Ch 2 Blaw LJL

29. Which of the following reasons support the idea to create an ethics program?

- society as a whole benefits from ethical behavior -unethical behavior can be very costly -people feel better when they behave ethically

8. Blankenship, Inc. is considering relocating its manufacturing facility from Arizona to Texas. The stakeholders in this decision might include?

-Blankenship's customers -the arizona community in which Blankship operates -Blankships shareholders

15. Unethical behavior in an organization can create?

-a resentful workforce -a less productive workplace -a cynical workforce

13. Rutgo, Inc. has established an EthicsLine. EthicsLine is a toll-free phone number that employees can call any time of the day, any day of the week to discuss ethics and report suspected unethical or improper conduct. Why would Rutgo establish the EthicsLine?

-ethical behavior increases job stability -unethical behavior can destroy a business -ethical behavior improves productivity

4. Why should businesses be concerned with ethics?

-people feel better when they behave ethically -unethical behavior can be very costly -society as a whole benefits from ethical behavior

9. A manager making a decision that goes against common morals and values can result in?

-reduced job stability -reduced profits -reduced productivity

20. The Chief Executive Officer of Rutcor, Inc. must decide about the disposal of toxic waste materials. Which of the following considerations should help the CEO reach an ethical business decision?

-toxic waste disposal law -the impact on the business if the decision is publicly disclosed through the news media -the harm the disposal could cause to the environment

11. The idea that corporations have two primary responsibilities - to comply with the law and to make as much money as possible - can be attributed to?

Milton Friedman

25. Which of these statements about unethical behavior is NOT true?

a company that partakes in unethical behavior usually has employees who feel better about themselves and the work they do

3. When is lying acceptable behavior in the workplace?

an athlete performs a trick move during a game

28. When is lying acceptable behavior in the workplace?

athlete performs trick move during game

22. Ben discovered his company's accountant was "skimming" money from the business. The accountant agreed to pay Ben a one-time payment of $25,000 not to report the skimming to company officials. The accountant promised she would pay the money back when she could. Ben accepted the money and never reported what he knew. A year later the accountant was fired when the embezzlement was discovered. She was also prosecuted for theft. The payment to Ben was never discovered. Which statement is correct?

bens act was unethical and illegal

17. Ethical companies:

both tend to earn higher returns than companies that engage in unethical behavior and tend to have more creative employees than companies that engage in unethical behavior

19. What is "outsourcing"?

cutting jobs at home and relocating operations to another country

21. When governments try to force factories to pay higher wages, what is usually the result?

factory owners relocate to lower-wage countries

1. Ethics is the study of?

how people should act

18. Pat is the manager of a manufacturing plant on the outskirts of Smallville, a town of about 10,000 people. The plant employs about 300 people, most of whom live in Smallville with their families. Pat is considering installing a new air filtration system that will dramatically reduce the amount of pollution produced by the plant. However, the cost of the system is so high that Pat won't be able to give any of the employees an annual salary increase. Following utilitarian ethics, what will Pat decide to do?

install system bc it maximizes overall happiness for the greater number pf people

23. Jamie decided he did not want the new jeans he had purchased from a large discount department store. He had worn them three times and decided he just did not like them. The jeans fit him fine and there is nothing wrong with them. He takes the jeans back to the store and, as is its policy, the store gave him a full refund of his money. Which statement is correct?

jamies conduct was unethical

7. Jamie pays for his burger and fries with a $10 bill, but the cashier thinks it was a $20 and gives him too much cash back in change. Jamie pockets the money and leaves the restaurant. Which statement best describes Jamie's conduct?

jamies conduct was unethical

2. According to John Stuart Mill, a correct decision is one that?

maxmizes overall happiness and minimizes overall pain

6. Does ethical behavior maximize profitability?

no guarantee, there is evidence that the ethical company is more likely to win financially

27. n the Truth in Borrowing Ethics Case, Harold inflates the numbers on his loan request. Which is a justifiable reason for his action?

none of these

10. Research has shown that the least important motivation for managers who behave ethically is?

profitability

14. Which statement best defines deontological ethics?

results of a decision are not as important as the reason for which it is made

16. According to deontological ethics:

results of a decision are not as important as the reason for which it is made

26. Sara is running for political office. She trails the incumbent and decides to start running a series of "attack ads." The attack ads are very effective and one week before the election it appears that she has drawn even with her opponent. Sara admits that the attack ads were exaggerations and contained some distortions. Which statement is correct?

sara has engaged in unehtical behavior

12. The idea that corporations should take care of more than shareholders alone is called the?

stakeholder model

5. Why do many major corporations actively encourage ethical behavior?

unethical behavior can quickly harm a business

24. In 1863, John Stuart Mill wrote?

utilitarianism