Chapter 4 (BLAW) – Flashcards

Unless a corporation violates a law, its actions do not raise questions about the role of corporations and the effect of corporate ethics on profit.

An overemphasis on long-run profit maximization is the most common reason that ethical problems occur in business.

The study of business ethics is concerned with the purposes of a business and how that business achieves those purposes.

Ethics is as well defined as the law.

Originally, the only goal or duty of a corporation was to maximize profits.

An action may be legal but not ethical.

Acting in good faith gives a business firm a better chance of defending its actions in court.

Company codes are not law.

Ethics is based more on research than judgement.

Compared to business ethics, employee ethics is not an important issue.

Religious rules generally are absolute with respect to the behavior of their adherents.

Under the principle of rights theory, one person's principles are as "right" as another's.

According to utilitarianism, it does not matter how many people suffer a negative effect from act.

The concept of corporate social responsibility is imposed on corporations by law.

Corporations can demonstrate corporate social responsibility by promoting goals that society deems worthwhile

It is always clear what is ethical in a given situation.

Managers must apply the same standards to themselves as they do to the company's employees

Companies are required to set up confidential systems so that employees and others can "raise red flags" about suspected illegal or unethical auditing and accounting practices

Given today's global communications network, most companies can assume that their actions in other nations will go unnoticed.

Some provisions of U.S. bribery law are directed toward accountants.

In studying the business law, students also review ethics in a business context. Ethics includes the study of what constitutes

Desdemona works for e-Innovation, Inc. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply

In making business decisions, Ridgeline Utility Service Company and other corporations should strive to be "good citizens" by evaluating

Green Hybrid Auto Corporation pays its executives an excessive amount relative to what lower-level employees at the company receive and to what executives at competitive companies are paid. Green Hybrid's pay scale is most likely to be challenged as

Ronelle, the human resources director for Small Business Solutions, Inc., at-tempts to comply with the law in dealing with applicants and employ¬ees. One of the challenges Ronelle faces is that the legality of an action is

Corporate Security Company provides other firms with security services. Questions of what is ethical involve the extent to which Corporate Security has

Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to en¬sure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

Situations in which employers face ethical issues with respect to social media platforms include

Ryland, an officer for Sports Park, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must

Dyan, the owner of Expert Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision

Steaks n' Fries Restaurant Company's decision makers view a particular risk in the consumption of Steaks n' Fries' products as open and obvious. Continuing to market the products without explicitly telling consumers of the risk could be justified from a perspective of

Ross, a research manager for Stock & Bond Investments, Inc., adheres to utilitarian ethics. Ross will determine that an action is morally cor¬rect when it produces the greatest good for

Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of

Digital Analytics, Inc., considers the impact of its corporate decisions on various groups and often acts in the interest of a group that has a greater stake in a decision than Digital's shareholders. This approach is most likely to attract potential employees who are

Comfort Foods Corporation makes and markets its products nationwide. To be considered socially responsible when making a business decision, Comfort Foods must take into account the needs of

GetTogether, A Social Media Company encourages its managers to behave ethically, reasoning that lower-level employees will take their cues from management. One of the most important ways to create and maintain an ethical workplace is for GetTogether's management to

Ricardo suspects his supervisor Simone of unethical accounting practices. But Ricardo does not want to report Simone if she will find out who reported her and fire Ricardo. An important feature of online reporting systems like EthicsPoint is that an employee reporting unethical behavior

Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting the facts and pretending to be licensed to perform various occupations. Lowell's conduct most likely warrants

Discount Mart Corporation contracts with companies in developing nations to produce goods, because the wage rates in those nations are significantly lower than those in the United States. Discount Mart takes steps to avoid bad publicity by monitoring its suppliers' workplaces to make sure that the employees are not mistreated. Discount Mart is

Petro Refining Corporation makes payments to potential customers, suppliers, and others with whom they might do business, including foreign private companies and the representatives of foreign labor organizations. If Petro knows that these payments will be passed on to a foreign government, this practice is