Question 1

Stakeholder theory suggests that through its managers,an ethical corporation __________.

Accepted Answer

Stakeholder theory suggests that through its managers, an ethical corporation acknowledges the potential conflict between managerial self-interest and the ethical responsibility of managers to other stakeholders and promotes open procedures that allow managers to monitor their own ethical performance.
Short Answer Questions

Question 2

Which of the following is a national group of senior business leaders that has identified a general list of topics that organizational codes of business ethics should cover?

Accepted Answer

The Business Roundtable, a national group of senior business leaders, has identified a general list of topics that organizational codes of business ethics should cover. Some of these include fundamental honesty and adherence to the law, product safety and quality, health and safety in the workplace, conflicts of interest, and fairness in selling/marketing practices.

Question 3

Hannah Arendt believed that evil often comes from a kind of _____.

Accepted Answer

The philosopher Hannah Arendt explained that evil often comes from a kind of thoughtlessness. Thinking about the ethical implications of what one decides and what one does is the first step in leading a good life.

Question 4

Which of the following acts prohibits employment discrimination based on race,sex,color,religion,and national origin?

Accepted Answer

The Civil Rights Act of 1964 prohibits employment discrimination based on "race, sex, color, religion, and national origin." Society's ethical commitment to equal opportunity became law in the Civil Rights Act of 1964.

Question 5

In which of the following situations is there a conflict of interest?

Accepted Answer

A conflict of interest occurs when one attempts to "serve two masters," and no agent or employee of one principal can secretly work for another whose interest competes with that of the first principal. That is why a real estate agent may not represent both a seller and a buyer in a real estate transaction without permission from both parties.

Question 6

_____ means "honesty in intent" and "honesty in fact."

Accepted Answer

The law requires that good faith be demonstrated in various economic and other transactions. An example comes from the Uniform Commercial Code, adopted in 49 of the 50 states. It requires that all sales of goods must be carried out in good faith, which means "honesty in intent" and "honesty in fact."

Question 7

Opponents of the Civil Rights Act of 1964 inserted the prohibition against _____ in employment in hopes of preventing its passage,thinking that such discrimination was acceptable and that many others agreed with them.

Accepted Answer

Opponents of the bill that went on to be passed as the Civil Rights Act of 1964 inserted the prohibition against sex discrimination in hopes of preventing its passage. Obviously, these legislators believed that sex discrimination in employment was acceptable and that many others agreed with them.

Question 8

In the context of the social contract theory,explain the ethical principles proposed by John Rawls.

Accepted Answer

The answer of In the context of the social contract...

Question 9

Peter is an 84-year-old with a heart condition.He has no family and has minimal health insurance.He is on a fixed income and barely has enough money to survive.His doctor tells him that he needs to take a particular medicine for three months or his condition will severely worsen.The medicine will cost $450,and only $150 of the cost is covered by insurance.Peter goes to the bank and hands the teller a note saying,"Give me $300,or I will detonate a bomb." When Peter is later apprehended,he tells the police that he stole the money to buy needed medicine.Understanding that bank robbery is a crime,is there an ethical theory that can serve to justify Peter's actions?

Accepted Answer

The answer of Peter is an 84-year-old with a heart...

Question 10

How would a formalist and a consequentialist view an employer secretly monitoring an employee's e-mail messages?

Accepted Answer

The answer of How would a formalist and a consequentialist...

Question 11

What potential problems arise from the modern corporate structure and its dependence on separation of the managers from the owners?

Accepted Answer

The answer of What potential problems arise from the modern...

Question 12

How does the 2008 economic recession illustrate the potential problems of economic interdependence?

Accepted Answer

The answer of How does the 2008 economic recession illustrate...

Question 13

According to sociologist Robert Jackall's view of the modern bureaucratic managerial system,how has the Protestant ethic changed over time?

Accepted Answer

The Protestant ethic became transformed into an organizational ethic that supports the modern bureaucratic managerial system. The sociologist Robert Jackall identifies this system as having "administrative hierarchies, standardized work procedures, regularized timetables, uniform policies, and centralized control." The goal of this system is to produce profit. Business actions are justified by their usefulness in accomplishing the goal. The religious formalism of the Protestant ethic has become a type of utilitarian consequentialism.

Question 14

Stakeholder theory suggests that ethical corporate behavior __________.

Accepted Answer

Stakeholder theory suggests that ethical corporate behavior depends on managers who recognize and take into account the various stakeholders whose interests a corporation affects. This theory includes but goes beyond the responsibilities of corporate governance, which focuses on the legal responsibilities of managers to society and to the investor-owners of a corporation.

Question 15

Plato wrote that immoral behavior often flows from _____.

Accepted Answer

Plato wrote that immoral behavior often flows from ignorance. Thinking about the ethical implications of what one decides and what one does is the first step in leading a good life.

Question 16

Which of the following belongs to the category of involuntary stakeholders?

Accepted Answer

Stakeholder theory suggests that through its managers, an ethical corporation realizes the interdependence of all stakeholders and demonstrates fairness toward both voluntary stakeholders (e.g., employees) and involuntary stakeholders (e.g., the community).

Question 17

Which of the following statements is true of the effect of the group on ethics in a corporate organization?

Accepted Answer

That individuals in groups may feel a diminished sense of responsibility for decisions made and actions taken invites ethical compromise. Coupled with an overemphasis on profit, the group effect increases the difficulty of achieving an ethical business corporation.

Question 18

Civil rights leaders in their quest to promote civil rights and equality often held peaceful marches and non-violent sit-ins that they understood to be at times illegal.Their justification for their actions was to promote and give focus to inequities with the ultimate aim of reducing discrimination and establishing equal rights for all.Were these leaders acting ethically? Fully explain your answer citing the ethical theory you believe to apply.

Accepted Answer

The answer of Civil rights leaders in their quest to...

Question 19

According to the Spanish journal Boletín Círculo,which of the following is true about business ethics?

Accepted Answer

An observation made by the Spanish journal Boletín Círculo is that business ethics reflect business leadership. Top firms can and should exercise leadership in business ethics.

Question 20

Which of the following statements is true about the role and effect of profits on ethical corporate behavior?

Accepted Answer

The primary goal of the modern business corporation is to produce a profit. In many corporations, the responsibility for profit making is decentralized.

Quiz 2: The Role of Ethics in Decision Making