Deck 2: Business Ethics

Question 1

Maximizing right rather than good is the teleological standard.

Answer 1

False
Explanation: Maximizing right rather than good is the deontological standard.The deontologist might well refuse to lie,as a matter of principle,even if lying would maximize good.

Question 2

The Foreign Corrupt Practices Act (FCPA) requires rigorous internal accounting controls and careful recordkeeping to ensure that bribes cannot be concealed via "slush funds" and other devices.

Answer 2

True
Explanation: The Foreign Corrupt Practices Act (FCPA) requires rigorous internal accounting controls and careful recordkeeping to ensure that bribes cannot be concealed via "slush funds" and other devices.The act does not forbid "grease" payments to foreign officials or political parties where the purpose of the payments is "to expedite or to secure the performance of a routine governmental action," such as processing papers (like visas),providing police protection,and securing phone service.

Question 3

Kant believed that every rational creature can act according to his or her categorical imperative because all such persons have "autonomous,self-legislating wills" that permit them to formulate and act on their own systems of rules.

Answer 3

True
Explanation: Kant believed that every rational creature can act according to his or her categorical imperative because all such persons have "autonomous,self-legislating wills" that permit them to formulate and act on their own systems of rules.To Kant,what is right for one is right for all,and each of us can discover that "right" by exercising our rational faculties.

Question 4

Organizational culture does not influence corporate misconduct.

Question 5

In the context of libertarianism,justice and fairness,right and wrong are measured not by equality of results for all but from ensuring equal opportunity for all to engage in informed choices about their own welfare.

Question 6

In the context of federal sentencing guidelines for corporate or white-collar crime,companies involved in crimes do not receive reduced penalties even if they have effective compliance programs in place.

Question 7

In all nations,the payment of bribes is considered as an unlawful way of doing business.

Question 8

To the deontologist,the end is primary and that end or result is the measure of the ethical quality of a decision or act.

Question 9

Virtue ethics applauds the person who is motivated to do the right thing and who cultivates that motivation in daily conduct.

Question 10

Moral identity involves the degree to which moral concerns are central to our sense of self.

Question 11

Formalism requires us to follow those rules that generate the greatest value for society.

Question 12

Which of the following indicates an existentialist's belief?

A)An existentialist believes standards of conduct can be objectively discovered.
B)An existentialist believes in strengthening Christian principles in the society.
C)An existentialist believes no actions are inherently right or wrong.
D)An existentialist believes conduct can be rationally justified.

Question 13

The emotion or intuition approach claims that moral decision making is an automatic,nonreflective process in which our minds,when confronted with a moral question,instantaneously generate feelings of approval or disapproval.

Question 14

According to act-utilitarianism,our goal is to identify the consequences of a particular act to determine whether it is right or wrong.

Question 15

A moral rule is "categorical" rather than "hypothetical" in that its prescriptive force is independent of its consequences.

Question 16

Whistle-blowing appears to be on the rise following the passage of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

Question 17

Among its major provisions,the False Claims Act raises penalties for whistle-blowers to as much as 25 years imprisonment along with heavy fines.

Question 18

A danger in the ethic of care is that it might be interpreted to restore and legitimize the stereotype of women as care giving subordinates not deserving of moral autonomy.

Question 19

The Sarbanes-Oxley Act forbids corporate executives to personally certify the accuracy of their financial reports.

Question 20

Federal sentencing guidelines,issued by the U.S.Sentencing Commission,provide ranges within which judges are advised to impose sentences.

Question 21

Which of the following is involved in a teleological view of life?

A)Obligations
B)Principles
C)Duties
D)Ends

Question 22

Which of the following provides the foundation for a moral life built on religion?

A)Intuition
B)Reason
C)Faith
D)Secular knowledge

Question 23

Of the six universal stages of moral development identified by Kohlberg,which of the following traits is a manager most likely to display if he were at stage three of the conventional level?

A)Obey rules to avoid punishment.
B)Conform to secure rewards.
C)Adhere to stereotypical images.
D)Follow rules only if it is in his or her own interest.

