Question 1

Multinational corporations do not qualify to act as moral agents within the framework of rights theories.

Accepted Answer

Within the framework of a theory of rights, certain people or institutions are obligated to provide benefits or services that secure the rights of others. Such obligations also fall upon more than one class of moral agent (a moral agent is any person or institution that is capable of moral action such as a government or corporation).

Question 2

Which of the following best exemplifies the global tragedy of the commons?

Accepted Answer

The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

Question 3

Which of the following refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

Accepted Answer

The term ethics refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

Question 4

Business leaders should use every relevant opportunity to stress the importance of business ethics and make sure that key business decisions not only make good economic sense but also are ethical.

Accepted Answer

Leaders in the business must give life and meaning to words in a code of ethics by repeatedly emphasizing their importance and then acting on them. This means using every relevant opportunity to stress the importance of business ethics and making sure that key business decisions not only make good economic sense but also are ethical.

Question 5

John Rawls's veil of ignorance is a conceptual tool that contributes to the moral compass that managers can use to help them navigate through difficult ethical dilemmas.

Accepted Answer

Rawls's veil of ignorance follows that it is unjust, and by extension unethical, for companies to pursue actions that contribute toward extensive degradation of important global commons. Thus, it is a conceptual tool that contributes to the moral compass that managers can use to help them navigate through difficult ethical dilemmas.

Question 6

In the modern world, corporations can worsen the global tragedy of the commons by:

Accepted Answer

In the modern world, corporations can contribute to the global tragedy of the commons by moving production to locations where they are free to pump pollutants into the atmosphere or dump them in oceans or rivers, thereby harming these valuable global commons.

Question 7

The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in particular but are used by everybody.

Accepted Answer

In the first step of an ethical algorithm, businesspeople should identify which stakeholders a decision would affect and in what ways.

Question 8

Which of the following occurs when a resource held jointly by all, but owned by no one, is overused by individuals, resulting in its degradation?

Accepted Answer

The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

Question 9

Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees.

Accepted Answer

Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees, investigating complaints from employees or others, reporting findings, and making recommendations for change.

Question 10

According to John Rawls's difference principle, wide variations in income and wealth can be considered just if the market-based system that produces this unequal distribution also benefits the least-advantaged members of society.

Accepted Answer

Wide variations in income and wealth can be considered just if the market-based system that produces this unequal distribution also benefits the least-advantaged members of society. One can argue that a well-regulated, market-based economy and free trade, by promoting economic growth, benefit the least-advantaged members of society. In principle at least, the inequalities inherent in such systems are therefore just.

Question 11

The term global commons refers to:

Accepted Answer

The atmosphere and oceans can be viewed as a global commons from which everyone benefits but for which no one is specifically responsible.

Question 12

Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles:

Accepted Answer

Ten years after he proposed what came to be known as the Sullivan principles, Leon Sullivan concluded that simply following the principles was not sufficient to break down the apartheid regime and that any American company, even those adhering to his principles, could not ethically justify their continued presence in South Africa.

Question 13

To strengthen the moral courage of employees, companies should not retaliate against those employees who complain about unethical actions.

Accepted Answer

Companies can strengthen the moral courage of employees by committing themselves to not retaliate against employees who exercise moral courage, say no to superiors, or otherwise complain about unethical actions.

Question 14

The internal stakeholders of a company do not have an exchange relationship with the company.

Accepted Answer

All stakeholders are in an exchange relationship with the company. Each stakeholder group supplies the organization with important resources (or contributions), and in exchange each expects its interests to be satisfied (by inducements).

Question 15

The Sullivan principles attempted to fight against:

Accepted Answer

The Sullivan principles were named after Leon Sullivan, a black Baptist minister and a member of General Motor's board of directors. Sullivan argued that it was ethically justified for GM to operate in South Africa so long as two conditions were fulfilled. First, the company should not obey the apartheid laws in its own South African operations (a form of passive resistance). Second, the company should do everything within its power to promote the abolition of apartheid laws.

Question 16

John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

Accepted Answer

John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

Question 17

Which of the following statements is true about the Sullivan principles?

Accepted Answer

Sullivan's principles promoted the abolition of apartheid laws, and were widely adopted by U.S. firms operating in South Africa.

Question 18

Which of the following is most likely to be considered unethical?

Accepted Answer

In the modern world, corporations can contribute to the global tragedy of the commons by moving production to locations where they are free to pump pollutants into the atmosphere or dump them in oceans or rivers, thereby harming these valuable global commons. While such action may be legal, it is still unethical.

Question 19

The action that produces the greatest good for the greatest number of people can result in the unjustified treatment of a minority.

Accepted Answer

The second problem with utilitarianism is that the philosophy omits the consideration of justice. The action that produces the greatest good for the greatest number of people may result in the unjustified treatment of a minority.

Question 20

Due to certain strict environmental and employment standards in its home nation, Taurus Inc. has shifted its operations to developing nations. Hence, the firm has now been able to gain competitive advantage by avoiding costly pollution controls. This strategic move of Taurus Inc. will be considered:

Accepted Answer

Regulations differ from nation to nation. Given this, it is unethical for a company to try to escape tight emission limits by moving production to a country with lax regulations.

Quiz 5: Ethics, Corporate Social Responsibility, and Sustainability

Multinational corporations do not qualify to act as moral agents within the framework of rights theories.

Which of the following best exemplifies the global tragedy of the commons?

Which of the following refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

Business leaders should use every relevant opportunity to stress the importance of business ethics and make sure that key business decisions not only make good economic sense but also are ethical.

John Rawls's veil of ignorance is a conceptual tool that contributes to the moral compass that managers can use to help them navigate through difficult ethical dilemmas.

In the modern world, corporations can worsen the global tragedy of the commons by:

The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in particular but are used by everybody.

Which of the following occurs when a resource held jointly by all, but owned by no one, is overused by individuals, resulting in its degradation?

Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees.

According to John Rawls's difference principle, wide variations in income and wealth can be considered just if the market-based system that produces this unequal distribution also benefits the least-advantaged members of society.

The term global commons refers to:

Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles:

To strengthen the moral courage of employees, companies should not retaliate against those employees who complain about unethical actions.

The internal stakeholders of a company do not have an exchange relationship with the company.

The Sullivan principles attempted to fight against:

John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

Which of the following statements is true about the Sullivan principles?

Which of the following is most likely to be considered unethical?

The action that produces the greatest good for the greatest number of people can result in the unjustified treatment of a minority.