CAPSTONE FINAL EXAM EXPECTED QUESTIONS WITH
VERIFIED ANSWERS
Question 1.
A multinational company operating in some countries where bribery and kickback payments are an
entrenched local custom and are not considered unethical is well-advised to
ANSWER
avoid the payment of bribes and kickbacks in all countries and in all circumstances if the
payment of bribes and kickbacks is forbidden in its code of ethical conduct and if top
management is serious about enforcing this prohibition
Question 2.
A company's environmental sustainability strategy concerns
ANSWER
its deliberate actions to protect the environment, provide for the longevity of natural
resources, maintain ecological support systems for future generations, and guard against
ultimate endangerment of the planet
Question 3.
According to the schoo of ethical relativism
ANSWER
l differing religious beliefs, historic traditions and customs, core values and beliefs, and
behavioral norms across countries and cultures give rise to multiple sets of standards
concerning what is ethically right or wrong
Question 4.
Which of the following are major drivers of un ethical strategies and business behavior?
ANSWER
A company culture that puts profitability and good business performance
- ahead of ethical behavior; lax oversight by company boards of directors that enables
unscrupulous pursuit of personal gain, wealth, and other selfish interests; and heavy
pressures on company managers to meet or beat short-term performance targets
,Question 5.
The term "triple bottom line" refers to
ANSWER
the practice among some companies to measure their performance in the social responsibility
arena by setting formal performance targets in three areas: "profit, people, planet"--this set of
performance targets is often referred to as the company's "triple bottom line" or TBI
Question 6.
Which of the following is NOT a component of a social responsibility strategy? (Figure 9.2
ANSWER
Actions to support the establishment of a strictly-enforced code of ethics at all business
enterprises worldwide )
Question 7.
An immoral manager is one who
ANSWER
has no regard for so-called ethical standards in business and pays no attention to ethical
principles in making decisions and conducting the company's business
Question 8.
According to integrative social contracts theory
ANSWER
universal ethical principles or norms based on the collective views of multiple cultures and
societies combine to form a "social contract" that is binding on all individuals, groups,
organizations, and businesses; however, within the bounds defined by universal ethical
principles, there is legitimate room (or "moral free space") for local cultures or groups to
specify what other actions may or may not be ethically permissible
, Question 9.
The thesis that common moral agreement about right and wrong actions and behaviors across
multiple cultures and countries form the basis for universal ethical standards applicable to the
members of all societies, all companies, and all businesspeople is asso ciated with
ANSWER
the school of ethical universalism
-
Question 10.
A company's strategy needs to be ethical because
ANSWER
a strategy that is unethical in whole or in part is morally incorrect and "the wrong thing to do";
pursuit of an unethical strategy reflects badly on the character of the company personnel
involved
Question 11.
Business ethics concerns
ANSWER
the application of general ethical principles and standards to the actions and decisions of
businesses and the conduct of their personnel
Question 12.
The three categories of managers that stand out with regard to ethical and moral principles in
business affairs are
ANSWER
moral managers, amoral managers, and immoral managers
Question 13.
According to the schoo of ethical universalism,
ANSWER
l there are ample grounds for rejecting the principle of ethical relativism that the use of
underage labor is ethically permissible is those countries, societies, and situations where the
use of child labor is normal and customary (and also legal)
VERIFIED ANSWERS
Question 1.
A multinational company operating in some countries where bribery and kickback payments are an
entrenched local custom and are not considered unethical is well-advised to
ANSWER
avoid the payment of bribes and kickbacks in all countries and in all circumstances if the
payment of bribes and kickbacks is forbidden in its code of ethical conduct and if top
management is serious about enforcing this prohibition
Question 2.
A company's environmental sustainability strategy concerns
ANSWER
its deliberate actions to protect the environment, provide for the longevity of natural
resources, maintain ecological support systems for future generations, and guard against
ultimate endangerment of the planet
Question 3.
According to the schoo of ethical relativism
ANSWER
l differing religious beliefs, historic traditions and customs, core values and beliefs, and
behavioral norms across countries and cultures give rise to multiple sets of standards
concerning what is ethically right or wrong
Question 4.
Which of the following are major drivers of un ethical strategies and business behavior?
ANSWER
A company culture that puts profitability and good business performance
- ahead of ethical behavior; lax oversight by company boards of directors that enables
unscrupulous pursuit of personal gain, wealth, and other selfish interests; and heavy
pressures on company managers to meet or beat short-term performance targets
,Question 5.
The term "triple bottom line" refers to
ANSWER
the practice among some companies to measure their performance in the social responsibility
arena by setting formal performance targets in three areas: "profit, people, planet"--this set of
performance targets is often referred to as the company's "triple bottom line" or TBI
Question 6.
Which of the following is NOT a component of a social responsibility strategy? (Figure 9.2
ANSWER
Actions to support the establishment of a strictly-enforced code of ethics at all business
enterprises worldwide )
Question 7.
An immoral manager is one who
ANSWER
has no regard for so-called ethical standards in business and pays no attention to ethical
principles in making decisions and conducting the company's business
Question 8.
According to integrative social contracts theory
ANSWER
universal ethical principles or norms based on the collective views of multiple cultures and
societies combine to form a "social contract" that is binding on all individuals, groups,
organizations, and businesses; however, within the bounds defined by universal ethical
principles, there is legitimate room (or "moral free space") for local cultures or groups to
specify what other actions may or may not be ethically permissible
, Question 9.
The thesis that common moral agreement about right and wrong actions and behaviors across
multiple cultures and countries form the basis for universal ethical standards applicable to the
members of all societies, all companies, and all businesspeople is asso ciated with
ANSWER
the school of ethical universalism
-
Question 10.
A company's strategy needs to be ethical because
ANSWER
a strategy that is unethical in whole or in part is morally incorrect and "the wrong thing to do";
pursuit of an unethical strategy reflects badly on the character of the company personnel
involved
Question 11.
Business ethics concerns
ANSWER
the application of general ethical principles and standards to the actions and decisions of
businesses and the conduct of their personnel
Question 12.
The three categories of managers that stand out with regard to ethical and moral principles in
business affairs are
ANSWER
moral managers, amoral managers, and immoral managers
Question 13.
According to the schoo of ethical universalism,
ANSWER
l there are ample grounds for rejecting the principle of ethical relativism that the use of
underage labor is ethically permissible is those countries, societies, and situations where the
use of child labor is normal and customary (and also legal)
