MGMT 1005 Exam 1, 2, & 3
Jeff Skilling
- joined Enron from McKinsey consulting to develop the energy trading business - led the push at Enron to use "mark to market" accounting for the energy trading business
according to Kohlberg, which of the three levels of moral development would be demonstrated by Jeff Skilling if he decided to aggressively use "mark to market" accounting simply because many other companies used it as well and it was considered legal by the Securities and Exchange Commission?
conventional
in the Brookfield, WI "gas grab" video, what level of Kohlberg's theory would the gas purchasers be demonstrating if they defended their actions by explaining "everyone else was doing it"?
conventional
which of Bentham's hedonistic categories is used to measure the pleasure or pain of an act across a population of people?
extent
Dan Ariely's research concluded that reminders were not an effective way to reduce cheating
false
true/false: Arthur Anderson, LLP served as Enron's external auditor for the purposes of certifying Enron's audited financial statements submitted to the SEC, but did not have any other business relationship with Enron
false
true/false: Gilligan could characterize the efforts of the "Alliance" and the "Accord" as being representative of the "separated self," based on competition and not collaboration
false
true/false: Gilligan's stage theory of moral development would define the "post-conventional" level of decision-making as caring for only oneself and not caring for others
false
true/false: Hennepin County Commissioner Jeff Johnson, in the video posted on Canvas, supports the Southwest Light Rail project because it will increase economic development and access to jobs
false
true/false: Kant's Categorical Imperative, with its "Respect for Persons" principle, focuses on making ethical choices based upon the best possible consequences and outcomes for human beings
false
true/false: Kerala fisherman using cell phones were able to be more productive in their fishing, generating more profits, primarily by increasing the price of fish sold in the markets
false
true/false: M-Pesa banking in Kenya is an example of an "asset heavy" business strategy, building elegant buildings with luxurious amenities so the wealthy can have easier access to banking services
false
true/false: Mayor Betsy Hodges offered a deontological reason for building the Southwest Light Rail project when she said "the greater good demands that we seek a path for Southwest LRT to move forward"
false
true/false: Ricardo's theory of "comparative advantage" recognized the value of traditional ways of farming and producing goods, encouraging countries to support local and intergenerational cultural traditions as a way of achieving greater overall economic growth
false
true/false: Walmart approved the Tuba Group's decision to send Walmart's order to the Tazreen factory before the fire in Nov. 2012
false
true/false: all stakeholders interviewed in the news video about the "Poor Door" controversy in New York agreed that the "Poor Door" building policy was ethical, and that the positive utility of cheap rent outweighed the lack of other amenities.
false
true/false: choosing not to drive solo in the carpool lane because you want to avoid the punishment you might suffer if you get caught would be characterized as a "post-conventional" decision, according to Kohlberg
false
true/false: choosing not to engage in accounting fraud simply because you want to avoid the punishment you might suffer if you get caught would be characterized as a "conventional" decision, according to Kohlberg
false
true/false: in the video posted on Canvas, Carlson school graduate Steele Lorenz developed a biomass stove for the rural poor in India, an example of product development within the constraints of the innovation sandbox
false
true/false: in the video we watched about the oil drilling in the Niger Delta, a village elder of the Ogoni people described how the villagers worked together closely with Royal Dutch Shell to ensure that important agricultural and fishing areas would be preserved, ensuring that the benefits and burdens provided by Royal Dutch Shell's oil drilling would be fairly distributed
false
true/false: in the video we watched on Canvas about drug companies being accused of collusion in their pricing of insulin products, a utilitarian analysis would conclude that the patients who are being charged the rapidly increasing prices are being used as a means to an end, and that the drug companies are intentionally making profits at the expense of those human patients who have no other choice
false
true/false: when Adam Smith described his theory of division of labor and specialization, he chose to illustrate his theory with a description of workers in an automobile factory
false (pin factory)
which of Bentham's hedonistic categories is used to measure the repeatability of the *same* level of pleasure or pain as the first time an action occurs for an individual in the second, third, fourth, etc. times that action occurs for that individual?
fecundity
n the National Public Radio article about airline tickets that we read for class, what is the most accurate description of the responses to the public survey questions?
most respondents thought that it was ok to buy the tickets, even though it was obvious that the super cheap fare was a mistake, and most respondents did expect the airlines to honor the tickets
in the Adam Smith excerpt that we read from Wealth of Nations, what concept does he describe that allows individual workers to be more productive, and to benefit from this excess production in the marketplace?
the division of labor and specialization
in the Adam Smith excerpt that we read from Wealth of Nations, what concept does he describe that produces the unintentional outcome of overall wealth for society through the rational self-interest of individuals?
the invisible hand of the marketplace
based upon the information contained in the Exhibits in the Enron case, which of the following statements are CORRECT?
