Deck 7: Business Ethics

Question 1

A court awards punitive damages to a plaintiff only if malicious and willful misconduct by a company was established.

Answer 1

True

Question 2

A critical function of managers is to create strong competitive strategies that enable a company to meet its strategic objectives even if it means encouraging ethical compromise.

Answer 2

False

Question 3

According to the theory of moral unity,there are two different standards for ethics: one for society in general and another one for business.

Answer 3

False

Question 4

Logical positivism is a school of thought that rejects ethical perfection,taking the position that human affairs will be characterized by flawed behavior.

Question 5

Executives are more often prosecuted than corporations,though harder to convict.

Question 6

Demographic factors explain a lot about what individual qualities are associated with ethical behavior.

Question 7

Top managers are the strongest influence on the integrity of the company's managers.

Question 8

Most companies focus more on an ethics approach to prevent wrongdoing than on a compliance approach.

Question 9

All corporate cultures have ethical dimensions.

Question 10

Most U.S.companies have a written code of ethical conduct.

Question 11

Training is the key to communicating ethics and compliance knowledge.

Question 12

There is overwhelming evidence that individuals are influenced to be more or less ethical by the situations they are in.

Question 13

When managers are convicted of criminal behavior,prison sentences are imposed based on a numerical point system.

Question 14

The belief that business should be conducted without reference to the full range of ethical standards,restraints,and ideals in society is known as business ethics.

Question 15

Standards of ethical behavior were arguably clearer in ancient Greek civilization than they are now.

Question 16

The basic purpose of the study of ethics is to have individuals in society act cooperatively as a social whole.

Question 17

What is right or wrong in a business decision involving ethical concerns is always a clear decision.

Question 18

When a court makes a monetary award to a plaintiff to correct concrete losses of his business,this is called punitive damages.

Question 19

When a company signs a DPA or NPA it is indicted.

Question 20

Different countries have the same ethical values.

Question 21

When a manager acts toward a customer in a favorable way in the hope that the customer will return for future purchases,this is an example of:

A) reciprocity.
B) utilitarianism.
C) realism.
D) manipulation.

Question 22

The idea that "the ends justify the means" was a basic tenet of:

A) reciprocity.
B) the theory of moral unity.
C) Machiavelli.
D) Donaldson and Dunfee.

Question 23

The study of good and evil,right and wrong,and just and unjust actions in business is called:

A) moral free space.
B) corporate culture.
C) business ethics.
D) moral muteness.

Question 24

Jeremy Bentham developed the idea of _____ as a guide to ethics.

A) utilitarianism
B) deontology
C) virtue ethics
D) ethical egoism

Question 25

Friedrich Nietzsche's idea that great men made their own ethical rules without respect for the general good was called:

A) master morality.
B) the theory of moral responsibility.
C) realism.
D) moral free space.

Question 26

The theory that business actions are judged by the general ethical standards of society and not by a special set of more permissive standards is the theory of:

A) amorality.
B) moral unity.
C) ethical universalism.
D) ethical relativism.

Question 27

The idea that ethical rules are "transcultural" because the same ethical rules apply to all cultures is a fundamental tenet in:

A) ethical universalism.
B) the theory of amorality.
C) reciprocity.
D) ethical relativism.

Question 28

The idea that only one set of ethical standards exists for business and for society is known as the theory of:

A) amorality.
B) moral muteness.
C) hypernorms.
D) moral unity.

Question 29

According to Friedrich Nietzsche,the mass of ordinary people developed a(n)_____ intended to shackle the great men.

A) master morality
B) moral free space
C) slave morality
D) ethical relativism

Question 30

Which of the following believed that both good and evil were a natural part of human nature?

A) The realist school
B) The school of ethical relativism
C) The school of ethical universalism
D) The legalist school

Question 31

According to Thomas Donaldson and Thomas W.Dunfee,ethical principles that are the basis for all other ethical principles are called:

A) formal rules.
B) tacit underlying values.
C) hypernorms.
D) externalities.

Question 32

Rights to life are an example of:

A) master morality.
B) reciprocity.
C) hypernorms.
D) slave morality.

