Straighterline Business Ethics Final Exam
Review
_____ and an ongoing ethics audit allow organizations to uncover silent vulnerabilities that
could pose challenges later to the firm, thus serving as a vital element in risk assessment and
prevention - ANS-Monitoring
\_____ reasoning is reasoning about what we should believe - ANS-theoretical
\_____ recognizes that every business decision imposes costs on someone and mandates that
those costs be acknowledged - ANS-Stakeholder theory
\_____ refers to shortsightedness about values - ANS-Normative myopia
\_____ refers to the body of law comprised of the decisions handed down by courts, rather than
specified in any particular statutes or regulations - ANS-Common law
\_____ requires that an economic value be placed on one's life and bodily integrity -
ANS-Cost-benefit analysis
\_____ understandings of social justice argue that freedom from coercion by others is the most
central element of social justice - ANS-Libertarian
\A simple situation in which two parties come together and freely agree to an exchange is only
prima facie ethically legitimate because: - ANS-certain conditions must be met before it can be
concluded that autonomy has been respected and mutual benefit has been achieved.
\According to economist Antonio Argandona, which of the following elements would include
issues relating to company secrets, espionage, and intelligence gathering? - ANS-Respect for
privacy
\According to empirical studies, greater consumption is likely to lead to unhappiness. This
condition is called _____ - ANS-affluenza
\According to Kevin Bahr, which of the following is a cause for conflicts in the financial markets?
- ANS-Self-regulation of the accounting profession
\According to Norman Bowie, the "moral minimum" that we expect of every person—either
acting as individuals or within corporate institutions—is - ANS-respect for human rights
\According to philosopher Norman Bowie, managers have a responsibility to maximize profits as
long as they - ANS-respect human rights and cause no harm
\According to the economic model of corporate social responsibility (CSR), the sole social
responsibility of a business is to: - ANS-fulfill the economic functions that it was designed to
serve
\Along with product safety, _____ is another area of marketing that has received significant legal
and philosophical attention within business ethics - ANS-advertising
\An employer is held liable for damages caused by an accident involving an employee driving
the company car on company business. Identify the law underlying this decision. - ANS-The
doctrine of respondent superior
\An ethics of _____ shifts the focus from questions about what a person should do, to a focus
on who that person is. - ANS-virtue
, \Corporate social responsibility (CSR) refers to the - ANS-ethical expectation that society has for
business
\Employees will be on their best behavior during phone calls if they know that those calls are
being monitored. This can be attributed to the - ANS-Hawthorne effect
\Enlightened self-interest, an important justification offered for corporate social responsibility
(CSR), presumes that - ANS-good ethics can also be good business
\Ethics refers to the applications of _____ on which people's decisions are based - ANS-morals
\Identify a policy under which an employer refuses to hire or terminates a worker whose spouse
works at a competing firm - ANS-Conflict-of-interest policy
\Identify a true statement about a compliance-based culture - ANS-A compliance-based culture
is only as strong and as precise as the rules which workers are expected to follow
\Identify a true statement about corporate cultures - ANS-Corporate cultures influence, limit, and
shape the decision making within a firm
\Identify a true statement about culture - ANS-A firm's culture can be its sustaining value,
offering it direction and stability during challenging times
\Identify a true statement about privacy - ANS-Privacy can be legally protected by the
constitution
\Identify a true statement about social responsibility - ANS-It refers to what a business should or
ought to do for the sake of the society, even if it comes with an economic cost
\Identify a true statement about the environmental legislation enacted in the 1970s - ANS-It
shifted the burden from those threatened with harm to those who would cause the harm.
\Identify a true statement about the implied warranty of merchantability - ANS-It holds that a
business has a duty to ensure that its products will accomplish their purpose.
\Identify a true statement about the integrative model of corporate social responsibility (CSR -
ANS-It suggests that firms should fully combine economic and social goals by bringing social
responsibilities into the core of their business model.
\Identify a true statement about the Occupational Safety and Health Administration (OSHA)
established by the U.S. Congress in 1970 - ANS-When OSHA was first established, regulations
were aimed at achieving the safest feasible standards
\Identify a true statement about the philanthropic perspective of the economic model of
corporate social responsibility. - ANS-This approach is especially common with small, privately
owned businesses where the owners also often play a prominent leadership role within their
local community
\Identify an effective way of creating clear and successful reporting schemes - ANS-Reinforcing
the organization's values through its compensation and reward structure
\Identify the attitude which leads to an unexamined life not worth living according to Socrates? -
ANS-Passivity
\Identify the bill that was passed in April 2009 to amend the executive compensation provisions
of the Emergency Economic Stabilization Act of 2008... - ANS-The Grayson-Himes Pay for
Performance Act
\Identify the doctrine which holds that employers are free to fire an employee at any time and for
any reason unless an agreement specifies otherwise - ANS-The doctrine of employment at will
\Identify the gatekeepers who guarantee that executives act on behalf of the stockholders'
interests - ANS-Board of directors
Review
_____ and an ongoing ethics audit allow organizations to uncover silent vulnerabilities that
could pose challenges later to the firm, thus serving as a vital element in risk assessment and
prevention - ANS-Monitoring
\_____ reasoning is reasoning about what we should believe - ANS-theoretical
\_____ recognizes that every business decision imposes costs on someone and mandates that
those costs be acknowledged - ANS-Stakeholder theory
\_____ refers to shortsightedness about values - ANS-Normative myopia
\_____ refers to the body of law comprised of the decisions handed down by courts, rather than
specified in any particular statutes or regulations - ANS-Common law
\_____ requires that an economic value be placed on one's life and bodily integrity -
ANS-Cost-benefit analysis
\_____ understandings of social justice argue that freedom from coercion by others is the most
central element of social justice - ANS-Libertarian
\A simple situation in which two parties come together and freely agree to an exchange is only
prima facie ethically legitimate because: - ANS-certain conditions must be met before it can be
concluded that autonomy has been respected and mutual benefit has been achieved.
