Business Ethics Ch. 1-5 Assessment Questions

T/F?: A criticism of Immanuel Kant's categorial imperative is that its refusal ever to permit exceptions in acting ethically is impossible to observe in life.

True

T/F?: A distinguishing characteristic of justice theory is that it emphasizes method over content.

True

T/F?: According to Aristotle, happiness is a virtuous activity of the soul.

True

T/F?: According to the Greek system of logic introduced by Socrates, normative ethical theories ultimately are grounded in reason.

True

T/F?: Confucian virtue ethics is similar to the Aristotelian version in that both are very practical.

True

T/F?: Family is generally a strong influence on our ethical standards.

True

T/F?: Immanuel Kant contended that people often interpret reason subjectively.

True

T/F?: In both East and West, the means used to achieve a certain end are often more important than the end.

True

Identify 2 benefits for a company following a policy of corporate social responsibility (CSR).

- 1. consumers may prefer to purchase products from a socially responsible company - 2. CSR may attract more investors, or shareholders, who are interested in investing in the company

The fact that a McDonald's in Indonesia might provide "sambal" chili sauce to its customers rather than ketchup is an example of __________. A. acculturation B. consumerism C. enculturation D. globalization

A. acculturation

How might virtue ethics apply to contemporary business?

Because virtue ethics emphasizes individual character and conscience, it can have a tremendous influence on organizational culture by encouraging individuals to stand up for sound, ethical, and responsible business practices

Which of the following constitutional provisions gives regulatory power to the federal government? A. 1st Amendment B. 10th Amendment C. Commerce Clause D. Supremacy Clause

C. Commerce Clause

Immanuel Kant objected to dogmatism in _____________. A. religion B. science C. both A and B D. neither A nor B

C. both A and B

"Quan" means which of the following? A. adherence to the past B. philosophic tradition C. practicality D. insistence on protocol

C. practicality

T/F?: It is possible to act deliberately and shrewdly in a good way or toward a good end.

True

T/F?: John Rawls's theory of justice is mainly non-Utilitarian.

True

T/F?: John Stuart Mill's emphasis on human rights distinguishes him from Jeremy Bentham.

True

The "veil of ignorance" ensures which of the following? A. mass delusion B. objectivity C. self-reliance D. Enlightenment reason

B. objectivity

What Amendment was at the center of the "Citizens United" case? Explain.

- 1st Amendment and free speech: The case was a challenge to the federal elections law limiting the amount of money a person or business can spend in support of a political candidate

How does humanities in ethics differ from a humanistic business model?

- A humanistic business model focuses on leadership development and the data of social science about how to motivate people - Humanities in ethics looks to case methods, novels, short stories, and plays to gain insight into human behavior

Describe the challenge of identifying a universal set of ethics.

- Although many agree on the importance of goals like acting with honesty and fairness and treating people as ends rather than means, their implementation is extremely complex, because people have different understandings of what is honest, fair, or an end in itself. The result may be a series of diverse rules rather than one set

Choose your favorite brand. List at least 5 of its key stakeholder groups.

- Anthropologie - customers - clients - employees - media - government

How might consumerism be at odds with the growing concern for business ethics?

- As an extreme preoccupation with buying and owning, consumerism runs counter to the new sensitivity to ethics and human flourishing in business, because it defines people not by their humanity but by their purchasing power

How does Kantian ethics work in a business setting?

- Because Kantian ethics is about treating people not as means but as ends, this philosophy can influence nearly every aspect of business, from research and development to production, manufacturing, marketing, and consumption - It may be difficult to implement, however, because many businesses are focused on efficiency and production to the near-exclusion of other factors

Explain why ethical responsibilities go beyond legal compliance.

- Behaving ethically requires that we meet the mandatory standards of the law and then go above and beyond them to recognize that an action may be legal but we personally may consider it unacceptable - Ethical reasoning often is more topical than law and reflects the changes in consciousness that individuals and society undergo - Often, ethical thought precedes and sets the stage for changes in the law.

Does the value that John Stuart Mill placed on the deliberative process and individual expression as the main ways of arriving at truth have any relevance for political debate today?

- Certainly there exists a need today to engage in political debate that includes all sides of an issue in respectful ways - Mill's teaching on the role of free speech in society can be a starting point and a reminder of the importance of civil debate and freedom

Why is conscience the locus or center of ethical behavior in business?

