MAN Chapt 9 – Flashcards
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Ethical principles in business A) concern the behavioral guidelines a company's top management and board of directors set for company personnel regarding "what is right" and "what is wrong" in conducting the company's business. B) deal chiefly with the actions and behaviors required to operate companies in a socially responsible manner. C) are arrived at by picking and choosing among the consensus ethical standards of society to come up with a set of ethical standards that apply directly to operating a business. D) are not materially different from ethical principles in general and have to be judged in the context of society's standards of right and wrong, not by a special set of rules that business people decide to apply to their own conduct. E) involve behavioral guidelines for balancing the interests of non-owner stakeholders (customers, employees, suppliers, and the communities in which the company has operations) against the interests of company shareholders.
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D) are not materially different from ethical principles in general and have to be judged in the context of society's standards of right and wrong, not by a special set of rules that business people decide to apply to their own conduct.
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According to the school of ethical universalism, A) what behaviors are "ethically right" and "ethically wrong" vary across religions, but the boundaries of what is ethical or not are universal within religions. B) concepts of right and wrong universally apply to all business situations within a given country but can vary across countries or cultures. C) ethical guidelines exist only when there is universal agreement as to what behaviors are "ethically right" and "ethically wrong"; anything not universally viewed as unethical is thus within the bounds of what is ethically permissible. D) all societies and countries have some definition of what is ethically permissible (in this sense ethics are universal); however, the definitions of what is ethically permissible vary according to the prevailing religious doctrines in each country. E) The most important concepts what is right and what is wrong are universal and transcend culture, society, and religion.
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E) The most important concepts what is right and what is wrong are universal and transcend culture, society, and religion.
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If one adopts the thinking of the school of ethical relativism, then A) there are multiple sets of ethical standards because what is ethical or unethical depends on local customs and social mores and can vary from one culture or nation to another. B) there is a "one-size-fits-all" set of authentic ethical standards. C) the preferred set of ethical standards is the one which society at large has put in place in the form of laws and regulations. D) the prevailing ethical standards are the product of a system of "integrated social contracts." E) no ethical standards are ever truly "authentic"—they exist only to the extent that there is a temporary shared conviction among company managers and company personnel that a particular behavior is either ethically permissible or ethically impermissible.
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A) there are multiple sets of ethical standards because what is ethical or unethical depends on local customs and social mores and can vary from one culture or nation to another.
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Paying bribes and kickbacks to expedite winning orders from customers or to facilitate business transactions A) is ethically acceptable according to both the school of ethical relativism and the school of ethical universalism, provided the payment of such bribes and kickbacks is permitted by local laws. B) is a thorny ethical issue for multinational companies because in some countries such payments are considered unethical whereas in other countries the payment of bribes and kickbacks is very much in accord with local customs and social mores (which makes such payments "ethically acceptable" according to the school of ethical relativism). C) is a clear violation of ethical principles in all countries. D) is ethically acceptable according to "integrated social contract theory." E) is a clear violation of ethical standards only if one accepts the arguments and reasoning of the school of ethical relativism.
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B) is a thorny ethical issue for multinational companies because in some countries such payments are considered unethical whereas in other countries the payment of bribes and kickbacks is very much in accord with local customs and social mores (which makes such payments "ethically acceptable" according to the school of ethical relativism).
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According to integrated social contracts theory, A) the views and principles of the school of ethical universalism are definitely wrong; the correct view is that ethics is a matter of personal responsibility not a matter of management concern. B) universal ethical principles based on the collective views of multiple societies form a social contract that all individuals and organizations have a duty to observe in all situations. C) the standards of what is ethically permissible and what is not should be based on a code of ethical and moral conduct which each society/country/culture adopts and then enacts into law. D) the standards of what is ethically permissible should be determined by the terms of an "ethics contract" which each company employee signs as a condition of employment. E) the only valid ethical standards are those which are universal—and then only if the standards are not absolute and provide some wiggle room according to the circumstances of the each situation.
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B) universal ethical principles based on the collective views of multiple societies form a social contract that all individuals and organizations have a duty to observe in all situations.
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Unethical managerial behavior tends to be driven by such factors as A) overzealous or obsessive pursuit of personal gain, wealth, and other selfish interests; a company culture that puts the profitability and good business performance ahead of ethical behavior; and heavy pressures on company managers to meet or beat performance targets. B) the lack of a company code of ethics. C) a lack of training in what is ethical and what is not. D) confusing differences between what is ethical behavior in one's personal life and what is ethically permissible in business. E) All of the above factors.
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A) overzealous or obsessive pursuit of personal gain, wealth, and other selfish interests; a company culture that puts the profitability and good business performance ahead of ethical behavior; and heavy pressures on company managers to meet or beat performance targets.
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The business case for an ethical strategy A) relates to the company's business model and business-level strategy. B) must be articulated by the company's senior managers and reinforced by pronouncements from the board of directors. C) starts with managers who understand there is big difference between adopting values statements and codes of ethics that serve merely as window dressing and those that truly paint the white lines for a company's actual strategy and business conduct. D) emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide ranging. E) can be effectively made by executives subscribing to the damage control approach to managing a company's ethical conduct.
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D) emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide ranging.
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Which one of the following is not a key trait of the ethical culture approach to managing ethical conduct? A) The ethical culture approach is favored at companies where top managers are very concerned about gaining employee buy-in to the company's ethical standards, business principles, and corporate values and see the company's code of ethics and/or its statement of corporate values as integral to the company's identity and ways of operating. B) The ethical culture approach is especially well-suited for companies that favor a light approach to ethics compliance. C) There are strong peer pressures from coworkers to observe ethical norms. D) Compliance procedures need to be an integral part of the ethical culture approach to help send the message that management takes the observance of ethical norms seriously and that behavior that fall outside ethical boundaries will have negative consequences. E) The integrity of the ethical culture approach depends heavily on the ethical integrity of the executives who create and nurture the culture.
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B) The ethical culture approach is especially well-suited for companies that favor a light approach to ethics compliance.
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The notion of social responsibility as it applies to businesses concerns A) a company's duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large. B) a company's duty to put the public interest ahead of shareholder interests. C) societal expectations that all company stakeholders will be treated equally and fairly. D) a company's duty to establish socially acceptable core values and to have a strictly enforced code of ethical conduct. E) the responsibility that top management has for ensuring that the company's actions and decisions are in the best interest of society at large.
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A) a company's duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.
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An environmental sustainability strategy consists of a company's deliberate actions to A) provide good working conditions for employees and to actively work to enhance the quality of life in the local communities where it operates and in society at large. B) redesign products and alter production practices to satisfy the expectations of various environmental protection groups. C) meet the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet. D) apply universal norms regarding the protection of the environment to its everyday operations. E) balance commonly held views about what constitutes environmentally appropriate actions against its ability to make a profit.
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C) meet the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet.
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The thesis that since different societies and cultures have divergent values and standards of what is "ethically right" and "ethically wrong" it is appropriate to judge behavior as ethical/unethical in the light of local customs and social mores A) is the basis for the theory of ethical variation. B) defines what is meant by "integrated social contracts theory." C) is a view that characterizes the school of ethical relativism. D) accounts for why there is no such thing as ethical standards for business enterprises. E) is the reason why codes of ethical and social morality have been established country by country.
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C) is a view that characterizes the school of ethical relativism.
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Unintentionally amoral managers A) are nearly always ethically-principled in their personal behavior but can inadvertently violate the principles of business ethics because they are unsure of the differences between standards of business ethics and standards of personal ethics. B) do not violate ethical principles deliberately but rather because they have not been instructed by their superiors to steadfastly observe ethical principles in doing their jobs. C) believe that ethical standards apply only to one's personal life but not to conduct in matters of business. D) end up sometimes violating ethical principles merely because they are simply casual about, careless about, or inattentive to the fact that certain kinds of business decisions or company activities are unsavory or may have deleterious effects on others—in short, they go about their jobs as best they can without giving serious thought to the ethical dimension of decisions and business actions. E) end up sometimes violating ethical principles because they believe that whatever is legal is also ethical.
