Exam 9: Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

A) Would the potential outcome of the proposed action pose a risk of embarrassment?
B) Is what we are proposing to do fully compliant with our code of ethical conduct?
C) Is there anything in the proposed action that could be considered ethically objectionable?
D) Is it apparent that this proposed action is in harmony with our core values?
E) Are any conflicts or concerns evident between the proposed action and our core values?

Correct Answer

verified

Show Answer

A) An unethical strategy reflects badly on the character of the company personnel involved.
B) Senior executives fear public embarrassment if caught doing something perceived as unethical.
C) An ethical strategy is in the self-interest of shareholders, partly because an unethical strategy can damage a company's reputation and partly because unethical behavior can be very costly in terms of fines and penalties.
D) Customers shun companies known for their shady behavior and ethically upstanding company personnel are repulsed by a work environment where unethical behavior is condoned.
E) A strategy that is unethical in whole or in part is morally wrong.

Correct Answer

verified

Show Answer

A) devoting efforts to employ an ethical strategy and observe ethical principles in operating the business
B) making charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes
C) taking steps to provide suppliers, distributors, and other value chain partners with handsome profit margins
D) initiating actions to build a workforce that is diverse with respect to gender, race, national origin, and other aspects that different people bring to the workplace
E) pursuing actions to protect the environment and, in particular, to minimize or eliminate any adverse impact on the environment stemming from the company's own business activities

Correct Answer

verified

Show Answer

Correct Answer

verified

The essence of the business case for why...

View Answer

Show Answer

A) there is no such thing as "moral free space"-all ethical standards are determined by societal norms, and individuals have an implied social contract to live up to these standards.
B) few nations or cultures have common moral agreement on what is ethically right and wrong.
C) there should be no absolute limits put on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside.
D) adherence to universal ethical norms always takes precedence over local ethical norms.
E) ethical relativism should always be adhered to before ethical universalism when dealing within boundaries of a country's culture and norms.

Correct Answer

verified

Show Answer

A) what constitutes ethical or unethical conduct should be determined by the religious convictions of each society or each culture within a country.
B) when there are cross-country or cross-cultural differences in what is deemed ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere.
C) concepts of right and wrong are always governed by business norms in each country, culture, or society.
D) concepts of right and wrong are always a function of each individual's own set of values, beliefs, and ethical convictions.
E) concepts of right and wrong as they apply to business behavior are always absolute and usually more stringent than universal ethical principles.

Correct Answer

verified

Show Answer

A) otherwise dishonorable people to behave ethically.
B) increased observance of ethical strategic actions.
C) a moral work climate.
D) clever ways to operate outside established policies to boost profits.
E) company authorization to observe what's right.

Correct Answer

verified

Show Answer

A) the proposed action is fully compliant and in harmony with the code of ethical conduct and whether stakeholders would consider anything ethically objectionable.
B) the code of conduct is rejected by the market and accepted by employees.
C) the code of conduct was accepted by rivals.
D) the creation of the code of conduct should be handled by executives or employees.
E) to eliminate the need to execute a code of conduct at all.

Correct Answer

verified

Show Answer

A) Universal ethical principles apply in those situations where most all societies-endowed with rationality and moral knowledge-have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of what is right, and which ones fall outside.
B) Commonly held views about what is morally right and wrong form a "social contract" (contract with society) that is binding on all individuals, groups, organizations, and businesses in terms of establishing the line between ethical and unethical behaviors.
C) Universal ethical principles or norms leave some "moral free space" for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined by universal ethical principles.
D) Universal ethical norms always take precedence over local ethical norms.
E) Integrated social contracts theory rejects the slippery slope of ethical relativism and embraces ethical universalism.

Correct Answer

verified

Show Answer

A) many basic moral standards travel well across cultures and countries and really do not vary significantly according to local cultural beliefs, social mores, religious convictions, and/or the circumstances of the situation.
B) since ethical standards are subjectively determined, each company has a window within which it can define and implement its own ethical principles of right and wrong.
C) what is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical in business situations should be judged in light of local customs and social mores and can legitimately vary from one culture or nation to another.
D) each country should have some degree of latitude in setting its own ethical standards for judging the ethical correctness of business actions/behaviors within its borders.
E) concepts of right and wrong as they apply to business behavior are purely based on an individual's understanding of ethics and differ from person to person.

Correct Answer

verified

Show Answer

A) are governed mainly by religious views held in different geographic regions of the world.
B) are present in all societies, organizations, and individuals.
C) vary enormously from country to country across the world.
D) ultimately depend on the circumstances-nothing is really black or white when it comes to ethical standards.
E) ultimately depend on a person's own values and beliefs.

Correct Answer

verified

Show Answer

A) only visible and internal administrative costs
B) visible but not intangible costs
C) internal administrative costs, tangible costs, and intangible costs
D) internal administrative costs but not visible costs
E) visible and intangible costs

Correct Answer

verified

Show Answer

A) They create a maze of conflicting ethical standards.
B) They justify conflicting ethical standards for operating in different countries.
C) They establish little moral basis for establishing ethical standards for a company worldwide.
D) They restrict enforcement of ethical standards worldwide.
E) They create standards that mostly relate to ethical codes in a company's home market, which might trigger compliance issues in the local market.

Correct Answer

verified

Show Answer

A) costs attached to adverse effects on employee productivity.
B) costs of remedial education and ethics training to company personnel.
C) costs incurred in taking corrective actions.
D) administrative costs associated with future compliance.
E) legal and investigative costs.

Correct Answer

verified

Show Answer

A) ethical universalism recognizes significant variation in basic moral standards according to local cultural beliefs, local religious beliefs, and social mores.
B) ethical standards are objectively determined by religious and moral experts.
C) what is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical is (or should be) grounded in religious doctrine and applied strictly to all business situations.
D) it draws upon the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical business behavior and what constitutes unethical business behavior no matter what country or culture a company is operating in.
E) it leaves room for thinking that concepts of right and wrong can be varying shades of gray.

Correct Answer

verified

Show Answer

Correct Answer

verified

The three schools of thought about ethic...

View Answer

Show Answer

Correct Answer

verified

The essence of the business case for why...

View Answer

Show Answer

A) the school of ethical relativism but not the school of ethical universalism
B) the school of ethical universalism but not the school of ethical relativism
C) integrative social contracts theory but not the school of ethical universalism
D) the school of ethical relativism and the school of ethical universalism
E) the school of ethical relativism but not integrative social contracts theory

Correct Answer

verified

Show Answer