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?
Kantian ethics
Corporate Social Responsibility
Utilitarianism
Last Resort theory.
Question 2
Big Greene Company is considering introducing a new product
to replace an existing product. The new product would result in increased
revenues, but slightly lower overall profits because the product will cause
injury to a few users and Big Green will issue warnings and compensate persons
who are injured. The introduction of this product would best be a proper
decision pursuant to:
Ethical egoism
Kantian ethics
Ethical relativism
Corporate social responsibility.
Question 3
Affirmative action preference plans that grant a
“plus” factor to women and minority group applicants for employment
can be considered:
Moral pursuant to ethical egoism because the company will
have a diverse and culturally competent workforce.
Moral pursuant to Utilitarian ethics because society will
benefit by bringing more women and minority group members into the workforce.
Immoral pursuant to Kantian ethics because of the
possibility of “reverse discrimination” against more qualified white
male applicants.
All of the above are possible.
Question 4
In making decisions for United Merchandising Company, Joy
uses a cost-benefit analysis. This is a major part of
Duty-based ethics
Kantian ethics
Natural rights theory
Utilitarianism.
Question 5
Eva, the chief executive officer of Federated Corporation,
wants to ensure that the company’s activities are legal and achieve the greater
good. The best course for Eva and her company is to act in
Ignorance of the law
Regard for the firm’s shareholders only
Their own self-interest
None of the above.
Question 6
The Principle of Last Resort holds that:
One has a legal duty to rescue a person in need
One may have a moral duty to rescue a person in need
If one is the last real chance to rescue a person in
need, one is always acting immorally by failing to rescue
The law will always immunize a person from a negligent but
good faith rescue attempt.
Question 7
Today, critics of the corporation argue for various
corporate governance reform proposals to improve the legal, moral, and socially
responsible behavior of the corporation. Which of the following is the most
convincing argument for these proposals?
These proposals are advisable because corporate managers
should never have any duty other than to maximize profits for the shareholders
These proposals are necessary because market forces
invariably operate to deter any corporate misbehavior
These proposals are necessary because existing laws, though
extensive, still have moral and social responsibility “gaps”
These proposals are inadvisable because they will reduce
corporate ability to respond quickly to changing business conditions and
therefore will create allocational inefficiency.
Question 8
Which of the following is the most accurate statement?
An employee is morally required to “blow the
whistle” but only when his or her employer is acting in a clearly illegal
manner.
To act in a moral manner, the whistleblowing employee must
immediately bring his or her concerns about the employer’s alleged wrongful
conduct to the media.
A company should require a written acknowledgment that the
employee has received a copy of the ethics code.
One major problem with the Utilitarian ethical theory is
that it does not take a sufficiently broad stakeholder approach to
decision-making in business.
Question 9
Pursuant to the Ethical Principle of Last Resort, one is
morally obligated to act, to aid, to rescue if what conditions are present?
Need, proximity, and capability.
One is the last real chance or alternative to help.
Aiding would not cause equal to or greater than the original
peril.
All of the above.
Question 10
EarthLast, Inc. is a heavy polluter. Which of the following
would be a philosophical ethical dilemma for Mr. Bill, a manager at EarthLast?
Whether or not the Christian Bible allows for pollution
Whether or not federal or state law allows for pollution
Whether or not pollution is permissible under Mr. Bill’s
moral beliefs of right or wrong
None of the above
Questions-11
Which of the following is a correct statement regarding the
definition of the term “social responsibility” in a business context?
A socially responsible business person believes that the
formal legal law is inferior to universal moral and ethical principles that can
be determined by intuition.
Social responsibility is the branch of philosophy that
focuses on morally right and wrong behavior.
Social responsibility is based on current societal views
as to how and the extent a business should contribute to charities and civic
organizations and be involved in helping the community.
A business cannot adhere to social responsibility principles
and the doctrine of ethical egoism since both are always mutually exclusive.
