Deck 2: Ethics and Social Responsibility of Business

Question 1

A government or political party that strictly derives its ethics and laws from a specific religious book is an example of ________.

A)utilitarianism
B)ethical fundamentalism
C)ethical relativism
D)Kantian ethics

Answer 1

B

Question 2

Which of the following statements best describes the moral theory of utilitarianism?

A)People must choose the action or follow the rule that provides the greatest good to society.
B)People must perform actions that are in accordance with a specific moral rule or principle from a religious text.
C)People must choose to follow the actions of a virtuous person.
D)People must perform actions that are based on moral duties imparted by one's community.

Answer 2

A

Question 3

Under the False Claims Act,a whistleblower can be awarded up to 25 percent of the amount recovered on behalf of the federal government,even if the informer has been a co-conspirator in perpetrating the fraud.

Answer 3

True

Question 4

________ is an ethical theory according to which a person adheres to rules or commands that are from an outside source,such as a book or a central figure.

A)Ethical fundamentalism
B)Utilitarianism
C)Ethical relativism theory
D)Rawls's social justice theory

Question 5

Which of the following cases is an example of agreement of ethics and laws?

A)a company outsourcing its work to a foreign country to take advantage of cheap labor
B)a person being penalized for bribing a judge to rule a case in the person's favor
C)a company not spending more to keep its emission rates below the legal standard
D)a person hiring an illegal alien worker whose family is destitute

Question 6

The False Claims Act permits private parties to sue the government on behalf of a corporation.

Question 7

Jules Renton,a financial accountant at Valkyrie Aviation,deals with Valkyrie's accounts with the government.Valkyrie has a contract with the government to deliver a bomber plane called Spearhead.When reviewing the Spearhead account,Renton noticed that Valkyrie has been falsely charging the government for Spearhead's production.If Renton chooses to be a whistleblower and expose the scam to the government,which Congress-enacted statute must he invoke?

A)Business Norms Act
B)Sarbanes-Oxley Act
C)Glass-Steagall Act
D)False Claims Act

Question 8

Which of the following is a perceived disadvantage of Kantian ethics?

A)It treats morality as if it were an impersonal mathematical calculation.
B)It does not allow people to have subjective notions of right and wrong.
C)It is based on universal rules that have no common consensus.
D)It differentiates between the morality one uses to judge others and the morality one uses on oneself.

Question 9

Give an account of the relationship between ethics and law.

Question 10

Reversibility is a principle of Kantian ethics according to which ________.

A)a person must be allowed to reverse his moral judgment to better suit his needs
B)a person must treat all moral circumstances as one
C)a person must be allowed to selectively choose moral judgments based on the circumstances
D)a person must abide by the rule he or she uses to judge the morality of someone else's conduct

Question 11

Which of the following moral theories would closely follow the categorical imperative "Do unto others as you would have them do unto you"?

A)Kantian ethics
B)ethical fundamentalism
C)utilitarianism
D)Rawls's social justice theory

Question 12

Which of the following is an apparent disadvantage of utilitarianism?

A)It does not allow people to have subjective notions of right and wrong.
B)It is based on moral duties derived from universal rules.
C)It overemphasizes one book or theory.
D)It treats morality as if it were an impersonal mathematical calculation.

Question 13

Portman,who runs a computer hardware store,had signed a contract with Stewie Inc.to deliver 125 computer monitors.He was to deliver it by the 5th of August,but by the 3rd of August,Portman could not arrange for the monitors,as his regular supplier was not available.He then decided to go to another supplier who had a higher selling price for monitors rather than cancelling the contract with Stewie Inc. ,as he believed it was his duty to do so.Which of the following moral theories matches Portman's behavior?

A)Kantian ethics
B)utilitarianism
C)Rawls's social justice theory
D)ethical fundamentalism

Question 14

________ is a moral theory according to which people owe moral duties that are based on universal rules.

A)Rawls's social justice theory
B)Kantian ethics
C)Utilitarianism
D)Ethical fundamentalism

Question 15

Consistency is one of the two important principles of ________ upon which its universal laws are based.

A)utilitarianism
B)Kantian ethics
C)Rawls's social justice theory
D)moral relativism

Question 16

An ethically wrong state or condition can still be legal.

Question 17

All laws are framed to meet the highest ethical standards.

Question 18

Which of the following theories of ethics is also referred to as duty ethics?

A)Rawl's social justice theory
B)utilitarianism
C)Kantian ethics
D)ethical fundamentalism

Question 19

The ________ Act is a federal statute that permits private parties to sue companies for fraud on behalf of the government.

A)Business Norms
B)Sarbanes-Oxley
C)Glass-Steagall
D)False Claims

Question 20

________ is a set of moral principles or values that governs the conduct of an individual or a group.

A)Rationality
B)Evolution
C)Ethics
D)Reason

Question 21

Utilitarianism postulates doing the greatest good for the greatest number of people.

Question 22

Kantian ethics is also known as duty ethics.

