BusiLaw 240 Ch 2 – Flashcards

Ethics

Ethical dilemma

Social responsibility

The WPH process of ethical decision making

Who are the relevant stakeholders?

What are the ultimate purposes of the decision?

How do we make ethical decisions?

The Sarbanes-Oxley Act (SOX)

Why is ethical fundamentalism difficult to follow? a) It provides a rigid set of rules to follow regardless of the situation. b) It promotes high levels of moral tolerance. c) It denies the existence of any fixed moral standards. d) It holds that morality depends on the consequences.

For a firm to be an ethical business, the minimum standard to be met would be: a) selling its products and services below cost price. b) paying bribes if other firms are paying too. c) exceeding the industry standards in terms of paying wages and salaries. d) choosing a lawful way to compete against rival firms.

Which of the following is a way to take the universalization test for a business owner making a decision? a) Informing the public of the business decision before it is implemented b) Putting herself in the position of the shareholder and judging the decision c) Taking into account whether God would judge the decision to be correct or not d) Considering the impact on the world if the decision were adopted by all businesses

The human resource policy of a company states that the company aims to treat all humans identically, regardless of race, class, gender, age, and sexual preference. Which of the following values influencing business ethics does this best illustrate? a) Freedom b) Security c) Justice d) Efficiency

Acme Foods Inc. manufactures food products and is opening a subsidiary in United Cadvia. The firm discovers that to obtain raw materials it has to make some facilitating payments to the local officials and businesses in the host country. The second option is to import raw materials from its own country, which will be expensive in the long-run. The managers at Acme are unable to decide which of the two options would be a better choice. Which of the following terms would best describe the situation Acme Foods Inc. is experiencing? a) Ethical dilemma b) Causal ambiguity c) Moral lapse d) Culture shock

The _____ of a firm are best described as the many groups of people affected by the firm's decisions. a) creditors b) mediators c) category captains d) stakeholders

_____ are best described as positive abstractions that capture our sense of what is good or desirable. a) Laws b) Statutes c) Values d) Norms

The _____ is also called the "television test," for it requires us to imagine that our actions are being broadcast on national television. a) universalization test b) public disclosure test c) golden rule test d) ethical relativism test

Businesses have social responsibilities that they need to honor because they: a) are legally mandated by the government to fulfill all their social obligations. b) operate in a community that has expectations from the businesses. c) would always be able to maximize economic profits by honoring their social responsibilities. d) are operating in an environment where the needs of all communities are the same.

The _____ holds that the right course of action is the option most consistent with the building and maintaining of human relationships. a) theory of ethical relativism b) absolutism approach c) ethics of care d) utilitarianism approach