Deck 4: Social Entrepreneurship Ethical Challenges

Question 1

The definition of ethics is "based on universal principles on which society agrees."

Answer 1

False

Question 2

Society operates in a dynamic and ever-changing environment making the definition of ethics fluid.

Answer 2

True

Question 3

Businesses face interest from both inside and outside their organizations that cause ethical conflict.

Answer 3

True

Question 4

Qualities such as innovation and risk-taking are qualities that have produced complex trade-offs between economic profits and social welfare.

Question 5

One of the most important principles for ethical management is to hire the right people.

Question 6

The holistic management approach is an aesthetic, philosophical perspective, but the understanding of it "reminds the administrator that there exists complementary forms of acquiring managerial knowledge."

Question 7

The most important principle for ethical management is setting standards more than rules.

Question 8

Venture success, financial opportunity, and new product development are all areas that may be impacted by decisions having ethical consequences.

Question 9

The topic of ethics has been important in philosophical thought since the time of

A)Virgo.
B)Socrates.
C)Kennedy.
D)Schumpeter.

Question 10

Today's entrepreneurs are faced with many ethical decisions, especially during the _____ stages of their new venture.

A)early
B)middle
C)late
D)closing

Question 11

Ethics represents a set of principles prescribing a behavioral code that explains what is

A)good and right.
B)bad and wrong.
C)both a and b.
D)profit maximization for the firm.

Question 12

A definition of ethics in such a rapidly changing environment must be based more on _____ than on a static code.

A)rules
B)a process
C)deterministic rule
D)policy

Question 13

Instead of relying on a set of fixed ethical principles, it is important to develop

A)an ethical process.
B)a luxury process.
C)a concerned process.
D)a vacillating process.

Question 14

Which of the following causes conflict over the ethical nature of decisions?

A)the firm's costs
B)society undergoing dramatic change
C)government regulations
D)public policy toward business

Question 15

A change in society may result in a change in

A)Congress.
B)values.
C)the business cycle.
D)consumer tastes.

Question 16

One study developed a typology of morally questionable acts that included which of the following distinctions?

A)non-role assertion
B)role failure
C)role assertion
D)managerial changes

Question 17

Morally questionable acts committed on behalf of the firm are termed

A)non-role.
B)role failure.
C)role distortion.
D)role change.

Question 18

Morally questionable acts committed against the firm are termed

A)role distortion.
B)role failure.
C)role assertion.
D)corruption.

Question 19

For the entrepreneur the dilemma of _____ versus ethical is a vital one.

A)legal
B)conceptual
C)relative
D)acceptable

Question 20

Which of the following statements is one of the four rationalizations that managers use in justifying questionable conduct?

A)The company will not condone it.
B)It does not help the company.
C)It is in the individual's or corporation's best interest.
D)It will result in our losing money.

Question 21

Rationalizations for unethical behavior often appear _____ , given the behavior of many business enterprises today.

A)logical
B)wrong
C)trendy
D)realistic

Question 22

Role failure acts are against the firm and involve

A)not doing one's job
B)a person failing to fulfill a managerial role
C)accepting praise not deserved
D)doing someone else's job

Question 23

Price fixing is a form of

A)maximizing sales revenue
B)beating the competition
C)increasing demand
D)role assertion

Question 24

Qualities such as innovation have produced complex trade-offs between _____ and social welfare.

A)economic profits
B)businesses
C)government
D)firm's costs

Question 25

The requirements of law may overlap at times but they do not duplicate the moral standards of society because

A)legal requirements tend to be negative.
B)some laws have no moral content whatsoever.
C)morality tends to be negative.
D)the two have totally different objectives.

Question 26

The dilemma of legal versus ethical is due to

A)a lack of information on how the government works.
B)misrepresentation of personal views.
C)an imprecise judicial system.
D)being a good citizen.

Question 27

Legal behavior represents

A)belief that an action is not actually illegal.
B)belief that an action that aids the firm will be condoned.
C)belief that the action is in the firm's best interest.
D)none of the above.