- Conscience is the locus of ethical behavior in business because individuals acting in free association make up the business or organization - They are motivated by their inner voice to act responsibly toward each other and their stakeholders—or not

What is the major difference between enculturation and acculturation?

- Enculturation is the process by which humans learn the characteristics, values, and rules to participate in a society more generally - Acculturation is the introduction of the values, worldview, philosophy, or practice of one culture into another

T/F?: Companies are required to provide amenities to their employees to fulfill the social contract between management and employees as stakeholders.

- False - Amenities are additional resources made available to employees above and beyond wages, salary, or other standard benefits or obligations

T/F?: All ethical standards are relative and should be treated as such.

- False - Certain core ethics exist throughout cultures and time, although they may manifest in different ways

T/F?: According to Confucius, the hope for reform of Chinese society was a centralized planning system.

- False - Confucius's hope for reform was the five great relationships that support Chinese society:parent/child, husband/wife, elder/junior sibling, master/apprentice, and ruler/subject

T/F?: Globalization is evidence that business is cultural neutral.

- False - Cultures often adapt to business rather than the other way around - As an example, U.S.-style jeans and baseball caps can now be found globally

T/F?: Individualism was the greatest value in Confucian ethics.

- False - In Confucian ethics, the locus of ethics and moral decision making was the family rather than the individual - The most important value was the development of humanity and putting an end to anarchy, and this was done best in the context of the family

T/F?: According to Milton Friedman, a company's social responsibility consists solely of bettering the welfare of society.

- False - In Friedman's view, a company's social responsibility consists of enhancing stockholder value

T/F?: The law prohibits all executives from serving in senior government posts and then leaving to go back to work for the same company in the private sector.

- False - Legal restrictions exist to limit the revolving door effect, but most relate only to direct government contracting and/or lobbying

T/F?: Milton Friedman's economic philosophy advocates increased government regulation to ensure that corporations are socially responsible.

- False - Milton Friedman argued that shareholders should be able decide for themselves what social initiatives to donate to or to take part in, rather than having a business executive or government decide for them

T/F?: Corporations that embrace CSR policies consistently produce a lower rate of return on investment for shareholders.

- False - Social responsibility does not mean lower profitability, as the returns on social index funds have shown

T/F?: The United Nations Global Compact is a set of standards that is binding worldwide.

- False - The UN Global Compact is a voluntary set of standards; it is not legally binding on countries or corporations

Describe the benefits of having a single ethical standard.

- Having a single ethical standard maximizes ethical behavior no matter who the other party is and supports an internally consistent rule of behavior toward all family, friends, customers, clients, and others with whom we interact

Describe a practical way to prioritize the claims of stakeholders.

- In three columns, list stakeholders in order of perceived priority, their perceived interests, and the likely impact of the business decision on them - This will aid comprehension of the decision's impacts as well as provide justification for the course of conduct ultimately chosen

Define localization and name at least 3 items that might be included as part of a localization effort.

- Localization is the process of adapting a product for use or sale in other nations and cultures - This might include language translation, adapting content to the tastes and consumption habits of the local market, and converting measurements

Describe the difference between normative and descriptive ethical theories.

- Normative ethical theories are philosophical theories based on reason that tell individuals how they ought to behave - Descriptive ethical theories are based on scientific evidence describing how people tend to behave in a particular context

Name the 3 components of the triple bottom line (TBL).

- People - Profit - Planet

What challenges does Rawls' justice theory present when it comes to the redistribution of goods and services in society?

- Rawls's theory has been called radical because it redistributes goods and services without regard for extenuating circumstances or historical context. It also has been accused of stifling enterprise, innovation, and investment

What did the decision in "Shlensky v Wrigley" (1968) establish in ethical terms? How does it compare to the decision in "Dodge v. Ford Motor Company" (1919)?

- Shlensky v. Wrigley gave boards of directors and management more latitude in determining how to balance the interests of stakeholders - This was in contrast to Dodge v. Ford Motor Company, which validated the rule of shareholder primacy

Describe how a company's ethical business practices affect its goodwill.

- The ethical behavior of managers has a positive influence on the value of a variety of components affecting the company's overall goodwill, including its brand, its workforce, and its customer relationships - Positive goodwill generated by ethical business practices, in turn, generates long-term business success.

