Ethics – Flashcards

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Which of the following best describes a business stakeholder?
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Anyone who affects or is affected by decisions made within a firm
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Which of the following observations is true of ethics? .
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It deals with our reasoning about how we should act.
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Ethics seeks an account of how and why people should act a certain way, rather than how they do act. This nature of ethics makes it a _____ discipline.
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normative
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Morality is the aspect of ethics that we can refer to by the phrase
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personal integrity
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_____ establish the standards or guidelines for determining what one should do, how one should act, what type of person one should be
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Norms
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Which of the following are underlying beliefs that cause us to act or to decide one way rather than another?
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Values
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Which of the following are beliefs and principles that provide the ultimate guide to a company’s decision making?
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Core values
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Which of the following best describe the norms that guide employees, implicitly more often than not, to behave in ways that the firm values and finds worthy?
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Organizational culture
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Ethics requires that the promotion of human welfare be done:
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in a manner that is acceptable and reasonable from all relevant points of view
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Which of the following observations is true?
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The law cannot anticipate every new dilemma that businesses might face
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Telling organizations that their ethical responsibilities end with obedience to the law
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is just inviting more legal regulation
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Identify the first step in an ethical decision-making process.
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Determine the facts
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In the ethical decision-making process, identify the steps that can exchange places depending on the circumstances
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Determining the facts; identifying the ethical issues
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Which of the following statements reflects the concept of normative myopia?
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“I may have exaggerated the features of the product to get this sale. You knew how important this deal was for me.”
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. If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as
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inattentional blindness
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Arthur Andersen auditors did not notice how low Enron had fallen in terms of its unethical decisions over a period of time. According to Bazerman and Chugh, this omission is an example of
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change blindness
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Which omission occurs when decision makers fail to notice gradual changes over time?
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change blindness
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In the ethical decision-making process, once we have examined the facts and identified the ethical issues involved, we should next:
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identify stakeholders
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_____ include all of the groups and/or individuals affected by a decision, policy or operation of a firm or individual.
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Stakeholders
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Creativity in identifying options is also known as
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Moral imagination
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In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical
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Consider the available alternatives
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In the ethical decision-making process, identify the step that involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders
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Comparing and weighing the alternatives
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Which of the following explains the term “satisficing?”
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Selecting the alternative that meets minimum decision criteria
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Which of the following cognitive barriers, when used, might appear to relieve us of accountability for the decision, even if it may not be the best possible decision?
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Applying simplified decision rules
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Ethical reasoning falls into three major categories. Identify them.
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Utilitarianism
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An ethical tradition that directs us to decide based on overall consequences of our acts is:
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Utilitarianism
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Identify the ethical tradition that directs us to act on the basis of moral principles.
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Deontological ethical tradtion
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The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of
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Virtue ethics
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Which of the following traditions is commonly identified with the principle of producing “the greatest good for the greatest number”?
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Utilitarianism
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Which of the following principles of utilitarianism indicates its support for democratic institutions and policies?
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The greatest good for the greatest number
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Which of the following traditions would support child labor because it produces better overall consequences than the available alternatives?
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Utilitarianism
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Economists that view profit maximization as a central idea to corporate social responsibility are following the
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Utilitarian framework of ethics
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The statement, “the end justifies the means,” reflects the principle of:
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Utilitarianism
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Which of the following approaches to ethics tells us that there are some rules that we ought to follow even if doing so prevents good consequences from happening or even if it results in some bad consequences?
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Deontological
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“All of my friends trust me because I never back down on my word and I never break promises, no matter what.” Identify the ethical approach that reflects this line of thought.
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Deontological
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“We ought to stop at a red light, even if no cars are coming and I could get to my destination that much sooner.” Identify the ethical approach that follows this line of thought.
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Deontological
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No group could function if members were free at all times to decide for themselves what to do and how to act. Which of the following functions to organize and ease relations between individuals?
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Social contracts
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According to Immanuel Kant, there is essentially one fundamental moral duty
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Respect the Dignity of each individual
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Immanuel Kant claimed that the duty to respect human dignity could be expressed in several ways. One version directs us to act according to those rules that could be universally agreed to by all people. This is the first form of the
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Kantian categorical imperative
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Which of the following is also known as the Kantian tradition in ethics?
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Deontological ethics
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The Kantian tradition claims that humans do not act only out of instinct and conditioning; they make free choices about how they live their lives, about their own ends. In this sense, humans are said to have a fundamental human right of:
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Dignity
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Which of the following traditions seeks a full and detailed description of those character traits that would constitute a good and full human life?
