,DOWNLOAD THE Test Bank for Ethics and the Conduct of Business 8th
w w w w w w w w w w w
Edition Boatright
w w
Chapter w 2
EthicalwDecisionwMaking
CHAPTER w SUMMARY
Ethical wdecision wmaking win wbusiness wis woften wdifficult wand wcomplex. wSome wsituations ware
weasily w handled w because w what w one w ought w to w do w or w what w is w right w and w wrong w are
w evident. wThose w situations w that w give w us w pause w or w produce w moral w anguish w require
w careful w thought wand wultimately wan wability wto wengage win wethical wreasoning. wThis wchapter
wcontributes wto wan wunderstanding wof wethical wdecision wmaking wby woffering wa wdivision wof
wbusiness wethics winto wtwo wparts: wan wethics wof wthe wmarket wand wan wethics wof wroles wand
wrelationships, wincluding wfirms. wIn w business, wwe wdeal wwith wsome wparties wpurely was wmarket
wactors wwho ware won wthe wother wside wof wa wmarket wtransaction wor wexchange. wFor wsuch wmarket
wactivity, wcertain wmoral wrules wor wstandards wapply. w These wrelationships ware wgoverned wby
wprofessional wethics, wa wprime wexample wbeing wthe wlegal wprofession. w In waddition wto wthe wlaw, wan
wattorney wmust wfollow wprofessional wcodes wof wethics westablished wby wthe wstate wbar wand/or
wprofessional wassociation whe wor wshe wbelongs wto. wThese wcodes wcan wimpose wa wgreater wobligation
wto wact win wthe wbest winterests wof wthe wclient. wFor wexample, wthe wattorney- wclient wrelationship
wimposes won wthe wattorney wa wduty wto wavoid wconflicts wof winterests, wto wprotect wclient wproperty,
wand wto wclosely wguard wconfidential winformation. wOther wprofessional wrelationships winvolving
wbusiness wdealings wcan walso wtake wthe wform wof wan wagency. wThese wrelationships ware wbuilt won
wtrust wand wconfidence wso wthe wprincipal’s winterests wmust wbe wprotected. wThe wagent wowes wthe
wprincipal wa wduty wof wloyalty wto wact win wthe wprincipal’s wbest winterest win wall wbusiness wdealings
winvolving wthe wagency. wWhen wwe wattempt wto wthink wthrough wthe wethical wissues wthat warise win
wbusiness, wwe ware wengaging win wethical wreasoning, wwhich wmay wbe wconducted won wdifferent
wlevels. wEthical wtheories, wwhich ware wpresented win wthe wnext wchapter, wcan wguide wethical
wreasoning won wthe whighest wlevel wby wproviding wthe w most w comprehensive w and
w fundamental w grounds w for w our w moral w beliefs w and w judgments. wFortunately, wsubstantial
wmoral warguments wthat wdo wnot wrequire wan w understanding wof wthese wtheories wcan wbe
wconstructed. w Most w of w our w everyday w ethical w reasoning w employs w familiar wethical
wconcepts wand wprinciples wthat wcan wbe wreadily wunderstood wand wapplied. wAccordingly, wthis
wchapter wprovides wa wframework wof wseven wbasic wethical wprinciples wthat ware wsufficient wfor
wmost w business wdecision wmaking. wFor wthose wwho wseek wmore, wthough, wthe wnext wchapter
wprovides wa w survey wof wthe wmain wphilosophical wtheories wof wethics.
CHAPTER w OBJECTIVES
2.1 : wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
and wthe wproblems wcreated wby wimperfect wmarket wconditions
w
2.2 : wIdentify wthe wduties wand wobligations wassociated wwith wfundamental wbusiness wroles
and wrelationships win wmarkets wand wfirms
w
2.3 : wDescribe wthe wphilosophical wand wpsychological wapproaches wto wethical wreasoning
and wthe wprinciples wthat wconstitute wa wmoral wframework wfor wbusiness wconduct
w
7
Copyright w© w2017 wPearson wEducation, wInc. w All wrights
wreserved.
mynursytest.store
,DOWNLOAD THE Test Bank for Ethics and the Conduct of Business 8th
w w w w w w w w w w w
Edition Boatright
w w
SUGGESTED w DISCUSSION w PROMPTS
1. What w is w ethically w required w of w participants win w a w market w economic wsystem?
2. In wwhat w ways wdo wparticipants win wa wmarket wsystem whave w to w depend w upon w each wother?
3. In wwhat wways wdo wethical wconsiderations wwork wagainst wperfect woperation wof wa
wmarket weconomy?
4. How w does w the w prisoner’s w dilemma w reflect w the w limitations w of w a w free w market w system?
5. What wcapacities ware wrequired wof wan w agent wto wengage win wethical wreasoning?
ASSESSMENT w FOR w IN-CLASS w USE
Multiple w Choice w Questions
Choose wthe wBEST w possible wanswer w for weach wof wthe wfollowing.
