Question 1

Megan is in charge of the ethics of Ethical Eggs,Inc.,an organic egg raising company.In addition to an ethical code of conduct,Megan is most likely NOT in charge of

Accepted Answer

Ethical reviews of employees' family members fall outside the scope of Megan's role in overseeing the ethics of the company.

Question 2

Housemate,Inc.,makes and sells a variety of household products.With a fair amount of certainty,Housemate's decision makers can predict whether a given business action would be legal in

Accepted Answer

While there may be some gray areas, Housemate's decision makers can likely predict the legality of a given business action in many situations. This is because there are laws and regulations in place surrounding the manufacturing and selling of household products, and Housemate likely has legal expertise on staff or available to consult with. However, it is still possible for unexpected legal issues to arise, so it is important for Housemate to stay informed and up to date on any changes in laws or regulations.

Question 3

Flexo Trucking Company transports hazard?ous waste.Garn is a Flexo driver,whom the company knows drives longer hours than federal regula?tions permit.One night,Garn exceeds the limit and has an accident.Spilled chemicals contaminate Hill City's water source,forcing the residents to move away.Flexo acted unethically because

Accepted Answer

Flexo showed reckless disregard for Hill City's residents and others by knowingly allowing Garn to exceed the federal time limit and potentially putting the community at risk of harm. The fact that an accident occurred does not excuse the company's unethical actions. Hill City's responsibility for protecting their water source is separate from Flexo's ethical responsibility to transport hazardous waste safely and responsibly.

Question 4

Margaret is the top manager of Pecans,Inc.She sets strict ethical standards for all employees.Margaret,however,often takes some of the company's best nuts and sells them from her house.The ethical tone at Pecans,Inc.is

Accepted Answer

Margaret's behavior is contradictory to the ethical standards that she has set for the employees. This sends a wrong message and creates a negative culture where employees may not take the ethical standards seriously. This behavior can lead to a lack of trust among employees, which can ultimately undermine the ethical tone of the organization.

Question 5

SuperMeds Corporation has just developed a new drug that controls severe acne.The drug is not approved by the FDA for use in the United States because it contains a chemical known to produce negative side effects after many years of continuous use.SuperMeds finds that it can profitably sell the drug in Mexico because the questionable chemical is not banned there.Whether it is ethical to sell the drug in Mexico depends on

Accepted Answer

The ethical standards that are applied should be the determining factor whether it is ethical to sell the drug in Mexico. Just because the drug is legal in Mexico does not necessarily mean it is ethical to sell it there, especially if it has potential negative long-term side effects. It is important for SuperMeds to consider the potential harm that the drug may cause and weigh the financial gains against the ethical implications.

Question 6

In business deals,Fiona,the chief executive officer of Glazed Donuts,Inc.,follows duty-based ethical standards.These are most likely derived from

Accepted Answer

The answer of In business deals,Fiona,the chief executive officer of...

Question 7

Global Distribution Corporation suggests that its employees apply the "Golden Rule" to ethical issues that arise at work.This re?quires that the employees

Accepted Answer

The "Golden Rule" is typically understood as treating others as you would like to be treated, which means considering how you would like to be treated in a similar situation. This approach emphasizes empathy and fairness to others, and is a common ethical guideline in many cultures and religions. Choices A, B, and C do not reflect this principle and are therefore not appropriate applications of the "Golden Rule."

Question 8

David,the chief accounting officer of Texas Fencing Corporation,wants to be sure that all the company's accounts are legal and ethical.Sometimes,however,he is unsure exactly what is legal and what is illegal.David should

Accepted Answer

David should try his best to not do anything illegal and keep documentation showing that he always acts in good faith. It is important for him to maintain ethical and legal standards, and keeping documentation of his actions will help him if questions arise in the future. It is not appropriate to disregard legal or ethical standards for the benefit of executives, shareholders, or the chief executive.

Question 9

Eden,the chief executive officer of Flo-Thru Piping Corporation,wants to en?sure that Flo-Thru's activities are legal and ethical.The best course for Eden and Flo-Thru is to act in

Accepted Answer

Acting in good faith means that Eden and Flo-Thru will make an effort to ensure that their actions are legal and ethical, which is the responsible and morally sound approach. Ignorance of the law is not an excuse for illegal behavior, so it is not a viable option. Only considering the firm's shareholders would not take into account the ethical implications of their actions on other stakeholders, such as employees, customers, and the wider community. Acting in their own self-interest would likely prioritize short-term gains over long-term sustainability and reputation, which is not in the best interest of the business or its stakeholders.