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D) end up sometimes violating ethical principles merely because they are simply casual about, careless about, or inattentive to the fact that certain kinds of business decisions or company activities are unsavory or may have deleterious effects on others—in short, they go about their jobs as best they can without giving serious thought to the ethical dimension of decisions and business actions.
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The perceived degree of governmental corruption is A) highest in such places as Germany, France, Hong Kong, Chile, and Finland and lowest in such countries as India, Paraguay, Indonesia, and South Africa. B) is highest in Finland, Denmark, New Zealand, and Sweden and lowest in Indonesia, Kenya, Paraguay, and Bangladesh. C) about the same in all countries that were surveyed. D) is lowest in the U.S., Japan, and Spain. E) is lowest in Finland, New Zealand, Denmark, Singapore, and Sweden.
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E) is lowest in Finland, New Zealand, Denmark, Singapore, and Sweden.
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A company's strategy needs to be ethical because A) institutional investors are more inclined to purchases shares of companies demonstrating high ethical standards. B) everyone is an ethics watchdog and somebody is sure to blow the whistle on the company's unethical behavior. C) of the risks of getting caught and prosecuted by governmental authorities if an unethical strategy is used. D) (1) a strategy that is unethical in whole or in part is morally wrong and reflects badly on the character of the company personnel involved and (2) an ethical strategy is good business and in the best interest of shareholders. E) All of the above.
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D) (1) a strategy that is unethical in whole or in part is morally wrong and reflects badly on the character of the company personnel involved and (2) an ethical strategy is good business and in the best interest of shareholders.
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The underlying belief of the "unconcerned or non-issue" approach to dealing with or managing ethics-related issues and ethics conduct is that A) a company needs to make only a token gesture in the direction of having acceptable ethical standards (usually adopting a code of ethics and instituting very light enforcement is sufficient). B) the business of business is business not ethics. C) unethical behavior should be punished only if it results in a public scandal which cannot be ignored by management. D) ethics is a matter of personal responsibility not a matter of management concern. E) what is right and what is wrong is a matter for each individual to decide and not something that a company should try to impose on its personnel.
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B) the business of business is business not ethics.
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The underlying belief of the "damage control" approach to dealing with or managing ethics-related issues and ethics conduct is that A) a company needs to make only a token gesture in the direction of having acceptable ethical standards (usually adopting a code of ethics and instituting very light enforcement is sufficient); the primary objective is to protect the company against any fallout from unethical strategies and behavior. B) a company does not need a code of ethics so long as top management makes a show of punishing unethical conduct whenever its shady actions are put in the public spotlight. C) unethical behavior should be punished only if it results in a public scandal which cannot be ignored by management. D) a reputation for high ethical standards is important to every company. E) the business of business is business not ethics.
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A) a company needs to make only a token gesture in the direction of having acceptable ethical standards (usually adopting a code of ethics and instituting very light enforcement is sufficient); the primary objective is to protect the company against any fallout from unethical strategies and behavior.
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Which of the following is not an action typically taken by companies that adopt a compliance approach to managing ethical conduct or that are serious about company employees observing high ethical standards? A) Making the company's code of ethics a visible and regular part of communications with employees, providing ethics training, and establishing formal ethics compliance procedures B) Implementing ethics training programs and giving ethics awards to employees for outstanding efforts to create an ethical climate and improve ethical performance C) Requiring all job applicants to sign a form stating that they will faithfully observe the company's ethical standards, subject to immediate dismissal if they are found guilty of any ethical violations or ethical misconduct D) Trying to deter violations by setting up ethics hotlines for anonymous callers to use in reporting possible violations E) Appointing a chief ethics officer or ethics ombudsperson charged with giving guidance on ethics matters and/or instituting formal procedures for investigating alleged ethics violations
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C) Requiring all job applicants to sign a form stating that they will faithfully observe the company's ethical standards, subject to immediate dismissal if they are found guilty of any ethical violations or ethical misconduct
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Which of the following is not something a company should normally consider in crafting a social responsibility strategy? A) Actions to promote workforce diversity B) Actions to raise worker wages and salaries and/or provide attractive incentive compensation for good performance C) The resources it will devote to charitable contributions, community service endeavors, various worthy organizational causes, and reaching out to make a difference in the lives of the disadvantaged D) Actions to protect or enhance the environment and, in particular, to minimize or eliminate any adverse impact on the environment stemming from the company's own business activities (such actions must be over and above what is legally required) E) Actions to create a work environment that enhances the quality of life for employees and makes the company a great place to work
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B) Actions to raise worker wages and salaries and/or provide attractive incentive compensation for good performance
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Which one of the following is not part of the moral case for why a company should actively promote the betterment of society? A) "It's the right thing to do." B) A corporation's highest priority is to satisfy the unmet needs of society. C) Most business leaders can be expected to acknowledge that socially responsible actions and environmental sustainability are important and that businesses have a duty to be good corporate citizens. D) In return for society granting a business a "license to operate" and not be unreasonably restrained in its pursuit of a fair profit, a business is obligated to act as a responsible citizen and do its fair share to promote the general welfare. E) Every business has a moral duty to take corporate citizenship into consideration and to do what's best for shareholders within the confines of discharging its duties to operate honorably, provide good working conditions to employees, be a good environmental steward, and display good corporate citizenship.
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B) A corporation's highest priority is to satisfy the unmet needs of society.
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Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? A) Acting in a socially responsible manner reduces the risk of reputation-damaging incidents. B) Acting in a socially responsible manner is in the overall best interest of shareholders. C) Every business has a moral duty to promote the general welfare of society. D) To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage. E) Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).
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C) Every business has a moral duty to promote the general welfare of society.
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The prevailing view of the school of ethical universalism is that: A) all different societies and countries have essentially the same ethical standards of right and wrong in the conduct of business affairs, despite somewhat different customs and traditions. B) concepts of right and wrong are universal as applied to a given ethical issue or any one particular set of circumstances—that is, there's a universally correct way to handle every ethics-related situation. C) the most important moral standards travel well across countries and cultures and thus are universal—universal norms include honesty or trustworthiness, respecting the rights of others, practicing the Golden Rule, avoiding unnecessary harm to workers or to the users of the company's product or service, and respect for the environment. D) concepts of right and wrong within a particular company are universal but they are not universal across companies. E) concepts of right and wrong are universally defined by religious principles.
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C) the most important moral standards travel well across countries and cultures and thus are universal—universal norms include honesty or trustworthiness, respecting the rights of others, practicing the Golden Rule, avoiding unnecessary harm to workers or to the users of the company's product or service, and respect for the environment.
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Multinational companies that are serious about enforcing a code of ethical conduct that extends to all company employees worldwide: A) are misguided and doomed to failure, given that a majority of company managers are immoral. B) are misguided in their efforts because it is not possible to write a code of ethical conduct with worldwide applicability. C) have an uphill struggle unless they subscribe to the school of ethical relativism. D) have no special problems given the universal nature of ethical standards. E) might well conclude that adopting the principle of ethical relativism regarding the payment of bribes/kickbacks is a slippery slope and that the right ethical standard is one of refusing to condone bribery and kickbacks on the part of company personnel no matter what the local custom is.
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E) might well conclude that adopting the principle of ethical relativism regarding the payment of bribes/kickbacks is a slippery slope and that the right ethical standard is one of refusing to condone bribery and kickbacks on the part of company personnel no matter what the local custom is.
