Ethics Chapter 5

method: justice math with limitation -subjective or incomplete set of good virtues -difficult to measure some human and social costs; the majority may disregard the rights of the minority -difficult to balance conflicting rights -difficult to measure benefits and costs; lack of agreement on fair shares

-difficult to measure benefits and costs; lack of agreement on fair shares

conflicts of interest nature of ethical problem -selfish interest versus others' interests -firm's interest versus others' interests -multiple obligations or loyalties -company's interest versus diverse cultural traditions and values

-multiple obligations or loyalties

adolescence youth -universal principles: justice, fairness, universal human rights -moral beliefs above and beyond specific social custom: human rights, social contract, broad constitutional principles -society at large: customs, traditions, laws -social groups: friends, school, coworkers, family -reward seeking: self interest, own needs, reciprocity -punishment avoidance: avoid harm obedience to power TERM

-reward seeking: self interest, own needs, reciprocity

method: virtues math with critical determining factor -values and character -comparing benefits and costs -respecting entitlements -distributing fair shares

-values and character

Notions of right and wrong derive from which sources? (Check all that apply.) Multiple select question. math and science books religious beliefs artistic resources family and friends

Correct Answer religious beliefs family and friends

ethical principles

Guides to moral behavior, such as honesty, keeping promises, helping others, and respecting others' rights.

basics of ethics reasoning: childhood -principle -society and law -group centered -ego-centered

eco-centered reasoning

basics of ethics reasoning: adolescence, youth -principle -society and law -group centered -ego-centered

ego-centered reasoning

conflicts of interest typical approach -egotistical mentality -bottom-line mentality -favoritism mentality -ethnocentric mentality

favoritism

basics of ethic reasoning: early adulthood, adolescence -principle -society and law -group centered -ego-centered

group centered reasoning

to prevent or minimize harm reasoning

normative

to promote personal morality reasoning

normative

attitude: I want it match with reason -personal gain and selfish interest -comeptitive pressures on profits -conflicts of interest -cross cultural contradictions

personal gain and selfish interest

basics of ethics reasoning: adult hood -principle -society and law -group centered -ego-centered

society and law centered

A business conflict of interest is exemplified by which scenarios? (Check all that apply.)Multiple select question. An agent buys parts from a high-cost firm that donated a valuable gift to the agent. An agent buys parts from the supplier next door to his company. An agent receives a substantial fee for buying parts from a certain company. An agent buys parts from the most cost-effective firm that gave money to the agent.

An agent buys parts from a high-cost firm that donated a valuable gift to the agent. An agent receives a substantial fee for buying parts from a certain company. An agent buys parts from the most cost-effective firm that gave money to the agent.

Business ethics

The application of general ethical ideas to business behavior.

Sarbanes-Oxley Act

U.S. law enacted in 2002 that greatly expanded the powers of the SEC to regulate information disclosure in the financial markets and the accountability of an organization's senior leadership regarding the accuracy of this disclosure. (See also Securities and Exchange Commission.)

Laws

Society's formal written rules about what constitutes right and wrong conduct in various spheres of life.

Select all that apply Researchers have consistently found that most managers typically rely on criteria associated with reasoning at Blank______. (Check all that apply.) Multiple select question. Stage 5 Mature adulthood Stage 2 Adolescence Stage 3 Early adulthood Stage 4 Adulthood

Stage 3 Early adulthood Stage 4 Adulthoodfco

U.S. Corporate Sentencing Guidelines

Standards to help judges determine the appropriate penalty for criminal violations of federal laws and provide a strong incentive for businesses to promote ethics at work.

ethical egoists

A person who puts his or her own selfish interests above all other considerations.

stages of moral development

A sequential pattern of how people grow and develop in their moral thinking, beginning with a concern for the self and growing to a concern for others and broad-based principles.

Select all of the statements that are true about the Sarbanes-Oxley Act (SOX). (Check all that apply.)Multiple select question.It makes executives responsible for the accuracy of financial reports.It enforces high ethical standards in business.It states that executives never have to pay back bonuses, even when earnings are fraudulent.It eliminates all strict auditing rules across the board.

It makes executives responsible for the accuracy of financial reports.It enforces high ethical standards in business.

attitude: help yourself and those closest to you match with reason -personal gain and selfish interest -comeptitive pressures on profits -conflicts of interest -cross cultural contradictions

conlflicts of interest

to comply with legal requirements reasoning

practical

method: rights match with an action is ethical when... -it aligns with good character -net benefits exceeds net costs -basic human rights are respected -benefits and costs are fairly distributed

-basic human rights are respected

method justice match with an action is ethical when... -it aligns with good character -net benefits exceeds net costs -basic human rights are respected -benefits and costs are fairly distributed

-benefits and costs are fairly distributed

cross cultural contraditions nature of ethical problem -selfish interest versus others' interests -firm's interest versus others' interests -multiple obligations or loyalties -company's interest versus diverse cultural traditions and values