- in her January 2002 letter to Ken Lay, Sherron Watkins said that she was "incredibly nervous that we will implode in a wave of accounting scandals" - Enron's Code of Ethics had a conflict of interest policy with a general rule against full-time officers and employees owning an interest in another entity that does business with or is a competitor of Enron - Enron's Board of Directors in 2000 included Enron executives Ken Lay, Jeff Skilling and Rebecca Mark
in the National Public Radio article about airline tickets that we read for class, what is the most accurate description of "Hamm's Excuse"?
"Hamm's excuse" stands for the proposition that human beings are only responsible for alleviating problems that were personally responsible for
in White's article about Gilligan's ethic of care, the separated self is contrasted with the connected self. which one of the following examples from our course readings and discussions is representative of the "separated self"?
- Bangladesh factory owners choosing not to provide adequate fire safety for workers in order to save money - Enron's competitive "Performance Review Council" rating system for employees
which of the following statements based upon the Delta airlines CNBC video are INCORRECT?
- Delta suffered no negative immediate financial impact as a result of this "glitch" - customers who purchased the cheap incorrect fares were subject to criminal charges
Andy Fastow
- Enron CFO who developed complex "special purpose entities"
based upon the information contained in the Enron case, which of the following statements are *correct*
- Jeff Skilling abruptly resigned as CEO of Enron on Aug. 14, 2001 - before the collapse of Enron, Ken Lay had a career as a highly respected business leader
which of the following response(s) to the McCormick pepper case demonstrate a Kantian Rights analysis?
- McCormick's decision to put less pepper in the same sized can and to charge the same amount is unethical because they knew that most of their customers would not notice and so McCormick was intentionally trying to use customers as a means to an end - McCormick's decision to put less pepper in the same sized can and to charge the same amount is ethical because they put the correct amount clearly on the front of the can and so were not intentionally trying to use customers as a means to an end
which of the following are among the "four As" described by Prahalad?
- access: products must be able to be distributed in rural areas - availability: the product must have an uninterrupted supply
which of the following responses to the factory fires in Bangladesh would be considered an example (or examples) of a voluntary "market economy" response?
- coalitions of retailers banding together to share the costs of factory inspections and choosing to cooperate in the area of fire safety out of respect and care for the workers - individual retailers separately voluntarily choosing to take on the extra costs of inspecting and certifying those factories that would be "approved"
which of the following statements are FALSE based upon the San Francisco "carpool lane" video?
- during the morning rush hour traffic, very few drivers drive solo in the carpool lane - individuals who drive solo in the carpool lane are not breaking the law, merely inconveniencing others
which of the following concepts are NOT a feature of a perfectly competitive free market?
- high costs to enter the market, limiting participation - external parties regulate the price, not buyers and sellers
according to Dan Ariely in his "truth about dishonesty" video, in which of the following situations would someone be LESS likely to cheat or be dishonest?
- stealing a pencil from a person sitting next to you - after being reminded of moral codes - taking cash from a petty cash box - eating at a restaurant without paying
according to Kant, which of the following should be part of the analysis of whether an act is right or wrong?
- universalizability of any action - intent of the actor - respect for persons and dignity
which of the following are the most accurate descriptions of product development as describe in the lecture & Prahalad's article about the "innovation sandbox"?
- when designing products for the BOP, one should immerse oneself in the local culture to meet the actual needs of the customer - when designing products for the BOP, one must operate within certain constraints (the 4 As) so that the products can be affordable and accessible to the customer
choose the correct ranking from the choices below of Enron's three major business units and reported revenues in 2000, from 1 (highest reported revenues) to 3 (lowest reported revenues)
1 - domestic trading & other 2 - international 3 - domestic pipelines
which author wrote the following quote: "this great increase in the quantity of work, which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and, lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many....."?
Adam Smith
Andy Fastow's use of "special purpose entities" is most accurately described by which statement?
Andy Fastow's use of "special purpose entities" violated Kant's categorical imperative because he intentionally used them to deceive investors about Enron's true financial position
which Enron executive had most direct responsibility for Enron's use of special purpose entities (SPEs) to hide bad debt and toxic assets from Enron's consolidated financial statements?
Andy Fastow
what was the key difference between the theories of Bentham & Mill?