1. A wmarket weconomy wis wbased wfundamentally won w .
A. ethicalmotivations
B. the wprofit wmotive
C. human wwelfare
D. manufacturing
Correct wAnswer: wB
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wEasy
Skill wLevel: wUnderstanding
2. A w market w with w perfect w competition w would w require w .
A. agents wto wnot wbe wrational
B. that wthere wbe wno wcontracts
C. that wethics wnot wbe wnecessary
D. ethical wguidelines wto wbe wlegally wcodified
Correct wAnswer: wC
2.1 : wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wEasy
Skill wLevel: wUnderstanding
3. Fraud wis wunethical wbecause w .
A. all wparties wmust whave waccess wto wpertinent winformation
B. no wone wmay w be wpermitted wto wprofit wtoo wmuch
C. market w economies w require w freedom w of w action
8
Copyright w© w2017 wPearson wEducation, wInc. w All wrights
wreserved.
mynursytest.store
, DOWNLOAD THE Test Bank for Ethics and the Conduct of Business 8th
w w w w w w w w w w w
Edition Boatright
w w
D. the wmarket wrequires weveryone wto wfurther wtheir wown
winterests wCorrect wAnswer: wA
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wEasy
Skill wLevel: wUnderstanding
4. The w difference w between w Homo w economicus w and w actual w people w is w that w .
A. Homo weconomicus wis wcapable w of w making w any w decision
B. Homo weconomicus wpursues wmany wdifferent winterests
C. actual wpeople wpursue wtheir wown wself-interest
D. actual wpeople w are w less w than w perfectly w rational
Correct wAnswer: wD
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wModerate
wSkill wLevel: wAnalysis
5. A w market w economy w alone w cannot w sustain w public w goods w because w .
A. no wone wwould wwant wto wtake wadvantage wof wpublic wgoods
B. people wwould wbe wfree wriders wif wthey wcould wbe
C. people wwould wtry wto wsell weach wother wpublic wgoods
D. participants win wa wmarket weconomy ware wimperfectly wrational
Correct wAnswer: wB
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wModerate
wSkill wLevel: wApplication
6. Market w outcomes w lead w to w unequal w outcomes w mainly w because w .
A. it winvolves wrandom wprocesses
B. participants whave wdiffering wlevels wof wskill
C. free wmarkets w are w inherently w unjust
D. there wis wgovernment winterference
Correct wAnswer: wB
2.1 : wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
9
Copyright w© w2017 wPearson wEducation, wInc. w All wrights
wreserved.
mynursytest.store
w w w w w w w w w w w
Edition Boatright
w w
Chapter w 2
EthicalwDecisionwMaking
CHAPTER w SUMMARY
Ethical wdecision wmaking win wbusiness wis woften wdifficult wand wcomplex. wSome wsituations ware
weasily w handled w because w what w one w ought w to w do w or w what w is w right w and w wrong w are
w evident. wThose w situations w that w give w us w pause w or w produce w moral w anguish w require
w careful w thought wand wultimately wan wability wto wengage win wethical wreasoning. wThis wchapter
wcontributes wto wan wunderstanding wof wethical wdecision wmaking wby woffering wa wdivision wof
wbusiness wethics winto wtwo wparts: wan wethics wof wthe wmarket wand wan wethics wof wroles wand
wrelationships, wincluding wfirms. wIn w business, wwe wdeal wwith wsome wparties wpurely was wmarket
wactors wwho ware won wthe wother wside wof wa wmarket wtransaction wor wexchange. wFor wsuch wmarket
wactivity, wcertain wmoral wrules wor wstandards wapply. w These wrelationships ware wgoverned wby
wprofessional wethics, wa wprime wexample wbeing wthe wlegal wprofession. w In waddition wto wthe wlaw, wan
wattorney wmust wfollow wprofessional wcodes wof wethics westablished wby wthe wstate wbar wand/or
wprofessional wassociation whe wor wshe wbelongs wto. wThese wcodes wcan wimpose wa wgreater wobligation
wto wact win wthe wbest winterests wof wthe wclient. wFor wexample, wthe wattorney- wclient wrelationship
wimposes won wthe wattorney wa wduty wto wavoid wconflicts wof winterests, wto wprotect wclient wproperty,
wand wto wclosely wguard wconfidential winformation. wOther wprofessional wrelationships winvolving
wbusiness wdealings wcan walso wtake wthe wform wof wan wagency. wThese wrelationships ware wbuilt won
wtrust wand wconfidence wso wthe wprincipal’s winterests wmust wbe wprotected. wThe wagent wowes wthe
wprincipal wa wduty wof wloyalty wto wact win wthe wprincipal’s wbest winterest win wall wbusiness wdealings
winvolving wthe wagency. wWhen wwe wattempt wto wthink wthrough wthe wethical wissues wthat warise win
wbusiness, wwe ware wengaging win wethical wreasoning, wwhich wmay wbe wconducted won wdifferent
wlevels. wEthical wtheories, wwhich ware wpresented win wthe wnext wchapter, wcan wguide wethical
wreasoning won wthe whighest wlevel wby wproviding wthe w most w comprehensive w and
w fundamental w grounds w for w our w moral w beliefs w and w judgments. wFortunately, wsubstantial
wmoral warguments wthat wdo wnot wrequire wan w understanding wof wthese wtheories wcan wbe
wconstructed. w Most w of w our w everyday w ethical w reasoning w employs w familiar wethical
wconcepts wand wprinciples wthat wcan wbe wreadily wunderstood wand wapplied. wAccordingly, wthis
wchapter wprovides wa wframework wof wseven wbasic wethical wprinciples wthat ware wsufficient wfor
wmost w business wdecision wmaking. wFor wthose wwho wseek wmore, wthough, wthe wnext wchapter
wprovides wa w survey wof wthe wmain wphilosophical wtheories wof wethics.
