Question 1

Jonathon is a(n)________, meaning he is both an employee of the company and a customer of its products.

Accepted Answer

A stakeholder is someone who has an interest in the company, which can include being both an employee and a customer.

Question 2

People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.

Accepted Answer

Ethical issues often arise when individuals must balance their own desires or benefits with the potential impact their actions may have on other people or society as a whole.

Question 3

Stockholders are the group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders.

Accepted Answer

The board of directors, not stockholders, typically bears the responsibility to decide on the goals an organization should pursue to benefit stakeholders.

Question 4

________ are the moral principles and beliefs about what is the right or appropriate way to behave.

Accepted Answer

Ethics are the moral principles and beliefs that guide individuals on what is considered right or appropriate behavior.

Question 5

Eleanor has witnessed her manager harassing a coworker on multiple occasions. Eleanor knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job. This example illustrates a(n)

Accepted Answer

Eleanor is facing an ethical dilemma because she is torn between reporting the harassment, which is the right thing to do, and the fear of losing her job, which creates a conflict between her ethical values and personal interests.

Question 6

The essential problem when solving moral dilemmas is

Accepted Answer

There are no absolute or indisputable rules or principles to decide whether an action is ethical, making moral dilemmas complex and subjective.

Question 7

Websites that allow free downloading of songs and movies illustrate the "tragedy of the commons" because there is pursuit of self-interest with no consideration for societal interest.

Accepted Answer

The "tragedy of the commons" occurs when individuals exploit a shared resource for personal gain, leading to its depletion or degradation, similar to how free downloading can harm the creative industry.

Question 8

Maria is a member of a trade group that has a code of ethics, otherwise known as organizational ethics, for its members to follow.

Accepted Answer

The answer of Maria is a member of a trade...

Question 9

________ are the stakeholder group with the most responsibility for deciding the goals of the organization.

Accepted Answer

Managers are responsible for setting and deciding the goals of the organization as they are in leadership positions and have the authority to make strategic decisions.

Question 10

When one person starts to profit by behaving unethically, it encourages other people to act in the same way.

Accepted Answer

When unethical behavior is rewarded, it can create a precedent or norm that others may follow, believing it to be acceptable or necessary to achieve similar success.

Question 11

Smoking marijuana is illegal in many states; therefore, smoking marijuana is

Accepted Answer

The legality of an action does not necessarily determine its ethicality. Ethics can vary based on individual beliefs, cultural norms, and specific circumstances, such as medical necessity.

Question 12

Laws are fixed principles, but ethics are not.

Accepted Answer

Laws can change over time as society evolves, while ethics are subjective and can vary between cultures and individuals.

Question 13

The moral rights rule states that people should put the community's interests above the company's.

Accepted Answer

The moral rights rule focuses on respecting and protecting the fundamental rights of individuals, not prioritizing community interests over a company's.

Question 14

One thing that it is important to remember about stockholders is they

Accepted Answer

Stockholders are an important stakeholder group, but they are not the only ones. Other stakeholders include employees, customers, suppliers, and the community, all of whom have interests in the company's operations and success.

Question 15

________ watch the company and its managers closely to ensure that management is working diligently to increase the company's profitability.

Accepted Answer

Stockholders watch the company and its managers closely because they have a financial interest in the company's profitability and success.

Question 16

Don decided to close his factory and move production to increase the company's profits even though this caused hardship for his employees and the community. Don's decision is not only legal but also socially responsible behavior.

Accepted Answer

While Don's decision may be legal, it is not considered socially responsible as it prioritizes profits over the well-being of employees and the community. Social responsibility involves considering the impact of business decisions on society and acting in a way that benefits both the company and the community.

Question 17

Aaron works in the accounting department for a large manufacturing company. His manager instructed him to record a transaction in an incorrect manner to increase the revenue for the fiscal year. Aaron is pondering whether to report this issue to a higher-level manager. He is experiencing an ethical dilemma.

Accepted Answer

An ethical dilemma occurs when a person faces a situation where they must choose between conflicting moral principles. Aaron is facing a conflict between following his manager's instructions and adhering to ethical accounting practices.

Question 18

Josiah is comfortable with his decision he made at work and would have no problem with people reading about it on the front page of a morning paper. This indicates that he is following the practical rule of ethics.

Accepted Answer

The practical rule of ethics suggests that an action is ethical if a person would be comfortable with it being publicly known, such as being reported on the front page of a newspaper.

Question 19

________ have/has the right to expect a good return or reward by investing their human capital to improve a company's performance.

Accepted Answer

Managers have the right to expect a good return or reward by investing their human capital to improve a company's performance, as they are directly involved in the management and success of the company.

Question 20

Brenda, the CEO of a manufacturing company, knew that her company followed the Environmental Protection Agency's (EPA)regulations for purifying waste water; however, new research found that those regulations where not strict enough and the drinking water would be affected. Brenda relied on her ________ and told the plant manager to go beyond the EPA's required level to assure that the company waste did not affect the community.

Accepted Answer

Brenda relied on her moral scruples, which refers to her personal sense of right and wrong, to decide to exceed the EPA's regulations for the benefit of the community.

Quiz 4: Ethics and Social Responsibility

Jonathon is a(n) ________, meaning he is both an employee of the company and a customer of its products.