (e.g., segregationists) d) None of the above are foregoing criticisms of the welfare/outcome argument for free markets

a) Freedom is not an absolute value - outcomes matter

According to Tullberg's narrow responsibility view of product liability, a person who is injured is entitled to compensation that a) Allows her the ability to get back into the workforce b) Allows her to live a life she could have reasonably expected had she not been injured c) Provides her with what she would have achieved had her life plans turned out exactly as she wanted d) None of the above

a) Allows her the ability to get back into the workforce

According to Camerer, people regularly a) Choose a nearer but lesser good b) Choose a further but lesser good c) Choose a further but greater good d) None of the above

a) Choose a nearer but lesser good

The formation goal of this course is advanced by investigating a) Ethical theory b) Moral psychology c) The metaphysical foundations of first philosophy d) None of the above

a) Ethical theory

With which statement is someone who supports the free market Libertarian reasons most likely to agree? a) Overall, liberty is more valuable than anything else b) What really matters in ethics is the kind of person you are c) The best things that can happen to a person is that they have their preferences satisfied d) The free market is neither good nor bad in a moral sense - it is just a morally neutral fact of life

a) Overall, liberty is more valuable than anything else

Which of the following statements would not fit as a critique of the welfare/outcome justification of the market? a) The good should be defined as preference satisfaction b) The good should not be defined as preference satisfaction c) There are more important moral goals than maximizing good consequences d) The harm that some people experience due to the free market system cannot be justified by the good the market produces for others

a) The good should be defined as preference satisfaction

Sandel discusses three basic approaches to questions about justice: a) Welfare, freedom, and virtue b) Rights, duties, and permissions c) Animal, vegetable, and mineral d) Requirements, permission, and prohibitions

a) Welfare, freedom, and virtue

According to Thaler, a) 'Moral fading' is false b) 'choice engineering' the environment helps people improve their reasoning c) It is impossible to improve reasoning performance at a personal (non-environmental) level d) All of the above

b) 'choice engineering' the environment helps people improve their reasoning

According to Kehneman, System 1 thinking a) Is always wrong b) Is automatic, quick, and 'involuntary' c) Has a limited domain - you can't turn System 2 thinking into System 1 thinking d) All of the above

b) Is automatic, quick, and 'involuntary'

According to the Aristotelian approach to ethics, government regulation of social institutions is... a) Never justified because such regulations harm human flourishing b) Justified to the extent that such regulations safeguard human flourishing c) Not a moral issue at all because regulations concern outcomes and morality is about principles d) None of the above

b) Justified to the extent that such regulations safeguard human flourishing

Utilitarians of all stripes agree that we should a) Respect the Categorical Imperative b) Maximize the good (whatever that is precisely) c) Determine what leads to human flourishing in order to determine what is good d) All of the above

b) Maximize the good (whatever that is precisely)

The integrity goal of this course is advanced by investigating a) Ethical theory b) Moral psychology c) The metaphysical foundations of first philosophy d) None of the above

b) Moral psychology

According to the Aristotelian approach to ethics, a) A person's current inclinations determine what is good for her b) People must use reason to identify and balance important human interests c) It is important not to overthink ethical situations = people need to go with the flow d) People must step completely outside of their own inclinations in order to think ethically

b) People must use reason to identify and balance important human interests

According to Savan, advertising leads us to expect that a) Only status is important in life, not relationships or material objects b) There will and always should be regular blips of excitement and resolution c) Others will take care of us, so we will not be required to expend effort to survive d) None of the above

b) There will and always should be regular blips of excitement and resolution

According to Hochshild, emotional labor is... a) when a firm's workforce is too emotional to complete its work b) when an employer requires employees to induce or suppress emotions as part of the job c) both d) none

b) when an employer requires employees to induce or suppress emotions as part of the job

According to Modic, we should replace the tort law system of product liability with one that a) Compensates the victims of product injuries through an insurance system b) Deters future wrongdoings by firms that create defective products through the criminal justice system c) Both of the above d) None of the above

c) Both of the above

According to Camerer, people a) Treat gaining and losing a given amount in a symmetrical way b) Like gaining a given amount more than they hate losing that amount c) Hate losing a given amount more than they like gaining that amount d) None of the above

c) Hate losing a given amount more than they like gaining that amount

A maxim of making false promises violates the Categorical Imperative, according to Kant, because a) False promises are lies and lies are forbidden by all ethical views b) If everyone adopted that maxim then society would be much worse off c) If everyone adopted that maxim then adopting it for yourself would no longer make sense d) All of the above

c) If everyone adopted that maxim then adopting it for yourself would no longer make sense

Mills argues that a) It is possible to distinguish higher pleasures from lower ones b) We should act to provide the greatest good for the greatest number c) People should be free to do whatever they want, provided they do not harm others d) All of the above

d) All of the above

According to the Libertarian doctrine of personal responsibility a) War is politics by other means b) Those who forget history are doomed to repeat it c) Americans can be counted on to do the right thing - after they have tried everything else d) None of the above (all of the foregoing are familiar phrases that have nothing in particular to do with Libertarianism)

d) None of the above (all of the foregoing are familiar phrases that have nothing in particular to do with Libertarianism)

Economic/Pareto efficiency is defined in terms of which concept? a) Ease of use b) Transaction costs c) Return on investment d) Preference satisfaction

d) Preference satisfaction

In the context of employment-at-will... a) employers must hire only employees who exhibit a good will (in Kant's sense) B) Employers may fire employees only with 2 weeks notice and severance pay c) employees may quit their jobs only with 2 weeks notice to their employers d) none of the above

d) none of the above Question regards employer's responsibility to employees

T/F According to orlando, a manager's fiduciary responsibility to shareholders requires that the manager must always put shareholders interests ahead of employee interests.

false Orlando rejects this view and argues against this viewpoint. Orlando says stakeholder's interest matters. The view stated in this question is Friedman's view.

According to Equal Employment Opportunity Commission guidelines, affirmative action programs involve...

supportive in-house and community programs to combat discrimination

According to Savan, advertising often works by threatening perceived status (e.g., 'you won't be able to stay "with it" unless you use our product'). a) True b) False

true

According to the Aristotelian approach to ethics, we need to know about human nature in order to figure out human flourishing. a) True b) False

true

T/F According to Bok, employees have a defeasible (i.e., non-absolute) obligation to go along with their employer's wishes.

true According to Bok employees have a duty of loyalty to their employers. However, the duty is not absolute as there are times when whistle blowing is necessary.

T/F According to Orlando, most shareholders do not have a reasonable expectation of input into the firm's decision-making.

true orlando rejects freedman's view about only paying attention to stockholders Orlando says that while the view of shareholders should be considered by corporations in the long run, shareholders should not have a say in day-to-day decision making