Question 1

Sam has decided to apply the three-step model to help him decide whether a business decision he is thinking about making is ethical or unethical. What should he do first?
A) Reflect on his own ethical standards as background for the decision
B) Gather the relevant factual information
C) Consult with his boss about the situation
D) Make an ethical judgment about the rightness or wrongness of the situation
E) Determine the most appropriate moral values

Accepted Answer

The first step in the three-step model is to gather the relevant factual information. Without accurate information, Sam will not be able to make a well-informed ethical decision. Once he has gathered all the necessary facts, he can move on to reflecting on his own ethical standards, determining the most appropriate moral values, and making a judgment about the situation's rightness or wrongness. Consulting with his boss may also be helpful, but it should not be the first step in the process.

Question 2

Marilyn has decided to use the three-step model to decide whether a particular business decision is ethical or unethical. She has already gathered the relevant factual information about the situation. What should she do next?
A) Reflect on her own ethical standards as background for the decision
B) Gather the relevant factual information
C) Consult with her boss about the situation
D) Make an ethical judgment about the rightness or wrongness of the situation
E) Determine the most appropriate moral values

Accepted Answer

The answer of Marilyn has decided to use the three-step...

Question 3

Jennifer is about to start her first job. Which of the following is least likely to be an influence on her ethics and behaviour?
A) Her past experiences
B) The code of ethics in that firm
C) Her family and friends
D) Her peers at school
E) Religious teaching she may have received

Accepted Answer

The code of ethics in the firm is an external guideline that she will encounter at her new job, but it is less likely to have influenced her personal ethics and behavior compared to her past experiences, family, friends, peers, and religious teachings which have shaped her over time.

Question 4

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The ________ norm would ask "Is it consistent with people's responsibilities to each other"?
A) utility
B) rights
C) justice
D) caring
E) reciprocity

Accepted Answer

The caring norm considers the impact of actions on others and asks if they are consistent with people's responsibilities to each other. In this scenario, the manager may be violating the caring norm by using company funds for a personal gathering.

Question 5

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The ethical ________ norm would ask "Does this optimize the satisfaction of all constituencies?"
A) utility
B) rights
C) justice
D) caring
E) reciprocity

Accepted Answer

The ethical norm of utility focuses on maximizing benefits or satisfaction for all stakeholders. In this scenario, the manager should consider if charging the dinner to the company's expense account maximizes benefits for all parties involved, including the company, the manager, and the friends.

Question 6

All things considered, what is generally the best ethical norm to use when a person is trying to determine whether a decision is ethical?
A) Rights
B) Caring
C) Justice
D) Utility
E) None of these

Accepted Answer

The best ethical norm to use when determining whether a decision is ethical can vary greatly depending on the situation, cultural context, and values of the individuals involved. There is no single ethical norm that is universally considered the best in all circumstances, as each of the options listed (Rights, Caring, Justice, Utility) can be most appropriate in different scenarios. Ethical decision-making often requires a nuanced understanding and application of multiple ethical principles.

Question 7

When a Canadian company is operating in a country where bribes are legal, the Canadian government expects the company to
A) use their judgment, since Canadian laws are not applicable.
B) not pay any bribes at all.
C) notify Canadian authorities that they may have to pay a bribe in order to do business in the foreign country.
D) match the bribes that other competitive firms are paying so they can get the business.
E) None of the statements are accurate.

Accepted Answer

The Canadian government has a zero-tolerance policy when it comes to bribery, regardless of where the company operates. Paying bribes, even in a country where it's legal, is still illegal under Canadian law. Therefore, Canadian companies are expected to not pay any bribes at all.

Question 8

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The ________ norm would ask "Is this fair"?
A) utility
B) rights
C) justice
D) caring
E) reciprocity

Accepted Answer

The justice norm pertains to fairness and impartiality. In this situation, it would ask if it is fair to charge a personal dinner to the company's expenses.

Question 9

Peter, the president of a small company, wants his employees to be aware that they should act ethically. Which of the following has proven most effective in improving ethical behaviour in a business firm?
A) Reward managers who have secured an advantage for the firm, even if their behaviour might be seen by some people as unethical
B) Demonstrate top management commitment to high ethical standards
C) Do not publicly bring attention to unethical behaviour, instead deal with it privately
D) Fire all unethical employees
E) Do nothing to reinforce the undesirable behaviour and it will not be repeated

Accepted Answer

Demonstrating top management commitment to high ethical standards has proven to be the most effective in improving ethical behaviour in a business firm. This sends a clear message to employees about the importance of ethical behaviour and sets a positive example for them to follow. Rewarding unethical behaviour (A) can send mixed signals and create a culture of accepting unethical behaviour, while firing all unethical employees (D) may not address the root cause of unethical behaviour and create a culture of fear or distrust. Ignoring unethical behaviour (E) can also create a culture of acceptance, and dealing with it privately (C) may not demonstrate a commitment to high ethical standards.