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Paying bribes and kickbacks to grease business transactions: A) is perceived to occur most frequently in public works/construction, arms and defense, oil and gas, and real estate and less frequently in agriculture, light manufacturing, and fisheries. B) is perceived to occur more frequently in industries like fast food, retailing, and electronics than in such industries as government contracting, arms and defense, and oil and gas. C) is perceived to occur most frequently in the motor vehicle industry and the banking industry. D) is perceived to occur more frequently in Western Europe than in Asia and Africa. E) is perceived to occur more frequently in dealings with a company's suppliers than in dealings with a company's customers.
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A) is perceived to occur most frequently in public works/construction, arms and defense, oil and gas, and real estate and less frequently in agriculture, light manufacturing, and fisheries.
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Which one of the following is false when it comes to making a case for why a company's strategy should be ethical? A) An unethical strategy can put a company's reputation at risk and do lasting damage, especially when the misdeeds get into the public spotlight and make media headlines. B) An ethical strategy is in the best interest of shareholders. C) An unethical strategy reflects badly on the character of the company personnel involved. D) Shareholders profits are not greatly reduced by using ethical strategies. E) A strategy that is unethical in whole or in part is morally wrong.
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D) Shareholders profits are not greatly reduced by using ethical strategies.
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Which one of the following is not part of the moral case for why businesses should act in a socially responsible manner? A) Because businesses operate on the basis of an implied "social contract" with society—according to the terms of this implied contract, society grants a business the right to conduct its business affairs and pursue a profit for the goods or services it provides and, in return for its "license to operate", a business is obligated to act as a responsible citizen and do its fair share to promote the general welfare B) Because "it's the right thing to do" C) Because it is unjust for a company to be so greedy as to not use a portion of the revenues collected from customers (who are a part of society at large) to finance company efforts to do good deeds on behalf of society (and thereby demonstrate its goodwill towards customers) D) Because businesses have a duty to be good corporate citizens and do what's best for shareholders within the confines of discharging its duties to operate honorably, provide good working conditions to employees, and be a good environmental steward E) Because ordinary decency, civic-mindedness, and concern for the well-being of society should be expected of any business
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C) Because it is unjust for a company to be so greedy as to not use a portion of the revenues collected from customers (who are a part of society at large) to finance company efforts to do good deeds on behalf of society (and thereby demonstrate its goodwill towards customers)
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Which one of the following is false as concerns the merits of why acting in a socially responsible manner is "good business"? A) To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage. B) Acting in a socially responsible manner reduces the risk of reputation-damaging incidents. C) Acting in a socially responsible manner is in the overall best interest of shareholders. D) Acting in a socially responsible manner results in above-average after-tax profits. E) Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting, workforce retention, training, and improved worker productivity).
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D) Acting in a socially responsible manner results in above-average after-tax profits.
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The three categories of managers that stand out as concerns their prevailing beliefs in and commitments to ethical and moral principles in business affairs are: A) ethically correct managers, ethically incorrect managers, and ethically unconcerned managers. B) ethically moral managers, ethically immoral managers, and ethically unaware managers. C) ethically-principled managers, ethically-unprincipled managers, and managers whose ethical principles vary according to situational circumstances. D) ethical managers, corrupt managers, and partly ethical/partly unethical managers. E) moral managers, immoral managers, and amoral managers.
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E) moral managers, immoral managers, and amoral managers.
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The major drivers of unethical managerial behavior include A) pressures on company managers to meet or beat earnings targets. B) basic human greed and overzealous or obsessive pursuit of personal wealth. C) a company culture that puts the profitability and good business performance ahead of ethical behavior and doing what's right. D) a willingness to push ethical principles aside in a personal quest to climb the corporate ladder of success E) All of these.
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E) All of these.
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The school of ethical universalism holds that A) all different societies and countries have essentially the same ethical standards of right and wrong, despite somewhat different customs and traditions. B) basic human nature is the same everywhere and thus the same set of ethical rules and ethical standards applies to most all cultures and countries. C) concepts of right and wrong are universally defined by religious principles. D) concepts of right and wrong are universal within countries but not across countries and cultures. E) concepts of right and wrong are universal as applied to a given ethical issue or any one particular set of circumstances-that is, there's a universally correct way to handle every ethics-related situation.
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B) basic human nature is the same everywhere and thus the same set of ethical rules and ethical standards applies to most all cultures and countries.
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The school of ethical relativism holds that A) different societal cultures and customs give rise to divergent values and ethical principles of right and wrong. B) concepts of right and wrong are relative within countries but not across countries and cultures. C) concepts of right and wrong are always relative to an individual's own values and beliefs. D) concepts of right and wrong are always relative to the religious principles and historic traditions a person believes in. E) concepts of right and wrong are always governed by situational circumstances-a particular action or behavior can be " ethically right" in one situation and "ethically wrong" in another.
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A) different societal cultures and customs give rise to divergent values and ethical principles of right and wrong.
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Companies that adopt a compliance mode usually do such things as A) making the company's code of ethics a visible and regular part of communications with employees. B) having ethics training programs and giving ethics awards to employees for outstanding efforts to create an ethical climate and improve ethical performance. C) appointing a chief ethics officer or ethics ombudsperson charged with giving guidance on ethics matters and/or instituting formal procedures for investigating alleged ethics violations. D) conducting ethics audits to measure and document compliance. E) All of these.
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E) All of these.
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Which one of the following is not a particularly good justification for why a company's strategy should be ethical? A) An unethical strategy can put a company's reputation at risk and do lasting damage, especially when the misdeeds get into the public spotlight and make media headlines. B) An ethical strategy is in the best interest of shareholders. C) An unethical strategy reflects badly on the character of the company personnel involved. D) Shareholders profits are not greatly reduced by using ethical strategies. E) A strategy that is unethical in whole or in part is morally wrong.
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D) Shareholders profits are not greatly reduced by using ethical strategies.
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The concept of social responsibility as it applies to the actions and behavior of companies has to do with A) a company's duty to make the interests and well-being of non-owner stakeholders co-equal in importance with shareholder interests. B) societal expectations that company managers will not make irresponsible decisions or condone irresponsible behavior on the part of company personnel. C) a company's duty to operate by means that explicitly consider the interests and well-being of non-owner stakeholders and the environment and, further, to consider the overall betterment of society in its decisions and actions. D) urging top management to take actions calculated to win applause from the public at large. E) a company's duty to train all company personnel in displaying the company's core values and in what constitutes ethical conduct of the company's business.
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C) a company's duty to operate by means that explicitly consider the interests and well-being of non-owner stakeholders and the environment and, further, to consider the overall betterment of society in its decisions and actions.
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Which one of the following is not a sound reason why acting in a socially responsible manner is "good business"? A) Acting in a socially responsible manner causes company employees to adopt the company's cultural norms and ethical standards and reduces the likelihood that company personnel will engage in unethical behavior. B) A company's socially responsible behavior can reduce the likelihood that it will become a target for pressure group action (which can be important if a company has a high profile brand and could easily attract scrutiny from concerned outsiders should shady or unsavory company actions come to their attention). C) A company's socially responsible behavior can fortify its reputation with customers and cause them to become more loyal patrons of the company's products or services D) A company's socially responsible behavior can cause some employees to feel better about working for the company, thus acting to lower turnover and boost worker productivity. E) Companies with deservedly good reputations for contributing time and money to the betterment of society are better able to attract and retain high-caliber employees compared to companies with tarnished reputations.
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A) Acting in a socially responsible manner causes company employees to adopt the company's cultural norms and ethical standards and reduces the likelihood that company personnel will engage in unethical behavior.
