Question 1

Rights theory is known as a teleological ethical theory.

Accepted Answer

Rights theory is actually a deontological ethical theory, which means it focuses on the moral rules and duties that individuals have based on their inherent rights. Teleological ethical theories, on the other hand, focus on the outcomes or consequences of actions in determining their morality.

Question 2

"Act only on that maxim whereby at the same time you can will that it shall become universal law" is a component of Immanuel Kant's _____.

Accepted Answer

According to Immanuel Kant, the morality of any action is determined by applying his categorical imperative. His first formulation of the categorical imperative is as follows: "Act only on that maxim whereby at the same time you can will that it shall become universal law. (Judge an action by applying it universally.)

Question 3

It is highly unlikely that greater shareholder control of internal corporate governance will lead to greater corporate social responsibility.

Accepted Answer

Shareholders are primarily concerned with maximizing their investment returns, and may not prioritize corporate social responsibility. Therefore, giving them greater control over governance may not necessarily lead to increased CSR efforts.

Question 4

According to the decision-making model that is drawn heavily from the thoughts of Joseph L. Badaracco Jr., the question, "What course is consistent with personal morality and the basic values of the company?" draws from the decision maker's personal philosophy as well as the commitments she owes to the corporation and its shareholders.

Accepted Answer

The statement accurately reflects the decision-making model drawn from the thoughts of Joseph L. Badaracco Jr.

Question 5

According to the decision-making model that is drawn heavily from the thoughts of Joseph L. Badaracco Jr., the question, "Which course of action is feasible?" recognizes that when a particular option is believed to be feasible, the manager's work is considered done.

Accepted Answer

The question "Which course of action is feasible?" is just one step in the decision-making process and does not indicate that the manager's work is done. The model emphasizes the importance of considering ethical implications and potential consequences of each feasible option before making a final decision.

Question 6

According to the justice theory, _____.

Accepted Answer

Justice theory is derived from John Rawls's book "A Theory of Justice," which argued for a just distribution of society's resources. Under this theory, the decision maker's choices are to be guided by fairness and impartiality; however, the focus is on the outcome of the decision.

Question 7

Deontological ethical theory focuses on the actions or process of decision-making, rather than the consequences.

Accepted Answer

Deontological ethical theory emphasizes that actions are inherently right or wrong, regardless of their outcomes. It prioritizes principles, duties, and moral rules over goals and consequences.

Question 8

_____ theory is known as deontological ethical theory.

Accepted Answer

Rights theory is known as deontological ethical theory because it focuses on the actions or process of decision-making, rather than the consequences.

Question 9

In determining whether a decision is ethical, teleological ethical theories focus on the consequences of the decision.

Accepted Answer

Teleological ethical theories, such as consequentialism, prioritize the consequences or outcomes of a decision in determining its ethicality.

Question 10

Critics of capitalism and corporate America increasingly argue that corporations should follow socially responsible standards higher than that imposed by law.

Accepted Answer

This statement is true. Many critics argue that corporations should go beyond just following the minimum legal requirements and adopt social and ethical standards that benefit society and the environment. This concept is known as corporate social responsibility.

Question 11

The Organization for Economic Cooperation and Development is an international institution created for the purpose of promoting harmonized rules where multilateral cooperation is necessary.

Accepted Answer

The Organization for Economic Cooperation and Development (OECD) was created in 1961 to promote economic growth and development, as well as to encourage international trade and cooperation. Its purpose is to promote policies that will improve the economic and social well-being of people around the world by fostering cooperation among its member countries. The OECD has 38 member countries and works to promote harmonized rules and policies in a variety of areas, including taxation, environment, education, and health, among others.

Question 12

Under the revised version of the OECD's Principles of Corporate Governance, institutional investors are specifically urged to disclose their corporate governance policies so the public can better understand how they are using their voting rights.

Accepted Answer

The statement accurately reflects the content of the revised version of the OECD's Principles of Corporate Governance.

Question 13

Businesses taking an active approach to government regulation have discovered that by initiating regulatory legislation they can head off the risk of later unpredictable lawsuits, influence the nature of the legislation, and ensure that all of their competitors are subject to the same constraints.

Accepted Answer

This statement is true. By proactively engaging with government regulation, businesses can have a say in the development of legislation and potentially avoid costly lawsuits in the future. Additionally, implementing regulations that affect all competitors creates a level playing field for the industry.

Question 14

The theory that calls for a fair allocation of society's benefits and burdens among all members of society is _____.

Accepted Answer

Justice theory is derived from John Rawls's book "A Theory of Justice," which argued for a just distribution of society's resources. This called for a fair allocation of society's benefits and burdens among all members of society.

Question 15

According to the decision-making model that is drawn heavily from the thoughts of Joseph L. Badaracco Jr., the question "Which alternative best serves others' rights?" borrows from both the modern rights theories and justice theory.

Accepted Answer

The question "Which alternative best serves others' rights?" incorporates principles from both modern rights theories and justice theory, as outlined in Badaracco's decision-making model.

Question 16

For companies transacting business across the globe, the identification of common values may be very daunting because culture may have strong influences on the ethical attitudes of business managers.

Accepted Answer

Culture can have a strong influence on the ethical attitudes of business managers, making it difficult to identify common values across different regions and countries.

Question 17

According to the decision-making model that is drawn heavily from the thoughts of Joseph L. Badaracco Jr., the question, "Which course of action does the most good and the least harm?" is utilitarian if the focus is narrowed to the manager's business organization.

Accepted Answer

The answer of According to the decision-making model that is...

Question 18

Unlike most rights theorists, Immanuel Kant was a strict _____.

Accepted Answer

Unlike most rights theorists, Immanuel Kant was a strict deontologist. He viewed humans as moral actors that are free to make choices.

Question 19

Groupthink is the tendency for members of a group to internalize the group's values and perceptions and to suppress critical thought.

Accepted Answer

Groupthink is a well-established phenomenon in which group members tend to conform to a group's norms and avoid expressing contrary opinions or viewpoints. This can result in flawed decision-making and a lack of creativity or original thinking within a group.

Question 20

Corporations sometimes consciously choose to break the law if it poses acceptable risks such as relatively light penalties for violation, if the benefits gained by doing so are great.

Accepted Answer

This practice is known as "white-collar crime" and has been observed in many industries. Corporations may weigh the potential benefits of breaking the law against the possible consequences and decide that the benefits outweigh the risks. However, this behavior is unethical and illegal, and companies can face severe consequences if caught.

Quiz 3: Business Ethics and Corporate Social Responsibility