Bentham had no hierarchy of pleasures, and Mill said some pleasures were "higher" and some were "lower"
which author wrote the following quote: "However, these four billion people who make up the BOP are not a monolith. They represent multiple cultures, ethnicity, literacy, capabilities, and needs. They can be segmented in multiple ways....."?
C.K. Prahalad
which author wrote the following quote: "It is this principle which determines that wine shall be made in France and Portugal, that corn shall be grown in America and Poland, and that hardware and other goods shall be manufactured in England....."?
David Ricardo
in the Enron case we discussed in class, we discussed reasons why Enron executives might have made the decision to use mark-to-market accounting, including the reason that mark-to-market accounting is commonly followed by many other companies in other industries. after the collapse of Enron, critics have pointed out that mark-to-market accounting was not an accurate way to measure the current value of future contracts in the energy industry, which had highly volatile and unpredictable prices, accusing Enron executives of intentionally fraudulently reporting excessive profits using mark-to-market accounting in order to keep the stock price high, with no regard for transparency to shareholders. which statement most accurately describes the categories of moral development made by each stakeholder *as stated in this paragraph*?
Enron executives' reasoning supporting the use of mark-to-market accounting demonstrates conventional decision making, and critics describe Enron executives' decision making as pre-conventional
an Enron shareholder who purchased stock based upon fraudulent information provided by Enron management could ACCURATELY describe the ethical violation using which statement?
Enron violated Kant's categorical imperative because the deceptive financial statements took away the negative freedom from deception from shareholders, intentionally using them as a means to an end
which statement below is MOST ACCURATE in its description of Carol Gilligan's response to Lawrence Kohlberg's research?
Gilligan thought Kohlberg had NOT accurately captured the stages of moral development for both men and women because his research did not include a broad diversity of research subjects, including only men
which author is credited with formulating the "categorical imperative"?
Immanuel Kant
which author wrote the following words: "that is practically good, however, which determines the will by means of the conceptions of reason, and consequently not from subjective causes, but objectively, that is on principles which are valid for every rational being as such..."?
Immanuel Kant
which author or authors mentioned in the lecture of ethical frameworks explain a theory or theories that would be classified as a "deontological" approach to ethical reasoning?
Immanuel Kant & John Rawls
which Enron executive had most direct responsibility for Enron's shift from primarily distributing natural gas to a company that made most of its revenues trading energy contracts?
Jeff Skilling
which author(s) mentioned in the lecture of ethical frameworks explain a theory or theories that would be classified as a "teleological" approach to ethical reasoning?
Jeremy Bentham & John Stuart Mill
which author is credited with formulating principles for justice as fairness in a constitutional democracy?
John Rawls
which author is credited with giving different values to the measurement "higher" and "lower" sentiments when measuring the overall utility of an action?
John Stuart Mill
which author wrote the following words: "it is better to be a human being dissatisfied than a pig satisfied"?
John Stuart Mill
which moral philosopher OR philosophers would agree with the following statement: When assessing an ethical dilemma and choosing among alternative actions, one must always look to the consequences and outcomes of the action, and choose the action that creates the greatest good for the greatest number, giving greater value to the higher, uniquely human sentiments, and lesser value to the lower sentiments?
John Stuart Mill
which author(s) mentioned in the lecture of ethical frameworks would agree with the following statement: when assessing an ethical dilemma and choosing among alternative actions, one must always look to the consequences and outcomes of the action, and choose the action that creates the greatest good for the greatest number?
John Stuart Mill & Jeremy Bentham
which Enron executive had most direct responsibility for Enron's lobbying for government deregulation of the utilities industry?
Ken Lay
which author wrote the following words: "at the last two stages, then, choice is based on the principles that supersede convention, just as previously the claims of society or convention were seen as the grounds for adjudicating differences between individuals..."?
Lawrence Kohlberg
which of the following response(s) to the McCormick pepper case demonstrate a Justice & Fairness analysis?
McCormick's decision to put less pepper in the same sized can and to charge the same amount is unethical because they did not follow established rules and laws governing "slack fill packaging" that other consumer packaged goods companies must follow
which author wrote the following quote: "It is this convergence - of new players, on a new playing field, developing new processes for horizontal collaboration - that I believe is the most important force shaping global economics and policy in the early 21st century"?
Milton Friedman
which Enron executive had most direct responsibility for Enron's international market segment?
Rebecca Mark
a "rights" argument in opposition to Royal Dutch Shell's oil drilling that could be made by the Ogoni people of the Niger delta is best exemplified by which argument?
