Deck 42: Ethics and Social Responsibility of Business

Question 1

Utilitarianism directs an individual to choose the action that provides the greatest good for the greatest number of people.

Answer 1

False

Question 2

In Kantian ethics,the principle of inconsistency postulates treating all ethical cases differently.

Answer 2

False

Question 3

An ethically wrong state or condition can still be legal.

Answer 3

True

Question 4

The False Claims Act grants the private party a share in the monetary recovery made in a whistleblower case.

Question 5

Under ethical fundamentalism,a person looks to an outside source for ethical rules or commands.

Question 6

The False Claims Act permits private parties to sue the government on behalf of a corporation.

Question 7

All laws are framed to meet the highest ethical standards.

Question 8

Relativism is one of principles of Kantian ethics that states that the actor must abide by the rule he or she uses to judge the morality of someone else's conduct.

Question 9

Ethics refers to a set of principals laid down by the society which an individual is expected to follow.

Question 10

Kantian ethics is based on the premise that people can use reasoning to reach ethical decisions.

Question 11

The categorical imperative "Do unto others as you would have them do unto you" is an illustration of Kantian ethics.

Question 12

Kantian ethics is also known as duty ethics.

Question 13

If an action would increase the good of twenty-five people by one unit each and an alternative action would increase the good of one person by twenty-six units,then,according to utilitarianism,the latter action should be taken.

Question 14

Kantian ethics distinguishes between the morality one uses to judge others and the morality one uses on oneself.

Question 15

Gregory,who looks up to the principles of Dr.Martin Luther King Jr.for ethical rules is an ethical fundamentalist.

Question 16

Kant believed that people owe moral duties that are based on universal rules.

Question 17

The main criticism for ethical fundamentalism is that it does not allow people to decide what is right or wrong for themselves.

Question 18

One of the advantages of utilitarianism is that it is easy to apply in most real-life situations.

Question 19

According to Kantian ethics,one would be obligated to abide by a contract even if that contract turns out to be detrimental to the obligated party.

Question 20

Utilitarianism postulates doing the greatest good for the greatest number of people.

Question 21

The traditional view of social responsibility of business emphasized maximizing profits for employees rather than shareholders.

Question 22

Section 406 of the Sarbanes-Oxley Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.

Question 23

There are no specific governmental laws endorsing a moral minimum of social responsibility on corporations.

Question 24

________ is an ethical theory where a person adheres to rules or commands that are from an outside source,like a book or a central figure.

A)Ethical fundamentalism
B)Utilitarianism
C)Ethical relativism
D)Rawls's social justice theory

Question 25

If a business plan aims at increasing national employment but results in smaller profits for the corporation,it is in accordance with the traditional view of social responsibility.

Question 26

According to Rawls's social justice theory,moral duties are based on an implied social contract.

Question 27

________ is a set of moral principles or values that governs the conduct of an individual or a group.

A)Rationality
B)Evolution
C)Ethics
D)Reason

Question 28

The theory of moral minimum emphasizes correcting social injuries caused by a business.

Question 29

The theory of moral minimum stresses on making profit even while causing harm to others.

Question 30

According to Rawls's social justice theory,a person who is in a state of "veil of ignorance" is best fit to select the fairest possible ethical principles.

Question 31

The theory of corporate citizenship contends that corporations owe a duty to promote the same social goals as individual members of society.

Question 32

According to ethical relativism,an action that is usually thought to be unethical would not be considered unethical if the perpetrator thought it was ethical.

Question 33

The theory of stakeholder interest compels a corporation to consider the effects of its actions specifically on shareholders.

Question 34

In accordance to the stakeholder interest theory,a corporation must view employees solely as a means of maximizing shareholder wealth.

Question 35

Ethical relativism holds that moral standards ought to be based on an individual's feelings of what is right or wrong.

Question 36

The social contract theory is derived from Rawls's social justice theory.

Question 37

Under the theory of ethical relativism,fairness is considered the essence of justice.

Question 38

Which of the following cases describes an agreement of ethics and laws?