Question 10

To show the company's desire for employee ethical behaviour, many business firms have established
A) an ethical review board.
B) an office of ethical affairs.
C) a whistle-blower reward system.
D) random ethical audits.
E) codes of conduct.

Accepted Answer

Codes of conduct are a common way for companies to establish guidelines and expectations for ethical behavior from their employees. These codes outline values, principles, and practices that govern the behavior of employees and help create a culture of integrity.

Question 11

The first step in the simplified three-step model for applying ethical judgments to situations that may arise during the course of business activities is to
A) determine the norms that relate to the situation.
B) determine the most appropriate moral values.
C) determine the implications of breaching the activity or policy.
D) gather the relevant factual information.
E) make an ethical judgment based on the rightness or wrongness of the proposed activity or policy.

Accepted Answer

The first step in the simplified three-step model for applying ethical judgments to situations that may arise during the course of business activities is to gather the relevant factual information. Without factual information, it is impossible to determine the norms and values that relate to the situation or to assess the implications of breaching the activity or policy. Therefore, D is the best choice.

Question 12

Belinda has decided to evaluate a decision she has made on the basis of the ethical norm of justice. What question should she ask?
A) Does the decision optimize the satisfaction of all constituencies?
B) Is the decision consistent with what we regard as fair?
C) Does the decision respect the rights of the individuals involved?
D) Is the decision consistent with people's responsibilities to each other?
E) How much will the decision cost if it is wrong?

Accepted Answer

The ethical norm of justice is concerned with fairness and equity. Belinda should ask whether the decision is consistent with what is considered fair. This means that the decision should not be biased or discriminatory towards any group or individual.

Question 13

Georgia wants to make sure that her employees behave in a highly ethical fashion. What should she avoid doing?
A) Emphasizing the importance of ethics to all employees
B) Helping employees to follow the company's ethical standards
C) Modelling behaviour that employees should adopt
D) Relying on managers to report ethics violations
E) Ensuring that a strict code of ethics is in place

Accepted Answer

Relying solely on managers to report ethics violations may create a culture of fear and reluctance to report violations, as employees may not feel comfortable reporting violations to their superiors. Instead, there should be multiple avenues for reporting violations, such as a dedicated ethics hotline or an anonymous tip line.

Question 14

Bernard has decided to evaluate a decision he has made based on the ethical norm of utility. What question should he ask?
A) Does the decision optimize the satisfaction of all constituencies?
B) Is the decision consistent with what we regard as fair?
C) Does the decision respect the rights of the individuals involved?
D) Is the decision consistent with people's responsibilities to each other?
E) How much will the decision cost if it is wrong?

Accepted Answer

The ethical norm of utility evaluates decisions based on whether they optimize the satisfaction of all constituencies. Therefore, Bernard should ask if his decision is optimizing the satisfaction of all parties involved.

Question 15

Barrie has decided to evaluate a decision he has made on the basis of the ethical norm of caring. Which of the following questions does he need to ask?
A) Does the decision optimize the satisfaction of all constituencies?
B) Is the decision consistent with what we regard as fair?
C) Does the decision respect the rights of the individuals involved?
D) Is the decision consistent with people's responsibilities to each other?
E) How much will the decision cost if it is wrong?

Accepted Answer

The ethical norm of caring requires individuals to consider their responsibilities to others and to act in a way that respects those responsibilities. Therefore, the question that Barrie needs to ask in order to evaluate his decision on this basis is whether the decision is consistent with people's responsibilities to each other.

Question 16

Miranda has decided to evaluate a decision she has made on the basis of the ethical norm of rights. What questions should she ask?
A) Does the decision optimize the satisfaction of all constituencies?
B) Is the decision consistent with what we regard as fair?
C) Does the decision respect the rights of the individuals involved?
D) Is the decision consistent with people's responsibilities to each other?
E) How much will the decision cost if it is wrong?

Accepted Answer

When evaluating a decision on the basis of the ethical norm of rights, the focus is on whether the decision respects the rights of the individuals involved. Therefore, Miranda should ask herself whether the decision she made respects the rights of all individuals involved.

