Question 1

Kantian theory considers universalizability and reversibility.

Accepted Answer

Kantian theory holds that actions should be examined for whether they could be willed as a universal law applicable to all individuals, and whether the person acting would be content to be on the receiving end of the action, which is called the "reversibility principle."

Question 2

Utilitarianism seeks to equalize the benefit to everyone.

Accepted Answer

Utilitarianism is a moral theory that seeks to maximize overall happiness or well-being (utility) for the greatest number of people. It does not necessarily seek to equalize benefit for everyone, but rather to maximize the overall benefit for society. This means that in some cases, unequal distributions of benefits may be justified if they result in the overall greater happiness or well-being for society as a whole.

Question 3

Boycotting is a way in which customers show displeasure with unethical corporate activity.

Accepted Answer

Boycotting is a form of consumer activism in which customers stop buying from a company or brand to express their disapproval of their activities or policies. This is commonly done in response to unethical practices or behavior by the company, such as environmental damage or unfair labor practices.

Question 4

Rawlsian moral theory seeks to maximize the condition of the worst off person in society.

Accepted Answer

Rawlsian moral theory, also known as justice as fairness, places priority on ensuring that the condition of the worst off person in society is improved. This is done through the concept of the "original position" and the "veil of ignorance" in which societal rules and structures are created without knowledge of one's own social status or position, leading to a fairer and more equitable society.

Question 5

Delaware has a constituency statute.

Accepted Answer

The answer of Delaware has a constituency statute....

Question 6

Employees are not stakeholders of a corporation.

Accepted Answer

Employees are considered as internal stakeholders of a corporation as they contribute to the success of the company and are directly impacted by its decisions and performance.

Question 7

Rawlsian moral theory seeks to develop principles behind a "veil of information."

Accepted Answer

The answer of Rawlsian moral theory seeks to develop principles...

Question 8

As opposed to other forms of business,it is well accepted that the primary ethical and legal duty of corporations is to maximize shareholder value.

Accepted Answer

While maximizing shareholder value is a common objective, corporations also have ethical and legal duties to other stakeholders, such as employees, customers, and the community, and must comply with laws and regulations.

Question 9

Immanuel Kant argued that spending money in ways that are not consistent with shareholder wishes is tantamount to imposing a tax and unilaterally deciding where the money will be spent.

Accepted Answer

Immanuel Kant did not specifically argue about spending money in ways not consistent with shareholder wishes in the context of imposing a tax and deciding where the money will be spent. This concept is more closely related to modern discussions on corporate governance and social responsibility, not Kant's 18th-century philosophical work.

Question 10

The Deontological theory focuses on the consequences of an action rather than on the motivation of the individual.

Accepted Answer

The opposite is true. The Deontological theory focuses on the motivation of the individual rather than on the consequences of an action. It is a duty-based ethical theory that emphasizes the moral principles that should guide our actions rather than the outcomes of those actions.

Question 11

Ethics and law are unrelated.

Accepted Answer

Ethics and law are related as ethics informs legal principles and guides individuals in making ethical decisions within the bounds of the law. Additionally, some ethical principles may be codified into law.

Question 12

The chief executive officer plays the most significant role in instilling a sense of ethics throughout the organization.

Accepted Answer

As the leader of the organization, the CEO sets the tone for ethical behavior and establishes the company's values and culture. They also make important decisions regarding ethics, such as determining how to handle ethical violations and creating codes of conduct. Therefore, the CEO plays a crucial role in promoting ethical behavior throughout the organization.

Question 13

The two main schools of ethical thought are teleological and deontological.

Accepted Answer

This statement is true. Teleological ethics (also known as consequentialist ethics) focuses on the outcomes or consequences of actions, while deontological ethics (also known as nonconsequentialist ethics) focuses on the moral duties or obligations that guide actions.

Question 14

If an action does not maximize shareholder value,and the firm has no ethical reason to act,the action should not be taken.

Accepted Answer

The ultimate goal of a corporation is to maximize shareholder value. Therefore, if an action does not contribute to this goal and there are no ethical reasons to proceed with it, the action should not be taken. This concept is known as the shareholder value principle.

Question 15

From 1990 until today,the gap between what average workers make and what CEO's of companies make in the Standard and Poor's Index has narrowed.

Accepted Answer

The gap between what average workers make and what CEO's make in the S&P Index has actually widened since 1990, according to various studies and reports.

Question 16

Utilitarianism is a major deontological system that operates under the proposition that the ideal is to focus on motivation rather than on consequences.

Accepted Answer

Utilitarianism is actually a consequentialist moral framework which states that the right action is the one that maximizes overall happiness or pleasure, regardless of motivation.

Question 17

Compliance with the law is the baseline for effective and responsible managerial action.

Accepted Answer

Compliance with the law is the minimum standard for ethical and responsible behavior in any organization. Failing to meet legal requirements can lead to fines, lawsuits, and damage to the reputation of the organization. However, ethical and responsible managers should also strive to go beyond mere legal compliance and take proactive steps to address social and environmental concerns.

Question 18

Legislatures in only a minority of the states have enacted statutes authorizing corporate boards to take into account all stakeholders and constituencies even when a change in control or breakup of the corporation has become inevitable.

Accepted Answer

The answer of Legislatures in only a minority of the...

Question 19

Under the Teleological theory,the ethical good of an action is judged by the effect of the action on others.

Accepted Answer

This is because the Teleological theory also known as consequentialism, judges the moral quality of an action by its outcome or consequences. It focuses on the end result rather than the intention or motive behind the action. In this view, an action is considered ethical if it produces a desirable outcome that benefits others.

Question 20

Nobel Prize winner in economics Milton Friedman asserts that the only guiding criterion for the corporation should be profitability within the confines of the law.

Accepted Answer

Milton Friedman's famous article "The Social Responsibility of Business is to Increase its Profits" argues that the sole responsibility of a corporation is to increase its profits while following the law and engaging in voluntary ethical actions only if they serve the bottom line.

Quiz 2: Ethics ant the law