BLW302 Chapter 3
One view of the role of business in society is the perceived duty of a company only to generate
revenue for its owners. - ANS true
An overemphasis on long-run profit maximization is a common reason for ethical problems that
occur in business. - ANS false
Under the categorical imperative, an unethical decision that would have only a small impact is
acceptable as long as no one else in society acts the same way. - ANS false
The term moral minimum is best defined as the highest degree of ethical behavior expected of a
firm. - ANS false
The effectiveness of an industry code of ethics is partly determined by the commitment of the
industry or company leadership to enforce it. - ANS true
When making ethical decisions, a business should evaluate the financial implications. - ANS
true
Because it may be unclear how a court will interpret and apply a law, companies can ensure
decisions are viewed as ethical by documenting their own interpretation of the law. - ANS false
Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor
those suppliers - ANS false
Making ethical decisions is most often best done by analyzing objective standards (such as
profit or number of people fired) instead of subjective impacts on stakeholders. - ANS false
Basil and other managers employed by Creosote Company are most likely to find that unethical
behavior in the workplace can be deterred by - ANS taking immediate action in response to
unethical conduct.
Ethical decision makers should test and reflect on the outcome of their decisions. - ANS true
When profit maximization is the goal, a company does not benefit from ethical behavior. - ANS
false
Build-It Inc. applied an inexpensive but untested technique to brace a transit tunnel wall. The
technique was legal but the tunnel collapsed, killing several commuters. Build-Its action was -
ANS unethical because the technique was untested.
One view of the role of business in society is the perceived duty of a company only to generate
revenue for its owners. - ANS true
An overemphasis on long-run profit maximization is a common reason for ethical problems that
occur in business. - ANS false
Under the categorical imperative, an unethical decision that would have only a small impact is
acceptable as long as no one else in society acts the same way. - ANS false
The term moral minimum is best defined as the highest degree of ethical behavior expected of a
firm. - ANS false
The effectiveness of an industry code of ethics is partly determined by the commitment of the
industry or company leadership to enforce it. - ANS true
When making ethical decisions, a business should evaluate the financial implications. - ANS
true
Because it may be unclear how a court will interpret and apply a law, companies can ensure
decisions are viewed as ethical by documenting their own interpretation of the law. - ANS false
Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor
those suppliers - ANS false
Making ethical decisions is most often best done by analyzing objective standards (such as
profit or number of people fired) instead of subjective impacts on stakeholders. - ANS false
Basil and other managers employed by Creosote Company are most likely to find that unethical
behavior in the workplace can be deterred by - ANS taking immediate action in response to
unethical conduct.
Ethical decision makers should test and reflect on the outcome of their decisions. - ANS true
When profit maximization is the goal, a company does not benefit from ethical behavior. - ANS
false
Build-It Inc. applied an inexpensive but untested technique to brace a transit tunnel wall. The
technique was legal but the tunnel collapsed, killing several commuters. Build-Its action was -
ANS unethical because the technique was untested.
