Question 1

After pricing the very expensive pollution control equipment, NoHonor, Inc. realized that they could maximize their profit but just burying the hazardous by-products of their manufacturing process. If NoHonor chooses to bury the waste they are following

Accepted Answer

The utility approach in ethics focuses on actions that maximize the overall happiness or well-being, even though NoHonor, Inc.'s decision to bury hazardous waste to maximize profit is unethical from an environmental and social perspective, from a purely profit-maximization standpoint (ignoring moral and legal implications), it could be seen as following a utility approach for the company's financial benefit. However, it's important to note that this interpretation is flawed in a broader ethical context as it disregards the negative impacts on society and the environment.

Question 2

The approach to business ethics that emphasizes the overall amount of good that can be produced by an action or a decision is referred to as the

Accepted Answer

The utility approach, also known as utilitarianism, focuses on maximizing the overall happiness or good that results from an action or decision, making it the correct answer.

Question 3

It is often difficult to accurately determine the monetary value of employee morale, work culture, and job satisfaction. This problem is often cited as a criticism of what approach?

Accepted Answer

The utility approach focuses on the outcomes of decisions and their impacts on the overall happiness or satisfaction of all stakeholders. It often involves quantifying benefits and harms, which can be difficult when assessing intangible factors like employee morale, work culture, and job satisfaction. These elements are challenging to measure in monetary terms, highlighting a limitation of the utility approach.

Question 4

What is the main drawback to the utility approach to resolving ethical dilemmas?

Accepted Answer

The main drawback of the utility approach is the challenge in accurately measuring both the costs and benefits of a decision, making it difficult to ensure the decision maximizes overall happiness or benefit.

Question 5

Suppose you are considering the use of comprehensive drug testing of all security guards at your store. In order to ensure the safety of all your consumers and employees, you may be invading the security guards' right to privacy. This difficulty of balancing conflicting rights, is seen as a main limitation of which approach?

Accepted Answer

The human rights approach focuses on respecting and ensuring the basic rights and freedoms of individuals. The difficulty in balancing the right to privacy of the security guards with the safety of consumers and employees illustrates a limitation of the human rights approach, as it often involves navigating conflicts between different rights.

Question 6

The approach to business ethics that holds that human beings have certain moral entitlements that should be respected in all decisions is referred to as the

Accepted Answer

The human rights approach to business ethics focuses on the idea that all human beings possess inherent rights and moral entitlements that should be respected in all decisions. This approach emphasizes the importance of treating individuals with dignity and respect, ensuring that business practices do not infringe upon these fundamental rights.

Question 7

What is the main limitation on using the human rights approach in resolving ethical dilemmas?

Accepted Answer

Balancing conflicting rights is a significant challenge in the human rights approach, as different rights may come into conflict, making it difficult to determine which should take precedence.

Question 8

Similar to the utility approach, it is often difficult to measure costs and benefits to determine equity when using

Accepted Answer

The justice approach focuses on fairness and equity, which can be subjective and difficult to quantify, similar to the challenges faced in the utility approach.

Question 9

The approach to business ethics that bases decisions, on an equitable, fair, and impartial distribution of benefits and costs among individuals and groups is referred to as the

Accepted Answer

The justice approach to business ethics focuses on fairness and how equitably benefits and costs are distributed among individuals and groups. This approach emphasizes impartiality and equity in decision-making processes.

Question 10

When new tax laws are proposed in Washington, D.C., there is often much debate about their fairness. Members of Congress often argue about where the burden will fall and whether all taxpayers will pay their fair share. In this scenario, Congress would be employing the __________ approach to ensure fairness.

Accepted Answer

The justice approach to ensuring fairness focuses on distributing benefits and burdens equally among all parties, which aligns with the debate on tax laws and their impact on different taxpayers.

Question 11

Suppose you are confronted with a situation regarding business ethics and you resolve the situation by evaluating the fairness of each of your alternatives. This is an example of resolving an ethical dilemma using the

Accepted Answer

The justice approach to resolving ethical dilemmas focuses on fairness and how equitably decisions are made and actions are taken. When evaluating the fairness of each alternative, you are applying the principles of the justice approach.

Question 12

According to the textbook, to foster improved business ethics in an organization, action must be directed at five levels. These are

Accepted Answer

The correct levels at which action must be directed to foster improved business ethics are international, societal, association, organizational, and individual. These levels encompass the broad scope of influence and responsibility that organizations and individuals have, from the global and societal context down to the individual actions and decisions.

Question 13

At the __________ level, it is a challenge to develop employees awareness of business ethics as well help employees confront complex ethical issues.

Accepted Answer

At the individual level, it is a challenge to develop employees' awareness of business ethics and help them confront complex ethical issues.

Question 14

At the __________ level, groups can join together and establish a code of ethics for their industry or profession and provide mechanisms for monitoring and disciplining members who violate that code.

Accepted Answer

At the association level, groups within a specific industry or profession can come together to establish a code of ethics and provide mechanisms for monitoring and disciplining members who violate that code. This is common in professional associations which aim to uphold standards within their fields.

Question 15

At the __________ level, improved business ethics requires leaders who can model the expected ethical behavior, set realistic goals for workers, and encourage ethical behavior by providing an organizational environment that rewards such behaviors and punishes violators.

Accepted Answer

The correct answer is B) organizational because the context of the statement pertains to actions and responsibilities within an organization, such as modeling expected behavior, setting goals, and encouraging ethical behavior through rewards and punishments. These are functions and responsibilities at the organizational level.

Question 16

Organizations such as the WTO, the UN, and NGO's help foster ethical behavior at the __________ level.

Accepted Answer

Organizations like the WTO (World Trade Organization), the UN (United Nations), and various NGOs (Non-Governmental Organizations) operate on a global scale, aiming to promote ethical standards and practices at the international level. They work across borders to address issues such as human rights, environmental protection, and fair trade practices, influencing policies and behaviors of countries and multinational corporations worldwide.

Question 17

The most fundamental effort to foster business ethics in an organization must be action directed at the __________ level.

Accepted Answer

The most fundamental effort to foster business ethics must start at the individual level, as individuals' ethical behavior forms the foundation of an organization's ethical culture.

Question 18

A __________ describes the general value system, ethical principles, and specific ethical rules that a company tries to apply.

Accepted Answer

A code of ethics describes the general value system, ethical principles, and specific ethical rules that a company tries to apply. It serves as a guideline for ethical decision-making within the organization.

Question 19

Tim Durham, an executive with a major defense contractor, found himself facing an ethical dilemma when negotiating the sale of aircraft to a foreign country. In thinking through his dilemma, Tim referred several times to a document that represents his company's general value system, principles, and rules pertaining to ethical issues. This description suggests that Tim was referring to his company's

Accepted Answer

Tim was referring to his company's code of ethics, which is a document that outlines a company's values, principles, and guidelines for making ethical decisions.

Question 20

Barbara Ericson, a buyer for a retail store, just finished talking to a vendor of apparel products. The vendor, who wanted to sell the store a new line of sportswear, had hinted to Barbara that if she approved the purchase, she could expect several "sample outfits for her own use. Barbara immediately recognized this as a sort of bribe; if she approved the order, she would get some free clothes. Barbara was able to avoid any indecision, however, by telling the vendor that her store had a strict code that prevented her from accepting any type of gratuity or bribe from a vendor. What Barbara was referring to was her company's

Accepted Answer

Barbara referred to her company's code of ethics, which typically outlines the principles and guidelines that employees must follow, including prohibitions against accepting bribes or gratuities from vendors or partners.

Quiz 3: Social Responsibility and Ethics