Deck 5: Ethics of Business: The Theoretical Basis

Question 1

James thinks that he should not consider the needs or interests of others before making ethical decisions.On Kaler's scale of gradations of self-interest and morality,James would be considered:

A)quasi-moral
B)egoism
C)ordinarily moral
D)quasi-egoism
E)ultra-moral

Answer 1

B

Question 2

The hamlet of Smallville had one small store that provided all the basic necessities to the residents.The chain that owned the store decided to shut down the store as the hamlet was too small to allow the store to generate sufficient profits.The people of the town
Were upset and claimed that the damage that it caused them outweighed the harm caused to the chain by the reduced income.The store was closed.The store management applied the principle of ethic to this decision.

A)economic efficiency
B)self-interest
C)justice
D)personal virtues
E)utilitarian

Answer 2

A

Question 3

It isn't enough just to be honest.It is also important that managers and corporations act with compassion.To relocate a factory without considering the harm that would cause to one's community would be unethical.This position supports the principle of ethical analysis.

A)self-interest
B)economic efficiency
C)personal virtues
D)ethic of caring
E)utilitarian

Answer 3

D

Question 4

Students who cheat on this test will receive an "F." This policy,if enacted at your university,would be consistent with the justice principle.

A)Retributive
B)Corrective
C)Procedural
D)Distributive
E)None of the answers.

Question 5

Samantha has applied to work at a local movie theatre.She asks to work the night shift,because that is when her boyfriend works.She is told that she cannot work the night shift because she is female.She reminds the employer that discrimination on the basis of sex is illegal.The manager agrees and Samantha is given her choice of shifts.The manager made the decision on the basis of the ethic.

A)ethic of caring
B)individual rights
C)personal virtues
D)utilitarian
E)justice

Question 6

NTU Restaurants is a leader in the food services sector.Jane applies for a job as a server and is told that she will be working in the kitchen,despite having many years of experience waiting tables.She notices that all the servers are young people,many of whom have no experience in the industry.Jane considers filing a human rights
Complaint.The ethical implications in this example relate to which aspect of business operations for NTU Restaurants?

A)Employees,society at large,and the government
B)Government
C)Only the management team
D)Society at large
E)Employees

Question 7

There are very few parking places near the campus entrances.The university institutes a lottery to equalize the chances for all students and faculty to gain the benefit of parking in these lots.It is seen as fairer that way,even though the other parking spaces on campus are allocated on a 'first come,first served' basis.The lottery system is consistent with the justice principle.

A)Retributive
B)Corrective
C)Distributive
D)Procedural
E)None of the answers.

Question 8

Daniel was considering whether or not he should submit the copy for the annual shareholder's report.He believes that the information does not fully disclose the truth regarding a planned merger.He wonders to himself: "What would my mom say if she
Found out what I was condoning?" Daniel is applying which principle of ethical analysis?

A)Ethic of caring
B)Utilitarian
C)Mother knows best
D)Personal virtues
E)Self-interest

Question 9

The financial analyst for a mining company is asked to estimate the return on investment for a new business opportunity.She informs the CEO that she thinks that ethical issues require consideration because the company's behaviour will be judged on the basis of
Environmental impact.Ethical judgments,she suggests,should be made applying which level of ethical assessment?

A)Level one
B)Level two-value judgment
C)Level two-moral standards
D)Level three
E)Level four

Question 10

Michael is worried about a new product that his company plans to market.He thinks that the marketing campaign planned for the product will lead customers to think that the alternate product in the market is inferior,when the products are not substantively different.The potential ethical implications relate to which aspect of the business operation?

A)Competitors
B)Competitors and Suppliers only
C)Suppliers,Consumers,and Competitors
D)Consumers
E)Suppliers

Question 11

The students were frustrated.Every time they asked their professor to give an ethical assessment,she would reply,"It depends".The professor felt that there were no rules or standards to guide behaviour and that every decision depends on the circumstances.The professor is applying:

A)cultural relativism
B)individual rights
C)ethical relativism
D)personal virtues ethic
E)ethic of caring

Question 12

The decision to relocate the factory to Mexico was difficult,but the shareholders overwhelmingly agreed with the move.The production manager and the other managerial staff were all offered comparable positions in Canada,but the production workers themselves were laid off.The manager argued that managerial staff should be treated differently than the production employees.The manager's decision violated the principle of:

A)personal virtues
B)economic efficiency
C)utilitarian
D)universal rule ethic
E)self-interest

Question 13

The manager of OIL Corporation is considering whether to locate a retail gasoline station across the street from a small,independent retailer.OIL Corporation feels that its ethical obligation is to focus on maximizing profit for shareholders.The manager intuitively feels that opening this location will be good for shareholders and that this is a worthy
Goal for the corporation.The manager is operating at which level of ethical assessment?

