Ethical Decision Making in Business Test Bank
Course Introduction
This course explores the principles and frameworks necessary for ethical decision making in the modern business environment. Students will examine real-world case studies to identify ethical dilemmas and analyze their complexities using well-established theories and models, such as utilitarianism, deontology, and virtue ethics. The course emphasizes the role of personal integrity, corporate social responsibility, and ethical leadership, encouraging students to develop the skills necessary to navigate and resolve ethical challenges in diverse organizational settings. By the end of the course, students will be better equipped to make sound, ethical decisions that balance profitability with legal and moral obligations.
Recommended Textbook
Business and Society Ethics Sustainability and Stakeholder Management 8th Edition by Archie B.
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1516 Verified Questions
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Chapter 1: The Business and Society Relationship
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Sample Questions
Q1) "In the long run,those who do not use power in a manner which society considers responsible will tend to lose it" is the description of
A)The Iron Law of Oligarchy.
B)The Iron Cage of Rationality.
C)The Iron Law of Responsibility.
D)The Peter Principle.
Answer: C
Q2) Ethics refers to issues of right and wrong,fairness,and justice.
A)True
B)False
Answer: True
Q3) The ability to produce an effect or influence a situation is known as A)authority. B)abuse.
C)power.
D)dictatorship. Answer: C
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Page 3
Chapter 2: Corporate Citizenship: Social Responsibility, Responsiveness,
and Performance
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) The concept of business responsibility based on using laws to constrain business behavior is referred to as the
A)neoclassical economic model.
B)socialist model.
C)legal model.
D)stakeholder model.
Answer: C
Q2) One of the biggest advances in corporate social performance is that the performance criteria for measuring financial performance and social responsibility have been agreed upon.
A)True
B)False
Answer: False
Q3) Corporate social responsibility emphasizes
A)obligation and accountability.
B)action and activity.
C)outcomes and results.
D)socially responsible investing.
Answer: A
Page 4
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Chapter 3: The Stakeholder Approach to Business, Society, and Ethics
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Sample Questions
Q1) The primary factor behind the transition from a relatively simple business model to the highly complex state we now have is public recognition that the business organization is no longer the sole property or interest of its owners.
A)True
B)False
Answer: True
Q2) The degree to which a stakeholder's claim requires immediate response is its A)power.
B)legitimacy.
C)urgency.
D)coercion.
Answer: C
Q3) The perceived validity or appropriateness of a stakeholder's claim is referred to as A)power.
B)legitimacy.
C)urgency.
D)coercion.
Answer: B
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Chapter 4: Corporate Governance: Foundational Issues
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Sample Questions
Q1) Boards have recently improved in all of the following ways except A)more directors are independent.
B)reducing executive pay.
C)more directors own stock in the company.
D)more boards are likely to demand change.
Q2) Personal liability for a corporate board member means that
A)directors have a legal obligation to pay all debts of the corporation.
B)directors have a legal obligation to pay all debts of the corporation if the company cannot.
C)directors may be sued for breach of fiduciary duty.
D)directors have a personal responsibility to the shareholders.
Q3) When the interests of management and owners are not aligned,there will likely be a(n)
A)agency problem.
B)free agency dilemma.
C)shareholder rebellion.
D)shareholder resolution.
Q4) Business,by virtue of its place in society,has an inherent right to exist.
A)True
B)False
Page 6
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Chapter 5: Strategic Management and Corporate Public Affairs
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Sample Questions
Q1) The strategy level that asks what business the firm should be in is the ____ level.
A)enterprise
B)corporate
C)business
D)functional
Q2) Social audits can be thought of as a planning and control system.
A)True
B)False
Q3) The "product" of the public affairs department is
A)legislation that aids the firm.
B)increased awareness of the company's brand.
C)smooth relationships with external stakeholders.
D)input into public policy decisions.
Q4) Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe some of the types of evidence that a firm displays enterprise-level strategic thinking.
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Chapter 6: Issues Management and Crisis Management
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Sample Questions
Q1) The most rudimentary form of issue identification entails
A)subscribing to a news clipping service.
B)subscribing to a forecasting service.
C)assigning a member of the organization to continuously scan a variety of publications.
D)relying on the staff of the public affairs office to scan the environment.
Q2) The immediate result of environmental scanning is often
A)identification of emerging issues.
