An Introduction To Business Ethics 6Th Edition By Joseph DesJardins - Test Bank.

An Introduction to Business Ethics, 6e (DesJardins) Chapter 1 Why Study Ethics? 1) Which of the following statements is decisive in determining whether or not to study business ethics? A) Business managers don't need to study ethics in order to know how to treat employees, shareowners, and customers. B) Business and ethics simply don't mix. In the final analysis, self-interest, represented by profit, overrides the interests of employees, customers, and communities. Opinion and sentiment get in the way of efficient business decision making. C) Ethical concerns are as unavoidable in business as are concerns of marketing, accounting, finance, and human resources. Formal study of business ethics helps address these concerns so that businesses can integrate ethics in their decision making. D) The answers to ethical questions are clear-cut enough; all business people already know right from wrong. Answer: C Accessibility: Keyboard Navigation 2) Which of the following statements correctly describes the relationship between philosophical ethics and ethos? A) Individuals who obey the conventions, mores, and rules of their cultures are already acting ethically. No further philosophical reflection is required. B) Philosophical ethics distinguishes what people do value from what they should value. C) What people do value and should value is, for all practical purposes, the same. D) Philosophical ethics is too abstract to be useful in everyday life situations. Following the mores and customs of one's culture is a more dependable way to make moral decisions. Answer: B Accessibility: Keyboard Navigation 3) Ethics refers to the beliefs, values, and principles that guide a person's life and decisions. Answer: TRUE Accessibility: Keyboard Navigation 4) Ethical behavior and an ethical reputation can provide a competitive advantage in the marketplace and with customers, suppliers, and employees. Answer: TRUE Accessibility: Keyboard Navigation 1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5) In a society that values individual freedom, everything that is legal is ethically right and everything that is ethically wrong is illegal. Answer: FALSE Accessibility: Keyboard Navigation 6) Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are no principles, standards, concepts, or values common to business ethics. Answer: FALSE Accessibility: Keyboard Navigation 7) The role of an ethics course should be to convey information to a passive audience, while treating students as passive learners. Answer: FALSE Accessibility: Keyboard Navigation 8) The unexamined life, according to Socrates, is not worth living. Answer: TRUE Accessibility: Keyboard Navigation 9) Business ethics is concerned more with reasoning than answers. Answer: TRUE Accessibility: Keyboard Navigation 10) If something is seriously wrong, the law will prohibit it. Consequently, it's enough to rely on the law for deciding what's right or wrong. Answer: FALSE Accessibility: Keyboard Navigation 11) Ethics and ethos are the same thing. Answer: FALSE Accessibility: Keyboard Navigation 12) Philosophical ethics denies that conformity and obedience are the best guides to how we should live. Answer: FALSE Accessibility: Keyboard Navigation 2 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13) According to philosophical ethics, a simple acceptance of customary norms is an adequate ethical perspective. Answer: FALSE Accessibility: Keyboard Navigation 14) Philosophical ethics distinguishes what people do value from what they should value. Answer: TRUE Accessibility: Keyboard Navigation 15) The major reason to study ethics is to be able to answer questions such as "what should I do?" or "what type of person should I be?" or "how shall I live in my community?" Answer: TRUE Accessibility: Keyboard Navigation 16) Gatekeepers are those people and institutions whose role is to provide checks on illegal and unethical behavior. Answer: TRUE Accessibility: Keyboard Navigation 17) A skeptical challenge to business ethics is that there is no common rational basis for making ethical judgments. Answer: TRUE Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. An Introduction to Business Ethics, 6e (DesJardins) Chapter 2 Ethical Theory and Business 1) Which of the following statements is true of ethical theories? A) Most ethical theories place utmost importance to matters of personal opinion, individual desires, preferences, and wants. B) Ethical theories are very abstract and disconnected from the realities of the everyday life. C) Ethical theories not only guide our actions but also provide reasonable justification for prescribing behavior. D) Most ethical theories hold that good and bad acts should be judged by their consequences. Answer: C Accessibility: Keyboard Navigation 2) Which of the following ethical traditions implies that a greedy person who does distasteful and selfish things will not lead a fulfilling and good human life? A) Virtue ethics B) Utilitarianism C) Kantian categorical imperative D) Psychological egoism Answer: A Accessibility: Keyboard Navigation 3) Which of the following statements is true of utilitarian ethics? A) It upholds adhering to a set of principles that may forbid an act that might otherwise provide overall good consequences. B) It holds that the ethical significance of any action can be determined by looking at the consequences of that