A)Level one
B)Level two-value judgment
C)Level two-moral standards
D)Level three
E)None of the answers.

Question 14

The decision to relocate production to a developing nation is complex.There will be certain harms to the current employees in Canada,as well as to the community in which the Canadian factory is located.There are also significant benefits.Some stakeholders,
Such as the stockholders,will feel these benefits more than others.The future employees in the developing nation will certainly benefit from the relocation.Other options are
Considered and it is determined that the benefits of relocation outweigh the negatives.The decision is made on the basis of the principle of ethical reasoning.

A)universal rule
B)personal virtues
C)utilitarian
D)economic efficiency
E)ethic of caring

Question 15

Immanuel is expanding his business and will be contracting with a factory in Vietnam to produce product that he will sell globally from his Canadian head office.He is sensitive to the different cultures and will attempt to ensure that his business practice reflects this awareness.He knows that what is morally appropriate in Canada may not be morally appropriate in Vietnam.Immanuel is applying:

A)ethic of caring
B)personal virtues ethic
C)ethical relativism
D)individual rights
E)cultural relativism

Question 16

LZY Corporation has been accused of misleading advertising.The product displayed in their television advertisement does not look like the product consumers purchase in stores.The claim is made that LZY Corporation is not a good corporate citizen in that
The advertising is deceptive and corporations should be honest in their advertising.This complaint implies an application of the principle of ethical analysis.

A)utilitarian
B)ethic of caring
C)self-interest
D)personal virtues
E)None of the answers-individuals are ethical,not corporations.

Question 17

The partnership had reached a point where both Jane and Jack decided to terminate their relationship.Every day at work,they argues in the presence of customers and other employees.Jack was so annoyed that he was prepared to walk away and personally saw nothing wrong with that.He knew Jane was prepared to leave him with their joint debts and just walk away and he thought that he should do it before she did.Because of the debts held by the company,however,he knew that he couldn't just walk away.Jack is
Influenced by in determining what behaviour is ethical in his particular
Circumstance.

A)colleagues or peers
B)individual morals
C)the legal system
D)All responses are correct.
E)None of the answers.

Question 18

A food manufacturer is relocating operations to a facility where the product may come into contact with peanuts.Although this manufacturer has never marketed its product as peanut free,the CEO is aware that,amongst parents of children with peanut allergies,
Their company's product is considered safe.The CEO is aware that this may raise ethical concerns.The CEO is operating at which level of ethical assessment?

A)Level one
B)Level two-value judgment
C)Level two-moral standards
D)Level three
E)Level four

Question 19

"It doesn't seem fair that I have to pay employees even if they don't work on the statutory holiday," lamented Wesley,"but,I guess that I have no choice." This example shows the influence of a(n)ethic on decision-making.

A)utilitarian
B)government requirements
C)personal virtues
D)ethic of caring
E)economic efficiency

Question 20

Dave is unhappy with the downsizing decision made by his firm.He has been employed for many years with the company and he thought that his seniority would have protected him.He believes that he is the only long-term employee to be released and wonders why the policy didn't apply to him.Dave's concern is regarding justice.

A)Distributive
B)Corrective
C)Retributive
D)Procedural
E)None of the answers.

Question 21

Value judgments are based on how society interprets the goals of the firm.

Question 22

Some managers assess the moral implications of a decision by its economic consequences and a moral justification is based on the workings of a market system.

Question 23

Kim is surprised when doing business in another country that the workers seemed to believe that they have a right to have their jobs.His experience in Canada was always that employees didn't feel they "owned" their positions.This experience represents the influence of national and ethnic cultures on ethical behaviour.

Question 24

Francois was shocked by the hiring practice of his closest competitive rival.He would
never have thought of directly recruiting his competitor's employees,but that is precisely what his rival was doing to him."Fine," thought Francois,"If he does it,so will I." This experience represents the influence of colleagues and peers on ethical behaviour.

Question 25

Which is the most appropriate of the approach to consider ethical implications?

A)Approach 1
B)Approach 2
C)Approach 3
D)Approach 4
E)Approaches 2 and 4

Question 26

When Julio was a child,he witnessed the suffering his father experienced after being laid off.Today,as a manager,he is determined to never layoff a worker if he can help it.This conviction represents the influence of individual morals on ethical decision-making.

Question 27

Assessment of the ethical implications of business decisions is a three-stage process.

Question 28

"I will follow the law and allow the employee to have parental leave," said the human resource manager."The law is there for a reason and I have a duty to uphold the law." The human resource manager is most probably operating at the stage of moral
Development.