Question 23

Which of the following moral theories represents the dictum "I will keep the rules if everyone else does"?

A)perspectivism
B)social contract
C)ethical fundamentalism
D)utilitarianism

Question 24

Which of the following is a perceived disadvantage of Rawls's social justice theory?

A)It allows those in advantageous positions to suppress people in least advantageous positions in a society.
B)It does not consider the fact that people would not want to maximize benefits to the least advantaged persons in a society.
C)It only allows people in advantageous positions in a society to form rules on morality.
D)It postulates that there are no universal ethical rules to guide a person's conduct.

Question 25

How are ethical rules established in Kantian ethics?

A)by a set of universal rules that are based on consistency and reversibility
B)by following principles that have been derived from holy books
C)by an individual's feelings on what is right and wrong
D)by choosing an alternative that is best for the society as a whole

Question 26

________ theory is a moral theory that asserts that fairness is the essence of justice.

A)Kantian ethics
B)Ethical fundamentalism
C)Utilitarianism
D)Rawls's social justice

Question 27

How are ethical rules established in Rawls's social justice theory?

A)by establishing a set of universal rules based on consistency and reversibility
B)by establishing an original position of a veil of ignorance
C)by the ruling class or people in advantageous positions
D)by following what's best for the society as a whole

Question 28

From which of the following theories of morality is Rawls's social justice theory fundamentally derived?

A)the utilitarianism theory
B)the ethical fundamentalism theory
C)the social contract theory
D)the moral relativism theory

Question 29

Kant believed that people owe moral duties that are based on universal rules.

Question 30

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is an increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.Closing the plant would result in the employees losing their jobs and the local suppliers losing a major buyer.It will also have an adverse effect on the community of Kantron as the plant is one of the main sources of employment for the locals.Steve considers all these factors before deciding the fate of the plant.After considering all the factors,if Steve finds that the loss to the employees and the community is far greater than that incurred by the shareholders and decides to keep the plant open,which of the following moral theories matches Steve Templeton's approach to the situation?

A)Kantian ethics
B)Rawls's social justice theory
C)ethical fundamentalism
D)utilitarianism

Question 31

Kantian ethics is based on the premise that people can use reasoning to reach ethical decisions.

Question 32

According to Kantian ethics,one would be obligated to abide by a contract even if that contract turns out to be detrimental to the obligated party.

Question 33

Under ethical fundamentalism,a person looks to an outside source for ethical rules or commands.

Question 34

According to ethical relativism,________.

A)ethics rely on duties based on universal rules that one is morally bound to follow
B)each person is presumed to have entered into a social contract with all others in society to obey moral rules
C)there are no universal ethical rules to guide a person's conduct
D)people must choose an action or follow a rule that provides the greatest good to society

Question 35

The social contract theory is derived from Rawls's social justice theory.

Question 36

Kantian ethics distinguishes between the morality one uses to judge others and the morality one uses on oneself.

Question 37

________ is a moral theory that holds that individuals must decide what is ethical based on their own feelings about what is right and wrong.

A)Ethical relativism
B)Kantian ethics
C)Utilitarianism
D)Rawls's social justice theory

Question 38

Which of the following moral theories will help an anthropologist study ancient societies with an impartial and unprejudiced mindset?

A)Rawls's social justice theory
B)utilitarianism
C)Kantian ethics
D)ethical relativism

Question 39

The main criticism about ethical fundamentalism is that it does not allow people to decide for themselves what is right and what is wrong.

Question 40

The principle of inconsistency of Kantian ethics postulates treating all ethical cases differently.

Question 41

According to ethical relativism,an action that is usually thought to be unethical would not be considered unethical if the perpetrator thought it was ethical.

Question 42

Kantian ethics is also referred to as ________ ethics.

Question 43

Under the moral theory of ________,if a person meets his or her own moral standard in making a decision,no one can criticize him or her for it.

Question 44

Explain the two principles on which the universal rules of Kantian ethics are based.

Question 45

Rawls's social justice theory is based on the ________ theory of morality proposed by John Locke and Jean-Jacques Rousseau.

Question 46

What does "maximizing profits" as a social responsibility theory in business imply?

A)A corporation must consider the effects of its actions on persons other than its shareholders.
B)A corporation's duty is to make a profit while avoiding causing harm to others.
C)A corporation owes a duty to take actions that increase profits for its shareholders.
D)A corporation has the prime responsibility of increasing its profits in order to benefit the society at large.

Question 47

Ethical relativism holds that moral standards ought to be based on an individual's feelings of what is right and what is wrong.

Question 48

The moral theory that dictates that people should choose the action or follow the rule that provides the greatest good to society is referred to as ________.

Question 49

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.If Steve Templeton decides not to close the plant in Kantron,what business social responsibility will Steve Templeton be achieving?

A)moral minimum
B)corporate citizenship
C)maximizing profits
D)stakeholder interest

Question 50

________ is a moral theory with origins in the works of Jeremy Bentham and John Stuart.

Question 51

The ________ Statute is a federal statute that permits private parties to sue companies for fraud on behalf of the government.