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Which of the following statements regarding a company's social responsibility strategy is not true? A) The essence of socially responsible business behavior is that a company should strive to balance the benefits of strategic actions to benefit shareholders against any possible adverse impacts on other stakeholders (employees, suppliers, customers, local communities, and society at large) and, further, to proactively mitigate any harmful effects on the environment that its actions and business may have. B) The combination of socially responsible endeavors a company elects to pursue defines its social responsibility strategy. C) Unless a company's social responsibility initiatives become part of the way it operates its business every day, the initiatives are unlikely to catch fire and be fully effective. D) There's a one-size-fits-all social responsibility strategy because all socially responsible companies are choosing from the same menu of actions. E) Business leaders who want their companies to be regarded as socially responsible must see that their companies operate ethically and also display a social conscience in decisions that affect company stakeholders and the environment.
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D) There's a one-size-fits-all social responsibility strategy because all socially responsible companies are choosing from the same menu of actions.
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The three categories of managers that stand out with regard to the beliefs and commitments they have to ethical and moral principles in business affairs are: A) ethical managers, socially responsible managers, and crooked managers. B) mostly ethical managers, somewhat unethical managers, and ethically corrupt managers. C) ethically-principled managers, ethically-unprincipled managers, and ethically-neutral managers. D) moral managers, amoral managers, and immoral managers. E) ethically responsible managers, ethically irresponsible managers, and ethically unconcerned managers.
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D) moral managers, amoral managers, and immoral managers.
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The categories of managerial morality include: A) honorable managers, dishonorable managers, and totally corrupt managers. B) mostly ethical managers, somewhat ethical managers, and totally unethical managers. C) ethically-principled managers, ethically-unprincipled managers, and if-it-is-legal-then-it-is-ethical managers ( the latter type of manager believes that ethics don't really apply to business—their view is that anything that is legal is also ethical). D) managers with lots of integrity, managers with some integrity, and managers with no integrity. E) moral managers, immoral managers, and amoral managers.
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E) moral managers, immoral managers, and amoral managers.
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Moral managers: A) are ethically principled. B) see themselves as stewards of ethical behavior and believe it is important to exercise ethical leadership. C) pursue success within the letter and spirit of what is considered ethical and legal. D) view what is legal as the ethical minimum and have a habit of operating at well above what the law requires. E) All of the above.
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E) All of the above.
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Moral managers: A) are skeptical about ethics and ethical standards but feel obligated to observe the company code of ethics. B) see themselves as stewards of ethical behavior and believe it is important to exercise ethical leadership; they are ethically principled and pursue success within the letter and spirit of what is considered ethical and legal. C) try to stay within ethical bounds for fear of being caught doing something unethical and having their careers ruined. D) view what is legal as also ethical. E) are ethically-principled as long as they see such behavior being in their own self-interest.
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B) see themselves as stewards of ethical behavior and believe it is important to exercise ethical leadership; they are ethically principled and pursue success within the letter and spirit of what is considered ethical and legal.
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An immoral manager is one who A) is ethically-principled most of the time but who might stoop to unethical behavior if there's low risk of discovery and the action or decision has a sizable positive effect on company profitability. B) has no regard for so-called ethical standards in business and pays no attention to ethical principles in making business decisions—an immoral manager is driven by greed and self-gain and won't hesitate to violate ethical principles if it is in his/her best interest to do so. C) is ethically unprincipled but nonetheless usually observes ethical standards for fear of getting caught and fired. D) believes that ethical standards violate the principle of moral free space and therefore are illegitimate. E) strongly believes that it is ethical to do whatever is legal.
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B) has no regard for so-called ethical standards in business and pays no attention to ethical principles in making business decisions—an immoral manager is driven by greed and self-gain and won't hesitate to violate ethical principles if it is in his/her best interest to do so.
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An intentionally amoral manager is one who A) is ethically-principled most of the time but who knowingly and willingly stoops to unethical behavior if there's low risk of discovery and the action or decision has a sizable positive effect on company profitability. B) deliberately and maliciously violates ethical principles on a regular basis. C) believes business and ethics are not to be mixed because different rules apply in business as compared to other realms of life. D) views the observance of high ethical standards (doing more than what is required by law) as too Sunday-schoolish for the tough competitive world of business, even though observing some higher ethical considerations may be appropriate in life outside of business. E) strongly believes that whatever is legal is also ethical.
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D) views the observance of high ethical standards (doing more than what is required by law) as too Sunday-schoolish for the tough competitive world of business, even though observing some higher ethical considerations may be appropriate in life outside of business.
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An unintentionally amoral manager is one who A) is ethically-principled most of the time but who is also prone to being unethical when there's low risk of being discovered and/or it is in his/her best interests. B) is casual about, careless about, or inattentive to the fact that certain types of business decisions or company activities may have adverse impacts on others. C) strongly believes in the integrated social contract theory approach to ethics in business. D) strongly believes in ethical relativism. E) strongly believes in ethical universalism.
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B) is casual about, careless about, or inattentive to the fact that certain types of business decisions or company activities may have adverse impacts on others.
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The best available evidence indicates that the average manager in the whole population of managers is A) ethically corrupt. B) ethically amoral most of the time but may slip into a moral or immoral mode based on a variety of impinging factors and circumstances. C) mostly ethical. D) ethically moral and is fairly steadfast in taking ethically correct positions. E) ethically immoral and unprincipled, especially when the chances of being discovered are slim; however, in public, the average manager is prone to give every appearance of being ethically principled and to profess support for ethically correct behavior.
answer
B) ethically amoral most of the time but may slip into a moral or immoral mode based on a variety of impinging factors and circumstances.
question
By some accounts, the population of managers is said to be A) distributed among moral, immoral, and amoral managers in a bell-shaped curve, with immoral managers and moral managers occupying the two tails of the curve, and amoral managers, especially the intentionally amoral managers, occupying the broad middle ground. B) composed of mostly ethically moral managers but perhaps a third of all managers slip into an immoral or unethical mode in certain circumstances. C) about 15% highly ethical, 50% mostly ethical, and 35% ethically corrupt. D) about 20% highly ethical, 60% mostly ethical, and 20% mostly unethical. E) about one-third highly ethical, one-third mostly ethical, and one-third mostly unethical.
answer
A) distributed among moral, immoral, and amoral managers in a bell-shaped curve, with immoral managers and moral managers occupying the two tails of the curve, and amoral managers, especially the intentionally amoral managers, occupying the broad middle ground.
question
The stance a company takes in dealing with or managing ethical conduct at any given point in time can take such basic forms as A) the unconcerned or non-issue approach, the damage control approach, the compliance approach, and the ethical culture approach. B) the amoral approach, the immoral approach, and the ethically-principled approach. C) the ethically incorrect approach, the ethically correct approach, and the socially responsible approach. D) the noncompliance approach, the compliance approach, the public interest approach, and the cultural norm approach. E) the empowered employee approach, the cultural values approach, and the authoritarian approach.
answer
A) the unconcerned or non-issue approach, the damage control approach, the compliance approach, and the ethical culture approach.
question
Which of the following is not a stance a company can take in dealing with or managing ethical conduct at any given point in time? A) The unconcerned or non-issue approach B) The damage control approach C) The socially responsible approach D) The ethical culture approach E) The compliance approach
answer
C) The socially responsible approach
question
Which of the following are consequences of pursuing a strategy that has unethical or shady components? A) Government fines and penalties B) Legal and investigative costs incurred by the company C) Customer defections D) Adverse effects on employee productivity E) All of these
answer
E) All of these
question
The business case for why companies should act in a socially responsible manner includes such reasons as A) helping avoid or preempt legal and regulatory actions that could prove costly. B) avoiding criticism from consumer, environmental, and human rights activist groups. C) contributing to lower employee turnover and better worker productivity. D) the potential for increased buyer patronage. E) all of these
answer
E) all of these
question
According to integrated social contracts theory: A. universal ethical principles apply in those situations where most all societies—endowed with rationality and moral knowledge—have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of what is right and which ones fall outside. B. commonly held views about what is morally right and wrong form a contract with society that is binding on all individuals, groups, organizations, and businesses in terms of establishing right and wrong and in drawing the line between ethical and unethical behaviors C. universal ethical principles or norms leave some "moral free space" for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined by universal ethical principles. D. universal ethical norms always take precedence over local ethical norms. E. All of these.