Royal Dutch Shell is knowingly polluting the resources needed by the Ogoni to pursue their chosen way of life, taking away their dignity and ability to choose how to provide for their children, and forcing them to move, simply to make more profits
a "justice and fairness" argument in opposition to Royal Dutch Shell's oil drilling that could be made by the Ogoni people of the Niger Delta is best exemplified by which argument below?
Royal Dutch Shell is polluting the resources needed by the Ogoni to pursue their chosen way of life, and this burden is being borne by the Ogoni without compensation from Shell, which has greatly benefitted from the sale of oil it from its drilling operations
a "utility" argument in opposition to Royal Dutch Shell's oil drilling that could be made by the Ogoni people of the Niger Delta is best exemplified by which argument below?
Royal Dutch Shell is polluting the resources needed by the Ogoni to pursue their chosen way of life, and this has resulted in terrible consequences that have impacted farming and fishing and reduced overall societal good
in the video supporting Southwest Light Rail, what is the key reason the mayor of Eden Prairie gives for supporting the project at the beginning of the video?
SWLTR will provide greater access to the many jobs in Eden Prairie for people who live in Minneapolis & St. Paul
which author wrote the following quote: "i am incredibly nervous that we will implode in a wave of accounting scandals"?
Sherron Watkins
which description MOST ACCURATELY describes Enron's use of "mark to market" accounting?
assigns a current value to the anticipated revenues from a future contract
in which way are Kant's and Rawl's theories similar?
both affirm the need for basic human rights and the need to treat others with dignity and respect, regardless of wealth and power
Rick Buy
chief risk officer who led RAC (risk assessment and control)
on the lecture slide featuring Professor Ian Maitland, he describes three standards by which to set wage and safety conditions in developing countries. Which of the following describes allowing the free choices of informed workers to set those wage and safety standards?
classical liberal standard
modern economies contain elements of three economic systems - traditions, commands, and markets. which economic system does government regulation of prices in natural gas markets seek to emphasize?
commands
what stage of Kohlberg's theory of moral development would be demonstrated by Andy Fastow if he were to justify his use of special purpose entities (SPEs) for the simple reason that "all of the other large public companies use SPEs"?
conventional interpersonal-concordance stage
which of Bentham's hedonistic categories is used to measure the length of time a particular act might cause a person to feel pleasure or pain?
duration
which of the following statements is most accurate about Thomas Friedman's conclusion at the end of the article about globalization we read for class?
every individual is going to have to run a little faster if he/she wants to advance his/her standard of living
on the lecture slide featuring Professor Ian Maitland, he describes three standards by which to set wage and safety conditions in developing countries. Which of the following describes setting the wage and safety conditions in the developing country at the same level as in developed countries?
home country standard
what question does Choo Choo Bob ask at the end of each of the videos about Southwest Light Rail?
how can we come up with a solution that makes everybody happy?
if Jeff Smith chose not to challenge Jim Taylor's corrupt scheme in "Mr. Smith Goes to Washington" simply because he decides to follow Senator Paine's advice and to "play ball," doing what all the other senators have chosen to do, in what stage of Kohlberg's moral development would his decision be properly categorized?
interpersonal concordance
in Kohlberg's dilemma, if Heinz were to choose to steal the drug simply because the other people in the town told him that it was the right thing to do, in what stage of Kohlberg's moral development would his decision be properly categorized?
interpersonal concordance
which description MOST ACCURATELY describes Enron's use of "special purpose entities"?
is used to remove toxic debt from the balance sheet through transactions with independent subsidiaries
in Kohlberg's dilemma, if Heinz were to choose not to steal the drug simply because his act would violate the law, in what stage of Kohlberg's moral development would his decision be properly categorized?
law and order
Rebecca Mark
led the Enron business unit that reported $22.8 billion in revenues in 2000
on the lecture slide featuring Professor Ian Maitland, he describes three standards by which to set wage and safety conditions in developing countries. Which of the following describes calculating the actual cost of housing, food, etc. in the developing country to set wage and safety conditions?
living wage standard
according to Kohlberg, which of the three levels of moral development would be demonstrated by Sherron Watkins if she decided to "blow the whistle" on Enron's accounting fraud, knowing that it would cause short term financial pain, because she knew the greater good would be served by her actions?
post-conventional
according to Kohlberg, which of the three levels of moral development would be demonstrated by Andy Fastow if he decided to deceptively use special purpose entities for personal profit, simply because he thought he could get away with it and not be subject to fines and imprisonment?