A)A company outsourcing its jobs to a foreign country.
B)A person being penalized for bribing a judge to rule a case in the person's favor.
C)A company not spending more money to keep its emission rates below the legal standard.
D)A person hiring an illegal alien worker whose family is in destitute.

Question 39

A corporation that pollutes a body of water has not met its moral minimum duty of social responsibility even if the business later compensates those whom the pollution has injured.

Question 40

The theory of maximizing profits holds that the interests of constituencies other than the business itself are not important in and of themselves.

Question 41

How are ethical rules established in Kantian ethics?

A)by a set of universal rules that are based on consistency and reversibility
B)by following principles that have been derived from holy books
C)by an individual's feelings on what is right and wrong
D)by choosing the alternative that's best for society as a whole

Question 42

The Whistleblower Statute is also known as the ________.

A)Sarbanes-Oxley Act
B)Business Norms
C)False Claims Act
D)Glass-Steagall

Question 43

Portman,who runs a computer hardware store,had signed a contract with Stewie Inc.to deliver 125 computer monitors.He was to deliver it by the 5th of August,but by the 3rd of August,Portman could not arrange for the monitors,as his usual supplier was not available.Portman then decided to go to another supplier who had a higher selling price rather than cancel the contract with Stewie Inc.as he believed it was his duty to do so.What of the following moral theories matches Portman's behavior?

A)Kantian ethics
B)utilitarianism
C)Rawls's social justice theory
D)moral relativism

Question 44

Consistency and ________ are the two principles of Kantian ethics that states that a person must abide by the rule he or she uses to judge the morality of someone else's conduct.

A)reversibility
B)relativity
C)perspectivism
D)utilitarianism

Question 45

Which of the following is a perceived disadvantage of Kantian ethics?

A)It treats morality as if it were an impersonal mathematical calculation.
B)It does not allow people to have subjective notions of right and wrong.
C)It is based on universal rules that have no common consensus.
D)It distinguishes between the morality one uses to judge others and the morality one uses on oneself.

Question 46

________ is a moral theory which says that people owe moral duties that are based on universal rules.

A)Rawls's social justice theory
B)Kantian ethics
C)Utilitarianism
D)Moral relativism

Question 47

Which of the following moral theories would closely follow the categorical imperative "Do unto others as you would have them do unto you?"

A)Kantian ethics
B)moral relativism
C)utilitarianism
D)Rawls's social justice theory

Question 48

According to ________,keeping a promise to abide by a contract is a moral duty even if that contract turns out to be detrimental to the obligated party.

A)utilitarianism
B)Kantian ethics
C)Rawls's social justice theory
D)moral relativism

Question 49

A government or political party that strictly derives its ethics and laws based on a specific religious book is an example of ________.

A)utilitarianism
B)ethical fundamentalism
C)ethical relativism
D)Kantian ethics

Question 50

________ is a moral theory which asserts that fairness is the essence of justice.

A)Kantian ethics
B)moral relativism
C)utilitarianism
D)Rawls's social justice theory

Question 51

Consistency is one of the two important principles of ________ upon which its universal laws are based.

A)utilitarianism
B)Kantian ethics
C)Rawls's social justice theory
D)moral relativism

Question 52

Reversibility is a principle of Kantian ethics which says that ________.

A)a person must be allowed to reverse his moral judgment to better suit his needs
B)a person must treat all moral circumstances as one
C)a person must be allowed to selectively choose moral judgments based on the circumstances
D)a person must abide by the rule he or she uses to judge the morality of someone else's conduct

Question 53

Jules Renton,a financial accountant at Valkyrie Aviations,deals with the accounts Valkyrie has with the government.Valkyrie Aviations are in contract with the government to deliver a new bomber plane called Spearhead.While reviewing the Spearhead account,Renton noticed that Valkyrie has been falsely billing the government for Spearhead's production.If Renton chooses to be a whistleblower and expose the scam to the government,what Congress enacted statute must he invoke?

