CHT 3 Ethics in Business
Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.
True
Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace universally is viewed as ethical.
False
Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired) instead of subjective impacts on stakeholders.
False
Once a law is passed to codify an ethical requirement, the ethical aspect of the action is no longer important.
False
Outcome-based ethics deals with traditional standards of behavior.
False
Rationalization is the process of making a logical decision based in evidence and an analysis of the ethical dimensions of the decision.
False
The study of ethics goes no further than the requirements of the law to evaluate what is right for society.
False
The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.
False
Under the "stakeholder view," no group ever has a greater stake in company decisions than the shareholders do.
False
Under the categorical imperative, an unethical decision that would have only a small impact is acceptable as long as no one else in society acts the same way.
False
Under the principle of rights theory, the key factor in a decision is how the result may harm the rights of the company to make money.
False
When profit maximization is the goal, a company does not benefit from ethical behavior.
False
An overemphasis on long-run profit maximization is a common reason for ethical problems that occur in business.
False
Because it may be unclear how a court will interpret and apply a law, companies can ensure decisions are viewed as ethical by documenting their own interpretation of the law.
False
Because social media is so widespread, it is legal and ethical for a company to have social media policies limiting employees from criticizing the company.
False
Conduct that is legal is ethically unquestionable.
False
Congress does not pass laws based on ethics.
False
Decision makers need to consider what they can and will do before they consider what they should do.
False
Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.
False
As part of the IDDR approach as described in the text, it is important to list many possible actions and analyze them using several different ethical theories.
True
Company codes of conduct set forth company policies and expectations for different issues.
True
Congress enacted the Sarbanes-Oxley Act to help reduce unethical management decisions.
True
Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.
True
Corporate social responsibility may increase a business's reputation or goodwill.
True
Duty-based ethics is based in the idea that every business has certain duties to others.
True
Ethical decision makers should test and reflect on the outcome of their decisions.
True
Ethics is a branch of philosophy that focuses on morality.
True
Global businesses need to be conscious of the impact of different religious principles on ethics.
True
It can be difficult to predict with certainty how a court will apply a given law to a particular action.
True
One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior.
True
One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.
True
Outcome-based ethics determines what is ethical by looking at the potential benefits and harms of a given action.
True
The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it.
True
The first step in making an ethical decision is to understand the problem.
True
When making ethical decisions, a business should evaluate the financial implications.
True