Question 33

Which idea reflects the central purpose of ethics,which is to bind individuals into a cooperative social whole?

A) Realism
B) Utilitarianism
C) Reciprocity
D) Ethical relativism

Question 34

The idea that business should be conducted without considering ethical standards or societal ideals is known as the theory of:

A) moral responsibility.
B) amorality.
C) reciprocity.
D) ethical universalism.

Question 35

All variations of ethical principle should conform to which of the following?

A) Hypernorms
B) Externalities
C) Moral muteness
D) Master morality

Question 36

Which of the following schools holds that in terms of biological and psychological needs,human nature is the same everywhere?

A) Reciprocity
B) Ethical universalism
C) Amorality
D) Ethical relativism

Question 37

The study of which actions are "right" and which actions are "wrong" is called:

A) ethics.
B) law.
C) religion.
D) master morality.

Question 38

Identify the theory that adopts the belief that different cultures may create different values and there is no universal standard by which to judge which values are superior.

A) Reciprocity
B) Ethical universalism
C) The theory of amorality
D) Ethical relativism

Question 39

The idea that there are no common ethical values but that each culture determines these values is a basic tenet in:

A) ethical universalism.
B) ethical relativism.
C) reciprocity.
D) master morality.

Question 40

Which of the following rejects ethical perfection,taking the position that human affairs will be characterized by flawed behavior and ought to be depicted as they are,not as we might wish them to be?

A) The legalist school
B) The school of ethical relativism
C) The realist school
D) The school of ethical universalism

Question 41

Under which of the following corporate cultural values do symbolic displays such as picture walls of former executives come under?

A) Espoused values
B) Artifacts
C) Enacted values
D) Tacit underlying values

Question 42

Which level of corporate culture includes both physical expressions of culture and visible behaviors?

A) Espoused values
B) Artifacts
C) Assumptive values
D) Tacit underlying values

Question 43

Identify the corporate culture level that encompasses formal statements of belief and intention.

A) Espoused values
B) Artifacts
C) Enacted values
D) Tacit underlying values

Question 44

The set of values,norms,and rules that define a company are called:

A) management theory.
B) organizational performance.
C) corporate culture.
D) strategies and policies.

Question 45

Which of the following are awarded to deter similar actions and punish a corporation that has exhibited malicious and willful misconduct?

A) Compensatory damages
B) Nominal damages
C) Punitive damages
D) General damages

Question 46

Visible behaviors like patterns of interaction come under which of the following corporate culture levels?

A) Espoused values
B) Artifacts
C) Assumptive values
D) Tacit underlying values

Question 47

When a civil court requires payments by a company that are in excess of actual losses to injured parties,these payments are called:

A) supplementary damages.
B) punitive damages.
C) general damages.
D) compensatory damages.

Question 48

Identify the correct statement about deferred prosecution agreements (DPAs).

A) A company can be prosecuted even if it has signed a DPA.
B) The government will not prosecute if the corporation takes steps to compensate victims and prevent future wrongdoing.
C) Because corporations are so fearful of indictment,they are drawn into DPAs.
D) It is an agreement between a prosecutor and an individual to delay prosecution while the company takes remedial actions.

Question 49

The example of _____ is perhaps the strongest influence on integrity in a corporate culture.

A) organization culture
B) company leaders
C) employee relations strategies
D) subordinate behaviors

Question 50

A non-prosecution agreement is one:

A) whereby the government agrees to dismiss a filed criminal charge.
B) in which U.S.attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime,cooperate,and compensate victims.
C) between a prosecutor and a corporation to delay prosecution while the company takes remedial actions.
D) that typically involves the filing of an accusatory instrument whose arraignment is suspended for a specified time period,usually one to three years.

Question 51

Kinds of decisions made form a part of:

A) assumptive values.
B) tacit underlying values.
C) espoused values.
D) artifacts.

Question 52

When a civil court requires payments by a company to correct "concrete losses" experienced by injured parties,these payments are called:

A) compensatory damages.
B) general damages.
C) punitive damages.
D) incidental damages.