Question 17

Due to his formal position, John has access to certain information. If John uses this information to facilitate unethical behaviour and to keep it secret, he is illustrating which of the following reasons for unethical behaviour?
A) Pressure
B) Opportunity
C) Rationalization
D) Manipulation
E) None of these

Accepted Answer

John's formal position provides him with the opportunity to access certain information that others may not have access to. He is using this opportunity to facilitate unethical behavior and keep it secret. This falls under the category of opportunity as a reason for unethical behavior.

Question 18

When DaimlerChrysler originally introduced the PT Cruiser, demand was so strong that some dealers would sell one only if the customer was willing to pay several thousand dollars over the sticker price. This is an example of
A) effective business practice.
B) price gouging.
C) collusion.
D) profit maximization.
E) price lining.

Accepted Answer

Price gouging refers to the practice of charging exorbitant prices for products or services in high demand, and it typically occurs during times of emergency or shortage. In this case, the high demand for the PT Cruiser allowed dealers to engage in price gouging by selling the cars for much more than their sticker price.

Question 19

After a hurricane hit Halifax, local retailers increased the price of milk and gas by 50% in one day, even though all other stores in the province did not increase prices. These retailers were engaging in
A) conflict-of-interest pricing.
B) sharp business practices.
C) crisis-based pricing.
D) price gouging.
E) It is not possible to tell from the information that is given.

Accepted Answer

The behavior of local retailers who increased the price of milk and gas by 50% in one day after a hurricane hit Halifax is an example of price gouging. Price gouging is the practice of raising prices excessively in response to a temporary increase in demand or limited supply, usually due to a crisis or emergency situation. This unethical practice takes advantage of consumers' urgent need for certain goods and services and harms vulnerable individuals and communities.

Question 20

Which of the following is correct with regard to managerial ethics?
A) A manager who discriminates against any ethnic minority in hiring is exhibiting illegal, but not unethical, behaviour.
B) If a manager pays an employee less than he deserves because the manager knows the employee can't afford to quit, the manager is clearly behaving unethically.
C) Ethics are not usually an issue when a firm deals with customers.
D) It is difficult to deal with ethical issues because there is much global variation in business practices.
E) All of the statements are correct.

Accepted Answer

The answer of Which of the following is correct with...

Quiz 3: Conducting Business Ethically and Responsibly

Sam has decided to apply the three-step model to help him decide whether a business decision he is thinking about making is ethical or unethical. What should he do first?

Marilyn has decided to use the three-step model to decide whether a particular business decision is ethical or unethical. She has already gathered the relevant factual information about the situation. What should she do next?

Jennifer is about to start her first job. Which of the following is least likely to be an influence on her ethics and behaviour?

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The ________ norm would ask "Is it consistent with people's responsibilities to each other"?

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The ethical ________ norm would ask "Does this optimize the satisfaction of all constituencies?"

All things considered, what is generally the best ethical norm to use when a person is trying to determine whether a decision is ethical?

When a Canadian company is operating in a country where bribes are legal, the Canadian government expects the company to

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The ________ norm would ask "Is this fair"?

Peter, the president of a small company, wants his employees to be aware that they should act ethically. Which of the following has proven most effective in improving ethical behaviour in a business firm?

To show the company's desire for employee ethical behaviour, many business firms have established

The first step in the simplified three-step model for applying ethical judgments to situations that may arise during the course of business activities is to

Belinda has decided to evaluate a decision she has made on the basis of the ethical norm of justice. What question should she ask?

Georgia wants to make sure that her employees behave in a highly ethical fashion. What should she avoid doing?

Bernard has decided to evaluate a decision he has made based on the ethical norm of utility. What question should he ask?

Barrie has decided to evaluate a decision he has made on the basis of the ethical norm of caring. Which of the following questions does he need to ask?

Miranda has decided to evaluate a decision she has made on the basis of the ethical norm of rights. What questions should she ask?

Due to his formal position, John has access to certain information. If John uses this information to facilitate unethical behaviour and to keep it secret, he is illustrating which of the following reasons for unethical behaviour?

When DaimlerChrysler originally introduced the PT Cruiser, demand was so strong that some dealers would sell one only if the customer was willing to pay several thousand dollars over the sticker price. This is an example of

After a hurricane hit Halifax, local retailers increased the price of milk and gas by 50% in one day, even though all other stores in the province did not increase prices. These retailers were engaging in

Which of the following is correct with regard to managerial ethics?