Deck 1: Law, Ethics, Business: An Introduction

Question 1

Describe the philosophy of noted economist,Milton Friedman,on the issue of "free market ethics."

Answer 1

Friedman held that it is wrong for managers to use corporate resources to deal with problems in society at large.Decisions regarding such social problems should be addressed by governments in the political arena and funded by tax dollars.A decision by corporate managers to aid society is,in effect,theft of stockholders' resources.

Question 2

The best example of a source for virtue ethics for a business is

A)newspapers articles about the corporation.
B)the corporate mission statement.
C)the documentation in human resources justifying the hiring of new staff.
D)the resumes of the members of the board of directors and the officers.

Answer 2

B

Question 3

All of the following are considered exceptions to the general rule that there is no duty to rescue except:

A)Contract - lifeguards,for example,have signed contracts agreeing to rescue people in exchange for pay and benefits.
B)Witnessing an accident - this creates a duty to step in and help the injured
C)Child abuse- statutes in nearly all states require that one report suspected child abuse.
D)Endangerment - if one puts another in danger,then he/she is obligated to rescue that person.

Answer 3

B

Question 4

Which of the following statements is INCORRECT regarding the rights of shareholders?
I)voting power on major issues and ownership in a portion of the company
II)right to transfer ownership and dividend entitlement
III)hire and fire management and select and appoint a chief executive

A)I and II
B)I,II,and III
C)I only
D)III only

Question 5

Which of the following views on outsourcing would be consistent with the free market ethics approach advocated by Milton Friedman?

A)Outsourcing is detrimental to the economy because it limits profitability.
B)Outsourcing decreases efficiency and productivity.
C)Outsourcing enhances competitiveness,modernization,and bigger market opportunities.
D)Automating processes and replacing workers is unethical since it does not serve a greater good.

Question 6

Discuss the differences in utilitarianism and values ethics in making a decision.

Question 7

Which of the following statements best illustrates the view of "utilitarianism"?
I)From each according to his abilities, to each according to his needs.
II)The risk reasonably to be perceived defines the duty to be obeyed and risks imports relation; it is risk to another or to others within the range of apprehension.
III)An action is right when maximizing welfare and total well-being.
IV)Individuals should pursue his or her own self-interest, even at the expense of others.

A)I only
B)III only
C)I and II
D)I,II,and III

Question 8

Explain why laws exist that do not impose a duty to rescue.

Question 9

The Ethic of Care is

A)A set of rules that explain how to prioritize those people affected by a decision so that a utilitarian analysis can be done successfully.
B)A set of universal principles,which applied evenly to all decisions will result in fairness and equity in ethical decisions.
C)The idea that we should all make decisions under the assumption that we don't know our station in life,that we could be the person most negatively impacted by the decision.
D)A set of principles that encourage decision makers to look at human relationships as a primary motivator for a decision.

Question 10

Corporate director or officer decisions to dedicate corporate funds for social causes is called:

A)Corporate Social Responsibility (CSR)
B)Social Activism (SA)
C)Business Engagement in Environmental Situations (BEES)
D)Strategic Investment in Stakeholder Issues (SISI)

Question 11

The chapter discusses a number of different ethical theories or approaches to decision making.Discuss the potential dangers of relying solely on one theory or approach.

Question 12

Select the best definition of ethics:

A)a fairly clear cut set of guides for decision making.
B)a set of relatively unclear principles regarding what we must do.
C)a set of relatively unclear principles regarding what we should do.
D)religious views about the world.

Question 13

Assuming a business ethical dilemma,which statement best illustrates Gilligan approach suggested in her theory of "The Ethics of Care"?

A)individual rights and justice for all
B)applies only to women and not men
C)care and responsibility to others
D)obedience to independent moral rules or duties

Question 14

Choose the statement regarding duty to rescue that is false:

A)There is no general duty to rescue an individual.
B)One basis for not imposing individual rescue liability is: An individual should have a right of freedom of action,privacy and personal autonomy not to intervene and perform rescue.
C)Under a liberal-communitarian approach,citizens owe a duty to the state to rescue other citizens based on reciprocal rights and duties.
D)When one taunts another person who then puts themselves in danger in response to the teasing,the teaser has a duty to rescue the other.

Question 15

According to Citizens United v.Federal Election Commission,which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?

A)Political speech is the most important,and most protected,speech that exists.It is crucial to the democratic process that political speech be encouraged and heard.
B)The immense wealth of a corporation allows it to be the most accurate in providing messages to people.
C)Presidents and members of Congress often consult with corporate leaders on a number of issues,suppressing all corporate political speech would eliminate the ability for non-profits and smaller corporations to oppose or reject publicly the position of those larger corporations being consulted.
D)Restrictions do not protect minority or dissenting shareholders because they can address disagreement through the corporate democratic process.

Question 16

From where do ethical preferences originate?

Question 17

Describe the difference between the law and ethics.

Question 18

Laws must be static and unyielding in order to provide stability for a society.

Question 19

Discuss how multinational corporations can be both a benefit and a detriment to society.