Question 12
The best approach to social responsibility for business
today would be to emulate:
Robin Hood of “Merry Olde England” days (who stole
from the rich to give to the poor, and who became a big hero)
Marie Antoinette, Queen of France during the Revolution (who
said, when told the poor had no bread to eat, said “Let them eat
cake,” and who, alas, was beheaded)
Francis of Assisi, the son of a rich Italian merchant, who
gave away everything to the poor, including the clothes he was wearing, and
thus walked around Assisi naked (but who later became a Saint)
Home Depot for focusing prudently and primarily on
Habitat for Humanity in their charitable giving and community help efforts.

Question 13
Lea, a vice-president of International Pharmaceuticals,
Inc., does not apply Utilitarianism to business moral issues. One major problem
with this ethical theory is that it
Advocates social change through violent revolution when
people are not treated justly
Forces the individual to conform to the norms of society as
to what it means to be socially responsible
Justifies human costs that some may find morally
unacceptable
Promotes utopian societies such as Plato’s conception of the
Just State.
Question 14
Which of the following is a correct statement regarding the
definition of the term “social responsibility” in a business context?
A socially responsible business person believes that the
formal legal law is inferior to universal moral and ethical principles that can
be determined by intuition.
Social responsibility is the branch of philosophy that
focuses on morally right and wrong behavior.
Social responsibility is based on current societal views
as to how and the extent a business should contribute to charities and civic
organizations and be involved in helping the community.
A business cannot adhere to social responsibility principles
and the doctrine of ethical egoism since both are always mutually exclusive.
Question 15
A conservative interpretation and definition of corporate
“social responsibility” would typically reflect the view that:
Corporate social responsibility should be mandated and
closely regulated by global organizations, such as the United Nations.
There is insufficient government regulation in the U.S. in
place to deal with corporate socially responsible decision-making.
Social responsibility decisions in business should be
decided according to philosophical ethical principles that are higher than
existing law.
Profit-maximization by lawful means is socially
responsible behavior and that market forces will deter corporate socially
irresponsible conduct.
Question 16
Which is a FALSE statement about social responsibility?
Social responsibility is a “real-world” concern
for modern business managers; it is not merely an “academic” issue.
Social responsibility and ethical egoism are mutually
exclusive and contradictory values.
A challenge for business today is to ascertain the exact
nature and proper degree of social responsibility.
Social responsibility activities and contributions are
mandated legally for large multinational global corporations by the World Bank
and the United Nations.
Question-17
Which statement is correct regarding the application of the
term “social responsibility” to business?
One social responsibility dilemma faced by corporate
management at times is the proper nature and extent of a company’s social
responsibility activities in the community.
Most state legislatures in the U.S. have now compelled
corporations to adopt detailed social responsibility codes.
Social responsibility is equivalent to Kant’s Categorical
Imperative ethical principle.
Under social responsibility analysis, the shareholder
stakeholder group is paramount and absolute and the sole focus of any value
analysis.
Question 18
For Jose, as the manager of a division of Petro Power
Corporation, social responsibility is NOT primarily concerned with
Acting in the company’s best long-term interest
Jose’s personal moral feelings
Practical concern for public opinion regarding the company’s
charitable endeavors in the community
Societal concern for how the company makes its profits
Question 19
Which of the following are among the assertions typically
made by “socially responsible” advocates of the modern corporation’s
activities?
Corporations should not merely obey the law but rather
should seek and observe social responsibility standards higher than the law
since at times the law is “silent” or is not enforced.
Corporate profit-seeking at times involves unacceptable
social costs.
Forces in a free market are at times inadequate to prevent
many of the social costs stemming from corporate profit-seeking.
All of the above.
Question 20
National Distribution Corporation could best demonstrate a
commitment to ethical behavior by
Complying with government regulations since they are so
extensive
Drafting an ethics code
Making a profit
Complying with the law and acting morally.
Question 21
Which of the following is the most accurate statement?
A small shareholder can never be held morally responsible
for what a large corporation does.
One function of a corporate ethics audit will be to
conduct a moral audit of the firm to ascertain if it is acting morally.