-company's interest versus diverse cultural traditions and values

method: utilitarian math with critical determining factor -values and character -comparing benefits and costs -respecting entitlements -distributing fair shares

-comparing benefits and costs

method: rights math with limitation -subjective or incomplete set of good virtues -difficult to measure some human and social costs; the majority may disregard the rights of the minority -difficult to balance conflicting rights -difficult to measure benefits and costs; lack of agreement on fair shares

-difficult to balance conflicting rights

method: utiltarian math with limitation -subjective or incomplete set of good virtues -difficult to measure some human and social costs; the majority may disregard the rights of the minority -difficult to balance conflicting rights -difficult to measure benefits and costs; lack of agreement on fair shares

-difficult to measure some human and social costs; the majority may disregard the rights of the minority

method: justice math with critical determining factor -values and character -comparing benefits and costs -respecting entitlements -distributing fair shares

-distributing fair shares

competitive pressures on profits nature of ethical problem -selfish interest versus others' interests -firm's interest versus others' interests -multiple obligations or loyalties -company's interest versus diverse cultural traditions and values

-firm's interest versus others' interests

method: virtues match with an action is ethical when... -it aligns with good character -net benefits exceeds net costs -basic human rights are respected -benefits and costs are fairly distributed

-it aligns with good character

method: utlitarian match with an action is ethical when... -it aligns with good character -net benefits exceeds net costs -basic human rights are respected -benefits and costs are fairly distributed

-net benefits exceeds net costs

Personal Gain and Selfish Interest: nature of ethical problem -selfish interest versus others' interests -firm's interest versus others' interests -multiple obligations or loyalties -company's interest versus diverse cultural traditions and values

-selfish interest versus others' interests

adulthood -universal principles: justice, fairness, universal human rights -moral beliefs above and beyond specific social custom: human rights, social contract, broad constitutional principles -society at large: customs, traditions, laws -social groups: friends, school, coworkers, family 0reward seeking: self interest, own needs, reciprocity -punishment avoidance: avoid harm obedience to power TERM

-society at large: customs, traditions, laws

method: virtues math with limitation -subjective or incomplete set of good virtues -difficult to measure some human and social costs; the majority may disregard the rights of the minority -difficult to balance conflicting rights -difficult to measure benefits and costs; lack of agreement on fair shares

-subjective or incomplete set of good virtues

Ethical Relativism

A belief that ethical right and wrong are defined by various periods of time in history, a society's traditions, the specific circumstances of the moment, or personal opinion.

ethics

A conception of right and wrong conduct, serving as a guide to moral behavior.

moral intensity

A person's perception of how morally severe an ethical issue is.

spirituality (personal)

A personal belief in a supreme being, religious organization, or the power of nature or some other external, life-guiding force.

Question Mode Multiple Select Question Select all that apply Altruism is accurately characterized by which statements? (Check all that apply.) Multiple select question. ignoring others' ethical principles looking out for number one acting for the benefit of others sacrificing self-interest

Acting for the benefit of others Sacrificing self-interest

Multiple Select Question Select all that apply How can management choose among different ethical approaches that do not lead to the same conclusion? (Check all that apply.) Multiple select question. Assign priorities to each ethical approach. Always put the needs of the firm ahead of all other stakeholders. Decide based solely on the financial implications. Consider the organization's culture and ethical climate.

Assign priorities to each ethical approach. Consider the organization's culture and ethical climate. Need help? Review these concept resources.

Which of the U.S. Sentencing Guidelines applies only after an ethics violation occurs? Multiple choice question. Establishing and training ethical standards to reduce criminal conduct. Monitoring and auditing ethical procedures for reporting purposes. Enforcing standards through appropriate disciplinary actions. Assigning a high-level, risk-free officer for compliance responsibility.

Enforcing standards through appropriate disciplinary actions.

Identify the most accurate definition of ethical relativism. Multiple choice question. Ethical beliefs are common across all relatives within an extended family. All of the world's religions document and teach identical moral values. Ethical principles are defined by time, place, circumstances, and personal opinion. Ethical values remain constant over time, even under different circumstances.

Ethical principles are defined by time, place, circumstances, and personal opinion.

In 2020, the Ethics and Compliance Initiative reported that the most unethical practice at work was Blank______. Multiple choice question. health and safety violations conflict of interest corruption in the workplace abusive behavior in the workplace

In 2020, the Ethics and Compliance Initiative reported that the most unethical practice at work was Blank______. Multiple choice question. health and safety violations Reason: Incorrect. Health and safety violations were the third most common unethical behavior. conflict of interest Reason: Correct. In 2020, the Ethics and Compliance Initiative reported that the most unethical practice at work was conflict of interest. corruption in the workplace Reason: Incorrect. Corruption in the workplace was listed as the fourth most common issue. abusive behavior in the workplace Reason: Incorrect. Abusive behavior was the second most common unethical behavior at work.

Why are the values held by managers especially important in the workplace? Multiple choice question. Managers generally work alone so their values are not critical. Managers serve as organizational role models. Company staff workers must follow their manager no matter what their values are. Managers set the political tone for an organization.