B)publication of an in-house newsletter that is distributed throughout the company.
C)publication of a list of emerging issues for internal and external stakeholders.
D)resolution of some issues.
Q3) Questions and dimensions can be used to rank or prioritize issues.Which of the following is not included?
A)likelihood of occurrence
B)impact on the organization
C)how much impact will it have
D)knowledge of the business
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8
Chapter 7: Business Ethics Fundamentals
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Sample Questions
Q1) The area of ethics that is concerned with supplying and justifying a coherent moral system of thinking and judging is called
A)normative ethics.
B)descriptive ethics.
C)business ethics.
D)virtue ethics.
Q2) Business ethics is
A)a special branch of ethics unto itself.
B)concerned with moral issues that occur only in business.
C)concerned with right and wrong behavior within a business context.
D)a subset of business practice.
Q3) The approach to business ethics in which we compare a decision or practice to prevailing norms of acceptability is the
A)virtue approach.
B)principles approach.
C)conventional approach.
D)ethical tests approach.
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Chapter 8: Personal and Organizational Ethics
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Sample Questions
Q1) Even the most routine decisions that managers make have ethical implications.
A)True
B)False
Q2) Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. Throughout the text,theory after theory has been offered.Some would even say that you should just go on your "gut feeling" anyway.With this in mind,what relevance does the common sense test and one's best self ethical tests have in this idea.
Q3) The ethical principle of justice is a deontological theory. A)True
B)False
Q4) Teleological theories focus on A)duties.
B)rights.
C)consequences.
D)virtues.
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Chapter 9: Business Ethics and Technology
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Sample Questions
Q1) Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. Discuss the implications of the "politicalization of bioethics."
Q2) One of the primary problems associated with electronic commerce has been the proliferation of online scams.
A)True
B)False
Q3) Plaintiffs who have been injured by drivers talking on cell phones are holding the drivers' employers responsible as well.
A)True
B)False
Q4) Companies use technology through the use of cookies and spam to invade consumer privacy.
A)True
B)False
Q5) Human cloning is illegal in the United States.
A)True
B)False
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Chapter 10: Ethical Issues in the Global Arena
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Sample Questions
Q1) Provide a short answer to each of these questions.Be sure to fully explain your answer.
Review the major causes of the Nestlé infant formula controversy.
Q2) Arguments in favor of bribery include
A)it's necessary for profit.
B)nobody does it.
C)they are forms of wages.
D)they are not expected.
Q3) Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.
A)True
B)False
Q4) U.S.based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because
A)they could allow the firm to recoup some costs of incorporating overseas.
B)they could allow the firm to sue foreign firms on a reciprocal basis.
C)they provide an insight in the customs of the host country.
D)they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.
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Chapter 11: Business,Government,and Regulation
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Sample Questions
Q1) Regulating the way business operates is only one of several roles the government has in its relationship with business.
A)True
B)False
Q2) Advocates of privatization base their positions on the need for efficiency and overall performance.
A)True
B)False
Q3) Government regulations have been criticized for all the following reasons except
A)being too extensive.
B)being too costly.
C)being burdensome to business.
D)being ineffective.
Q4) Government regulation generally arises out of some type of market failure.
A)True
B)False
Q5) Newer social regulations covers business practices in all industries.
A)True
B)False
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Chapter 12: Business Influence on Government and Public Policy
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Sample Questions
Q1) Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why might PACs lose their effectiveness?
Q2) Participation in the formulation and execution of public policy at various levels of government is
A)available only to individual citizens.
B)required by the constitution.
C)lobbying.
D)political involvement.
Q3) The Golden Rule of Politics is
A)do unto others before they do unto you.
B)do unto others as you would want done to you.
C)he who has the gold,rules.
D)do unto others as they would want done to them.
Q4) As the regulatory environment has become more complex,businesses have had little choice but to
A)move offshore.
B)follow the rules closely.
C)become more politically active.
D)avoid the political process.
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Chapter 13: Consumer Stakeholders: Information Issues and Responses
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Sample Questions
Q1) All of the following are significant issues in cigarette advertising except
A)promotion of a dangerous product.
B)its aim at young audiences.
C)its aim at less-educated consumer markets.
D)its aim at less-developed countries.
Q2) Which of the following is not a lesson from the consumer movement?
A)Product safety and consumer protection processes have flaws.