pre-conventional
in the Brookfield, WI "gas grab" video, what level of Kohlberg's theory would the gas purchasers be demonstrating if they defended their actions by explaining "I just wanted the cheap gas and I don't care if the gas station loses money"?
pre-conventional
what stage of Kohlberg's theory of moral development was demonstrated by the Enron employees who "ranked" each other via the PRC, seeking to benefit themselves individually without regard to the negative impact their actions might have on other employees?
pre-conventional instrumental-relativist stage
if Martin Shkreli defends raising the price of Daraprim simply because he wants to make as much money as he can with no regard to the impact on Daraprim's customers, what level of Kohlberg's stage theory would that be an example of?
pre-conventional level
which level of moral development is characterized by avoiding punishment and seeking rewards simply for oneself?
pre-conventional level
in Kohlberg's dilemma, if Heinz were to choose not to steal the drug simply because he would not want to be punished for his action, in what stage of Kohlberg's moral development would his decision be properly categorized?
punishment-obedience
if Jeff Smith chose to challenge Jim Taylor's corrupt scheme in "Mr. Smith Goes to Washington" simply because he wants to follow the rules and do what is best for all of the citizens he represents for the greater good, in what stage of Kohlberg's moral development would his decision be properly categorized?
social contract
which of the following statements about the "Fire in a Bangladesh Garment Factory" in incorrect?
the Accord on Fire and Building Safety in Bangladesh was a new law passed after the Tazreen fire
after the Tazreen factory fire in Bangladesh, and subsequent fires and building collapses, Western retailers who benefitted from the low cost labor in the Bangladesh garment industry agreed to collaborate with each other to help audit factories, improve worker safety, and save the lives of workers from factory fires. Which statement below is MOST ACCURATE based upon our class discussions and readings?
the Alliance and the Accord were collaborative "market economy" responses to the competitive free market's failure to protect workers
in the homework feedback video we watched featuring Safaricom CEO Bob Collymore, what group did he specifically mention that "needs to be served and there's also commercial viability in doing that."?
the customers at the base of the pyramid for small cash transactions
in the Southwest Light Rail case that we discussed in class, when the Kenilworth Neighborhood residents filed a lawsuit seeking to block the light rail project, alleging that the City of Minneapolis had failed to follow its own rules and procedures and due process by failing to wait for the results of the Environmental Impact Statement, which general category of ethical argument and specific ethical approach are the residents employing to challenge Mayor Hodges' claim that the project will serve the "greater good?"
the lawsuit is supported by a deontological argument, focusing on the lack of procedural fairness and justice in the City's approval process
true/false: John Locke states that gold and silver have value as currency due to the consent of the people, and not because of their practical usefulness in everyday life
true
true/false: Ken Lay was a successful energy utility executive with a PhD degree in economics
true
true/false: a "deontological" form of ethical reasoning focuses on the intent of the actor, and not the consequences and outcomes of an action
true
true/false: a "teleological" form of ethical reasoning focuses on consequences and outcomes of an action, not the intent of the actor
true
true/false: a key characteristic of a stage theory is that each stage is "hierarchally integrated" into the subsequent stages
true
true/false: according to Dan Ariely's research, people are more likely to rationalize stealing a can of Coke worth $1 than a dollar bill itself
true
true/false: at the time of the Tazreen Factory Fire in 2012, the Tazreen factory was known to be dangerous and was not authorized to produce garments for Walmart
true
true/false: choosing to drive solo in the carpool lane because all the other drivers are doing it too would be characterized as a "conventional" decision, according to Kohlberg
true
true/false: choosing to operate a clothing factory with numerous fire safety violations simply because there were no no fines or other punishment for those violations would be characterized as a pre-conventional decision, according to Kohlberg
true
true/false: in the White article about Carol Gilligan's ethic of care, experiments showed that female respondents were more likely than males to return an accidentally-dropped marketing plan without reading it, indicating that they recognized the "connected" nature of business relationships
true
true/false: property owners who desire the outcome of increased property values near the new stations of the Southwest Light Rail project have a teleological rationale for supporting the project
true
true/false: the Triangle Shirtwaist Factory Fire and the Tazreen Factory Fire were similar in many ways, including the fact that many young women died, and that many of the fire exit doors at the times of the fires were inadequate to ensure the safety of the workers
true
in Kohlberg's dilemma, if Heinz were to choose to steal the drug simply because he believes that the dignity of human life is beyond price, and always more important than profit in every situation, in what stage of Kohlberg's moral development would his decision be properly categorized?
universal ethical principle