Question 1

A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws. Which of the following "ethics check questions" would you consider first?
A) Is it legal?
B) Is it fair and balanced?
C) How will it make me feel about myself?
D) Is it a generous amount?

Accepted Answer

Agreeing to this offer would be (1) illegal, (2) unfair to other involved parties, and (3) damaging to your self-esteem. However, the most basic ethics check question is "Is it legal?"

Question 2

Tobacco companies initially refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is
A) the intended approach.
B) the desired approach.
C) not the desired approach.
D) not really a concern.

Accepted Answer

Ethical behavior by businesses is a reflection of a concern for the welfare of society as a whole. Many different sources give the following statements of basic moral values: integrity, respect for human life, self-control, honesty, courage, and self-sacrifice are right; cheating, cowardice, and cruelty are wrong.

Question 3

When Kira graduated with a degree in computer science, she started her software company. On her first day of operations, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated
A) her commitment to high ethical standards of behavior.
B) her commitment to respect the law.
C) her expectation that all employees follow the laws that apply to the business.
D) her aversion to cheating, stealing, and dishonesty.

Accepted Answer

Following the laws that apply to her business, and expecting employees to do the same, will protect the firm from paying the price of convictions for crimes that are clearly against the law; however, operating within a legal framework is only the first step toward behaving as an ethical company.

Question 4

The first step when facing an ethical dilemma is to ask
A) "Is it legal?"
B) "Is it balanced?"
C) "How will it make me feel about myself?"
D) "Is it ethical?"

Accepted Answer

The answer of The first step when facing an ethical...

Question 5

Ethical behavior will result in which of the following?
A) Mistrust between employees and managers.
B) Agreements that create benefits for only the shareholders.
C) Negative publicity from the news media.
D) Improved self-esteem making us feel good about our decision.

Accepted Answer

Decisions that go against our sense of right and wrong make us feel bad-they corrode our self-esteem. Following an ethics-based approach to decision making will result in improved self-esteem.

Question 6

Purposefully understating your firm's income to avoid paying higher taxes is an example of
A) an accepted business practice.
B) tax accountants doing their job.
C) illegal behavior.
D) a firm's responsibility to its owners.

Accepted Answer

The first standard in business ethics is the legality of the activity. Tax evasion is illegal.

Question 7

Many Americans define ethical behavior according to the situation in which they find themselves. This way of thinking suggests that there may be situations where ________ to cheat, steal, or lie.
A) it is absolutely wrong
B) it might be okay
C) business people are expected
D) capitalism forces people

Accepted Answer

A recent study revealed that Americans have few moral absolutes. Depending upon the situation, many individuals decide whether it is right to steal, lie, cheat, or even drink and drive. They believe that each person should work out what is right or wrong for him/herself. This kind of thinking has led to recent scandals in government and business.

Question 8

An ethical dilemma refers to a situation where you must
A) treat someone unfairly.
B) choose between equally unsatisfactory alternatives.
C) choose between a correct and an incorrect option.
D) balance the concerns of profit and legality.

Accepted Answer

Sometimes situations leave no desirable alternative. It can be very difficult to maintain a balance between ethics and other factors such as pleasing stakeholders.

Question 9

When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with
A) schools.
B) religious institutions.
C) law enforcement officers.
D) each of us.

Accepted Answer

Each individual is responsible for their own ethical behavior. While schools, religious institutions, and law enforcement officers can provide guidance and support, ultimately it is up to the individual to choose to behave ethically.

Question 10

Laws represent the standards of ________ behavior.
A) ethical
B) legal
C) moral
D) socially responsible

Accepted Answer

Laws are written to protect ourselves from fraud, theft, and violence. Ethics go beyond the law. Many immoral and unethical acts are well within the law.

Question 11

Ethical behavior covers a ________ range of conduct than legal behavior.
A) broader
B) more limited
C) smaller
D) less demanding

Accepted Answer

Ethical behavior requires more than following the law, but following the law is an important first step. A society gets into trouble when people consider only what is illegal and not also what is unethical.

Question 12

GloboTech recently used intentional accounting irregularities to make the company look more profitable than it actually was. GloboTech ________.
A) provided its stockholders profit through a tax loophole.
B) acted in an acceptable business manner.
C) engaged in illegal behavior.
D) executed its responsibility to its owners.

Accepted Answer

The first standard in business ethics is the legality of the activity. Engaging in accounting irregularities is illegal.

Question 13

Many individuals today believe that ethical behavior is determined by what is best for them at the time. This is an example of
A) situational ethics.
B) moral absolutes.
C) the Golden Rule.
D) new age realism.

Accepted Answer

Many individuals look at each situation before deciding whether it's right to steal, lie, or text and drive. They seem to think that what is right is whatever works best for the individual and that each person has to work out for himself or herself the difference between right and wrong. That is the kind of thinking that has led to the recent scandals in government and business.