The principal purpose of a moral audit of the firm is to
ensure that the company is acting in a legal manner.
A corporate code of ethics needs only to restate minimum
legal principles and rules in its “practices” section.
Question 22
Pursuant to the Friedman, organizational, or traditional
view of the corporation, the corporation is obligated to:
Obey Kant’s Categorical Imperative since it is a high moral
standard
Be socially responsible in the communities where it does
business
Make profits legally
Come to the rescue of poor neighborhoods around its
facilities when local government is financially constrained and the company is
doing well.
Question 23
EarthLast, Inc. pollutes the environment. They are careful,
however, to just avoid violating pollution control laws. The company makes a
lot of money for its shareholders. Which of the following best describes the
company’s approach to business?
Legal and Moral pursuant to Legal Positivism
Legal, moral, and socially responsible
Illegal and immoral
Legal and moral pursuant to Kantian ethics
Question 24
The Principle of Last Resort commands that one:
Aid and rescue when one is the last resort and the other
parts to the principle are present or be condemned as immoral.
Aid and rescue when one is the last resort and the other
parts to the principle are present or be condemned as illegal.
Aid and rescue when one is the last resort and the other
parts to the principle are present or be condemned as socially irresponsible.
None of the above.
Question 25
Regarding the values of legality, morality, and social
responsibility, which of the following is/are TRUE:
One can be sued for acting illegally.
One cannot be sued for “merely” acting immorally
unless some law is also violated.
One cannot be sued for “merely” being socially
irresponsible or non-responsive unless some law is also violated.
All of the above are true.
Question 26
Gamma, Inc., a U.S. corporation, makes a large “side
payment” to the minister of commerce of another country for a very
favorable business contract. In the United States, this payment generally would
be considered
illegal and unethical.
illegal only.
neither illegal nor unethical.
unethical only.
Question 27
A problem with the Last Resort principle when applied to
business is:
Does business have the capability to help and to aid the
community and local charities?
Is business the last real alternative to help and to aid the
community and local charities?:
Are there potential legal liability issues for helping,
aiding, and rescuing?
All of the above.
Question 28
What is true about advertising?
A deceptive ad will generally be deemed to be illegal
pursuant to FTC legal standards as well as immoral pursuant to Kantian ethics.
A “half-truth” ad will always be legal and moral
since something is only missing, and no intentional affirmative misrepresentation
is made.
Suggestive ads are always illegal and immoral since they are
clearly deceitful, coercive, and manipulative.
Companies and advertisers today need not worry at all about
any socially responsible aspects to advertising, since, so long as the ads are
not outright falsehoods and lies, they will not be called into account.
Question 29
Susan Sharpe, an amateur but very smart stock trader, by
means of properly analyzing public sources of information and using her native
intelligence and keen deductive powers correctly reasons that Big Oil Company
has discovered oil in its holdings off Vietnam. In fact, the company has
discovered oil, a lot of oil, but that information is kept highly confidential
in the company. Susan buys shares of stock in Big Oil based on her deductions
alone. She is correct in her deductions and as a result makes a great deal of
money when the oil discovery is announced by Big Oil and its stock prices soar.
Susan can best be described as acting:
Illegally since she is a misappropriator of insider
information who wrongfully purchased stock based on the inside information.
Illegally since the level-playing-field theory is the
prevailing legal theory of insider trading and obviously Susan had more and
better information than the people she purchased the stock from.
Legally since she is a very smart, and perhaps a bit
lucky, trader.
Immorally pursuant to Machiavellian ethics since she took
advantage of someone who was ignorant and thus she committed a traditional bad
act.