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Virtue ethics
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Identify the approach to ethics that shifts the focus from questions about what a person should do, to a focus on who that person is
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Virtue ethics
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Which of the following is true about corporate culture?
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Corporate cultures can hinder individuals in making the “right” decisions.
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Defining the specific culture within an organization is a difficult task. Which of the following is a factor that is partially responsible for this difficulty and impacts the organizational culture in a circular way?
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Perception of participants
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The comparison between the Federal Emergency Management Agency (FEMA) and the United States Coast Guard shows:
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that similar missions, legal regulations, and rules do not translate into similar cultures
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Which of the following is the traditional approach to corporate culture?
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Compliance-based
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Which of the following is true about corporate culture?
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A compliance culture is only as strong and as precise as the rules that workers are expected to follow.
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When would a values-based organization rely on the personal integrity of its workforce when decisions need to be made?
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In a situation where current rules do not apply.
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Identify the correct statement about ethical leaders
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An ethical leaders’ traits and behaviors must be socially visible.
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In the corporate context, Enron executives Ken Lay and Jeffrey Skilling were
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effective but unethical leaders.
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The means used to motivate others and achieve one’s goals plays a key role in distinguishing between
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effective leaders and ethical leaders.
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Ethically appropriate methods of leadership alone are insufficient for establishing ethical leadership. Identify the other element.
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The ends or objective towards which the leader leads.
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Which of the following is usually the only “value” in an organization in the absence of any other established values?
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Profit-at any cost
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What serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment?
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Mission statement
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Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing?
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Whistleblowing
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Which of the following prescriptions of the United States Sentencing Commission (USSC) assigns most federal crimes to one of 43 “offense levels,” based on the severity of the offense?
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Federal Sentencing Guidelines for Organizations
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Which of the following directed the USSC to consider and to review its guidelines for fraud relating to securities and accounting, as well as to obstruction of justice, and specifically asked for severe and aggressive deterrents in sentencing recommendations?
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Sarbanes-Oxley Act
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The law has created a form of business that limits the liability of individuals for the risks involved in business activities. Identify the form of business.
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Corporation
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According to the Economic Model of CSR, the social responsibility of business managers is to:
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pursue profit within the law
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Which of the following is true about the economic model of CSR?
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According to this model, profit is a direct measure of how well a business firm is meeting society’s expectations.
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According to the Economic Model of CSR, the pursuit of profit will continuously work towards the optimal satisfaction of consumer demand which, in the interpretation of _____, is the optimal social good
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Utilitarianism
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Which of the following ethical requirement, in practice, is the type of responsibility established by the precedents of tort law?
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Responsibility not cause harm
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“Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods. But, just as charity is a good thing and something that we all want to encourage, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics.” Identify the model of CSR that reflects this line of thought
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Philanthropic model
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Identify the model of CSR that views business as a citizen of the society in which it operates, and like all members of a society, business must conform to the normal ethical duties and obligations that we all face
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Social Web model
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Identify the theory that begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others
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Stakeholder theory
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An individual who argues that firms should be managed for the sole benefit of stockholders is defending the
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Economic model CSR
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For-profit organizations that prioritize social entrepreneurship and sustainability as a central part of their strategic mission are pursuing the _____ model of CSR.
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Integrative
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An individual who points out that all economic activity exists within a biosphere that supports all life, and argues that the present model of economics is already running up against the limits of the biosphere’s capacity to support life is a strong defender of the:
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Sustainability version of CSR
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Which of the following versions of CSR suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment?
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Sustainability
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The practice of attending to the “image” of a firm is referred to as
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Reputation management
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One important justification offered for CSR, what is often called enlightened self-interest, presumes that
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Good ethics can also be good business
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Some employers might decide to treat employees well as a means to produce greater workplace harmony and productivity. This approach is reminiscent of _____ ethics.
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Utilitarian
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Some employers emphasize the rights and duties of all employees, and treat employees well simply because “it is the right thing to do.” Identify the ethical approach for this perspective.
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Deontological ethics
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Which of the following statements is true about the right of due process?
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In legal contexts, due process refers to the procedures that police and courts must follow in exercising their authority over citizens
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Identify the doctrine which holds that employers are free to fire an employee at any time and for any reason, unless an agreement specifies otherwise
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The doctrine of employment at will
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Discussions in ethics about employee health and safety tend to focus on the relative risks workers face and the level of acceptable workplace risk because
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employers cannot be responsible for providing an ideally safe and healthy workplace
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When can we conclude that an activity has an “acceptable level of risk?”
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If it can be determined that the probability of harm involved in a specific work activity is manageable.
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Identify the challenge faced by the acceptable risk approach to health and safety?