answer
E. All of these.
question
Which one of the following is not a key element of integrated social contracts theory? A. Universal ethical principles apply in those situations where most all societies—endowed with rationality and moral knowledge—have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of what is right and which ones fall outside. B. Commonly held views about what is morally right and wrong form a "social contract" (contract with society) that is binding on all individuals, groups, organizations, and businesses in terms of establishing right and wrong and in drawing the line between ethical and unethical behaviors C. Universal ethical principles or norms leave some "moral free space" for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined by universal ethical principles. D. Universal ethical norms always take precedence over local ethical norms. E. Integrated social contracts theory rejects the slippery slope of ethical relativism and embraces ethical universalism.
answer
E. Integrated social contracts theory rejects the slippery slope of ethical relativism and embraces ethical universalism.
question
Business ethics concerns A. developing a consensus among companies worldwide as to what ethical principles that businesses should be expected to observe in the course of conducting their operations. B. what ethical behaviors should be expected of company personnel in the course of doing their jobs. C. the application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel. D. developing a special set of ethical standards for businesses to observe in conducting their affairs. E. picking and choosing among the consensus ethical standards of society to arrive at a set of ethical standards that apply directly to operating a business.
answer
C. the application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel.
question
Ethical principles in business A. deal chiefly with the actions and behaviors required to operate companies in a socially responsible manner. B. deal chiefly with the rules each company's top management and board of directors make about "what is right" and "what is wrong." C. are not materially different from ethical principles in general. D. are generally less stringent than the ethical principles for society at large. E. are generally more stringent than the ethical principles for society at large.
answer
C. are not materially different from ethical principles in general.
question
Ethical principles as they apply to business conduct and business decisions A. deal chiefly with standards a company has (and that are elaborated in its code of ethics) about what's right and wrong insofar as the conduct of its business is concerned and about what behaviors are expected of company personnel. B. deal chiefly with the behaviors that a company's board of directors expects of all company personnel in both their conduct on-the-job and their conduct off-the-job. C. involve the rules a company's top management and board of directors make about "what is right" and "what is wrong." D. are not materially different from ethical principles in general. E. are generally less stringent than the ethical principles for society at large because it is well understood that businesses should not be expected to operate any differently than what the law requires of them.
answer
D. are not materially different from ethical principles in general.
question
Notions of right and wrong, fair and unfair, moral and immoral, ethical and unethical A. vary enormously from religion to religion and country to country across the world. B. are present in all societies, organizations, and individuals; some of the most important concepts (for example, being truthful) of what is right and what is wrong resonate with people of most cultures, and are thus universal. C. ultimately depend on the circumstances—nothing is really black or white when it comes to ethical standards. D. are governed mainly by the thinking and writings of religious clerics at the School of Morally Correct Thinking and Behavior in Geneva, Switzerland. E. ultimately depend on a person's own values and beliefs.
answer
B. are present in all societies, organizations, and individuals; some of the most important concepts (for example, being truthful) of what is right and what is wrong resonate with people of most cultures, and are thus universal.
question
The school of ethical universalism holds that A. concepts of right and wrong are absolute and leave no room for deviation from country to country or circumstance to circumstance. B. concepts of right and wrong are universal within countries but not across countries and cultures. C. concepts of right and wrong are governed by the Global Code of Ethical and Social Morality. D. some concepts of what is right and what is wrong resonate with peoples of most societies regardless of local traditions and cultural norms—hence common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances. E. all societies and countries apply essentially the very same set of universally-defined ethical principles of right and wrong in judging individual behavior
answer
D. some concepts of what is right and what is wrong resonate with peoples of most societies regardless of local traditions and cultural norms—hence common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances.
question
According to the school of ethical universalism, A. concepts of what constitutes ethical behavior and unethical behavior are dictated by subjectively-provable moral principles but not by objectively-provable moral principles. B. concepts of right and wrong are universal within countries/societies but not across countries or cultures. C. concepts of what is ethical and what is unethical are universal and absolute, leaving no room for deviation from country to country or circumstance to circumstance. D. to the extent there is common moral agreement about right and wrong actions and behaviors across multiple cultures and countries, there exists a set of universal ethical standards to which all societies, all companies, and all individuals can be held accountable. E. all societies and countries are obligated to apply universally-defined ethical principles of right and wrong as set forth in the Global Code of Ethical Behavior adopted by 150 nations of the world. Answer
answer
D. to the extent there is common moral agreement about right and wrong actions and behaviors across multiple cultures and countries, there exists a set of universal ethical standards to which all societies, all companies, and all individuals can be held accountable.
question
The contention that since different societies and cultures have divergent values and standards of right and wrong it is appropriate to judge behavior as ethical/unethical in the light of local customs and social mores rather than according to a single set of ethical standards A. defines what is meant by ethical relativism. B. defines what is meant by ethical universalism. C. is the foundation of integrated social contracts theory. D. is the basis for the theory of ethical variation. E. is the guiding principle of the Global Code of Ethical and Social Morality created by the United Nations.
answer
A. defines what is meant by ethical relativism.
question
The school of ethical relativism holds that A. what constitutes ethical or unethical conduct varies according to the religious convictions of each society or each culture within a country. B. when there are cross-country or cross-cultural differences in what is deemed fair or unfair, what constitutes proper regard for human rights, and what is considered ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere. C. concepts of right and wrong are always governed by business norms in each country, culture, or society. D. concepts of right and wrong are always a function of each individual's own set of values, beliefs, and ethical convictions. E. concepts of right and wrong as they apply to business behavior are always varying shades of gray, never absolute (i.e. black or white).
answer
B. when there are cross-country or cross-cultural differences in what is deemed fair or unfair, what constitutes proper regard for human rights, and what is considered ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere.
question
If one accepts the tenets of the school of ethical relativism, then it follows that A. there are multiple sets of ethical standards rather than a single universal set. B. at least some ethical standards are governed by local norms, religious doctrines, and social customs rather than by absolute standards of right and wrong. C. what constitutes ethical or unethical behavior on the part of businesses must in some cases be judged in the light of local customs and social mores. D. it is inappropriate to hold businesses accountable for observing a universal set of ethical standards. E. All of these.
answer
E. All of these.
question
Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition A. are generally advocates of the ethical relativism school of thought. B. are misguided in their efforts because bribes and kickbacks are really no different from tipping for service at restaurants—whether you tip for service at dinner or make payments to government officials to get goods through customs or give kickbacks to customers to retain their business, you pay for a service rendered. C. still have considerable difficulty in preventing the payments of bribes and kickbacks when such payments are entrenched as normal and customary in locations where they do business. D. are out-of-step with business reality given that the preponderance of company managers are immoral. E. are in a distinct minority compared to companies that view the payment of bribes and kickbacks as a legitimate or permissible practice.
answer
C. still have considerable difficulty in preventing the payments of bribes and kickbacks when such payments are entrenched as normal and customary in locations where they do business.
question
The contentions that (1) many of the same standards of what's ethical and what's unethical resonate with peoples of most societies regardless of local traditions and cultural norms and (2) to the extent there is common moral agreement about right and wrong actions, common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances are defining beliefs of A. the school of ethical relativism. B. the school of ethical universalism. C. integrated social contracts theory. D. the School of Morally Correct Thinking and Behavior in Paris, France. E. the Global Code of Ethical and Social Morality developed in 1925 at a worldwide convention of distinguished religious clerics.