What is the most important quadrant in the influence/interest matrix, and why?

- The high-power, high-interest quadrant is most important because it represents stakeholders who both are highly interested in their relationship with the firm and have a high level of power or influence in the relationship

Explain how the normative approach to stakeholder theory informs the instrumental aspect and the descriptive approach.

- The normative approach is the fundamental basis of stakeholder theory and argues that stakeholders are ends unto themselves rather than means to an end - Thus, they have inherent value and cannot be looked at merely as instruments or as functional parts in an economic engine intended solely to generate profit for stockowners - That said, the instrumental and descriptive approaches also have their role in helping us to understand stakeholders and are mutually supportive of the normative approach

How would you reconcile cultural differences between so-called contact and non contact cultures in the context of business negotiations?

- This can be a matter of managing expectations - Managers must do the work required for any business deal but deliver it in a way that is culturally sensitive, even if that means negotiating details like project deadlines and the conduct of meetings and agreeing to have different expectations of those in a different cultural context

What are the essential differences between John Start Mill's version of utilitarianism and Immanuel Kant's deontology?

- Utilitarianism is a consequentialist philosophy dependent solely on outcomes - Although focused on rights, Mill's utilitarianism also depends on results - Deontology is concerned with motive, duty, and one's obligation to act regardless of circumstances or outcomes

How does utilitarianism affect contemporary business practice?

- Utilitarianism is pervasive in contemporary business practice, management theory, and decision-making through cost-benefit analysis - Decisions are often made based on the "bottom line" of profit, numbers of stakeholders affected, or overall utility to the organization - Utilitarianism is reflected in this abiding emphasis on efficiency, often to the neglect of other factors

How can wholeheartedness and sincerity serve as models of risk assessment?

- Wholeheartedness and sincerity require not just competence but compassion when dealing with stakeholders and making executive decisions - Reflecting the overall Confucian concern for balance, they temper initiative and boldness with self-regulation

Which of these concepts relates to utilitarianism? A. consequences B. actions C. character D. duty

A. consequences

A shareholder is a stakeholder who _________. A. holds stock for investment B. has a general interest in the fate of all publicly traded companies C. focuses on the means by which firms get their products to market D. always purchases the product or service of a particular company

A. holds stock for investment

Businesses today are concerned with balancing profitability with responsibility. Therefore, they should __________. A. pay attention to culture B. go beyond compliance C. hire moral people D. hire outside consultants to monitor their supply chain.

A. pay attention to culture

In "On Liberty," John Stuart Mill ___________ A. proposes a harm principle B. exalts libertarianism C. prescribes a consequentialist answer to ethical crises D. rejects rights

A. proposes a harm principle

"Control" as used in this does NOT refer to which of the following? A. reverence B. "phrónēsis" C. temperance D. Confucian self-regulation

A. reverence

Which of the following is NOT true? A. shareholder primacy is the clear legal precedent in the United States B. maximizing shareholder profits is a legitimate goal of management C. dividends are paid out of corporate profits D. companies that pursue CSR policies can also be profitable

A. shareholder primacy is the clear legal precedent in the United States

Protecting owners' interests was a common feature of ___________. A. the Industrial Revolution B. the Information Age C. the Dodd-Frank Act D. muckraking

A. the Industrial Revolution

Which of the following is not an intellectual virtue according to Aristotle? A. the basic order of life B. knowledge C. wisdom D. prudence

A. the basic order of life

What is earth jurisprudence?

An interpretation of law and governance based on the belief that society will be sustainable only if we recognize the legal rights of Earth as if it were a person

Which of the following is not a stakeholder? A. the media B. corporate culture C. the environment D. customers

B. corporate culture

Deliberative prudence does ALL of the following EXCEPT ______________ A. align ends and means B. encourage prodigality C. avoid conflict D. prevent rash behavior

B. encourage prodigality

The "Citizens United" case __________. A. upheld existing law limiting spending on behalf of political candidates B. overturned existing law C. sent the case back to the lower court to be re-tried D. created more restrictive limits on political spending

B. overturned existing law

Which of the following best describes the tragedy of the commons? A. people are always willing to sacrifice for the good of society B. people are likely to use all of the natural resources they want without regard to others C. the common good of the people is a popular corporate goal D. tragedies occur when there is too much government regulation

