Question 1

Destroying records in relation to a bankruptcy proceeding can be in a company's best interest.

Accepted Answer

Destroying records in relation to a bankruptcy proceeding is illegal and can lead to penalties and fines. It is important for companies to retain all relevant documentation throughout the bankruptcy process.

Question 2

Business ethics looks at the decisions that businesses make or have to make and whether those decisions are right or wrong.

Accepted Answer

Business ethics is concerned with evaluating the morality of business decisions and actions. It involves analyzing whether these decisions and actions are ethical or unethical based on moral principles and values.

Question 3

It may be unethical for a company with a product that is outlawed in one country to look elsewhere for a market.

Accepted Answer

True

Question 4

Ethics is as well defined as the law.

Accepted Answer

Ethics is not as well defined as the law, as ethical principles and values can vary depending on cultural and personal beliefs, and do not necessarily have specific legal consequences or enforcement.

Question 5

In a corporation,managers are often faced with ethical trade-offs when a certain decision will benefit one group,but harm another.

Accepted Answer

Managers in corporations often have to make difficult decisions that involve trade-offs between different stakeholders. In some cases, a decision may benefit one group (e.g. shareholders) but harm another (e.g. employees or the environment). Balancing these competing interests while maintaining ethical standards can be a challenging task for managers.

Question 6

Management's behavior sets the ethical tone of a firm.

Accepted Answer

Management is responsible for setting the tone for the ethical behavior of a firm. This includes establishing ethical policies and practices, modeling ethical behavior, and holding employees accountable for their actions. When management prioritizes ethics, it sends a message to employees that ethical behavior is not only expected but valued. This can help foster a culture of integrity throughout the organization.

Question 7

Effective corporate ethical policies must be integrated throughout the firm.

Accepted Answer

Effective corporate ethical policies must be integrated throughout the firm to ensure that everyone in the company understands and follows them. This includes top leadership, all employees, and any contractors or partners who work with the company. By integrating ethical policies throughout the company, it becomes a part of the organization's culture and values, rather than just a set of rules to follow. This can help to build trust with stakeholders and improve the company's reputation.

Question 8

It is illegal for a company with a product that is outlawed in one country to look elsewhere for a market.

Accepted Answer

It is not necessarily illegal for a company to look for a market in another country if their product is outlawed in one country. However, they would need to comply with the laws and regulations of the country they are selling in. It is ultimately up to each individual country to decide whether or not to allow a particular product to be sold within their borders.

Question 9

An ethics program can clarify what a company considers to be unacceptable conduct.

Accepted Answer

An ethics program lays out the standards and values that a company considers acceptable and unacceptable conduct, which can help clarify expectations for employees and prevent unethical behavior.

Question 10

Codes of ethical conduct can indicate how employees are expected to act.

Accepted Answer

Codes of ethical conduct provide guidelines for employees on how to behave ethically in the workplace.

Question 11

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

Accepted Answer

Corporations are responsible not only to their shareholders, but also to other stakeholders such as employees, customers, and the community in which they operate. This is known as corporate social responsibility (CSR) and involves taking into account the impact of the corporation's actions on a variety of stakeholders and addressing any negative effects.  Therefore, corporations can be perceived as owing ethical duties to groups other than their shareholders.

Question 12

Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.

Accepted Answer

Adhering strictly to business laws is a necessary component of fulfilling business ethics obligations, but it is not the only aspect. Business ethics also involves moral principles and values, such as acting with honesty, integrity, and fairness towards all stakeholders, including customers, employees, shareholders, and the community. Companies may face ethical dilemmas that are not governed by specific laws, and in these situations, they need to use ethical reasoning and judgment to make decisions that align with their values and responsibilities. Therefore, compliance with legal regulations is a baseline, but not sufficient, standard for ethical behavior in business.

Question 13

Unless a corporation violates a law,its actions do not raise questions about the role of corporations and the effect of corporate ethics on profit.

Accepted Answer

Even if a corporation does not violate a law, its actions may still raise questions about the role of corporations and the effect of corporate ethics on profit. Ethical considerations and corporate social responsibility are increasingly important to consumers and stakeholders, and can have tangible effects on a company's bottom line.

Question 14

The legality of an action is always clear.

Accepted Answer

The legality of an action can be complex and dependent on various factors such as laws, regulations, and context. It is not always clear-cut or straightforward.

Question 15

Ethical codes of conduct can set the ethical tone of a firm.

Accepted Answer

Ethical codes of conduct provide guidelines for employees to follow, emphasizing the importance of ethical behavior in the workplace. This can set a positive ethical tone for the firm and prevent unethical behavior from occurring.

Question 16

If an action is legal,it is ethical.

Accepted Answer

Just because an action is legal does not necessarily mean it is ethical. Laws are created based on legal principles and societal values, but ethical considerations may extend beyond what is legally required or permitted. Additionally, laws can be changed or outdated, while ethical standards may remain constant.

Question 17

Few companies provide any kind of support such as ethical training programs and seminars to make their ethical codes more effective.

Accepted Answer

The answer of Few companies provide any kind of support...

Question 18

Ethics is the study of what constitutes right and wrong behavior.

Accepted Answer

Ethics is a branch of philosophy that deals with moral principles and values. It is concerned with determining what is morally right or wrong and how individuals should act in different circumstances.

Question 19

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Accepted Answer

Focusing solely on short-term profits can lead to cutting corners, sacrificing quality, and ignoring environmental and social responsibility, which can ultimately harm the company's reputation and long-term sustainability. Prioritizing long-term needs and balancing them with short-term goals is a more ethical approach for a company.

Question 20

Managers must apply the same ethical standards to themselves as they do to their employees.

Accepted Answer

Managers are expected to set an example for their employees by applying the same ethical standards to themselves that they expect from their employees. This not only fosters a culture of trust and respect, but also helps in building a positive brand image for the company.

Quiz 2: Ethics in Business