Ethical Theory-MCQs

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.

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