act. C) It applies most appropriately to ethical personal behavior and decision making. D) It believes in maximizing personal well-being and the achievement of hedonistic pleasures. Answer: B Accessibility: Keyboard Navigation 1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4) Which statement is a legitimate challenge to utilitarian ethical theory? A) The ends do not justify the means. B) There is no consensus among utilitarians on how to measure and determine the overall good. C) It is difficult to know how to consider the consequences for all the parties that will be affected by an act. D) It is difficult for the utilitarian to find a balance between individual freedom and the overall good. The more utilitarians emphasize freedom, the more likely they hold more relativistic accounts of the good. E) All of the answers are correct. F) None of the answers are correct. Answer: E Accessibility: Keyboard Navigation 5) Which of the following reasons accounts for utilitarianism's dominance among policy makers and administrators? A) The utilitarian emphasis on measuring, comparing, and quantifying reinforces the view that policy makers should be neutral administrators. B) Policy experts at all levels are focused on results and getting things done. C) Efficiency is simply another word for maximizing happiness. D) Policy experts focus on the collective or aggregate good. E) All of the answers are correct. F) None of the answers are correct. Answer: E Accessibility: Keyboard Navigation 6) Which proposition correctly describes the concept of a right? A) Rights protect a person's wants. B) There is really no distinction between a person's wants and interests. Rights protect both. C) Rights protect a person's interests. D) My rights never correspond to your duties and your duties never correspond to my rights. Answer: C Accessibility: Keyboard Navigation 2 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7) Which of the following statements is consistent with principle-based ethics? A) Obligations, responsibilities, and commitments do not determine the correct approach to ethics. B) Individuals have rights that should not be sacrificed in order to generate a net increase in the collective good. C) Although certain acts are wrong, they should be performed for the overall happiness they may produce. D) An act that produces the greatest beneficial consequences is the ethically right thing to do. Answer: B Accessibility: Keyboard Navigation 8) Which of the following statements is true of Kant's categorical imperative? A) Kant claimed that all human behavior is egoist, or intended for one's own self-interest. B) Kant believed that lying could be made a universal law if it benefitted the majority of mankind. C) Kant believed that child labor can be justified as it is a means for raising the standard of living in an impoverished country. D) Kant claimed that ethics requires us to treat all people as ends and not only as means. Answer: D Accessibility: Keyboard Navigation 9) Which of the following statements is true of virtue ethics? A) Virtue ethics holds that ethical decisions are determined on the overall social consequences of an act. B) Virtue ethics directs us to consider how various character traits can contribute to, or obstruct, a worthy and good human life. C) Virtue ethics is especially focused on categorizing communities and organizations as good or bad. D) Virtue ethics is based on the principle that some individuals should not benefit excessively at the expense of vulnerable others. Answer: B Accessibility: Keyboard Navigation 10) Principle-based ethics is based on the concepts of promises, justice, fairness, rights, and duties. Answer: TRUE Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11) Child labor is a very common phenomenon with cases of employing children in the manufacturing of athletic shoes and clothing being the most well-publicized instances. Answer: TRUE Accessibility: Keyboard Navigation 12) Because utilitarianism focuses on consequences, producing the greatest happiness for the greatest number as the sole criterion for determining ethical right and wrong, no action is ever right or wrong in itself, in all cases, in every situation—even, perhaps, lying. Answer: TRUE Accessibility: Keyboard Navigation 13) Principle-based ethics, also called rights-based ethics, refers to the concept that the correct path to ethical decision making is determined by duties, such as obligations, commitments, and responsibilities, and not by consequences. Answer: TRUE Accessibility: Keyboard Navigation 14) Principle-based ethics might allow the sacrifice of individual rights if the overall good demanded it. Answer: FALSE Accessibility: Keyboard Navigation 15) According to Kant, any action's maxim that cannot be universalized is ethically wrong and should not be performed. Answer: TRUE Accessibility: Keyboard Navigation 16) One way to understand rights is to identify them with a person's wants. Rights protect these wants even though, objectively, they may conflict with what is really good for a person. Answer: FALSE Accessibility: Keyboard Navigation 17) The theory of virtue ethics focuses on a full and detailed description of those character traits that would constitute a good and human life. Egoism is simply not a factor in the ethical decision making of caring, empathetic, charitable, and sympathetic persons. Answer: TRUE Accessibility: Keyboard Navigation 4 