Question 30
Happy Feet manufactures shoes in Country Y for sale in the
United States. Happy Feet’s president discovers that the Country Y workers’
average age is sixteen and that they work on average of 13.2 hours per day in a
90 degree warehouse with insufficient safety precautions, all of which
practices are legal in Country Y. The president of Happy Feet decides to
improve the working hours and conditions of the company’s workforce, even
though these actions will be more expensive for the company. The president’s
decision is best described as
Lawful profit maximization
Moral profit-making
Illegal since the shareholders of Happy Feet might be harmed
Social Darwinism.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?Kantian ethicsCorporate Social ResponsibilityUtilitarianismLast Resort theory.Question 2Big Greene Company is considering introducing a new product
to replace an existing product. The new product would result in increased
revenues, but slightly lower overall profits because the product will cause
injury to a few users and Big Green will issue warnings and compensate persons
who are injured. The introduction of this product would best be a proper
decision pursuant to:Ethical egoismKantian ethicsEthical relativismCorporate social responsibility.Question 3Affirmative action preference plans that grant a
“plus” factor to women and minority group applicants for employment
can be considered:Moral pursuant to ethical egoism because the company will
have a diverse and culturally competent workforce.Moral pursuant to Utilitarian ethics because society will
benefit by bringing more women and minority group members into the workforce.Immoral pursuant to Kantian ethics because of the
possibility of “reverse discrimination” against more qualified white
male applicants.All of the above are possible.Question 4In making decisions for United Merchandising Company, Joy
uses a cost-benefit analysis. This is a major part ofDuty-based ethicsKantian ethicsNatural rights theoryUtilitarianism.Question 5Eva, the chief executive officer of Federated Corporation,
wants to ensure that the company’s activities are legal and achieve the greater
good. The best course for Eva and her company is to act inIgnorance of the lawRegard for the firm’s shareholders onlyTheir own self-interestNone of the above.Question 6The Principle of Last Resort holds that:One has a legal duty to rescue a person in needOne may have a moral duty to rescue a person in needIf one is the last real chance to rescue a person in
need, one is always acting immorally by failing to rescueThe law will always immunize a person from a negligent but
good faith rescue attempt.Question 7Today, critics of the corporation argue for various
corporate governance reform proposals to improve the legal, moral, and socially
responsible behavior of the corporation. Which of the following is the most
convincing argument for these proposals?These proposals are advisable because corporate managers
should never have any duty other than to maximize profits for the shareholdersThese proposals are necessary because market forces
invariably operate to deter any corporate misbehaviorThese proposals are necessary because existing laws, though
extensive, still have moral and social responsibility “gaps”These proposals are inadvisable because they will reduce
corporate ability to respond quickly to changing business conditions and
therefore will create allocational inefficiency.Question 8Which of the following is the most accurate statement?An employee is morally required to “blow the
whistle” but only when his or her employer is acting in a clearly illegal
manner.To act in a moral manner, the whistleblowing employee must
immediately bring his or her concerns about the employer’s alleged wrongful
conduct to the media.A company should require a written acknowledgment that the
employee has received a copy of the ethics code.One major problem with the Utilitarian ethical theory is
that it does not take a sufficiently broad stakeholder approach to
decision-making in business.Question 9Pursuant to the Ethical Principle of Last Resort, one is
morally obligated to act, to aid, to rescue if what conditions are present?Need, proximity, and capability.One is the last real chance or alternative to help.Aiding would not cause equal to or greater than the original
peril.All of the above.Question 10EarthLast, Inc. is a heavy polluter. Which of the following
would be a philosophical ethical dilemma for Mr. Bill, a manager at EarthLast?Whether or not the Christian Bible allows for pollutionWhether or not federal or state law allows for pollutionWhether or not pollution is permissible under Mr. Bill’s
moral beliefs of right or wrongNone of the aboveQuestions-11Which of the following is a correct statement regarding the
definition of the term “social responsibility” in a business context?A socially responsible business person believes that the
formal legal law is inferior to universal moral and ethical principles that can
be determined by intuition.Social responsibility is the branch of philosophy that
focuses on morally right and wrong behavior.Social responsibility is based on current societal views
as to how and the extent a business should contribute to charities and civic
organizations and be involved in helping the community.A business cannot adhere to social responsibility principles
and the doctrine of ethical egoism since both are always mutually exclusive.Question 12The best approach to social responsibility for business
today would be to emulate:Robin Hood of “Merry Olde England” days (who stole
from the rich to give to the poor, and who became a big hero)Marie Antoinette, Queen of France during the Revolution (who
said, when told the poor had no bread to eat, said “Let them eat
cake,” and who, alas, was beheaded)Francis of Assisi, the son of a rich Italian merchant, who
gave away everything to the poor, including the clothes he was wearing, and
thus walked around Assisi naked (but who later became a Saint)Home Depot for focusing prudently and primarily on
Habitat for Humanity in their charitable giving and community help efforts.