answer
B. the school of ethical universalism.
question
According to the school of ethical relativism, A. concepts of ethically right and ethically wrong are relative across countries and cultures but are universal within countries or cultures. B. individuals and businesses have a basic right to "moral free space" and that it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors. C. there are important occasions when local cultural norms and the circumstances of the situation determine whether certain behaviors are right or wrong. D. concepts of right and wrong as applied to business situations are always a function of each company's own set of values, beliefs, and ethical convictions (as stated in the company's code of ethical conduct). E. standards of what is ethically right and ethically wrong as applied to business behavior are determined solely by whatever business norms prevail in a particular country/culture/society and these business norms are certain to vary across countries/cultures/societies.
answer
C. there are important occasions when local cultural norms and the circumstances of the situation determine whether certain behaviors are right or wrong.
question
If one accepts the tenets of the school of ethical relativism, then it follows that A. there are multiple sets of ethical standards rather than a single universal set. B. at least some ethical standards are governed by local norms, religious doctrines, and social customs rather than by absolute standards of right and wrong. C. what constitutes ethical or unethical behavior on the part of businesses must in some cases be judged in the light of local customs and social mores. D. it is inappropriate to hold businesses accountable for observing a universal set of ethical standards. E. All of these.
answer
E. All of these.
question
Which one of the following statements about the ethical relativism school of thinking is false? A. In a multinational company, application of ethical relativism equates to multiple sets of ethical standards. B. There are few absolutes when it comes to business ethics and thus few ethical absolutes for consistently judging a company's conduct in various countries and markets. C. The best and fairest way for a multinational company to approach the enforcement of ethical standards companywide is to reject ethical universalism and pursue ethical relativism. D. A company that adopts the principle of ethical relativism and holds company personnel to local ethical standards necessarily assumes that what prevails as local morality is an adequate guide to ethical behavior—this assumption is ethically dangerous. E. According to the ethical relativism school of thinking, a "one-size-fits-all" template for judging the ethical appropriateness of business actions and the behaviors of company personnel does not exist.
answer
C. The best and fairest way for a multinational company to approach the enforcement of ethical standards companywide is to reject ethical universalism and pursue ethical relativism.
question
According to the advocates of ethical relativism, A. if the use of underage labor and/or the payment of bribes/kickbacks are acceptable in a particular culture/society/country, then a case can be made that it is morally correct and ethical for a company to use these practices in conducting its business activities in that culture/society/country. B. each company should have the flexibility to set its own standards for deciding whether the use of underage labor and/or the payment of bribes/kickbacks are ethically acceptable or not. C. if the use of underage labor and/or the payment of bribes/kickbacks are legal in a particular country, then it is morally correct and ethical for a company to use these practices in that country, no matter what the legality of using these practices happens to be in other countries. D. each industry should have the flexibility to set its own standards for deciding whether the use of underage labor and/or the payment of bribes/kickbacks are ethically acceptable or not. E. it is very clear that the use of underage labor or the payment of bribes and kickbacks are ethically impermissible—local customs, behavioral norms, and traditions absolutely cannot be taken into account.
answer
C. if the use of underage labor and/or the payment of bribes/kickbacks are legal in a particular country, then it is morally correct and ethical for a company to use these practices in that country, no matter what the legality of using these practices happens to be in other countries.
question
A belief in ethical relativism leads to the conclusion that A. since ethical standards are subjective, it is perfectly appropriate for each company to define and implement its own ethical principles of right and wrong as concerns the use of underage labor and the payment of bribes and kickbacks. B. ethical standards are determined objectively (rather than subjectively). C. whether the use of underage labor and the payment of bribes/kickbacks should be deemed ethical or unethical depends on the moral standards, values, and business norms that prevail in particular cultures, societies, countries, or circumstances. D. ethical standards are objective and universal—thus whether the use of underage labor and the payment of bribes and kickbacks should be deemed ethical or unethical definitely is not dependent on the moral standards, values, and business norms that prevail in particular cultures, societies, countries, or circumstances. E. standards of right and wrong are governed by what is legal in a given country—thus whether the use of underage labor and the payment of bribes and kickbacks is ethical or unethical is governed by local law.
answer
C. whether the use of underage labor and the payment of bribes/kickbacks should be deemed ethical or unethical depends on the moral standards, values, and business norms that prevail in particular cultures, societies, countries, or circumstances.
question
Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition A. are generally advocates of the ethical relativism school of thought. B. are misguided in their efforts because bribes and kickbacks are really no different from tipping for service at restaurants—whether you tip for service at dinner or make payments to government officials to get goods through customs or give kickbacks to customers to retain their business, you pay for a service rendered. C. still have considerable difficulty in preventing the payments of bribes and kickbacks when such payments are entrenched as normal and customary in locations where they do business. D. are out-of-step with business reality given that the preponderance of company managers are immoral. E. are in a distinct minority compared to companies that view the payment of bribes and kickbacks as a legitimate or permissible practice.
answer
C. still have considerable difficulty in preventing the payments of bribes and kickbacks when such payments are entrenched as normal and customary in locations where they do business.
question
According to the ethical relativism school of thinking, A. there can be no one-size-fits-all set of authentic ethical norms against which to gauge the conduct of company personnel. B. a company should have a different set of ethical standards for each country in which it operates. C. only respected religious experts can provide companies with a higher order moral compass. D. the best source of ethical standards in each country where the company operates is that country's adopted Code of Required Ethical Conduct. E. since there can be no one-size-fits-all set of authentic ethical norms it is appropriate for each company to hold company personnel to observing the company's code of ethical conduct.
answer
A. there can be no one-size-fits-all set of authentic ethical norms against which to gauge the conduct of company personnel.
question
Companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel A. base their standards of what is ethical and what is unethical on the Global Code of Ethical Conduct first developed in 1935 and since subscribed to by the governments of 180 countries. B. quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries where ethical standards vary considerably from country to country. C. have no fair way to judge the ethical correctness of the conduct of company personnel. D. have a one-size-fits-all set of ethical standards. E. end up allowing each company employee to determine what set of ethical standards to observe.
answer
B. quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries where ethical standards vary considerably from country to country.
question
The contention that ethical standards should be governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not are the basic principles of A. the school of ethical relativism. B. the school of ethical universalism. C. integrated social contracts theory. D. the School of Morally Correct Thinking and Behavior based in Rome, Italy. E. the Global Code of Ethical and Social Morality developed by the United Nations.
answer
C. integrated social contracts theory.
question
According to integrated social contracts theory, the ethical standards a company should try to uphold A. are governed by the school of ethical universalism. B. are governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not—but universal ethical norms always take precedence over local norms. C. are governed by each country's Code of Required Ethical Conduct which sets forth that each individual/ group/business/organization has a "social contract" to observe the ethical and moral standards that the country has adopted. D. should be determined by the company's moral managers. E. should never be absolute but rather always provide some wiggle room according to the circumstances of the situation.
answer
B. are governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not—but universal ethical norms always take precedence over local norms.
question
Integrated social contracts theory maintains that A. there is no such thing as "moral free space"—all ethical standards are determined by societal norms, and individuals have an implied social contract to live up to these standards. B. few nations or cultures have common moral agreement on what is ethically right and wrong. C. there should be no absolute limits put on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside. D. adherence to universal ethical norms always take precedence over local ethical norms. E. each country/culture/society has commonly held views about what constitutes ethically appropriate actions/behaviors; these common standards of what is ethical and what is not combine to form a "social contract" that all individuals in that country/culture/society are obligated to observe.
answer
D. adherence to universal ethical norms always take precedence over local ethical norms.
question
The strength of integrated social contracts theory is that it A. correctly recognizes that all soundly-reasoned ethical standards are universal. B. accommodates the best parts of ethical universalism and ethical relativism. C. puts no absolute limits on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside. D. recognizes the importance of allowing local ethical norms to always take precedence over universal ethical norms. E. recognizes that individuals and businesses have a basic right to "moral free space" and that it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors.
