Deck 42: Ethics and Social Responsibility of Business

Question 1

Which of the following statements 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 follow actions that are in accordance with a specific ethical rule or principle from a religious text.
C) People must choose to follow actions of a virtuous person.
D) People must follow actions based on moral duties imparted by one's community.

Answer 1

A

Question 2

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

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

Answer 2

B

Question 3

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 puts too much emphasis on one book or theory.
D) It treats morality as if it were an impersonal mathematical calculation.

Answer 3

D

Question 4

________ Act is a federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.

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

Question 5

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

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

Question 6

Charlotte works as a teacher in Africa. Every Sunday, she visits nearby villages and convinces families to send their children to school. She arranges accommodation for these children and helps them with their education. In a recent interview, Charlotte mentioned that she looks up to Mother Teresa not only for inspiration but also to resolve ethical dilemmas. Which of the following theories would support Charlotte's approach to ethics?

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

Question 7

In some situations, the law may permit an act that is ethically wrong.

Question 8

All laws are framed to meet the highest ethical standards.

Question 9

Reversibility is a principle of Kantian ethics which says that ________.

A) a person must be allowed to reverse his or her moral judgment to better suit his or her 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 10

Which of the following moral theories lays emphasis on morality based on one's moral duties?

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

Question 11

Which of the following cases describes an agreement of ethics and laws?

A) a company outsourcing its jobs to a foreign country
B) a person being penalized for bribing a judge to give the verdict in the person's favor
C) a company not spending more money to keep its emission rates below the legal standard
D) a person hiring an illegal alien worker belonging to a destitute family

Question 12

________ 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 13

The Whistle-blower Statute is also known as the ________.

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

Question 14

________ is an ethical theory where a person adheres to rules or commands that are from an outside source, like a book or a central figure.

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

Question 15

Ethics refers to a set of principles laid down by the society which an individual is expected to follow.

Question 16

It is never the case that a law may say "no" about a situation, but ethics may say "yes."

Question 17

Jules Renton, a financial accountant at Valkyrie Aviations, deals with the accounts Valkyrie has with the government. Valkyrie Aviations is in contract with the government to deliver a new bomber plane called Spearhead. While reviewing the Spearhead account, Renton noticed that Valkyrie has been falsely billing the government for Spearhead's production. If Renton chooses to be a whistleblower and expose the scam to the government, what statute enacted by the Congress must he invoke?

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

Question 18

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) moral relativism
C) utilitarianism
D) Rawls's social justice theory

Question 19

Give an account of the relationship between ethics and law.

Question 20

An ethically wrong state or condition can still be legal.

Question 21

Kantian ethics is also referred to as ________ ethics.

A) relativistic
B) utilitarian
C) duty
D) nihilistic

Question 22

According to ________, keeping a promise to abide by a contract is a moral duty even if that contract turns out to be detrimental to the obligated party.

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

Question 23

Which of the following is a theory that chooses the greatest good to society?

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

Question 24

Consistency and ________ are the two principles of Kantian ethics that state that a person must abide by the rule he or she uses to judge the morality of someone else's conduct.

A) reversibility
B) relativity
C) perspectivism
D) utilitarianism

Question 25

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

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

Question 26

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 the alternative that is best for society as a whole

Question 27

If someone looks to the Bible or the Koran, for instance, he or she may most likely adhere to the theory of ________.

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

Question 28

Which of the following is a way of establishing ethical rules in Rawls's social justice theory?

A) by a set of universal rules based on consistency and reversibility
B) from 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 29

According to ethical relativism, ________.

A) ethics rely on duties based on universal rules 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 ethical 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 30

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

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

Question 31

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

A) perspectivism
B) social contract
C) moral relativism
D) utilitarianism

Question 32

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

Question 33

Gregory, who looks up to the principles of Dr. Martin Luther King Jr. for ethical rules, is an ethical fundamentalist.

Question 34

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 35

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

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

Question 36

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

Question 37

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 difficult to reach consensus on universal rules.
D) It distinguishes between the morality one uses to judge others and the morality one uses on oneself.

Question 38

Which of the following moral theories will help an anthropologist study ancient societies with an impartial and unprejudiced mindset, especially when it relates to comparing ethics and customs followed by ancient societies to those being followed by present societies?

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

Question 39

________ is a moral theory which 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 40

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 usual supplier was not available. Portman then decided to go to another supplier who had a higher selling price rather than cancel 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) moral relativism

Question 41

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 42

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

Question 43

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

Question 44

Utilitarianism directs an individual to choose the action that provides the greatest good for the greatest number of people.

Question 45

The categorical imperative "Do unto others as you would have them do unto you" is an illustration of Kantian ethics.

Question 46

Relativism is one of the principles of Kantian ethics that states that the actor must abide by the rule he or she uses to judge the morality of someone else's conduct.

Question 47

Under the theory of ethical relativism, fairness is considered the essence of justice.

Question 48

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

Question 49

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

Question 50

Kantian ethics is also known as duty ethics.

Question 51

What is ethical relativism?

Question 52

Explain the two principles used to derive the universal rules of Kantian ethics?

Question 53

If an action would increase the good of twenty-five people by one unit each and an alternative action would increase the good of one person by twenty-six units, then, according to utilitarianism, the latter action should be taken.

Question 54

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

Question 55

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

Question 56

One of the advantages of utilitarianism is that it is easy to apply in most real-life situations.

Question 57

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

Question 58

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 59

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

Question 60

In Kantian ethics, the principle of inconsistency postulates treating all ethical cases differently.

Question 61

In accordance to the stakeholder interest theory, a corporation must view employees solely as a means of maximizing shareholder wealth.

Question 62

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

Question 63

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 64

Sinbad Cola, a soft drink manufacturer, recently opened a plant in Buron. The wastages from the plant were dumped in the Buron Sea, situated a mile away from the plant. Dumping of wastes in the sea resulted in water pollution, which negatively affected the Buron fishing business, and also resulted in groundwater contamination. Sinbad Cola compensated by bringing contamination levels down with additional filters and paying damages to the local fishermen. Which theory of business social responsibility did Sinbad Cola meet when they compensated for their harmful wastage disposal methods?

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

Question 65

The theory of moral minimum emphasizes social responsibility.

Question 66

The theory of maximizing profits holds that the interests of constituencies other than the business itself are not important in and of themselves.

Question 67

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 68

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

Question 69

If a business plan aims at increasing national employment but results in smaller profits for the corporation, it is in accordance with the traditional view of social responsibility.

Question 70

A social responsibility theory of business which says that 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 71

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

Question 72

The theory of moral minimum advocates making profit even while causing harm to others.

Question 73

ULab Inc., a biotechnology firm, recently had a fire in one of its offices, which resulted in the office building being fire gutted. The employees were not trained through fire drills, and the 10-story building had no fire escape route. Consequently, many employees were hospitalized for physical injuries, burns, and toxic smoke inhalation. What important social responsibility theory was ULab negligent of by not training its employees through fire drills and not installing a fire exit?

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

Question 74

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

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

Question 75

If Steve Templeton decides to close the plant in Portland, Oregon, what important business social responsibility will he accomplish?

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

Question 76

There are no specific governmental laws endorsing a moral minimum of social responsibility on corporations.

Question 77

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

Question 78

According to the theory of ________, if a business corrects the social injury it causes, it has met its duty of social responsibility.

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

Question 79

If Steve Templeton decides to not close a plant in Portland, Oregon, what business social responsibility will he be achieving?

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

Question 80

A corporation that pollutes a body of water has not met its moral minimum duty of social responsibility even if the business later compensates those whom the pollution has injured.