\According to economist Antonio Argandona, which of the following elements would include
issues relating to company secrets, espionage, and intelligence gathering? - ANS-Respect for
privacy
\According to empirical studies, greater consumption is likely to lead to unhappiness. This
condition is called _____ - ANS-affluenza
\According to Kevin Bahr, which of the following is a cause for conflicts in the financial markets?
- ANS-Self-regulation of the accounting profession
\According to Norman Bowie, the "moral minimum" that we expect of every person—either
acting as individuals or within corporate institutions—is - ANS-respect for human rights
\According to philosopher Norman Bowie, managers have a responsibility to maximize profits as
long as they - ANS-respect human rights and cause no harm
\According to the economic model of corporate social responsibility (CSR), the sole social
responsibility of a business is to: - ANS-fulfill the economic functions that it was designed to
serve
\Along with product safety, _____ is another area of marketing that has received significant legal
and philosophical attention within business ethics - ANS-advertising
\An employer is held liable for damages caused by an accident involving an employee driving
the company car on company business. Identify the law underlying this decision. - ANS-The
doctrine of respondent superior
\An ethics of _____ shifts the focus from questions about what a person should do, to a focus
on who that person is. - ANS-virtue
, \Corporate social responsibility (CSR) refers to the - ANS-ethical expectation that society has for
business
\Employees will be on their best behavior during phone calls if they know that those calls are
being monitored. This can be attributed to the - ANS-Hawthorne effect
\Enlightened self-interest, an important justification offered for corporate social responsibility
(CSR), presumes that - ANS-good ethics can also be good business
\Ethics refers to the applications of _____ on which people's decisions are based - ANS-morals
\Identify a policy under which an employer refuses to hire or terminates a worker whose spouse
works at a competing firm - ANS-Conflict-of-interest policy
\Identify a true statement about a compliance-based culture - ANS-A compliance-based culture
is only as strong and as precise as the rules which workers are expected to follow
\Identify a true statement about corporate cultures - ANS-Corporate cultures influence, limit, and
shape the decision making within a firm
\Identify a true statement about culture - ANS-A firm's culture can be its sustaining value,
offering it direction and stability during challenging times
\Identify a true statement about privacy - ANS-Privacy can be legally protected by the
constitution
\Identify a true statement about social responsibility - ANS-It refers to what a business should or
ought to do for the sake of the society, even if it comes with an economic cost
\Identify a true statement about the environmental legislation enacted in the 1970s - ANS-It
shifted the burden from those threatened with harm to those who would cause the harm.
\Identify a true statement about the implied warranty of merchantability - ANS-It holds that a
business has a duty to ensure that its products will accomplish their purpose.
\Identify a true statement about the integrative model of corporate social responsibility (CSR -
ANS-It suggests that firms should fully combine economic and social goals by bringing social
responsibilities into the core of their business model.
\Identify a true statement about the Occupational Safety and Health Administration (OSHA)
established by the U.S. Congress in 1970 - ANS-When OSHA was first established, regulations
were aimed at achieving the safest feasible standards
\Identify a true statement about the philanthropic perspective of the economic model of
corporate social responsibility. - ANS-This approach is especially common with small, privately
owned businesses where the owners also often play a prominent leadership role within their
local community
\Identify an effective way of creating clear and successful reporting schemes - ANS-Reinforcing
the organization's values through its compensation and reward structure
\Identify the attitude which leads to an unexamined life not worth living according to Socrates? -
ANS-Passivity
\Identify the bill that was passed in April 2009 to amend the executive compensation provisions
of the Emergency Economic Stabilization Act of 2008... - ANS-The Grayson-Himes Pay for
Performance Act
\Identify the doctrine which holds that employers are free to fire an employee at any time and for
any reason unless an agreement specifies otherwise - ANS-The doctrine of employment at will
\Identify the gatekeepers who guarantee that executives act on behalf of the stockholders'
interests - ANS-Board of directors