answer
B. accommodates the best parts of ethical universalism and ethical relativism.
question
The litmus test of a company's code of ethics is A. the degree to which it is connected to a company's statement of core values. B. the extent to which it is embraced in crafting strategy and in the day-to-day operations of the business. C. the extent to which a company's approach to ethical behavior mirrors the ethical principles for society at large. D. based on the rules a company's top management and board of directors make about "what is right" and "what is wrong." E. determined by the ethical behaviors expected of company personnel in the course of doing their jobs.
answer
B. the extent to which it is embraced in crafting strategy and in the day-to-day operations of the business.
question
Which of the following is not a key question that senior executives must ask whenever a new strategic initiative is under review? A. Would the potential outcome of the proposed action pose a risk of embarrassment? B. Is what we are proposing to do fully compliant with our code of ethical conduct? C. Is there anything in the proposed action that could be considered ethically objectionable? D. Is it apparent that this proposed action is in harmony with our core values? E. Are any conflicts or concerns evident between the proposed action and our core values?
answer
A. Would the potential outcome of the proposed action pose a risk of embarrassment?
question
The major drivers of unethical managerial behavior include A. greed, atheism, pervasive managerial immorality, and a general lack of scruples on the part of top executives regarding how customers and suppliers should be treated. B. ethically corrupt corporate cultures, heavy pressures on company managers to meet or beat performance targets, and overzealous pursuit of personal gain, wealth, and other self interests. C. widespread managerial belief in the ethical relativism school of thinking. D. an aversion to ethical correctness on the part of top executives and a belief that unethical behavior is unimportant and probably won't be discovered. E. intense competitive pressures.
answer
B. ethically corrupt corporate cultures, heavy pressures on company managers to meet or beat performance targets, and overzealous pursuit of personal gain, wealth, and other self interests.
question
Unethical managerial behavior tends to be driven by such factors as A. the pervasiveness of immoral and amoral businesspeople. B. overzealous pursuit of personal gain, wealth, and other selfish interests. C. a company culture that puts the profitability and good business performance ahead of ethical behavior. D. heavy pressures on company managers to meet or beat earnings targets. E. All of these.
answer
E. All of these.
question
Which one of the following is not one of the major drivers of unethical managerial behavior? A. Intense competitive pressures B. Overzealous pursuit of personal gain, wealth, and other self interests C. A company culture that puts the profitability and good business performance ahead of ethical behavior D. Heavy pressures on company managers to meet or beat earnings targets E. The pervasiveness of immoral and amoral businesspeople
answer
A. Intense competitive pressures
question
Which of the following occurs when managers take advantage of their position to further their own private interests rather than those of the firm? A. Corporate takeover. B. Self-dealing. C. Mergers and forced sale of stocks. D. Shareholder buyout. E. Increased investment of time and money into business operations.
answer
B. Self-dealing.
question
Short-termism is defined as A. making assessments of the moral character of the company managers. B. the tendency for managers to focus excessive attention on short-term performance objectives. C. assessing the costs and damage to the companies reputation as a result of ethical violations. D. weighing the short-term costs of regulatory compliance with the long-term costs of non-compliance. E. assessing the short-term costs of complying with government regulations.
answer
B. the tendency for managers to focus excessive attention on short-term performance objectives.
question
When high ethical principles are deeply ingrained in the corporate culture of a company, culture can A. function as a powerful mechanism for communicating ethical behavioral norms. B. function as a powerful mechanism for gaining employee buy-in to the company's moral standards. C. function as a powerful mechanism for gaining employee buy-in to the company's business principles. D. function as a powerful mechanism for gaining employee buy-in to the company's corporate values. E. All of these.
answer
E. All of these.
question
The strength of the beliefs underlying the moral case for an ethical strategy A. begins with managers who themselves have strong character (for example, who are honest, have integrity, and truly care about how they conduct a company's business). B. starts with managers who walk the talk in displaying the company's stated values. C. involves managers with high ethical principles and standards who are advocates of a corporate code of ethics and strong ethics compliance and are genuinely committed to certain corporate values and business practices. D. starts with managers who understand there is big difference between adopting values statements and codes of ethics that serve merely as window dressing and those that truly paint the white lines for a company's actual strategy and business conduct. E. All of these.
answer
E. All of these.
question
A company's strategy needs to be ethical because A. of the dangers that top management will get embarrassed if the company's unethical behavior is publicly exposed. B. (1) a strategy that is unethical in whole or in part is morally wrong and reflects badly on the character of the company personnel involved and (2) an ethical strategy is good business and in the best interest of shareholders. C. everyone is an ethics watchdog and somebody is sure to blow the whistle on the company's unethical behavior. D. of the risks of getting caught and prosecuted by governmental authorities if an unethical strategy is used. E. unethical strategies are inconsistent with or else weaken the corporate culture.
answer
B. (1) a strategy that is unethical in whole or in part is morally wrong and reflects badly on the character of the company personnel involved and (2) an ethical strategy is good business and in the best interest of shareholders.
question
Which of the following represents a justifiable reason for why a company's strategy should be ethical? A. An unethical strategy reflects badly on the character of the company personnel involved. B. A strategy that is unethical in whole or in part is morally wrong. C. Pursuing an unethical strategy damages a company's reputation and can have costly consequences. D. An ethical strategy is good business and is in the best interest of shareholders. E. All of these.
answer
E. All of these.
question
Which of the following is not a particularly sound or valid reason why a company's strategy should be ethical? A. An unethical strategy reflects badly on the character of the company personnel involved. B. Most all shareholders believe it is honorable for their company to pursue an ethical strategy (even though it usually entails making less profit) and are turned off by company efforts to make greater profits via unethical means. C. An ethical strategy is in the self-interest of shareholders, partly because an unethical strategy can damage a company's reputation and partly because unethical behavior can be very costly in terms of fines and penalties, legal and investigative costs, customer defections, and lower employee morale. D. Customers shun companies known for their shady behavior and ethically upstanding company personnel are repulsed by a work environment where unethical behavior is condoned. E. A strategy that is unethical in whole or in part is morally wrong.
answer
B. Most all shareholders believe it is honorable for their company to pursue an ethical strategy (even though it usually entails making less profit) and are turned off by company efforts to make greater profits via unethical means.
question
The business case for an ethical strategy A. focuses primarily on costs that are difficult to quantify (for example, customer defections and adverse effects on employee productivity) but can often be the most devastating. B. emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide ranging. C. starts with numerous ethical rules and guidelines and an environment where employees rely on these rules for moral guidance. D. starts with managers who understand there is big difference between adopting values statements and codes of ethics that serve merely as window dressing and those that truly paint the white lines for a company's actual strategy and business conduct. E. begins with ethical guidelines that help send the message that management takes the observance of ethical norms seriously and that behavior falling outside ethical boundaries will have negative consequences.
answer
B. emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide ranging.
question
Visible costs which are incurred by companies and imposed for ethical wrongdoing can include A. Government fines and penalties. B. Civil penalties arising from class-action lawsuits or other litigation. C. Lower dividends for shareholders. D. Lower stock prices. E. All of these.
answer
E. All of these.
question
The notion of social responsibility as it applies to businesses concerns A. a company's duty to put the public interest ahead of shareholder interests. B. societal expectations that all company stakeholders will be treated equally and fairly. C. a company's duty to establish socially acceptable core values and to have a strictly enforced code of ethical conduct. D. the responsibility that top management has for ensuring that the company's actions and decisions are in the best interest of society at large. E. a company's duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.