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18) The condition of plenty or surplus and competition allows everyone to get what they want; this is a condition of free market capitalism. Answer: FALSE Accessibility: Keyboard Navigation 19) There is a consensus among utilitarians on how to measure and determine the overall good. Answer: FALSE Accessibility: Keyboard Navigation 20) Historically, utilitarians place a very high value on individual freedom of choice, even though free individuals do not always choose what is good for them. Answer: TRUE Accessibility: Keyboard Navigation 21) According to principle-based ethics, individuals possess certain basic rights that should not be violated even if doing so would increase the overall good or social happiness. Answer: TRUE Accessibility: Keyboard Navigation 22) A version of utilitarian ethics invoking the tradition of Adam Smith claims that competitive markets are the best means for attaining utilitarian goals. This is "market" utilitarianism. Answer: TRUE Accessibility: Keyboard Navigation 23) Unlike utilitarians, policy makers are not concerned with the well-being of the whole community. Answer: FALSE Accessibility: Keyboard Navigation 24) In the context of principle-based ethics, rights and duties are correlated. Answer: TRUE Accessibility: Keyboard Navigation 25) Rights are sometimes described as "trumps" that override the collective will. Rights function to protect certain interests that are more important and central in human well-being than the mere happiness of others. Answer: TRUE Accessibility: Keyboard Navigation 5 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 26) Virtue ethics reminds us to examine how character traits are formed and conditioned. Answer: TRUE Accessibility: Keyboard Navigation 27) Virtue ethicists turn to such fields as psychology, education, organizational behavior, and sociology to gain insight about how to teach virtue. Answer: TRUE Accessibility: Keyboard Navigation 28) Human beings are no more naturally selfish and greedy than they are naturally kind and compassionate. Answer: TRUE Accessibility: Keyboard Navigation 29) Utilitarianism and consequentialism are the same thing. Answer: TRUE Accessibility: Keyboard Navigation 30) Jeremy Bentham argued that only the absence of pain is intrinsically valuable. Answer: FALSE Accessibility: Keyboard Navigation 31) According to John Stuart Mill, people need to be educated and experienced in a variety of pleasures before they are competent to judge. Answer: TRUE Accessibility: Keyboard Navigation 32) Utilitarian ethics has played a prominent role in forming public policy and laws governing finance, employment, consumerism, and world trade. Answer: TRUE Accessibility: Keyboard Navigation 6 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 3 Corporate Social Responsibility 1) The most influential theory of corporate responsibility of the past century is: A) the free society economic theory. B) the neoclassical economic theory. C) the social contract theory. D) the stakeholder theory. Answer: B Accessibility: Keyboard Navigation 2) In which of the following ideas are the ethical roots of the economic model of corporate social responsibility found? A) The interests of stakeholders are as important as the interests of the corporation's stockholders. B) Managers are ethically obliged to make as much money as possible for their stockholders because to do otherwise would undermine the very foundations of our free society. C) Managers must prioritize stakeholders' interests if there is a conflict between the interests of stockholders and the interests of employees, consumers, suppliers, or society. D) The actions of corporations can and should be restricted by the rights of anyone affected by their decisions. Answer: B Accessibility: Keyboard Navigation 3) The management of an online retailer is mostly interested in implementing strategies and pushing policies that result in the utilization of their stockholders' property to serve the interests of its employees and the local community. The defenders of which of the following models are likely to consider these actions as theft? A) The triple bottom line theory B) The cyclical theory of social change C) The stakeholder theory of corporate social responsibility D) The economic model of corporate social responsibility Answer: D Accessibility: Keyboard Navigation 1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4) Which of the following statements does not represent a market failure, a situation in which the pursuit of profit will not result in a net increase in consumer satisfaction? A) The costs of pollution, groundwater contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties external to the economic exchange between buyer and seller. B) Where there is no mechanism for pricing, for setting a value on public goods, there is no guarantee that the markets will result in the optimal satisfaction of the public interest in regard to public goods. C) Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits. D) The pursuit of individual self-interest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather than mere competition. Answer: C Accessibility: Keyboard Navigation 5) Which statement does not support the claim that an unconditioned ethical directive such as the one the economic model of corporate social responsibility demands of business management is inappropriate for utilitarian theory? A) Markets