A)Business Norms Act
B)False Claims Act
C)Sarbanes-Oxley Act
D)Glass-Steagall Act

Question 54

Which of the following moral theories lays emphasis on morality based on one's moral duties?

A)moral relativism
B)utilitarianism
C)Kantian ethics
D)ethical fundamentalism

Question 55

Kantian ethics is also referred to as ________ ethics.

A)relativistic
B)utilitarian
C)duty
D)nihilistic

Question 56

Which of the following theories of morality is Rawls's Social Justice Theory fundamentally derived from?

A)the theory of utilitarianism
B)the theory of ethical fundamentalism
C)the social contract theory
D)the theory of moral relativism

Question 57

Charlotte works as a teacher in Africa.Every Sunday,she visits nearby villages and convinces families to send their children to school.She arranges accommodation for these children and helps them with their education.In a recent interview,Charlotte mentioned that she looks up to Mother Teresa not only for inspiration but also to resolve ethical dilemmas.Which of the following theories would support Charlotte's approach to ethics?

A)ethical fundamentalism
B)utilitarianism
C)Kantian ethics
D)ethical relativism

Question 58

Which of the following is an apparent disadvantage of utilitarianism?

A)It does not allow people to have subjective notions of right and wrong.
B)It is based on moral duties derived from universal rules.
C)It puts too much emphasis on one book or theory.
D)It treats morality as if it were an impersonal mathematical calculation.

Question 59

________ Act is a federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.

A)Business Norms
B)Sarbanes-Oxley
C)Glass-Steagall
D)False Claims

Question 60

Which of the following statements describes the moral theory of utilitarianism?

A)People must choose the action or follow the rule that provides the greatest good to society.
B)People must follow actions that are in accordance with a specific moral rule or principle from a religious text.
C)People must choose to follow actions of a virtuous person.
D)People must follow actions based on moral duties imparted from one's community.

Question 61

Under the theory of ________,if a business corrects the social injury it causes,it has met its duty of social responsibility.

A)moral minimum
B)maximizing profits
C)corporate citizenship
D)stakeholder interest

Question 62

Explain the two principles used to derive the universal rules of Kantian ethics?

Question 63

Which of the following is a perceived disadvantage of Rawls's social justice theory?

A)It allows for those in advantageous positions to suppress people in least advantageous positions.
B)It doesn't consider the fact that people would not want to maximize benefits for the least advantaged persons.
C)It only allocates people in advantageous positions to set up rules on morality.
D)It postulates that there are no universal ethical rules to guide a person's conduct.

Question 64

Sinbad Cola,a soft drink manufacturer,recently opened a plant in Buron.The wastages from the plant were dumped in the Buron Sea,situated a mile away from the plant.Dumping of wastes in the sea resulted in water pollution,which negatively affected the Buron fishing business,and also resulted in groundwater contamination.Sinbad Cola compensated by bringing contamination levels down with additional filters,and paying damages to the local fisheries.Which theory of business social responsibility did Sinbad Cola meet when they compensated for their harmful wastage disposal methods?

A)moral minimum
B)stakeholder interest
C)corporate citizenship
D)maximizing profits

Question 65

How are ethical rules established in Rawls's social justice theory?

A)by a set of universal rules based on consistency and reversibility
B)from an original position of a veil of ignorance
C)by the ruling class or people in advantageous positions
D)by following what's best for the society as a whole

Question 66

The ________ Act enacted by Congress in 2002,requires public companies to adopt codes of ethics,and establishes criminal penalties for companies that partake in violations.

A)Glass-Steagall
B)Sarbanes-Oxley
C)False Claims
D)Business Norms

Question 67

According to ethical relativism,________.

A)ethics rely on duties based around universal rules which one is morally bound to follow
B)each person is presumed to have entered into a social contract with all others in society to obey moral rules
C)there are no universal ethical rules to guide a person's conduct
D)people must choose an action or follow a rule that provides the greatest good to society

Question 68

Which of the following moral theories will help an anthropologist study ancient societies with an impartial and unprejudiced mindset,especially when it relates to ethics and customs followed by ancient societies to that being followed in present societies?