Question 14

Which of the following questions can help us avoid a decision that would injure our self-esteem?
A) Is it legal?
B) Is it balanced?
C) How will it make me feel about myself?
D) How can I avoid taking the blame?

Accepted Answer

C) How will it make me feel about myself? - This question directly addresses the impact of a decision on one's self-esteem, encouraging reflection on personal values and potential feelings of pride or regret.

Question 15

Considering the potential impact on others prior to making a decision is consistent with ________ behavior.
A) legal
B) anti-social
C) ethical
D) self-motivated

Accepted Answer

Ethics reflects people's proper relations with one another.

Question 16

When police set up sobriety checkpoints, they aim to lessen drunk driving and save lives. While not required, the makers of apps that help users navigate around the checkpoints have complied with the public request of several legislators and have obediently stopped operating. After studying about ethics and social responsibility, which of the following statements applies to this situation?
A) Laws represent the minimum guidelines that companies must follow, whereas a company's ethical stance may venture beyond the minimum level of compliance.
B) App developers that keep operating are showing corporate social responsibility because they demonstrate concern for their investors, which is exactly where their focus should be.
C) App developers no longer operating are acting philanthropically toward government.
D) App developers that keep operating are showing their distrust for big government, and their avoidance of contributing toward philanthropic causes.

Accepted Answer

Laws represent the minimum level of compliance required by citizens and businesses. A society may falter if businesses consider only "what is legal" when making company decisions. Behaving ethically requires more than just following the law.

Question 17

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?
A) Can I do this without getting caught?
B) Is it balanced?
C) Has it been done before?
D) Is there a desirable alternative?

Accepted Answer

The answer of Which of the following questions will help...

Question 18

Business relationships often present ethical dilemmas that are
A) not easily resolved.
B) easily resolved by following the relevant laws.
C) best resolved by creating a win-lose situation.
D) irrelevant and therefore require no action.

Accepted Answer

The textbook describes an ethical dilemma as a problem without a satisfactory solution. Sometimes you must choose between equally unsatisfactory alternatives. Even for companies and individuals with a strong code of ethics, there are still no easy solutions to ethical problems.

Question 19

Employees at GloboTech, a start-up software company, noticed that the owner overlooked certain questionable actions of high billing associates. Other employees, who worked hard but only brought in an average number of new clients each month, were highly scrutinized. After you read this chapter about the ethical behavior of many Americans, which of the following statements applies here?
A) This story indicates that moral absolutes are very prevalent today in business settings.
B) The owner will continue to operate this way until someone blows the whistle.
C) We cannot expect people in the U.S. to all follow similar ethical patterns because there are too many cultures to deal with. Businesses are no different.
D) As is often the case today, some leaders will look at each situation individually when making value judgments.

Accepted Answer

Although not recommended, some leaders will evaluate each action situationally. This has dramatically decreased moral absolutes.

Question 20

Ethical dilemmas in business
A) force us to make poor choices.
B) always end up bringing out the best in us.
C) often force us to choose between equally unsatisfactory alternatives.
D) define us as being moral absolutists or moral situationalists.

Accepted Answer

Ethical dilemmas in business often present us with difficult choices between two or more equally unsatisfactory alternatives. These dilemmas can arise when we need to make decisions that balance competing interests, such as the interests of shareholders, employees, customers, and the wider community. In such cases, there may not be a clear-cut "right" or "wrong" answer, and we may have to weigh the pros and cons of each option as best we can. Ultimately, the choice we make will depend on our own values, priorities, and judgment.

Quiz 4: Demanding Ethical and Socially Responsible Behavior

A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws. Which of the following "ethics check questions" would you consider first?

Tobacco companies initially refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is

When Kira graduated with a degree in computer science, she started her software company. On her first day of operations, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated

The first step when facing an ethical dilemma is to ask

Ethical behavior will result in which of the following?

Purposefully understating your firm's income to avoid paying higher taxes is an example of

Many Americans define ethical behavior according to the situation in which they find themselves. This way of thinking suggests that there may be situations where ________ to cheat, steal, or lie.

An ethical dilemma refers to a situation where you must

When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with

Laws represent the standards of ________ behavior.

Ethical behavior covers a ________ range of conduct than legal behavior.

GloboTech recently used intentional accounting irregularities to make the company look more profitable than it actually was. GloboTech ________.

Many individuals today believe that ethical behavior is determined by what is best for them at the time. This is an example of

Which of the following questions can help us avoid a decision that would injure our self-esteem?

Considering the potential impact on others prior to making a decision is consistent with ________ behavior.

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?

Business relationships often present ethical dilemmas that are

Ethical dilemmas in business