Question 24

A(n) _____ ethical system emphasizes the consequences of an act.

A)deontological
B)teleological
C)existential
D)libertarian

Question 25

Which of the following is a decisive argument in the criticism put forth by Carol Gilligan against Kohlberg's proposition on moral development?

A)Kohlberg's initial experimental subjects were limited to young females.
B)Conceptions on morality are substantially based on gender.
C)Moral judgment evolves primarily as a function of age.
D)Moral judgment improves as a function of education.

Question 26

Virtue ethics focuses on the classic notion that the key to good ethics lies in a person's _____.

A)character
B)responsibilities
C)rights
D)rules

Question 27

A(n) _____ believes that good must be weighed against evil in reaching an ethical decision.

A)deontologist
B)libertarian
C)utilitarian
D)existentialist

Question 28

Which of the following is identified as the postconventional level of the six universal stages of moral development?

A)Conforming to meet the expectations of others
B)Doing right,obeying the law,and upholding social order
C)Following self-chosen universal ethical principles
D)Following rules only if it is in your own self-interest but letting others do the same

Question 29

A father may be morally committed to saving his son from a burning building rather than saving another person who might do more total good for society.The action of the father would be primarily dictated by the _____ ethical system.

A)teleological
B)deontological
C)utilitarian
D)consequentialist

Question 30

A(n) _____ believes principle is primary and consequence is secondary or even irrelevant.

A)deontologist
B)situationalist
C)teleologist
D)existentialist

Question 31

Identify the correct statement regarding Immanuel Kant's categorical imperative.

A)It believes that standards of conduct can be objectively discovered.
B)It states that one's goal is to identify the consequences of a particular act to determine whether it is right or wrong.
C)It is based on the idea that a decision that maximizes the ratio of good over evil for all those concerned is the ethical course.
D)It is the notion that every person should act on only those principles that he,as a rational person,would prescribe as universal laws to be applied to the whole of humankind.

Question 32

If Kohlberg was correct,a consequence of adults not passing beyond level 2,that is,following rules only if it is in their own interest but letting others do the same and conforming to secure rewards,of the six universal stages is that:

A)managers may behave unethically since they haven't achieved moral maturity.
B)an individual is able to reach independent moral judgments that may or may not conform with conventional societal wisdom.
C)a manager's decision would be based on independently defined universal principles of justice.
D)an individual may take an impersonal view on morality as against a voice that rises from relationships and concern for the needs of others.

Question 33

Which of the following ethical theories takes essentially a free market view of ethics?

A)Moral absolutism
B)Deontology
C)Virtue ethics
D)Libertarianism

Question 34

Teleological ethical systems are often referred to as _____.

A)formalist ethical systems
B)existentialist ethical systems
C)deontologist ethical systems
D)consequentialist ethical systems

Question 35

Which of the following statements describes the formalistic view of ethics?

A)A decision that maximizes the ratio of good over evil for all those concerned is the ethical course.
B)The rightness of an act depends little on the results of the act.
C)The moral person renders ethical decisions based on the consequences of the decision.
D)The moral person may be forced to shun a particular act that would result in greater immediate good.

Question 36

Jenny is the CEO of a company that has been affected by an economic meltdown.She realizes that the only way for her company to remain in business during the period of recession is to cut costs drastically.She believes it would be better if all employees took a 10 percent pay cut instead of laying off 10 percent of the workers.She feels this is the correct decision as it would benefit the company and all the employees.Her approach is primarily influenced by the _____ ethical system.

A)rule-utilitarian
B)libertarian
C)deontological
D)formalist

Question 37

Which of the following universal stages is grouped under the conventional level?

A)Adhering to stereotypical images
B)Obeying rules to avoid punishment
C)Following self-chosen universal ethical principles
D)Conforming to secure rewards

Question 38

Which of the following statements symbolizes the idea of a feminine "voice" in view of morality?

A)Women give high priority to "rights" when making a decision.
B)Women approach morality as a function of justice and impartiality.
C)Women consider relationships and the needs of others.
D)Women give the highest priority to their own self-interests while making decisions.