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It ignores the fundamental deontological right an employee might have to a safe and healthy working environment.
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Which of the following problems are associated with the market controlled approach to health and safety?
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Employees do not know the risks involved in a job and therefore they will not be in a position to freely bargain for appropriate wages.
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Which of the following statement is true about the cost-benefit analysis?
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It requires that an economic value be placed on one’s life and bodily integrity.
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According to the universal principle of Kantian philosophy, the ethical obligation of _____ should guide employment interactions.
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respect for people
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Two general and connected understandings of privacy have been identified. Privacy as a right to be ‘let alone’ within a personal zone, and privacy as the:
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right to control information about oneself
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Values that are fundamental across culture are called:
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hypernorms
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According to Donaldson and Dunfee, examples of hypernorms include
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right to personal freedom
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Privacy can be legally protected by all of the following except:
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affirmative action
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_____ refers to the body of law comprised of the decisions handed down by courts, rather than specified in any particular statutes or regulations.
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Common law
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The impact of the ECPA is to punish electronic monitoring only by third parties and not by employers because courts have ruled that “interception” applies only
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to messages in transit
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This legal violation occurs when someone intentionally interferes on the private affairs of another when the interference would be “highly offensive to a reasonable person.”
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Intrusion into seclusion
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If the basis for finding an invasion of privacy is often the employee’s legitimate and reasonable expectation of privacy, then a situation where there is no real expectation of privacy occurs when the
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employee has actual notice
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Which of the following states in the U.S. is the only one that requires employers to notify workers when they are being monitored?
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Connecticut
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From a utilitarian perspective, individual rights to privacy or right to control information about oneself may be outweighed in cases where
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public safety is at risk.
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Which of the following stipulates that employers cannot use “protected health information” in making employment decisions without prior consent?
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Health Insurance Portability and Accountability Act
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Which of the following statements is true about monitoring?
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It has the potential to cause physical disorders such as carpal tunnel syndrome
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If an employee’s weight is evidence of or results from a disability, the employer must explore whether the worker is otherwise qualified for the position. Under the American with Disabilities Act (ADA), the individual is considered “otherwise qualified” if she or he:
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can perform the functions of the position with or without reasonable accommodations
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Some companies have a(n) _____ policy under which an employer refuses to hire or terminates a worker on the basis of the spouse’s working at the same firm.
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anti-nepotism
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Identify the policy under which employer refuses to hire or terminates a worker whose spouse works at a competing firm.
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Conflict-of-interest policy
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Identify the act that expanded states’ rights with regard to Internet surveillance technology, including workplace surveillance, and amended the Electronic Communications Privacy Act
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USA PATRIOT Act
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While approaching an ethical issue in marketing, the Kantian tradition would consider:
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the degree to which individuals freely participate in an exchange
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While approaching an ethical issue in marketing, the utilitarian tradition would consider:
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the benefits and costs of each exchange
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A consumer’s consent to purchase a product is not informed if that consumer is:
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being misled or deceived about the product
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The legal doctrine of strict liability is ethically controversial because
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it holds a business accountable for paying damages whether or not it was at fault
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Identify the approach that understands marketing on a simple model of a contractual exchange between a buyer and seller, and therefore assumes that every purchase involves the informed consent of the buyer and is ethically legitimate.
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Caveat emptor approach
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In selling a product, a business implicitly offers assurances that the product is reasonably suitable for its purpose. The law refers to this as the
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implied warranty of productivity.
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Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the
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strict product liability standard
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Which of the following ethical traditions would have the strongest objections to manipulation
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Deontological
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Marketing practices targeted at elderly populations for goods such as Medicare supplemental insurance, funerals etc. are subject to criticism since
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that population is vulnerable and could be susceptible to marketing abuse
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Identify the major implications of the “dependence effect.”
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By creating consumer wants, advertising and other marketing practices violate consumer autonomy
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Consumer vulnerability occurs when
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a person has an impaired ability to make an informed consent to the market exchange.
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We are vulnerable when we are not aware that we are subject to a marketing campaign. This type of campaign is called:
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undercover marketing
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Which of the following statements does not describe stealth marketing?
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We are subjected to numerous communications on a regular basis without paying much attention, such as the billboards, which is an example of stealth marketing
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Marketing experts consider stealth marketing extraordinarily effective because:
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the consumer’s guard is down; she is not questioning the message as she might challenge a traditional advertising campaign.
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An employer is held liable for damages caused by an accident involving an employee driving the company car on company business. Identify the law underlying this decision
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The doctrine of respondent superior
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Identify the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.
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Greenwashing

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