Question 1

Stakeholders can be economically dependent without having ownership.

Accepted Answer

Stakeholders can include employees, suppliers, and customers who may be economically dependent on a company but do not have ownership.

Question 2

In the Sears Auto Centers case, the loss of goodwill was real, even though the total amount of money could not be clearly accounted for.

Accepted Answer

According to the case, customers had lost trust and confidence in Sears Auto Centers, resulting in a real loss of goodwill, which is difficult to quantify in exact monetary terms.

Question 3

Conscious capitalism integrates the viewpoints of stakeholder theory and shareholder primacy.

Accepted Answer

Conscious capitalism aims to create value not only for shareholders but also for all stakeholders, including employees, customers, vendors, and the community. It recognizes that a business cannot succeed alone but must have positive relationships with all of its stakeholders. So, it integrates the viewpoints of stakeholder theory and shareholder primacy.

Question 4

According to the series of observations about corporations, ethics, and corporate culture, the best ethics codes are legalistic or compliance driven.

Accepted Answer

The series of observations suggest that legalistic or compliance-driven ethics codes may not be the best approach to promoting ethical behavior in corporations. A more effective approach is to focus on creating a strong ethical culture, where ethical behavior is ingrained in the company's values and norms. This involves not only having a code of ethics, but also providing regular training and education to employees, setting clear expectations for behavior, and enforcing ethical standards consistently.

Question 5

According to utilitarianism, _____.

Accepted Answer

Utilitarianism emphasizes the results or consequences of actions rather than specific rules or duties. It seeks to maximize overall happiness or pleasure for the greatest number of people.

Question 6

There are many professional ethics codes because they provide goals that help provide excellent service to customers.

Accepted Answer

The answer of There are many professional ethics codes because...

Question 7

If you have a right of free expression, the government has a duty to respect that right, but can put unreasonable limits on it.

Accepted Answer

The answer of If you have a right of free...

Question 8

_____ describes what rule or principle, if followed regularly, will create the greatest good.

Accepted Answer

Rule utilitarianism holds that following a set of rules that promote the greatest good for the greatest number of people, even if it may not result in the greatest good in individual cases, is the most ethical approach. This distinguishes it from act utilitarianism, which holds that each individual action should be evaluated based on its potential for creating the greatest good. Deontology emphasizes the importance of following moral rules regardless of their consequences, social justice focuses on fairness and equality, and social contract theory is concerned with the mutual agreement among members of a society to follow certain rules and norms.

Question 9

According to utilitarianism, results, not rules, are emphasized.

Accepted Answer

Utilitarianism is a consequentialist ethical theory, which means it focuses on the consequences or results of actions rather than the intentions or rules behind them. Therefore, utilitarianism emphasizes the importance of achieving the greatest good for the greatest number of people, regardless of any pre-existing rules or principles.

Question 10

According to the sum total of utilities, we can be satisfied if an act provides the greatest utility to an individual even if it does not provide the greatest utility to society as a whole.

Accepted Answer

The principle of the sum total of utilities focuses on maximizing happiness or utility for the greatest number of people, not just for an individual, even if that act benefits the individual greatly.

Question 11

What is legal is not necessarily ethical and what is ethical is not necessarily legal.

Accepted Answer

Legal and ethical considerations often overlap, but there can be situations where an action may be legal but unethical, or vice versa. For example, capital punishment may be legal in some countries but considered unethical by some, while acts of civil disobedience or whistleblowing may be ethical but illegal.

Question 12

A manager's fiduciary duty refers to resisting hostile takeover bids.

Accepted Answer

A manager's fiduciary duty is to act in the best interest of the company and its shareholders, which may sometimes include considering a hostile takeover bid as a potential opportunity for growth and value creation. The duty is not to automatically resist such bids.

Question 13

The agency problem in corporate governance is about how to get managers' interests well aligned with the shareholders' interests.

Accepted Answer

The agency problem refers to the potential conflict of interest between shareholders, who want to maximize their return on investment, and managers, who may prioritize their personal goals or the goals of the company that do not necessarily align with shareholder interests. Corporate governance mechanisms are used to address this problem and ensure that managers act in the best interest of the shareholders.

Question 14

Which of the following is true for the relationship between rights and duties?

Accepted Answer

The answer of Which of the following is true for...

Question 15

Ethics is the study of what is right and wrong just from an individual's personal moral viewpoint.

Accepted Answer

Ethics is not just limited to an individual's personal moral viewpoint. It also includes societal norms and values, as well as professional standards and legal regulations.

Question 16

Act utilitarianism describes what rule or principle, if followed regularly, will create the greatest good.

Accepted Answer

The answer of Act utilitarianism describes what rule or principle,...

Question 17

According to Josephson, if there is no such decision that satisfies the greatest number of core values, one should try to determine which decision delivers the greatest good to the various stakeholders.

Accepted Answer

According to Josephson, if there is no decision that satisfies the greatest number of core values, then one should try to determine which decision delivers the greatest good to the various stakeholders.

Question 18

Which of the following uses the utilitarian test of the greatest good overall?

Accepted Answer

Project D provides a net benefit of $50,000 ($100,000 - $50,000) and employs 100 more people, making it the option that provides the greatest overall good. The utilitarian test is focused on maximizing overall benefit for society, and in this case, Project D achieves that goal. Projects A, B, and E have negative consequences (workforce reduction, cost of living increase, and workforce reduction, respectively), while Project C has a potential negative impact on the environment (forest reduction).

Question 19

According to Immanuel Kant, we should be able to universalize any particular law or action to determine whether it is ethical.

Accepted Answer

According to Kant's categorical imperative, an action is ethical if it can be universalized as a maxim without contradiction. This means that if everyone were to act on the same principle, it would not lead to a logical or moral contradiction.

Question 20

According to deontology, _____.

Accepted Answer

The answer of According to deontology, _____.
...

Quiz 2: Corporate Social Responsibility and Business Ethics