MGMT 3370 ch. 4 Questions – Flashcards
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According to Professor Edward Freeman, which of the following is true of ethics and corporate responsibility?
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Managers can benefit their organizations by growing profits as well as behaving ethically toward their stakeholders.
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_____ refers to the moral principles and standards that guide the behavior of an individual or group.
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ethics
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Caring, being honest, showing loyalty, being fair, and acting with integrity are all examples of:
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values
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A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called a(n):
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ethical issue
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Susan, an employee in a company, is facing a situation in which she has to choose between going along with her colleagues and filling out inaccurate time records, or informing her manager about the malpractice. In this context, Susan is faced with a(n):
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ethical issue
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The moral principles and standards that guide behavior in the world of business are known as:
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business ethics
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_____ refers to the principles, rules, and values people use in deciding what is right or wrong.
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moral philosophy
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Carol uses certain principles, rules, and values such as honesty, fairness, and cooperation in her daily life to determine what is right or wrong. In the context of the above scenario, which of the following does she employ when making decisions?
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moral philosophy
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_____ is the ethical system stating that all people should uphold certain values that society needs to function.
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universalism
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Two basic ethical ideals underpin the Caux Principles for Business.They are:
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kyosei and human dignity
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While working as a receptionist in a lawyer's office, Marcus was instructed to inform callers that the lawyer was in court when, in fact, the lawyer was playing golf. He eventually quit the job because he could not bring himself to lie to people. Marcus was following the ethical system known as:
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universalism
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According to the Caux Principles for Business, the ethical ideal of kyosei means
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living and working together for the common good
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The notion of _____, an ethical system, is similar to Adam Smith's concept of the invisible hand in business.
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egoism
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According to _____, an ethical system, individual self-interest is the actual motive of all conscious action.
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egoism
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According to the ethical system of utilitarianism, which of the following is true?
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Seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.
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_____, an ethical system, defines ethical behavior on the opinions and behaviors of relevant other people.
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relativism
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Linda usually makes decisions on the basis of what her friends would expect her to do. Which ethical system is she making use of?
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relativism
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Which ethical system acknowledges the existence of different ethical viewpoints?
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relativism
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_____, an ethical system, defines ethical behavior according to how others behave.
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relativism
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In the context of ethical systems, which of the following is true of virtue ethics?
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It suggests that what is moral must come from what a mature person with good "moral character" would deem right.
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According to Kohlberg's model of cognitive moral development, people in the _____ stage make decisions based on concrete rewards and punishments and immediate self-interest.
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preconventional
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According to Kohlberg's model of cognitive moral development, people in the _____ stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.
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principled
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Sarah conforms to the expectations of ethical behavior held by her parents and her church. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.
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conventional
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Clark, an American teenager, helps his parents do the household chores only if he receives a large weekly allowance. According to Kohlberg's model of cognitive development, he resides in the _____ stage.
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preconventional
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Donna prefers gymnastics to music. However, she agrees to attend music lessons because her parents want her to become a musician. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.
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conventional
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Collins, a senior manager at an organization, is approached by a competitor with an offer of a large sum of money in exchange for sensitive information. He refuses to leak the information because he believes that it would be wrong to betray his company. According to Kohlberg's model of cognitive moral development, Collins resides in the _____ stage.
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principled
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CEO pay packages, wages, antibrand attitudes, and religion at work are some of the _____ that challenge American managers and employees today.
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ethical dilemmas
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In the context of business ethics and the law, which of the following statements is true regarding the Sarbanes-Oxley Act?
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It was passed by the Congress in response to a series of corporate scandals
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The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.
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sarbanes-Oxley
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The _____ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
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ethical climate
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Laura, an employee at a company, observed that one of her co-workers accessing confidential company information and carrying it home on a flash drive. She informed her supervisor about it and the errant employee was fired. Unfortunately, Laura found herself ostracized by her co-workers after the incident. Her supervisor did not take any action to protect her. In the context of the above scenario, it can be stated that Laura's company has a poor:
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ethical climate
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A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been taken to create a strong _____ in the company.
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ethical climate
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Which of the following may prevent the creation of a business climate conducive to unethical behavior?
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Willingness to take an ethical stand that may impose financial costs
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Which of the following is true of unethical corporate behavior?
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Unethical corporate behavior reveals a company culture that is ethically lax.
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In the context of business ethics, which of the following is true of an ethical leader?
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An ethical leader does not let ethics be "managed" by "benign neglect"
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In the context of business ethics, which of the following statements regarding ethics codes is true?
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The statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show
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In the context of business ethics, which of the following principles is helpful in making an ethics code effective?
