Question 1

Fealty Financial Corporation asks its employees to judge their actions and get on the ethical business decision-making "bandwagon." Guidelines for evaluating individual actions include all of the following except

Accepted Answer

The guidelines for evaluating individual actions include an individual's conscience, business rules and procedures, and promises to others. However, loopholes in the law or company policies should not be considered when evaluating ethical decisions, as they may not align with ethical principles and values.

Question 2

Otto,the chief executive officer of Prismatic Diamond Corporation (PDC),wants to en?sure that PDC's activities are legal and ethical.The best course for Otto and PDC is to act in

Accepted Answer

Acting in good faith ensures that PDC's activities are in compliance with both legal and ethical standards, while also considering the interests of all stakeholders, including shareholders, employees, customers, and the community at large. Ignorance of the law is not an acceptable defense, and prioritizing only the interests of shareholders or self-interest can lead to unethical and potentially illegal behavior.

Question 3

Make-It Construction Corporation makes a side payment to a govern?ment official in Nigeria to obtain a contract.In the United States,this is

Accepted Answer

Making a side payment to a government official to obtain a contract is considered bribery, which is illegal and unethical in the United States. It violates the Foreign Corrupt Practices Act and can result in severe legal and reputational consequences for the company.

Question 4

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 unexpected legal obstacles to certain business actions, it is likely that Housemate's decision makers will be able to predict whether a given action would be legal in many situations. They likely have a good understanding of relevant laws and regulations in their industry and have experience navigating legal issues.

Question 5

Import-Export Sales,Inc. ,like other businesses,has duties pre?scribed by

Accepted Answer

Businesses like Import-Export Sales, Inc. have both ethical and legal duties that they must adhere to. Ethical duties pertain to moral principles and values that guide behavior, such as honesty, fairness, and responsibility. Legal duties, on the other hand, stem from laws and regulations that govern business activities. Both ethical and legal duties are important for businesses to follow in order to operate in a responsible and sustainable manner.

Question 6

Olaf,an executive with Product Distribution,Inc. ,has to decide whether to market a product that might have undesirable side effects for a small per?centage of users.What is the balance that must be struck in de?cid?ing whether to sell the product? How does the standard of ethics that is applied affect this balance?

Accepted Answer

The answer of Olaf,an executive with Product Distribution,Inc. ,has to...

Question 7

Max lies to Nora,his spouse.This is

Accepted Answer

Max's action of lying to his spouse Nora is unethical as lying betrays trust in a relationship. However, it may not be illegal unless Max's lies result in harm or fraud.

Question 8

Some consumers misuse the products of Hardware Gear,Inc. ,and are injured,although the products come with detailed instructions and warnings against misuse.In terms of responsibility,Hardware may have

Accepted Answer

Hardware Gear, Inc. may have an ethical duty to ensure consumer safety beyond just providing instructions and warnings, but if the misuse is clear and the warnings are adequate, they may not have a legal duty.

Question 9

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way.Does the firm owe an ethical duty to take this product off the market? What con?flicts might arise if the firm stops selling this product?

Accepted Answer

The answer of Recreation & Sports Equipment Corporation sells a...

Question 10

Sven,the human resources director for Temp Labor Unlimited,Inc. ,at?tempts to comply with the law in dealing with applicants,employ?ees,and clients.One of the challenges Sven faces is that the legality of an action is

Accepted Answer

The legality of an action in dealing with applicants, employees, and clients is not always clear. Laws and regulations can be complex and can vary by jurisdiction, making it difficult for HR professionals like Sven to always know the right course of action. It is important for them to stay up to date on changes in the law and seek legal guidance when needed to ensure compliance.

Question 11

Capital Acquisitions Corporation buys,reorganizes,and sells other companies.If Capital strictly complies with existing laws,the firm will

Accepted Answer

While complying with existing laws is necessary, it may not be sufficient in fulfilling all business ethics obligations. Capital Acquisitions Corporation also needs to consider broader ethical concerns such as social responsibility, fair treatment of employees, and environmental impact in its reorganization and sale of other companies. Therefore, they fulfill some business ethics obligations by complying with existing laws, but may have additional obligations beyond legal requirements.

Question 12

Equity Corporation provides other firms with funds to expand op?erations.Questions of what is ethical involve the extent to which Equity has

Accepted Answer

Ethics and law both impose certain duties on corporations. However, ethics goes beyond the legal requirements and sets forth the moral obligations that a corporation should fulfill to ensure fairness, transparency, and accountability. In the given scenario, Equity Corporation is providing funds to other firms for expansion purposes. While the law may require Equity to comply with regulations related to investing and lending, ethics demands that it also considers the social impact of its decisions, such as the potential risks and benefits to the community, the environment, or the stakeholders. Therefore, Equity has an ethical duty beyond those duties mandated by law.

Quiz 3: Ethics and Business Decision Making