A)Universal ethical principles orientation
B)Punishment and obedience orientation
C)Law and order orientation
D)Mutual interpersonal expectations,relationships,and conformity orientation
E)Social contract orientation

Question 29

The Competition Act makes some questionable market practices illegal and thus discourages some managers from becoming involved in such practices.

Question 30

Moral standards are the means by which actions are judged.

Question 31

Challenges to ethics in business include the following 'myths',except:

A)It is easy to be ethical.
B)'Just do the right thing.'
C)Most people are amoral.
D)People are less ethical than they used to be.
E)'Bad apples' are the cause of unethical behaviour.

Question 32

Adam,a manager,is concerned with how to translate the rules and principles that guide morally appropriate behaviour into decisions that will affect his firm's product
development.He is concerning himself with the ethics of business.

Question 33

Business ethics is not concerned with rules and guidelines for morally right behaviour.

Question 34

Ignoring the ethical implications of a decision is amoral according to which approach?

A)Approach 1
B)Approach 2
C)Approach 3
D)Approach 4
E)Approaches 2 and 4

Question 35

Ethics is a recent concern for business.

Question 36

Most of the influences on ethical standards have a theoretical basis of ethical assessment.

Question 37

When ethical principles are chosen as a basis of what is considered right,regardless of society's views,the orientation has been used.

A)Law and order
B)Universal ethical principles
C)Mutual interpersonal
D)Social contract
E)Exchange

Question 38

Which implicit bias exists when an individual shows preference towards an association to which they are a member?

A)Conflict of interest
B)Favouritism
C)Prejudice
D)Overclaiming credit
E)None of the answers

Question 39

According to Kohlberg's stages of moral development,it is believed that most managers use

A)exchange; obedience
B)conformity; law and order
C)conformity; obedience
D)law and order; social contract
E)social contract; universal ethical principles

Question 40

The perspective that businesspersons are less ethical than others has been a result of the traditional view of the free enterprise system.

Question 41

The personal virtue ethic applies to the application of personal traits,such as honesty,to ethical decision-making.Because a corporation isn't a person,this model only describes the behaviour of individual leaders and not the corporation itself.

Question 42

Ethical relativism is a form of ethical assessment that is consistent with Level 3.

Question 43

According to Hosmer,ethics remain the same and do not differ among people,cultures, or countries,but morals and values do differ among people,cultures,or countries.

Question 44

Managers seldom confuse ethics,morals,and values.

Question 45

Moral reasoning is a systematic approach to considering the implications of a moral issue.

Question 46

The ethic of justice is solely based on one value,that of fairness.

Question 47

In terms of the implications of a decision,after the fact (as justifications)is typical of Approach 2.

Question 48

The Inter-conventional level is one of Kohlberg's stages of moral development.

Question 49

"Do unto others as you would have them do unto you." The Golden Rule is reflective of the personal values approach to ethical analysis.

Question 50

Adam Smith's Wealth of Nations advocated managers and corporations to take selfish actions and be motivated by personal gains in business dealings.

Question 51

Kaler's gradations of self-interest would identify egoism as non-moral.

Question 52

The economic efficiency ethic judges moral implications by economic consequences.

Question 53

Cultural relativism is a type of ethical relativism.

Question 54

Altruists are ultra-moral.

Question 55

Ethical dilemmas should be resolved by the impartial application of some general principle.This is the viewpoint of the ethic of individual rights.

Question 56

"Just do the right thing" is a suitable guide for determining acceptable moral behaviour.

Question 57

The ethic of caring is concerned with equality,not equity.

Question 58

Universal ethical principles orientation is situated in the post-conventional level of Kohlberg's stages of moral development.

Question 59

A cost-benefit analysis is done on the preferred option in utilitarian analysis and if this is seen as beneficial,no further analysis is required.

Question 60

The self-interest ethic means that individuals or corporations derive their standards for
judging the ethical implications of their actions from the corporate culture in which they work.

Question 61

What is meant by the term "roboethics"?

Question 62

It is a myth that "people are less ethical than they used to be." Ethical behaviour today is not that different than in the past.

Question 63

Identify the four forms of justice.

Question 64

Discuss Kohlberg's post-conventional level stages.

Question 65

Explain how economic efficiency influences a corporation.

Question 66

What are the three myths pertaining to business ethics?

Question 67

Compare implicit prejudice bias to overclaiming credit bias.

Question 68

Implicit prejudice is a bias that emerges from unconscious beliefs such as stereotyping.

Question 69

Technological advances in society do not lead to new ethical challenges.

Question 70

Describe what is meant by the universal rules ethic in term of how it applies to managers or corporations.

Question 71

Discuss the three levels of assessing ethical implications.

Question 72

Summarize the influences on ethical behaviour.

Question 73

"It's easy to be ethical" is not a myth.It takes a conscious effort,and a system of checks and balances,but it is achievable by all human beings.