answer
A. a company's duty to put the public interest ahead of shareholder interests.
question
Which of the following is not generally on a company's menu of actions to consider in crafting a strategy of social responsibility? A. Actions to ensure that the company's strategy is ethical and that ethical principles will be observed in operating the business B. Making charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes, and reaching out to make a difference in the lives of the disadvantaged. C. Actions to look out exclusively for the best interests of shareholders D. Actions to protect or enhance the environment (apart from what is required by governmental authorities) E. Actions to create a work environment that enhances employee well-being and makes the company a great place to work
answer
C. Actions to look out exclusively for the best interests of shareholders
question
Which of the following is not something a company should usually consider in crafting a strategy of social responsibility? A. Actions to benefit shareholders (such as raising the dividend or boost the stock price). B. Making charitable contributions and donating money and the time of company personnel to community service endeavors. C. Actions to ensure the company has an ethical strategy and operates honorably and ethically. D. Actions to protect or enhance the environment. E. Actions to create a workforce diversity program.
answer
A. Actions to benefit shareholders (such as raising the dividend or boost the stock price).
question
Which of the following should be on a company's menu of actions to consider in crafting a strategy of social responsibility? A. Actions to ensure that the company's strategy is ethical and that ethical principles will be observed in operating the business B. How much and what kinds of resources it will allocate to charitable contributions, community service endeavors, various worthy causes, and helping the disadvantaged C. Actions (over and above what is required) to protect or enhance the environment, including both those environmental problems stemming from the company's own business activities and those problems outside the company's immediate sphere of operations D. Actions to create a work environment that enhances employee well-being and makes the company a great place to work E. All of these.
answer
E. All of these.
question
A company's social responsibility strategy is typically comprised of all but which one of the following elements? A. Actions to enhance workforce diversity and make the company a great place to work B. Making charitable contributions and donating money and the time of company personnel to community service endeavors C. Actions to protect or enhance the environment D. Conscious efforts to ensure that all elements of the company's strategy are ethical and actions to protect or enhance the environment (beyond what is legally required) E. Actions to keep prices low enough that the company's profits will not be viewed by the general public as obscenely high or exorbitant
answer
E. Actions to keep prices low enough that the company's profits will not be viewed by the general public as obscenely high or exorbitant
question
Striving to be socially responsible entails touching such bases as A. what actions to take to enhance workforce diversity and make the company a great place to work. B. whether to make charitable contributions and donate money and the time of company personnel to community service endeavors. C. what, if any, actions to take to protect or enhance the environment (beyond what is legally required). D. exerting conscious efforts to ensure that all elements of the company's strategy are ethical and actions to make the company a great place to work. E. All of these.
answer
E. All of these.
question
Good corporate citizens A. pursue discretionary activities that contribute to the betterment of society, especially in areas where government has chosen not to focus its efforts or has fallen short. B. are active participants in the political process. C. identify up-and-coming managers who have a future in local- or state-level politics. D. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors. E. All of these.
answer
A. pursue discretionary activities that contribute to the betterment of society, especially in areas where government has chosen not to focus its efforts or has fallen short.
question
The "triple bottom line" refers to what three performance metrics? A. economic, social, environmental. B. pay, power, performance. C. planning, exertion, results. D. None of these. E. All of these.
answer
A. economic, social, environmental.
question
An environmental sustainability strategy consists of a company's deliberate actions to A. operate in an honorable manner, provide good working conditions for employees, and to actively work to enhance the quality of life in the local communities where it operates and in society at large. B. meet the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet. C. apply ethical principles of right and wrong regarding the protection and enhancement of natural resources and ecological support systems as set forth in the Global Code of Ethical Behavior adopted by 150 nations of the world. D. apply universal norms regarding the protection of the environment to its everyday operations and to establish guidelines regarding what actions are ecology sound based on the findings of the scientific community. E. balance commonly held views about what constitutes environmentally appropriate actions against its ability to make a profit.
answer
B. meet the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet.
question
Which of the following is not something a company should consider in crafting an environmental sustainability strategy? A. Actions to protect the environment that will guard against the ultimate endangerment of the planet B. Actions to maintain ecological support systems for future generations C. Actions to provide for the longevity of natural resources D. Making contributions to the Global Environmental Council which are distributed based on a competitive basis E. All of these
answer
D. Making contributions to the Global Environmental Council which are distributed based on a competitive basis
question
Which of the following statements regarding a company's social responsibility and sustainability strategy is false? A. A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5% (or more) of pretax profits on social responsibility initiatives. B. Social responsibility strategies that have the effect of both providing valuable social benefits and fulfilling customer needs in a superior fashion can lead to competitive advantage. C. A few companies have integrated social responsibility and/or environmental sustainability objectives into their missions and overall performance targets; they view social performance and environmental metrics as an essential component of judging the company's overall future performance. D. Unless a company's social responsibility initiatives become part of the way it operates its business every day, the initiatives are unlikely to be fully effective. E. While the strategies and actions of all socially responsible companies have a sameness in the sense of drawing on the same categories of socially responsible behavior, each company's version of being socially responsible is unique.
answer
A. A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5% (or more) of pretax profits on social responsibility initiatives.
question
The moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stakeholders A. is based on the principle of treating people fairly and with respect. B. is based on the conviction that improving the well-being of society ranks higher in priority and is certainly more noble than making a profit and serving the interests of shareholders. C. boils down to "it's the right thing to do." D. rests on the principle that a business is duty bound to fulfill its social contract to serve the interests of all stakeholders in a business enterprise. E. is based on the principle that business activities lack real legitimacy and have few socially redeeming qualities unless and until a company exerts a significant and sincere effort to give something back to the community.
answer
C. boils down to "it's the right thing to do."
question
Which one of the following is not part of the moral case for why a company should actively promote the betterment of society? A. "It's the right thing to do." B. Most business leaders can be expected to acknowledge that socially responsible actions and environmental sustainability are important and that businesses have a duty to be good corporate citizens. C. In return for society granting a business a "license to operate" and not be unreasonably restrained in its pursuit of a fair profit, a business is obligated to act as a responsible citizen and do its fair share to promote the general welfare. D. Acting in a socially responsible manner is in the overall best interest of shareholders. E. Every business has a moral duty to take corporate citizenship into consideration and to do what's best for shareholders within the confines of discharging its duties to operate honorably, provide good working conditions to employees, be a good environmental steward, and display good corporate citizenship.
answer
D. Acting in a socially responsible manner is in the overall best interest of shareholders.
question
The business case for why companies should act in a socially responsible manner includes such reasons as A. it generates internal benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs). B. it reduces the risk of reputation-damaging incidents. C. it is in the best interest of shareholders. D. it can lead to increased buyer patronage. E. All of these.
answer
E. All of these.
question
Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? A. Every business has a moral duty to be a good corporate citizen. B. Acting in a socially responsible manner reduces the risk of reputation-damaging incidents. C. Acting in a socially responsible manner is in the overall best interest of shareholders. D. To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage. E. Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).
answer
A. Every business has a moral duty to be a good corporate citizen.
question
Which one of the following is false as concerns the merits of why acting in a socially responsible manner is "good business"? A. The higher the public profile of a company or brand, the greater the scrutiny of its activities and the higher the potential for it to become a target for pressure group action. B. Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders. C. To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage. D. Some employees feel better about working for a company committed to improving society—a condition that can contribute to lower turnover and better worker productivity. E. Companies with deservedly good reputations for contributing time and money to the betterment of society are better able to attract and retain employees compared to companies with tarnished reputations.
answer
B. Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders.
question
Which one of the following is false as concerns the merits of why acting in a socially responsible manner is "good business"? A. The higher the public profile of a company or brand, the greater the scrutiny of its activities and the higher the potential for it to become a target for pressure group action. B. Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders. C. To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage. D. Some employees feel better about working for a company committed to improving society—a condition that can contribute to lower turnover and better worker productivity. E. Companies with deservedly good reputations for contributing time and money to the betterment of society are better able to attract and retain employees compared to companies with tarnished reputations.
answer
B. Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders.
