BUSI 4940 EXAM 2 PRACTICE SOLUTION
STUDY SHEET QUESTIONS AND DETAILED
ANSWERS
●● what is the definition of normative ethics?
Answer: the branch of philosophical ethics that investigates the
questions that arise regarding how one ought to act, in a moral sense (it
relates to when people tell you what you should or shouldn't do, what is
"right" and "wrong")
●● what is the underlying ethical stand of the 1987 definition of
normative ethics?
Answer: society meeting its current needs is (morally) fine as long as it
also leaves enough for future generations to meet their own needs
●● what is the definition of normative ethics creep?
Answer: slowly evolving the components of a concept that has already
been accepted as ethically sound in order to inculcate new ideas under
the existing ethical halo
●● what is the un sustainable development agenda?
Answer: the sustainable development goals (17 of them) are a universal
call to action to end poverty, protect the planet, and improve the lives
and prospects of everyone, everywhere.
,●● What are the 17 sustainable development goals?
Answer: 1. end poverty
2. zero hunger
3. good health & well being
4. quality education
5. gender equality
6. clean water & sanitation
7. affordable & clean energy
8. decent work & economic growth
9. industry, innovation, & infrastructure
10. reduced inequalities
11. sustainable cities & communities
12. responsible production & consumption
13. climate action
14. life below water
15. life on land - biodiversity
16. peace, justice, & strong institutions
17. public private partnerships
●● what are four of the more common approaches to sustainability?
Answer: - Corporate Social Responsibility
,- Triple Bottom Line (a.k.a., People, Planet, and Profit)
- ESG (Environmental, Social, & Governance)
- Circular Economy
●● why are corporate social responsibility and esg particularly
controversial?
Answer: there are some concerns about whether they are in alignment
with classical economic principles such as private property and agency
theory.
in fact, activities of large financial institutions regarding possible
monopolistic influence on mandating esg prioritization of investments
are being adjudicated as we speak in congress.
●● what are the four main pillars of the circular economy?
Answer: reduce
reuse
recycle
remanufacture
●● why is the circular economic approach gaining traction?
Answer: it is more in line with basic economic principles and therefore
more attractive for businesses to support (it is gaining momentum to
, make more meaningful advances regarding sustainable use of resources
and processes)
●● what is economics about (not money)?
Answer: it's about understanding human nature and creating incentives
and disincentives to drive human behavior (human motivation theories)
●● what are negative externalities?
Answer: when the production or consumption of a product or service
results in a net cost to a third party (i.e. noise pollution; air pollution;
farming pesticides leak into the water supply; passive smoking)
●● what are the main problems making sustainability issues feasible?
Answer: - how to objectively measure the extent of the problem
- how to attribute an economically rational "valuation" to the cost from
the externalities
●● what is corporate-level strategy?
Answer: actions a firm takes to gain a competitive advantage by
selecting and managing a group of different businesses competing
indifferent product markets
●● what is single business?
Answer: 95% or more revenue comes from a single business
STUDY SHEET QUESTIONS AND DETAILED
ANSWERS
●● what is the definition of normative ethics?
Answer: the branch of philosophical ethics that investigates the
questions that arise regarding how one ought to act, in a moral sense (it
relates to when people tell you what you should or shouldn't do, what is
"right" and "wrong")
●● what is the underlying ethical stand of the 1987 definition of
normative ethics?
Answer: society meeting its current needs is (morally) fine as long as it
also leaves enough for future generations to meet their own needs
●● what is the definition of normative ethics creep?
Answer: slowly evolving the components of a concept that has already
been accepted as ethically sound in order to inculcate new ideas under
the existing ethical halo
●● what is the un sustainable development agenda?
Answer: the sustainable development goals (17 of them) are a universal
call to action to end poverty, protect the planet, and improve the lives
and prospects of everyone, everywhere.
,●● What are the 17 sustainable development goals?
Answer: 1. end poverty
2. zero hunger
3. good health & well being
4. quality education
5. gender equality
6. clean water & sanitation
7. affordable & clean energy
8. decent work & economic growth
9. industry, innovation, & infrastructure
10. reduced inequalities
11. sustainable cities & communities
12. responsible production & consumption
13. climate action
14. life below water
15. life on land - biodiversity
16. peace, justice, & strong institutions
17. public private partnerships
●● what are four of the more common approaches to sustainability?
Answer: - Corporate Social Responsibility
,- Triple Bottom Line (a.k.a., People, Planet, and Profit)
- ESG (Environmental, Social, & Governance)
- Circular Economy
●● why are corporate social responsibility and esg particularly
controversial?
Answer: there are some concerns about whether they are in alignment
with classical economic principles such as private property and agency
theory.
in fact, activities of large financial institutions regarding possible
monopolistic influence on mandating esg prioritization of investments
are being adjudicated as we speak in congress.
●● what are the four main pillars of the circular economy?
Answer: reduce
reuse
recycle
remanufacture
●● why is the circular economic approach gaining traction?
Answer: it is more in line with basic economic principles and therefore
more attractive for businesses to support (it is gaining momentum to
, make more meaningful advances regarding sustainable use of resources
and processes)
●● what is economics about (not money)?
Answer: it's about understanding human nature and creating incentives
and disincentives to drive human behavior (human motivation theories)
●● what are negative externalities?
Answer: when the production or consumption of a product or service
results in a net cost to a third party (i.e. noise pollution; air pollution;
farming pesticides leak into the water supply; passive smoking)
●● what are the main problems making sustainability issues feasible?
Answer: - how to objectively measure the extent of the problem
- how to attribute an economically rational "valuation" to the cost from
the externalities
●● what is corporate-level strategy?
Answer: actions a firm takes to gain a competitive advantage by
selecting and managing a group of different businesses competing
indifferent product markets
●● what is single business?
Answer: 95% or more revenue comes from a single business