Question 10

As CEO of Alabama Archery Supplies,William always considers how he would like to be treated by others in the same situation before making a decision.William tends to make decisions based on

Accepted Answer

William's approach aligns with the Golden Rule, which advises individuals to treat others as they would like to be treated themselves. By considering how he would like to be treated in the same situation, William is able to make decisions that are more empathetic and considerate of others.

Question 11

In making business decisions,Glenda,personnel manager for HVAC Maintenance,Inc.,applies her belief that all persons have fundamental rights.This is

Accepted Answer

Glenda is applying the principle of rights, which states that all individuals have certain fundamental rights that must not be violated. This is different from utilitarianism, which prioritizes the greatest good for the greatest number of people, and the categorical imperative, which emphasizes the importance of ethical duty and obligation in decision-making. It is also not inherently tied to any religious rule.

Question 12

Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian re?lig?ious ethical standards.With respect to their application,these standards are

Accepted Answer

Judeo-Christian religious ethical standards are typically considered absolute, meaning they are unchanging and apply universally. They are based on religious doctrine and do not take into consideration situational factors or the consequences of actions, as in the case of utilitarian or discretionary ethics.

Question 13

Sharon,the human resources director for Tempo Corporation,at?tempts to comply with the law in dealing with applicants and employ?ees.One of the challenges Sharon faces is that the legality of an action is

Accepted Answer

While there are specific laws and regulations that apply to HR practices, the interpretation and application of these laws can be subjective and dependent on individual circumstances. Therefore, the legality of an action is sometimes clear, but not always or never. This means that HR professionals must use their best judgment and seek guidance from legal experts when needed to ensure that their actions are legally compliant.

Question 14

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Accepted Answer

As a major corporation in the fast-food industry, the decisions made by Fast-Food Franchise Corporation will impact all stakeholders, including operators, owners, suppliers, the community, and society as a whole. For example, changes in sourcing practices or menu offerings can affect suppliers, while a decision to close a location can have a ripple effect on the local community. Therefore, it is important for the management to carefully consider the potential implications of any decision.

Question 15

Top Toys Corporation has an online forum where employees can post new toy ideas or reviews.Thomas posts a racially offensive video on the forum.Top Toys should

Accepted Answer

Top Toys Corporation has a responsibility to uphold ethical and legal standards in the workplace and promoting racial discrimination is not acceptable. Taking action against Thomas will show that the company takes such issues seriously and will not tolerate such behavior. It will also send a strong message to other employees that inappropriate conduct will not be condoned.

Question 16

Richard suspects his supervisor of unethical accounting practices.However,he does not want to lose his job if he reports the supervisor and the supervisor finds out who reported him.An important feature of online reporting systems like EthicsPoint is

Accepted Answer

EthicsPoint allows employees to report unethical behavior anonymously, which can reduce the fear of retaliation from superiors.

Question 17

Julia,the head executive of Fine Woolen Sweaters,Inc.,is a committed Christian who strongly adheres to the Ten Commandments.One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter.Julia is likely to

Accepted Answer

The answer of Julia,the head executive of Fine Woolen Sweaters,Inc.,is...

Question 18

Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kennedy strictly complies with existing laws,the firm will

Accepted Answer

Providing funds to expand operations is a business activity that can have significant ethical implications, such as ensuring that the funds are used for legitimate purposes and avoiding funding activities that harm society or the environment. Therefore, Kennedy Capital Corporation has some business ethics obligations that it should fulfill, even if it complies with existing laws. However, the specific nature and extent of these obligations may depend on various factors, such as the industries and countries in which the funded firms operate, the terms and conditions of the financing agreements, and the internal policies and values of Kennedy Capital Corporation.

Question 19

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging indi?vidual actions most likely include all of the following except

Accepted Answer

The guidelines for judging individual actions are likely to include an individual's conscience, business rules and procedures, and promises to others. However, loopholes in the law or company policies are not a valid consideration as they do not necessarily align with ethical behavior.

Question 20

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Accepted Answer

As an accounting firm, Peak & Vale has a responsibility to adhere to ethical standards beyond those mandated by the law. These standards relate to the firm's obligation to act in the best interests of their clients, maintain confidentiality, and avoid conflicts of interest, among other considerations. While Peak & Vale has a legal duty to comply with applicable laws and regulations, ethics plays a critical role in the firm's operation and reputation. Therefore, the firm must consider ethical considerations beyond those required by law.

Quiz 2: Ethics in Business