Question 1

"When in Rome,do as the Romans do," is an example of moral relativism.

Accepted Answer

This statement suggests that what is considered right or wrong varies from culture to culture, supporting the idea of moral relativism.

Question 2

Pressure contributes to the use of the either/or test for resolving ethical dilemmas.

Accepted Answer

When under pressure or time constraints, individuals may resort to using the either/or test, which is a simplistic approach to ethical decision making that presents only two options without considering alternative solutions or nuances of the situation.

Question 3

Training employees in ethics is a factor that reduces a company's sentence under the federal sentencing guidelines.

Accepted Answer

This is true. The Federal Sentencing Guidelines for Organizations provide an incentive for companies to implement effective compliance and ethics programs, which includes training employees in ethics. If a company is found guilty of criminal wrongdoing, having an effective program in place may result in a reduced sentence or fine.

Question 4

Ethics are key to the success of economic systems.

Accepted Answer

Ethics provide the principles and values that guide economic decision-making, promote fairness and trust, and ensure the sustainability of economic systems. Without ethics, economic systems are prone to corruption, inequality, and inefficiency, which undermines their effectiveness and legitimacy. Therefore, promoting ethical behavior and accountability is essential to foster economic growth, social welfare, and environmental stewardship.

Question 5

Corruption impedes economic development.

Accepted Answer

Corruption diverts resources away from productive uses and discourages foreign investment, both of which hinder economic development. It undermines fair competition and creates an uneven playing field, which can stifle innovation and entrepreneurship. Corruption also reduces trust in government and undermines its legitimacy, which can discourage citizens from participating in the economy and reduce confidence in the rule of law. Overall, corruption has been shown to have negative effects on economic growth, poverty reduction, and social development.

Question 6

To obtain the protections and benefits of the sentencing guidelines,companies must have a code of ethics.

Accepted Answer

This statement is true. The sentencing guidelines require that companies have an effective compliance and ethics program in place, which includes a code of ethics. Companies that have such programs in place can receive reduced penalties or fines in the event of any violations.

Question 7

Professor Ahlstrom asked her student, Jay Knopf, if he had a chance to look at the reading assignment for the day’s class.  Knopf replied, “Yes, I have.” When Professor Ahlstrom asked Knopf a question about the reading, he did not know the answer.  Professor Ahlstrom said, “I thought you said you had read the assignment.”  Knopf replied, “You didn’t ask me if I had read the assignment, you asked me if I had a chance to look at the assignment, and I did look.” There is no ethical category that applies to this situation.

Accepted Answer

This situation falls under the ethical category of honesty. Knopf was not being honest when he said he had looked at the reading assignment, as he did not comprehend the material.

Question 8

"It's a gray area," if it applies,means that the conduct you are evaluating is ethical,so long as you stay in the gray area.

Accepted Answer

Saying "It's a gray area" implies ambiguity and uncertainty in ethical evaluation. It does not necessarily mean that the conduct is ethical as long as you stay in the gray area.

Question 9

Conflicts of interest can result in the use of quid pro quo.

Accepted Answer

Conflicts of interest may make it more likely that someone will engage in quid pro quo behavior, such as offering a favor or benefit in exchange for something they want. This can be especially true in situations where there is asymmetrical power or influence between the parties involved.

Question 10

The statement,"What's good for GM is good for the country," is an example of the thoughts of a manager from the:

Accepted Answer

This statement reflects the inherence school of thought, which posits that a company's primary responsibility is to its shareholders, and by focusing on their interests, the benefits will inherently trickle down to the broader society. This perspective aligns with the idea that what benefits a major corporation like General Motors (GM) will, in turn, benefit the country's economy and its citizens.

Question 11

When Danica Patrick stated she would take performance-enhancing drugs if she would never get caught,she was just saying what everyone else does in a highly competitive field,so it is not unethical.

Accepted Answer

The statement promotes the use of illegal drugs and goes against the principles of fair competition, making it unethical. Even if others engage in such behavior, it does not justify it.

Question 12

Once a legal loophole has been used to the advantage of business and the disadvantage of a customer,the number of options for self-regulation declines.

Accepted Answer

When a legal loophole is used to benefit business at the expense of customers, it undermines the trust and credibility of self-regulation. This can lead to a decline in options for self-regulation as clients may become less willing to cooperate and comply voluntarily.

Question 13

Rationalization is one form of ethical analysis.

Accepted Answer

The answer of Rationalization is one form of ethical analysis....

Question 14

When Hilton Hotels hired Ross Klein and Amar Lalvani from Starwood Hotels,Klein and Lalvani took many electronic documents with them from Starwood.What they did was simply good business and presented no ethical problems.

Accepted Answer

Taking electronic documents from a previous employer without permission is considered unethical and can lead to legal issues. It is also a breach of confidentiality and can harm the reputation and trustworthiness of the individuals and the company they represent.

Question 15

The regulatory cycle provides an opportunity for self-regulation during the latency stage.

Accepted Answer

The regulatory cycle is a concept in developmental psychology that describes the interaction between a caregiver and an infant during feeding. During the latency stage, which occurs between 2-6 months old, the infant is able to self-regulate their feeding behavior with guidance from the caregiver. This provides an opportunity for self-regulation within a structured environment, laying the foundation for future self-regulation abilities.

Question 16

Ethics consists of the unwritten rules we apply in both business and personal lives.

Accepted Answer

Ethics are the principles and values that guide individual and group behavior in society. They are not necessarily written down as laws or rules, but are understood and upheld as important standards of behavior in both business and personal settings.

Question 17

The "Tony Bennett Factor" refers to the importance of adhering to values as a key to long-term success.

Accepted Answer

The "Tony Bennett Factor" is a term used to refer to the importance of staying true to one's values and principles as a roadmap to long-term success. It is named after Tony Bennett, a legendary American singer who has had a successful career spanning many decades, which he attributes to his commitment to his values and his refusal to compromise on them.

Question 18

To obtain the protections and benefits of the sentencing guidelines,companies must have some form of anonymous reporting.

Accepted Answer

This statement is true as one of the seven core elements of an effective compliance program under the Federal Sentencing Guidelines is the existence of a system to anonymously report violations or potential violations of the company's code of conduct. Having such a reporting mechanism can demonstrate that the organization has taken steps to detect and prevent illegal activities and can potentially qualify for reduced fines and penalties in the event of a violation.

Question 19

The either/or conundrum is an example of moral relativism.

Accepted Answer

Moral relativism is the view that moral values are not absolute but are relative to the individual or group that holds them. The either/or conundrum is an example of moral relativism because it presents two options that are both morally acceptable, depending on the individual's or group's values.

Question 20

Trust is not critical to investment or economic success.

Accepted Answer

Trust is a critical aspect of investment and economic success as it establishes confidence in the stability of the market and enables people to undertake financial transactions with one another. Without trust, people would be reluctant to invest or engage in economic activities, which could lead to a decline in economic growth and development.

Quiz 2: Business Ethics and Social Responsibility