Question 53

When managers are convicted of a crime,their prison sentences are based on a(n):

A) numerical point system.
B) grading system.
C) evidence-based review system.
D) rating system.

Question 54

Corporations are not allowed to invoke the _____ Amendment right against self-incrimination when prosecutors ask them to turn over documents related to a crime.

A) Fifth
B) Sixth
C) Fourteenth
D) Fifteenth

Question 55

Which legal doctrine,created by the Supreme Court in 1909,states that corporations are liable for the actions of employees who commit a crime in the course of their employment when their act was for the benefit of the company?

A) Res judicata
B) Res ipsa loquitur
C) Respondeat superior
D) Quid pro quo

Question 56

According to Thomas Donaldson and Thomas W.Dunfee,the idea that "inconsistent norms" are acceptable as long as they do not violate any hypernorms is called:

A) amorality.
B) moral free space.
C) reciprocity.
D) moral muteness.

Question 57

According to Thomas Donaldson and Thomas W.Dunfee,the right to political participation is a(n):

A) master morality.
B) example of reciprocity.
C) hypernorm.
D) example of moral muteness.

Question 58

Corporate cultural values found in documents such as mission statements and codes of ethics are known as:

A) espoused values.
B) artifacts.
C) enacted values.
D) tacit underlying values.

Question 59

The unspoken,unwritten beliefs about the nature of the company and what behaviors bring success are called:

A) artifacts.
B) tacit underlying values.
C) assumptive values.
D) espoused values.

Question 60

A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment is called a:

A) gatekeeper.
B) mentor.
C) principal.
D) monitor.

Question 61

According to the U.S.Sentencing Commission's Guidelines Manual,if criminal conduct occurs:

A) stop the program.
B) terminate participation.
C) establish dynamic psychological processes.
D) modify the program to prevent repeat offenses.

Question 62

The coordinated efforts of a company to prevent its managers from breaking the law and to act ethically are called:

A) ethics programs.
B) reciprocity.
C) theory of amorality.
D) moral muteness.

Question 63

What is the theory of moral unity?

Question 64

Explain the difference between a civil court awarding compensatory damages and punitive damages to a plaintiff.

Question 65

What are the factors that influence managerial ethics? Why is the example of company leaders considered perhaps the strongest influence on integrity in a corporate culture?

Question 66

The tendency of an individual to use self-centered,immoral,manipulative behavior in a group is known as:

A) psychoticism.
B) narcissism.
C) Machiavellianism.
D) neuroticism.

Question 67

Explain what Thomas Donaldson and Thomas W.Dunfee meant by the concept of "hypernorms." Give examples of these types of norms.

Question 68

Explain the basic ideas in the philosophy of utilitarianism.

Question 69

Discuss the criminal prosecution of managers and corporations.How do they differ?

Question 70

Explain what Thomas Donaldson and Thomas W.Dunfee meant by the concept of "moral free space."

Question 71

Discuss the difference,if any,between ethics and business ethics.How are they similar and different from one another?

Question 72

As per the U.S.Sentencing Commission's Guidelines Manual,what are the seven steps of an effective compliance program?

Question 73

Distinguish between ethical universalism and ethical relativism.

Question 74

Explain the basic teachings of the realist school of ethics.

Question 75

Discuss the three stages of a "civilization" as it typically develops over time.

Question 76

What is corporate culture? Explain the three levels of culture according to pioneering researcher,Edgar Schein.

Question 77

What is an ethics and compliance program? Is it being followed by companies?

Question 78

Explain what is meant by the theory of amorality.

Question 79

A(n)_____ approach teaches employees to meet legal and regulatory requirements and emphasizes following rules.

A) ethics
B) compliance
C) moral
D) value-based

Question 80

After the turn-of-the-century fraud scandals,Congress created requirements for antifraud mechanisms with this 2002 Act.

A) The Sarbanes-Oxley Act
B) The Confidential Information Protection and Statistical Efficiency Act
C) The Federal Information Security Management Act
D) The TEACH Act