Question 39

The principle that is most likely to be followed by a utilitarian is:

A)the vision of ethics measured by the rightness of rules.
B)that what is right for one is right for all.
C)the greatest good for the greatest number.
D)that moral worth springs from one's decision to discharge one's duty.

Question 40

Which of the following is a commonly shared perspective on moral decision making by both Kohlberg and Gilligan?

A)Moral decision making may be the product of a dual process system employing both automatic emotions and controlled reasoning.
B)Moral decision making is an automatic,nonreflective process.
C)Moral decision making is the controlled product of analysis,deliberation,and experience.
D)Moral decision making is a result of rapid judgments about right and wrong based on unconscious processes that are involuntary and universal.

Question 41

Which of the following statements is true of the Foreign Corrupt Practices Act?

A)It requires all publicly traded companies to voluntarily develop ethics codes.
B)It ordinarily permits a small gift or token of esteem or gratitude.
C)It establishes an independent board to oversee the accounting profession.
D)It defines a code of ethics as written standards that are reasonably designed to deter wrongdoing.

Question 42

Differentiate between teleology and deontology.Give an example of each.

Question 43

Explain in detail the alternative theory of morality that involves decision making by emotion or intuition.

Question 44

What is a major criticism of the Foreign Corrupt Practices Act?

Question 45

Explain how religion,libertarianism,and virtue ethics influence contemporary moral analysis.

Question 46

In the context of corporate or white-collar crime,which of the following statements is true of sentencing?

A)Companies involved in crimes do not receive reduced penalties even if they have effective compliance programs in place.
B)Federal sentencing guidelines are issued by the Uniform Commercial Code.
C)Departures from federal sentencing guidelines are not permissible for any form of cases.
D)Responsibility for compliance rests explicitly with the board of directors and top-level executives.

Question 47

Which among the following acts expressly forbids discharge,demotion,and other forms of retribution against securities law whistle-blowers?

A)The Sarbanes-Oxley Act
B)The Dodd-Frank Wall Street Reform and Consumer Protection Act
C)The Trust Indenture Act
D)The Jumpstart Our Business Startups Act

Question 48

Wright Corp.,an American firm,is establishing an office in Africa with Mary as the manager.After two months of endless efforts,Mary is informed that in order to get utilities for its African branch,she must give some money to the government-based electric company agent as an "encouragement," just as all the other businesses have done.Under the Foreign Corrupt Practices Act,which of the following statements about the payment is true?

A)The payment is illegal since it is a bribe to a foreign government official.
B)The payment is legal as long as all other businesses do the same thing.
C)The payment is legal since that is the only way she can get utilities.
D)The payment is legal since it is merely "grease" money to expedite routine action.

Question 49

Describe some of the factors that encourage unethical behavior in the workplace.

Question 50

Which of the following statements is true of the Sarbanes-Oxley Act?

A)It establishes an independent board to oversee the accounting profession.
B)It establishes a universal,formalist rule forbidding layoffs of all competent employees.
C)It was enacted to reward those who help stop fraud involving government contracts.
D)It was enacted in response to disclosure of widespread bribery by American firms.

Question 51

Explain in brief the federal sentencing guidelines issued by the U.S.Sentencing Commission.

Question 52

Identify the major provisions of the 2002 Sarbanes-Oxley Act.

Question 53

Which of the following is a risk associated with the outcome of whistle blowing?

A)Poor legal protection
B)Instigation of benchmarking
C)Liquidation of the company's assets
D)Fear of retribution

Question 54

Which of the following statements is true of the False Claims Act?

A)It creates new crimes and raises penalties to as much as 25 years of imprisonment along with heavy fines.
B)It forbids fraud in government contracts and rewards those who help stop fraud.
C)It requires publicly traded companies to establish internal control systems designed to assure the accuracy of financial information.
D)It requires publicly traded companies to disclose whether they have adopted an ethics code for senior financial management,and if not,why they have not done so.

Question 55

Explain the basis of Carol Gilligan's criticism on Kohlberg's views on moral development.