1. Ace Tool Company’s decision-makers view a particular risk in the use of Ace’s product as open and obvious to consumers. Continuing to market the product without explicitly telling consumers of the risk very likely would NOT be justified from a perspective of
1. Ethical business leadership consists of:
a. Creating, communicating, and securing acceptance of a vision.
b. Energizing, challenging, and inspiring followers to realize the vision.
c. Having a vision that is an inherently moral one and having the personal moral strength of character to pursue the vision in a moral manner.
d. All of the above.
1. Which of the following is true about modern business corporations?
The societal expectation is that a corporation should just make money legally and not worry about the local community or society.
Since the corporation is not a real person it can never be judged from an ethical point of view.
The corporate vice-president of ethics has the power to veto what he or she considers as immoral corporate actions, but the veto can be overridden by a two-thirds vote of the board of directors.
None of the above.
1. In order to be considered a profession what attributes of a profession does management have to work on and develop?
Autonomy and self-governance.
Codes of ethics that apply to management as whole and are “policed” and enforceable.
An oath with an appropriate ceremony when entering the management profession.
All of the above.
1. When it comes to doing traditionally and conventionally “bad” actions in business, such as deceiving and misleading, Machiavelli would likely say:
Do not do them since they are probably illegal.
Do not do them since people may condemn them as immoral acts.
Do them only if absolutely necessary and do them in a smart, clever, and crafty way.
Do not do them since they are regarded as wrong and transgressions by religions.
1. Fran, an executive with Global Sales Corporation, has to decide whether to market a useful product that nonetheless might have undesirable side-effects for a small number of users. What ethical theory would the Sophists advise her to use so that her firm can morally market the product?
Corporate Social Responsibility
Last Resort theory.
1. Today, the term “corporate governance” encompasses:
Legal restrictions on corporate behavior, particularly from the Sarbanes-Oxley Act.
Moral restrictions on corporate behavior, particularly from company codes of ethics.
A societal expectation that a corporation today must be a “socially responsible” one.
All of the above.
1. As chief executive officer for Consolidated Industries, Inc., Stephanie engages in personal activities and business activities on and off the firm’s premises. Compared to personal activities, business activities involve
Higher ethical principles since business is generally immoral and not “above the law”
Lower ethical principles due to the well-known fact that business is all about profits
The same fundamental ethical principles
No ethical standards since most business people are amoral anyway.
1. Paying a bribe may be a moral act pursuant to the following ethical theories EXCEPT:
A. Ethical egoism if there is an arguable legal “loophole” and it benefits the company in the long-run.
B. Ethical relativism if paying bribes is considered to be a customary and appropriate practice in the host country.
C. Ethical emotism if one feels good about paying the bribe.
D. Kantian ethics when the bribe is necessary to advance one’s career.
1. Which of the following statements is incorrect?
A theory that says that morality and ethics should be based on law is called Legal Positivism.
When a person looks to an outside source for moral rules or commands, he or she might be characterized as an ethical emotist.
An ethical theory that maintains that people must choose the action of follow the rule that provides the greatest good to society is called Utilitarianism.
An ethical theory that says that people owe moral duties that are based on universal rules is called Kantian ethics.