B)In the United States consumers must fight overconsumption.
C)Consumers can force companies to change their behaviors through boycotts.
D)The consumer movement is essential for achieving a fair and just marketplace.
Q3) The fact that advertising can increasingly be found everywhere is referred to as
A)the consumer culture.
B)expanding markets.
C)ad creep.
D)evolutionary marketing.
Q4) Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the ways in which the Internet has facilitated the consumer movement.
Page 15
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Chapter 14: Consumer Stakeholders: Product and Service Issues
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Sample Questions
Q1) A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to
A)strict liability.
B)absolute liability.
C)relative liability.
D)market share liability.
Q2) The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is
A)contractual theory.
B)due care theory.
C)social costs view.
D)caveat vendor.
Q3) The Consumer Product Safety Commission's track record is one of stable operations and results.
A)True
B)False
Q4) The problem of product liability is largely confined to the United States.
A)True
B)False
Page 16
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Chapter 15: The Natural Environment As Stakeholder
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Sample Questions
Q1) The Global Compact brings together thousands of companies to support universal environmental and social principles.
A)True
B)False
Q2) The volume and intensity of use that can be sustained in a particular place and time is called
A)carrying capacity.
B)load factor.
C)sustainability.
D)life threshold.
Q3) Deforestation occurs only in less developed countries (LDCs).
A)True
B)False
Q4) The prevention of solar heat absorbed by our atmosphere from returning to space is known as
A)ozone depletion.
B)deforestation.
C)the greenhouse effect.
D)acid rain.
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Chapter 16: Business and Community Stakeholders
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Sample Questions
Q1) Which of the following is not a category of corporate contributions programs?
A)community giving for which there is little or no expected benefit for the business.
B)gifts that support long-term strategic business goals while also meeting a critical community need.
C)giving that benefits the business wherein the benefit is its primary motivation.
D)firms whose donations usually go to children's programs
Q2) Which of the following is not a reason that some people want more transparency in corporate philanthropy?
A)recent accounting scandals
B)to close tax loopholes
C)concern that some donations go to terrorist organizations
D)concern that some donations are made to get around campaign finance laws
Q3) The primary reason given for support of higher education programs is
A)the value of a liberal arts education.
B)civic duty.
C)to increase the pool of trained personnel.
D)to have an educated voter pool.
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18
Chapter 17: Employee Stakeholders and Workplace Issues
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Sample Questions
Q1) The new free agent workers will be
A)highly educated scientists and managers.
B)more proactive about their work environments.
C)more loyal to good employers than were their predecessors.
D)willing to move overseas to pursue good opportunities.
Q2) Employees have enjoyed steadily improving work conditions.
A)True
B)False
Q3) Whistle-blowing is primarily a due process issue.
A)True
B)False
Q4) Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. Compare and contrast the models for responding to potential whistle-blowing situations.
Q5) Provide a short answer to each of these questions.Be sure to fully explain your answer.
What are the impacts of a global economic recession on employee loyalty?
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Chapter 18: Employee Stakeholders: Privacy, safety, and Health
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Sample Questions
Q1) Most experts say that privacy means
A)being able to approve all uses of personal information.
B)the right to keep personal affairs to oneself and to know how information about one is being used.
C)the right to deny all requests for personal information.
D)the right for personal information to not be shared with any users other than the ones that already have access to it.
Q2) Background screening is an unprofitable business.
A)True
B)False
Q3) Provide a short answer to each of these questions.Be sure to fully explain your answer.
Review the policy guidelines for ensuring employees' right of privacy in the workplace.
Q4) The best protection employers can offer is to establish a zero-tolerance policy toward workplace violence against or by their employees.
A)True
B)False
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Chapter 19: Employment Discrimination and Affirmative Action
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Sample Questions
Q1) Categories of people whose rights are in some way defended against discrimination are referred to as
A)protected groups.
B)minorities.
C)"special-needs" groups.
D)the privileged class.
Q2) The Lily Ledbetter Fair Pay Act of 2009
A)statue of limitations is 180 days
B)stipulates that the clock reset each time a paycheck is issued.
C)requires that you be aware of the discrimination promptly.
D)sets discriminatory pay.
Q3) Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. What are the consequences of the rise in older workers in the workplace?
Q4) Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why do you suppose retaliation claims to the EEOC are at their highest?
Page 21
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