can work to prevent harm only by first-hand experience with harms that have to occur before they can be remedied. B) It is claimed that once market failures are adequately addressed by the government, business just needs to obey the law that addressed them. Business, however, has the ability to inappropriately influence government policy and the law. C) Business has the ability to influence consumers' desires by helping shape those desires through advertising. D) A more precise formulation of a utilitarian-based principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial. Answer: D Accessibility: Keyboard Navigation 2 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6) According to the private property defense of the economic model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view? A) Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom. B) The connection between ownership and control that exist for personal property does not legally exist for corporate property. C) Investors buy their stocks with the hope of maximizing return on their investment. D) Stockholders in publicly traded corporations are better understood as investors rather than owners. Answer: C Accessibility: Keyboard Navigation 7) Which statement is true of Bowie's Kantian approach to business ethics? A) People have a duty both to not cause harm and to prevent harm. B) Both causing no harm and preventing harm override other ethical considerations. C) While it is ethically good for managers to prevent harm or do some good, their duty to stockholders overrides these concerns. D) A narrow interpretation of Bowie's "cause no harm" imperative makes the duties faced by management under the neoclassical model significantly different from the economic model. Answer: C Accessibility: Keyboard Navigation 8) Which statement represents a challenge to Evan and Freeman's defense of the stakeholder theory against the economic model of corporate social responsibility? A) The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, and the disabled. B) Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers' fiduciary responsibility. C) The stakeholder theory cannot answer the question as to how, exactly, a manager should go about balancing the diverse and competing claims of all parties. D) There is no guarantee that when managers produce profits, they will serve the interests of either stockholders or the public. Answer: C Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9) Which of the following statements is true of the stakeholder model of corporate social responsibility? A) It is based on the premise that a business is a private property, and like any private property, the owners get to decide what to do with it. B) It appeals to such important ethical norms as utilitarianism and freedom because of its connection to the free enterprise system. C) It assumes that compliance with the law is sufficient for being an ethically responsible business. D) It begins with the insight that every business decision affects a wide variety of people, benefiting some and imposing costs on others. Answer: D Accessibility: Keyboard Navigation 10) The free market, or neoclassical, theory of corporate social responsibility relies on utilitarianism and the concepts of individual rights to freedom and property for its ethical justification. Answer: TRUE Accessibility: Keyboard Navigation 11) To use a company's resources for a project that does not contribute to maximizing profits is sometimes acceptable and even sometimes required under the economic model of corporate social responsibility. Answer: FALSE Accessibility: Keyboard Navigation 12) If the costs of externalities like air pollution, ground water contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties who are not involved in the exchange between buyer and seller, the exchange price does not represent an equilibrium between true costs and benefits. Answer: TRUE Accessibility: Keyboard Navigation 13) There is no reason to believe that ad hoc attempts to repair market failures, such as determining shadow prices for unpriced social goods, or exempting social goods from the market, or using the law to address social goods that are unattainable through individual choice, are socially inadequate. Answer: FALSE Accessibility: Keyboard Navigation 4 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14) According to the private property defense of the economic model of corporate social responsibility, any use of a corporation's resources for any purpose other than maximizing profits is a violation of the owners' property rights and amounts to theft. Answer: TRUE Accessibility: Keyboard Navigation 15) Bowie's Kantian model of corporate social responsibility obliges managers to do no harm, but they must also be prepared at times to do some good or prevent some harm. Answer: FALSE Accessibility: Keyboard Navigation 16) The stakeholder theory of corporate social responsibility is totally incompatible with the utilitarian ethical theory because the stakeholder concept requires balancing the interests of all the parties affected by business decisions. Answer: FALSE Accessibility: Keyboard Navigation 17) A wider interpretation of the meaning of a stakeholder as any affected party places an impossible burden on managers who would have to account for everyone who might be affected by a business decision. Answer: TRUE Accessibility: Keyboard Navigation 18) The free market