CH.5

As business becomes increasingly global:

Cross-cultural contradictions will increase.

TRUE OR FALSE: Managers in the same company are likely to be at the same stages of moral reasoning at any given time.

FALSE

TRUE OR FALSE: Moral intensity refers to the perception of how illegal an ethical issue is.

FALSE

TRUE OR FALSE: The Sarbanes-Oxley Act requires that firms maintain good financial practices, apart from high ethical standards, in how they conduct and monitor business operations.

FALSE

TRUE OR FALSE: According to utilitarian reasoning, an action is ethically preferred when its benefits outweigh its costs.

TRUE

TRUE OR FALSE: Ethics are primarily based on religious beliefs

TRUE

TRUE OR FALSE: The U.S. Corporate Sentencing Guidelines provide a strong incentive for businesses to promote their ethics at work.

TRUE

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as:

Temporal immediacy.

Why should business be ethical, according to Figure 5.1?

Most people want to act in ways that are consistent with their own sense of right and wrong. Ethical behavior protects business firms from abuse by unethical employees and competitors. Society's stakeholders expect it from businesses.

People's ethical beliefs come from:

Their religious background, family, and education.