Question 28

There are conflicting needs in the free enterprise system between

A)honesty and social respect.
B)jobs and efficiency.
C)generation of profits and integrity.
D)revenues and costs.

Question 29

Legal requirements as set by the law, often ______ acceptable moral standards of society.

A)lag behind
B)lead
C)serve as guides for
D)discourage

Question 30

Legal requirements tend to be ______; morality tends to be ______.

A)positive because they regulate behavior; positive because it regulates morals
B)positive because they regulate behavior; negative because it limits personal behavior
C)Negative because they forbid certain acts; negative because it discourages certain acts
D)negative because they forbid certain acts; positive because it encourages certain acts

Question 31

Unethical behavior takes place because of

A)greed.
B)tax laws.
C)strict management structure.
D)personality disorders.

Question 32

A recent survey found that ______ of executives had a code of conduct for their company.

A)the majority
B)a minority
C)99% percent
D)0%

Question 33

In focusing on an ethical position for entrepreneurs, high moral standards should be viewed as

A)stifling
B)good business
C)something to work on later
D)fine as long as profits are protected

Question 34

Improving the moral climate of the new venture

A)wins the public's confidence
B)is good business
C)boosts employee morale
D)boosts sales

Question 35

All of the following are managerial approaches to ethics except

A)immoral.
B)amoral.
C)moral.
D)quasi-moral.

Question 36

The holistic approach is

A)a dual-focused approach.
B)a single-focused approach.
C)a multi-faceted approach.
D)an approach for holy people.

Question 37

Moving from an immoral or amoral position to a moral position requires a great deal of _____ effort.

A)attentive
B)inactive
C)personal
D)group

Question 38

Which of the following best describes the strategy of moral management?

A)Exploit opportunities for corporate gain.
B)Give managers free rein.
C)Live by sound ethical standards.
D)Forget profit.

Question 39

What is a holistic management approach?

A)A triple-focused approach that includes "knowing how," "knowing that," and "knowing why."
B)A technique used to set codes of conduct.
C)An aesthetic, philosophical perspective, but the understanding of it reminds the administrator that there exist complementary forms of acquiring managerial knowledge.
D)An approach that balances profit and ethical considerations.

Question 40

What principle can be applied to the holistic approach?

A)Set standards more than rules.
B)Don't let yourself get isolated.
C)Hire the right people.
D)All the above can be applied to the holistic approach.

Question 41

Which of the following best describes immoral management in terms of ethical norms?

A)Management is neither moral nor immoral, but decisions lie outside the sphere to which moral judgments apply.
B)Management decisions are discordant with accepted ethical principles.
C)Ethical leadership is commonplace on the part of management.
D)Management may imply a lack of ethical perception and moral awareness.

Question 42

When establishing a strategy for ethical responsibility, entrepreneurs should examine the

A)legal implications of unethical behavior.
B)ethical process and structure of the venture.
C)ways of avoiding detection of unethical behavior.
D)prior ethical training employees have received.

Question 43

Ethical consciousness is developed

A)by your boss.
B)by establishing codes of ethics for the company.
C)by parents.
D)by the government.

Question 44

Ethical process and structure refers to _____ that are designed to avoid ambiguity.

A)the procedures
B)the codes
C)the conscripts
D)the interrelationships
E)none of the above

Question 45

Business decisions are complex for all of the following reasons except

A)ethical decisions have extended consequences.
B)ethical decisions have certain ethical consequences.
C)ethical business decisions often have mixed outcomes.
D)ethical equations have multiple alternatives.

Question 46

Ethical business decisions often have ______ outcomes.

A)mixed
B)finite
C)conceptual
D)integrative

Question 47

The consequences of ethical decisions may affect all of the following except

A)financial opportunities.
B)industry climate.
C)venture success.
D)new-product development.

Question 48

Discuss the five reasons the business decisions of entrepreneurs are complex. Fully explain your