theory provides the rationale for the responsibility of managers to make as much money for their stockholders as possible. Answer: TRUE Accessibility: Keyboard Navigation 19) The significance of the moral minimum approach lies in its recognition that compliance with the law is insufficient for being an ethically responsible business. Answer: TRUE Accessibility: Keyboard Navigation 20) Market failures occur in a variety of situations in which the pursuit of profit will not result in a net increase in consumer satisfaction because in these situations markets fail to do what they were designed to do. Answer: TRUE Accessibility: Keyboard Navigation 5 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 21) Prisoners' dilemma cases are examples of situations in which cooperation does not have a more optimal outcome than competition. Answer: FALSE Accessibility: Keyboard Navigation 22) We learn about market failures and thereby prevent harms in the future only by sacrificing the first generation as a means for gaining this information. Answer: TRUE Accessibility: Keyboard Navigation 23) Milton Friedman did not recognize that there are limits to the pursuit of profits. Answer: FALSE Accessibility: Keyboard Navigation 24) The pursuit of profit is the mechanism by which a business is thought to serve the utilitarian goal of satisfying consumer demand, thereby maximizing the overall good. Answer: TRUE Accessibility: Keyboard Navigation 25) Utilitarian ethics directs us to maximize happiness. Answer: TRUE Accessibility: Keyboard Navigation 26) Efficient markets guarantee that an ethically worthy outcome has been achieved. Answer: FALSE Accessibility: Keyboard Navigation 6 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. An Introduction to Business Ethics, 6e (DesJardins) Chapter 4 Corporate Culture, Governance, and Ethical Leadership 1) A corporate culture is fashioned by a shared pattern of all of the following except: A) beliefs. B) expectations. C) meanings. D) bylaws. Answer: D Accessibility: Keyboard Navigation 2) Which of the following statements is true of corporate cultures? A) Corporate cultures are always changing rapidly. B) One person, even a strong leader, cannot have a significant impact on a company's culture. C) An organization's culture offers it direction and stability during challenging times. D) A firm's culture cannot be its sustaining value. Answer: C Accessibility: Keyboard Navigation 3) Which of the following is true of an ethical organizational culture? A) An ethical corporate culture can be compromised for short-term financial gains. B) An ethical culture empowers employees to act in ethically responsible ways even when the law does not require it. C) An ethical corporate culture evolves naturally and is self-sustaining. D) An ethical corporate culture changes rapidly with whatever social trends that are prevalent at a given point in time. Answer: B Accessibility: Keyboard Navigation 4) According to research conducted by Collins and Porras, which of the following is a common practice that explains the success of visionary companies? A) A great emphasis on essential and enduring tenets B) Aggressive marketing techniques that ensure profitability C) A commitment to following bureaucratic norms D) An attitude that justifies adopting any means as long as ends are met Answer: A Accessibility: Keyboard Navigation 1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5) Which of the following is a difference between the Federal Emergency Management Agency (FEMA) and the United States Coast Guard? A) Unlike the United States Coast Guard, FEMA is a less bureaucratic organization that takes into account the opinions of all employees before making a decision. B) Unlike the United States Coast Guard, FEMA is able to act swiftly even when a situation does not fit plans and the existing rules do not apply. C) Unlike FEMA, the United States Coast Guard cannot effectively move information up to decision makers in time. D) Unlike FEMA, the United States Coast Guard empowers front-line individuals to solve problems without waiting for superiors to give directions. Answer: D Accessibility: Keyboard Navigation 6) Which of these is not a requirement of internal mechanisms for reporting wrongdoing within an organization? A) They must be effective. B) They must allow anonymity. C) They must report to legal authorities. D) They must protect the rights of the accused. Answer: C Accessibility: Keyboard Navigation 7) Which of these is true regarding assessment and monitoring of the ethics of a corporate culture? A) Ongoing ethics audits can uncover silent vulnerabilities that could later challenge the firm. B) Ongoing ethics audits can serve as a vital element in risk assessment and prevention. C) Ongoing ethics audits can enable organizations to spot weak areas before other stakeholders (internal and external) can spot them. D) Ongoing ethics audits can and do serve all of these functions within an organization. Answer: D Accessibility: Keyboard Navigation 8) Personal decision making and ethical behavior within a given company actually are influenced very little, or not at all, by the corporate culture of that company. Answer: FALSE Accessibility: Keyboard Navigation 9) Ethical business leaders not only act ethically on a personal level, but also allocate corporate resources to support and promote ethical behavior in the workplace. Answer: TRUE Accessibility: Keyboard Navigation