Question 13Lea, a vice-president of International Pharmaceuticals,
Inc., does not apply Utilitarianism to business moral issues. One major problem
with this ethical theory is that itAdvocates social change through violent revolution when
people are not treated justlyForces the individual to conform to the norms of society as
to what it means to be socially responsibleJustifies human costs that some may find morally
unacceptablePromotes utopian societies such as Plato’s conception of the
Just State.Question 14Which of the following is a correct statement regarding the
definition of the term “social responsibility” in a business context?A socially responsible business person believes that the
formal legal law is inferior to universal moral and ethical principles that can
be determined by intuition.Social responsibility is the branch of philosophy that
focuses on morally right and wrong behavior.Social responsibility is based on current societal views
as to how and the extent a business should contribute to charities and civic
organizations and be involved in helping the community.A business cannot adhere to social responsibility principles
and the doctrine of ethical egoism since both are always mutually exclusive.Question 15A conservative interpretation and definition of corporate
“social responsibility” would typically reflect the view that:Corporate social responsibility should be mandated and
closely regulated by global organizations, such as the United Nations.There is insufficient government regulation in the U.S. in
place to deal with corporate socially responsible decision-making.Social responsibility decisions in business should be
decided according to philosophical ethical principles that are higher than
existing law.Profit-maximization by lawful means is socially
responsible behavior and that market forces will deter corporate socially
irresponsible conduct.Question 16Which is a FALSE statement about social responsibility?Social responsibility is a “real-world” concern
for modern business managers; it is not merely an “academic” issue.Social responsibility and ethical egoism are mutually
exclusive and contradictory values.A challenge for business today is to ascertain the exact
nature and proper degree of social responsibility.Social responsibility activities and contributions are
mandated legally for large multinational global corporations by the World Bank
and the United Nations.Question-17Which statement is correct regarding the application of the
term “social responsibility” to business?One social responsibility dilemma faced by corporate
management at times is the proper nature and extent of a company’s social
responsibility activities in the community.Most state legislatures in the U.S. have now compelled
corporations to adopt detailed social responsibility codes.Social responsibility is equivalent to Kant’s Categorical
Imperative ethical principle.Under social responsibility analysis, the shareholder
stakeholder group is paramount and absolute and the sole focus of any value
analysis.Question 18For Jose, as the manager of a division of Petro Power
Corporation, social responsibility is NOT primarily concerned withActing in the company’s best long-term interestJose’s personal moral feelingsPractical concern for public opinion regarding the company’s
charitable endeavors in the communitySocietal concern for how the company makes its profitsQuestion 19Which of the following are among the assertions typically
made by “socially responsible” advocates of the modern corporation’s
activities?Corporations should not merely obey the law but rather
should seek and observe social responsibility standards higher than the law
since at times the law is “silent” or is not enforced.Corporate profit-seeking at times involves unacceptable
social costs.Forces in a free market are at times inadequate to prevent
many of the social costs stemming from corporate profit-seeking.All of the above.Question 20National Distribution Corporation could best demonstrate a
commitment to ethical behavior byComplying with government regulations since they are so
extensiveDrafting an ethics codeMaking a profitComplying with the law and acting morally.Question 21Which of the following is the most accurate statement?A small shareholder can never be held morally responsible
for what a large corporation does.One function of a corporate ethics audit will be to
conduct a moral audit of the firm to ascertain if it is acting morally.The principal purpose of a moral audit of the firm is to
ensure that the company is acting in a legal manner.A corporate code of ethics needs only to restate minimum
legal principles and rules in its “practices” section.Question 22Pursuant to the Friedman, organizational, or traditional