A)Rawls's social justice theory
B)utilitarianism
C)Kantian ethics
D)ethical relativism

Question 69

What is "maximizing profits" as a social responsibility theory in business?

A)The theory that a corporation must consider the effects its actions have on persons other than its shareholders.
B)The theory that a corporation's duty is to make a profit while avoiding causing harm to others.
C)The theory that a corporation owes a duty to take actions that increases profits for shareholders.
D)The theory that a business has a responsibility solely to its stakeholders that other than shareholders.

Question 70

________ is a social responsibility theory of business which says that a corporation must consider the effects its actions have on persons other than its shareholders.

A)Corporate citizenship
B)Maximizing profits
C)Moral minimum
D)Stakeholder interest

Question 71

What is "corporate citizenship" as a social responsibility theory in business?

A)Businesses are responsible to even helping solve social problems that it did not cause.
B)Businesses owe a duty to take actions that increase profits for shareholders.
C)Businesses have a responsibility solely to its stakeholders,and should strive to maximize their well-being.
D)Businesses are obliged to consider the effects its actions have on persons other than its shareholders.

Question 72

A social responsibility theory of business which says that a corporation's duty is to make a profit while avoiding causing harm to others is referred to as ________.

A)stakeholder interest
B)corporate citizenship
C)maximizing profits
D)moral minimum

Question 73

Conch Corporation,a global oil and gas company,has plans to open a subsidized postsecondary vocational school in the town of Cristen,where one of their offices is situated.The plan was put to vote and approved despite some objection from shareholders.The school is being opened in collaboration of the local government,and the objective is to help the youth of that neighborhood,especially dropouts,learn a vocational skill.What social responsibility theory describes Conch Corporation's move to open the school?

A)moral minimum
B)maximizing profits
C)corporate citizenship
D)stakeholder interest

Question 74

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.
If Steve Templeton,after wagering all the factors,finds that the loss to the employees and the community is far greater than the one incurred by the shareholders,and decides to keep the plant open in Kantron.
Which of the following moral theory matches Steve Templeton's approach in keeping the plant open?

A)Kantian ethics
B)Rawls's social justice theory
C)ethical fundamentalism
D)utilitarianism

Question 75

Give an account of the relationship between ethics and law.

Question 76

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.
If Steve Templeton,after wagering all the factors,finds that the loss to the employees and the community is far greater than the one incurred by the shareholders,and decides to keep the plant open in Kantron.
If Steve Templeton decides to close the plant in Kantron,what important business social responsibility will Steve Templeton accomplish?

A)moral minimum
B)corporate citizenship
C)maximizing profits
D)stakeholder interest

Question 77

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.
If Steve Templeton,after wagering all the factors,finds that the loss to the employees and the community is far greater than the one incurred by the shareholders,and decides to keep the plant open in Kantron.
If Steve Templeton decides to not close the plant in Kantron,what business social responsibility will Steve Templeton be achieving?

A)moral minimum
B)corporate citizenship
C)maximizing profits
D)stakeholder interest

Question 78

ULab Inc.,a biotechnology firm,recently had a fire in one of their offices which resulted in the office building being gutted.The employees were not trained for a fire drill,and the 10-storey building had no fire escape route which resulted in many employees being hospitalized for physical injuries,burns and toxic smoke inhalation.What important social responsibility theory was ULab negligent of by not training their employees in case of a fire and not installing a fire exit?

A)corporate citizenship
B)moral minimum
C)stakeholder interest
D)maximizing profits

Question 79

________ is a moral theory which holds that individuals must decide what is ethical based on their own feelings about what is right and wrong.

A)Ethical relativism
B)Kantian ethics
C)Utilitarianism
D)Rawls's social justice theory

Question 80

Which of the following moral theories matches the dictum "I will keep the rules if everyone else does?"

A)perspectivism
B)social contract
C)moral relativism
D)utilitarianism