Managers serve as organizational role models.

conflict of interests

Occur when an individual's self-interest conflicts with acting in the best interest of another, when the individual has an obligation to do so.

Identify attributes of practical reasons for business to be ethical. (Check all that apply.) Multiple select question. -Practical reasons include economic objectives that enhance performance. -Practical and normative arguments for ethics in business are mutually exclusive. -They promote philosophical theories about what is right and wrong. -These are strategic arguments that serve to meet business objectives.

Practical reasons include economic objectives that enhance performance. These are strategic arguments that serve to meet business objectives.

Why do critics of the Sarbanes-Oxley Act believe the law is no longer effective?

The Act has not totally eliminated fraudulent financial reports over the past 15 years.

According to an Ethisphere study in 2021, what was the relationship between the world's most ethical firms and a comparable index of large market capitalization companies? Multiple choice question. The large cap firms significantly outperformed the ethical firms. The most ethical firms underperformed slightly compared to the large caps. Both the ethical firms and the large cap firms performed at the same rate. The most ethical firms moderately outperformed the large cap firms.

The most ethical firms moderately outperformed the large cap firms.

When a firm faces criminal charges for ethics violations in the United States, which rules are used to compute culpability? Multiple choice question. guiding ethical principles business ethics U.S. Federal Sentencing Guidelines Sarbanes-Oxley Act

U.S. Federal Sentencing Guidelines

Denying basic human rights is normally considered to be unethical under what conditions? Multiple choice question. Using others for your own purpose, while allowing them to meet their goals. Using others for your own purpose, while denying them their goals and purposes. Treating others impartially while working toward your own goals. Helping others meet their goals while putting most of your own goals on hold

Using others for your own purpose, while denying them their goals and purposes.

competitive pressure on profits typical approach -egotistical mentality -bottom-line mentality -favoritism mentality -ethnocentric mentality

bottom-line mentalitty

attitude: we have to beat the others at all costs match with reason -personal gain and selfish interest -comeptitive pressures on profits -conflicts of interest -cross cultural contradictions

competitive pressures on profits

foreingers hace a funny notion of whats right and wrong match with reason -personal gain and selfish interest -comeptitive pressures on profits -conflicts of interest -cross cultural contradictions

cross cultural contradicitions

personal gain and selfish interest typical approach -egotistical mentality -bottom-line mentality -favoritism mentality -ethnocentric mentality

egotistical mentality

cross cultural contradictions typical approach -egotistical mentality -bottom-line mentality -favoritism mentality -ethnocentric mentality

ethnocentric mentality

True or false. Ethical relativism proves that ethics are not important to business because there are no universal ethical standards. True false question.

false

Normative reasons

for being ethical refer to arguments based on philosophical theories about what is right and wrong

What are some of the costs to business for unethical behavior? (Check all that apply.) Multiple select question. flattening of the stock price reduced employee commitment government penalties and fines stagnated financial performance

government penalties and fines reduced employee commitment

to enhance business performance reasoning

practical

to meet demands of business stakeholders reasoning

practical

basics of ethics reasoning: mature adult hood -principle -society and law -group centered -ego-centered

principle centered reasoning

childhood -universal principles: justice, fairness, universal human rights -moral beliefs above and beyond specific social custom: human rights, social contract, broad constitutional principles -society at large: customs, traditions, laws -social groups: friends, school, coworkers, family -reward seeking: self interest, own needs, reciprocity -punishment avoidance: avoid harm obedience to power TERM

punishment avoidance: avoid harm obedience to power

What are some of the costs to business for unethical behavior? (Check all that apply.) Multiple select question. flattening of the stock price reduced employee commitment government penalties and fines stagnated financial performance

reduced employee commitment government penalties and fines

method: rights math with critical determining factor -values and character -comparing benefits and costs -respecting entitlements -distributing fair shares

respecting entitlements

early adulthood -universal principles: justice, fairness, universal human rights -moral beliefs above and beyond specific social custom: human rights, social contract, broad constitutional principles -society at large: customs, traditions, laws -social groups: friends, school, coworkers, family -reward seeking: self interest, own needs, reciprocity -punishment avoidance: avoid harm obedience to power TERM

social groups: friends, school, coworkers, family

mature adulthood -universal principles: justice, fairness, universal human rights -moral beliefs above and beyond specific social custom: human rights, social contract, broad constitutional principles -society at large: customs, traditions, laws -social groups: friends, school, coworkers, family 0reward seeking: self interest, own needs, reciprocity -punishment avoidance: avoid harm obedience to power

stage 6: universal principles: justice, fairness, universal human rights stage 5: moral beliefs above and beyond specific social custom: human rights, social contract, broad constitutional principles

practical reason

strategic and economic arguments that will help an org meet its business objectives

Select all that apply Select the normative reasons for business to be ethical, as listed in Figure 5.1. (Check all that apply.) to enhance business performance to prevent or minimize harm to promote personal morality to comply with legal requirements

to prevent or minimize harm to promote personal morality