Question 52

________ is one of the two principles of Kantian ethics according to which the actor must abide by the rule he or she uses to judge the morality of someone else's conduct.

Question 53

According to Rawls's social justice theory,________ is considered the essence of justice.

Question 54

Steve Templeton,the CEO of Rolland Motor Company,is contemplating the shutdown of a plant in Kantron.The plant has been unprofitable for some time now,and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders.But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer.There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron,as the plant is one of the main sources of employment for the locals.Steve Templeton considered all these factors before making a decision on the fate of the plant.If Steve Templeton decides to close the plant in Kantron,what important business social responsibility will Steve Templeton accomplish?

A)moral minimum
B)corporate citizenship
C)maximizing profits
D)stakeholder interest

Question 55

Sinbad Cola,a soft drink manufacturer,opened a plant in Buron.The waste from the plant was released into the Buron Sea,which was situated a mile away from the plant.Releasing the wastes into the sea resulted in water pollution and groundwater contamination.The water pollution in turn negatively affected Buron's fishing business.Sinbad Cola compensated for this by bringing the contamination levels down with additional filters and paying for the damages to the local fisheries.Which theory of business social responsibility did Sinbad Cola comply with when it compensated for its harmful waste disposal methods?

A)moral minimum
B)stakeholder interest
C)corporate citizenship
D)maximizing profits

Question 56

A social responsibility theory of business according to which a corporation's duty is to make a profit while avoiding causing harm to others is referred to as ________.

A)stakeholder interest
B)corporate citizenship
C)maximizing profits
D)moral minimum

Question 57

According to Rawls's social justice theory,a person who is in his or her "veil of ignorance" is best fit to select the fairest possible ethical principles.

Question 58

Under the moral theory of ________,a person looks to an outside source for ethical rules or commands.

Question 59

According to Rawls's social justice theory,moral duties are based on an implied social contract.

Question 60

What is ethical relativism?

Question 61

The moral minimum theory emphasizes correcting social injuries caused by a business.

Question 62

The ________ theory of social responsibility states that a corporation must consider the effects its actions have on persons other than its shareholders.

Question 63

The ________ theory of social responsibility compels a corporation to correct the social injury it causes.

Question 64

ULab Inc. ,a biotechnology firm,lost one of its offices in a fire.The employees did not have a fire drill,and the 10-story building had no fire escape.This resulted in many employees being hospitalized for physical injuries,burns,and toxic smoke inhalation.What important social responsibility theory did ULab neglect by not having a fire drill for its employees and not installing a fire exit?

A)corporate citizenship
B)moral minimum
C)stakeholder interest
D)maximizing profits

Question 65

Give an account of the social responsibility of businesses.List its four main theories.

Question 66

The moral minimum theory emphasizes making a profit even while causing harm to others.

Question 67

The ________ Act enacted by Congress in 2002 requires public companies to adopt codes of ethics and establishes criminal penalties for companies that partake in violations.

A)Glass-Steagall
B)Sarbanes-Oxley
C)False Claims
D)Business Norms

Question 68

________ is a social responsibility theory of business according to which a corporation must consider the effects that its actions have on persons other than its shareholders.

A)Corporate citizenship
B)Maximizing profits
C)Moral minimum
D)Stakeholder interest

Question 69

Section 406 of the ________ Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.

Question 70

What does "corporate citizenship" as a social responsibility theory in business imply?

A)Businesses are responsible for helping to solve social problems that they did little,if anything,to cause.
B)Businesses owe a duty to take actions that increase profits for shareholders.
C)Businesses have a responsibility solely to their stakeholders and strive to maximize their well-being.
D)Businesses are obliged to consider the effects of their actions on persons other than their shareholders.

Question 71

The traditional view of social responsibility of business emphasized maximizing profits for employees rather than shareholders.

Question 72

There are no specific governmental laws endorsing the moral minimum of social responsibility for corporations.

Question 73

The ________ theory of social responsibility requires corporations to solve social problems,including ones it did little,if anything,to cause.

Question 74

What is the moral minimum theory in the social responsibility of businesses?

Question 75

The corporate citizenship theory contends that corporations have to promote the same social goals as individual members of the society.

Question 76

The stakeholder interest theory compels a corporation to consider the effects of its actions specifically on shareholders.

Question 77

Conch Corporation,a global oil and gas company,plans to open a subsidized postsecondary vocational school in the town of Cristen,where one of its offices is situated.The plan is put to vote and then approved despite some objection from shareholders.The school is being opened in collaboration with the local government.Its objective is to help the youth of the neighborhood,especially dropouts,learn a vocational skill.What social responsibility theory describes Conch Corporation's move to open the school?

A)moral minimum
B)maximizing profits
C)corporate citizenship
D)stakeholder interest

Question 78

Section 406 of the Sarbanes-Oxley Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.

Question 79

The legislative and judicial branches of government have established laws that enforce the ________ of social responsibility for corporations.