CHAPTER w OBJECTIVES
2.1 : wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
and wthe wproblems wcreated wby wimperfect wmarket wconditions
w
2.2 : wIdentify wthe wduties wand wobligations wassociated wwith wfundamental wbusiness wroles
and wrelationships win wmarkets wand wfirms
w
2.3 : wDescribe wthe wphilosophical wand wpsychological wapproaches wto wethical wreasoning
and wthe wprinciples wthat wconstitute wa wmoral wframework wfor wbusiness wconduct
w
7
Copyright w© w2017 wPearson wEducation, wInc. w All wrights
wreserved.
mynursytest.store
,DOWNLOAD THE Test Bank for Ethics and the Conduct of Business 8th
w w w w w w w w w w w
Edition Boatright
w w
SUGGESTED w DISCUSSION w PROMPTS
1. What w is w ethically w required w of w participants win w a w market w economic wsystem?
2. In wwhat w ways wdo wparticipants win wa wmarket wsystem whave w to w depend w upon w each wother?
3. In wwhat wways wdo wethical wconsiderations wwork wagainst wperfect woperation wof wa
wmarket weconomy?
4. How w does w the w prisoner’s w dilemma w reflect w the w limitations w of w a w free w market w system?
5. What wcapacities ware wrequired wof wan w agent wto wengage win wethical wreasoning?
ASSESSMENT w FOR w IN-CLASS w USE
Multiple w Choice w Questions
Choose wthe wBEST w possible wanswer w for weach wof wthe wfollowing.
1. A wmarket weconomy wis wbased wfundamentally won w .
A. ethicalmotivations
B. the wprofit wmotive
C. human wwelfare
D. manufacturing
Correct wAnswer: wB
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wEasy
Skill wLevel: wUnderstanding
2. A w market w with w perfect w competition w would w require w .
A. agents wto wnot wbe wrational
B. that wthere wbe wno wcontracts
C. that wethics wnot wbe wnecessary
D. ethical wguidelines wto wbe wlegally wcodified
Correct wAnswer: wC
2.1 : wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wEasy
Skill wLevel: wUnderstanding
3. Fraud wis wunethical wbecause w .
A. all wparties wmust whave waccess wto wpertinent winformation
B. no wone wmay w be wpermitted wto wprofit wtoo wmuch
C. market w economies w require w freedom w of w action
8
Copyright w© w2017 wPearson wEducation, wInc. w All wrights
wreserved.
mynursytest.store
, DOWNLOAD THE Test Bank for Ethics and the Conduct of Business 8th
w w w w w w w w w w w
Edition Boatright
w w
D. the wmarket wrequires weveryone wto wfurther wtheir wown
winterests wCorrect wAnswer: wA
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wEasy
Skill wLevel: wUnderstanding
4. The w difference w between w Homo w economicus w and w actual w people w is w that w .
A. Homo weconomicus wis wcapable w of w making w any w decision
B. Homo weconomicus wpursues wmany wdifferent winterests
C. actual wpeople wpursue wtheir wown wself-interest
D. actual wpeople w are w less w than w perfectly w rational
Correct wAnswer: wD
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wModerate
wSkill wLevel: wAnalysis
5. A w market w economy w alone w cannot w sustain w public w goods w because w .
A. no wone wwould wwant wto wtake wadvantage wof wpublic wgoods
B. people wwould wbe wfree wriders wif wthey wcould wbe
C. people wwould wtry wto wsell weach wother wpublic wgoods
D. participants win wa wmarket weconomy ware wimperfectly wrational
Correct wAnswer: wB
2.1: wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
Topic/Concept: wMarket wEthics
wDifficulty wLevel: wModerate
wSkill wLevel: wApplication
6. Market w outcomes w lead w to w unequal w outcomes w mainly w because w .
A. it winvolves wrandom wprocesses
B. participants whave wdiffering wlevels wof wskill
C. free wmarkets w are w inherently w unjust
D. there wis wgovernment winterference
Correct wAnswer: wB
2.1 : wRecognize wthe wfeatures wof wthe wmarket wsystem, wthe wethics wof wmarket wtransactions,
wand wthe wproblems wcreated wby wimperfect wmarket wconditions
9
Copyright w© w2017 wPearson wEducation, wInc. w All wrights
wreserved.
mynursytest.store