view of the corporation, the corporation is obligated to:Obey Kant’s Categorical Imperative since it is a high moral
standardBe socially responsible in the communities where it does
businessMake profits legallyCome to the rescue of poor neighborhoods around its
facilities when local government is financially constrained and the company is
doing well.Question 23EarthLast, Inc. pollutes the environment. They are careful,
however, to just avoid violating pollution control laws. The company makes a
lot of money for its shareholders. Which of the following best describes the
company’s approach to business?Legal and Moral pursuant to Legal PositivismLegal, moral, and socially responsibleIllegal and immoralLegal and moral pursuant to Kantian ethicsQuestion 24The Principle of Last Resort commands that one:Aid and rescue when one is the last resort and the other
parts to the principle are present or be condemned as immoral.Aid and rescue when one is the last resort and the other
parts to the principle are present or be condemned as illegal.Aid and rescue when one is the last resort and the other
parts to the principle are present or be condemned as socially irresponsible.None of the above.Question 25Regarding the values of legality, morality, and social
responsibility, which of the following is/are TRUE:One can be sued for acting illegally.One cannot be sued for “merely” acting immorally
unless some law is also violated.One cannot be sued for “merely” being socially
irresponsible or non-responsive unless some law is also violated.All of the above are true.Question 26Gamma, Inc., a U.S. corporation, makes a large “side
payment” to the minister of commerce of another country for a very
favorable business contract. In the United States, this payment generally would
be consideredillegal and unethical.illegal only.neither illegal nor unethical.unethical only.Question 27A problem with the Last Resort principle when applied to
business is:Does business have the capability to help and to aid the
community and local charities?Is business the last real alternative to help and to aid the
community and local charities?:Are there potential legal liability issues for helping,
aiding, and rescuing?All of the above.Question 28What is true about advertising?A deceptive ad will generally be deemed to be illegal
pursuant to FTC legal standards as well as immoral pursuant to Kantian ethics.A “half-truth” ad will always be legal and moral
since something is only missing, and no intentional affirmative misrepresentation
is made.Suggestive ads are always illegal and immoral since they are
clearly deceitful, coercive, and manipulative.Companies and advertisers today need not worry at all about
any socially responsible aspects to advertising, since, so long as the ads are
not outright falsehoods and lies, they will not be called into account.Question 29Susan Sharpe, an amateur but very smart stock trader, by
means of properly analyzing public sources of information and using her native
intelligence and keen deductive powers correctly reasons that Big Oil Company
has discovered oil in its holdings off Vietnam. In fact, the company has
discovered oil, a lot of oil, but that information is kept highly confidential
in the company. Susan buys shares of stock in Big Oil based on her deductions
alone. She is correct in her deductions and as a result makes a great deal of
money when the oil discovery is announced by Big Oil and its stock prices soar.
Susan can best be described as acting:Illegally since she is a misappropriator of insider
information who wrongfully purchased stock based on the inside information.Illegally since the level-playing-field theory is the
prevailing legal theory of insider trading and obviously Susan had more and
better information than the people she purchased the stock from.Legally since she is a very smart, and perhaps a bit
lucky, trader.Immorally pursuant to Machiavellian ethics since she took
advantage of someone who was ignorant and thus she committed a traditional bad
act.Question 30Happy Feet manufactures shoes in Country Y for sale in the
United States. Happy Feet’s president discovers that the Country Y workers’
average age is sixteen and that they work on average of 13.2 hours per day in a
90 degree warehouse with insufficient safety precautions, all of which
practices are legal in Country Y. The president of Happy Feet decides to
improve the working hours and conditions of the company’s workforce, even
though these actions will be more expensive for the company. The president’s
decision is best described asLawful profit maximizationMoral profit-makingIllegal since the shareholders of Happy Feet might be harmedSocial Darwinism.