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Focus on real-life situations that employees can relate to
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In the context of corporate ethics programs, which of the following is a function of ethics committees?
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They develop policies, evaluate actions, and investigate violations
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_____ ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations.
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compliance-based
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Compliance-based ethics programs are designed by _____ to prevent, detect, and punish legal violations.
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corporate counsel
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Which of the following is true of compliance-based corporate ethics programs?
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They increase surveillance and controls on people and impose punishments on wrongdoers.
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An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) _________ ethics program.
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integrity-based
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A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Since the company followed a(n) _____ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people
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integrity-based
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Which of the following is true of integrity-based ethics programs in business organizations?
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Companies and people govern themselves through a set of guiding principles that they embrace
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In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking and behavior when
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top management has a personal commitment to responsible ethical behavior
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In the context of making ethical decisions, knowing what actions are morally defensible is referred to as:
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moral judgment
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Patricia, a manager, is considering laying off several employees in her division. She has realized that such a decision has several ramifications for her employees as well as her shareholders. In the context of making ethical decision, this stage is known as:
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moral awareness
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In the context of making ethical decisions, the strength and persistence to act in accordance with one's ethics despite the challenges is known as:
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moral character
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John Rawls, a philosopher, maintained that only a person ignorant of his or her own identity can make a truly ethical decision. This thought experiment is based on
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the veil of ignorance
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A manager of a company is facing an ethical problem. He uses the formal process for ethical decision making to resolve the problem. Which of the following steps will he begin with?
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Understanding all the moral standards and recognizing all moral impacts
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In the context of the process for ethical decision making, recognizing all moral impacts includes:
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determining benefits and harms of various alternatives
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In the context of the business costs of ethical failures, which of the following is a level 3 cost?
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Employee cynicism cost
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In the context of the business costs of ethical failures, level 1 costs that are less damaging and get more executive attention include
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The cost of government fines and penalties
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Behaving ethically requires not just moral awareness and moral judgment but also moral character, including the _____ to take actions consistent with your ethical decisions.
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courage
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In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act
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whistleblower
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A fast food chain changed the packaging of its sandwiches so that less waste was produced. In addition, they used recycled paper to bag their products. The company stated that they made these changes in order to make the earth a "nicer place to eat." From this information, we can conclude that the fast food company believes in:
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corporate social responsibility
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The _____ responsibilities of business are to produce goods and service that society wants at a price that perpetuates the business and satisfies its obligations to investors.
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economic
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Corporate social responsibility refers to:
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the obligation toward society assumed by business
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In the context of corporate social responsibility, _____ responsibilities are to obey local, state, federal, and relevant international laws.
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legal
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In the context of corporate social responsibility, _____ responsibility involves meeting other social expectations, not written as law.
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ethical
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All About U (AAU) Salon believes in and engages in meeting societal expectations whether or not written as law, and voluntarily uses earth-friendly products. AAU can be described as operating at which level of the pyramid of corporate social responsibility?
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ethical responsibility
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In the context of corporate social responsibility, _____ includes additional behaviors and activities that society finds desirable and that the values of the business support.
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philanthropic responsibility
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In the context of corporate social responsibility, supporting community projects and making charitable contributions are examples of _____.
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philanthropic responsibility
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The _____ model is a theory of corporate social responsibility which holds that managers are agents of shareholders whose primary objective is to maximize profits.
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shareholder
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Paper Depot, a stationery company, gives a portion of its profits from school supplies to the customer's designated school. This donation to a community organization is an example of:
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philanthropic responsibility
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According to Robert Giacalone, a(n) _____ education teaches students to leave a legacy that extends beyond the bottom line.
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transcendent
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Which of the following goals of a transcendent education is described as viewing success not merely as personal gain, but a common victory?
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mutuality
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Which of the following is true of Milton Friedman's dictum about the social responsibility of business?
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Organizations can improve the quality of life so long as their actions are directed at increasing profits
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Which of the following goals of a transcendent education is described as thinking not just in terms of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions?
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civil aspiration
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Which of the following goals of a transcendent education is described as speaking out against unethical actions?
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intolerance of ineffective humanity
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Who among the following persons said, "The social responsibility of business is to increase profits"?
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Milton Friedman
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In the context of a transcendent education, _____ refers to learning how to give as well as take, to others in the present as well as to future generations.
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generatively
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In the context of a transcendent education, _____ refers to feeling your decisions as potential victims might feel them, to gain wisdom.
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empathy
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_____ has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
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ecocentric management
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Economic growth and development that meet an organization's present needs without harming the ability of future generations to meet their needs is known as:
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sustainable growth
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The process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product, to determine the total environmental impact of its production and use is known as:
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life-cycle analysis