B. people are likely to use all of the natural resources they want without regard to others

Managerial ethics is related to which of the following? A. shareholder wealth B. righteousness C. bureaucracy D. honor

B. righteousness

In correct order, the stakeholder management steps adapted from the approach of the MITRE consulting firm are to __________. A. build trust, identify stakeholders, prioritize claims, visualize changes, and perform triage B. build trust, identify stakeholders, gather and analyze data, present results, make changes, and prepare a communication strategy C. build trust, identify stakeholders, father and analyze data, present findings to management, and communicate key messages to stakeholders conveying the company's appreciation of them D. identify stakeholders, gather and analyze data, make changes, and present results

C. build trust, identify stakeholders, father and analyze data, present findings to management, and communicate key messages to stakeholders conveying the company's appreciation of them

Values of Protestant Christianity were often used to justify __________. A. mercantilism B. Standard Oil's overseas investments C. business success during the Industrial Revolution D. secular humanism

C. business success during the Industrial Revolution

Which of the following is a potentially effective way to reduce global warming? A. build more coal-burning power plants B. build more diesel-burning cars C. implement a carbon tax D. implement tax-free gasoline

C. implement a carbon tax

The Dow Jones Sustainability Indices provides information for ____________. A. investors who seek quick profit B. investors who seek long-term returns C. investors who values CSR in companies D. marketing promotions of each of its members

C. investors who values CSR in companies

A stakeholder claim ___________. A. is usually a complaint B. is always financial C. is any matter of concern for the corporation or company D. is the same as a lawsuit

C. is any matter of concern for the corporation or company

Which of the following is TRUE? A. very few business executives have ever left private jobs to go into government service B. most government regulatory agencies are funded by donations C. numerous executives have left Goldman Sachs to go work for the government D. few people leave government service to go into the private sector

C. numerous executives have left Goldman Sachs to go work for the government

John Rawls's theory of justice is based on which of the following? A. cognitive structures B. moral duty C. social contract theory D. survival of the fittest

C. social contract theory

What is corporate social responsibility?

CSR is the practice of viewing a business within a broader context, as a member of society with certain implicit social obligations, rather than considering the maximization of shareholder wealth as a company's sole purpose and objective

Maintaining trust between stakeholders and organizations is ______________. A. the stakeholder's responsibility B. an ethical maximum C. an ethical minimum D. a social contract

D. a social contract

Utilitarianism is a system that ____________ A. considers historial conditions B. approaches Aristotelian deliberation C. builds on natural law theory D. attempts to quantify the good

D. attempts to quantify the good

"The Analects of Confucius" ________________ A. are similar to Aristotle's "Nicomachean Ethics" B. represent an oral tradition C. reflect Buddhist ideals D. codify a system of virtue ethics

D. codify a system of virtue ethics

What are the levels upon which business ethics exists? A. compliance and governance B. federal, state, and local C. normative and descriptive D. individual, organizational, and societal

D. individual, organizational, and societal

Industries like to be in control of their own destiny and as a result prefer self-regulation to laws imposed by governments. Self-regulation is often __________. A. based on external codes of conduct B. enforced by the courts C. in conflict with common law D. less costly for firms than government regulation

D. less costly for firms than government regulation

ISOs are sustainability standards for businesses ___________. A. promulgated by the state government B. promulgated by the federal government C. promulgated by the World Trade Organization D. none of the above

D. none of the above

Which normative ethical theory supports the idea of holding multiple ethical standards? A. deontology B. utilitarianism C. virtue ethics D. none of the above

D. none of the above

What does the California Transparency in Supply Chains Act require of businesses that operate in California?

The California Act requires businesses that operate in California to describe for consumers all components and activities of their supply chains

T/F?: Air pollution is regulated by 3 levels of government: local, state, and federal.

true

T/F?: Corporate social responsibility is a voluntary action for companies.

true

T/F?: If environmental harm is discovered, the business entity causing it is frequently held liable by both the government and the victims of the harm in separate proceedings?

true

T/F?: Religion continues to be a forceful influence on ethical systems.

true

T/F?: Stakeholder management practice ultimately is about valuing stakeholder contributions to a firm, no matter how significant, inspired, or influential that contribution might not be.

true