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Test Bank For
Business Ethics Methods, Theories, and Application 2nd Christian U. Becker
Test Bank (for instructors)
CHAPTER 1
- Which of the following is NOT a typical topic of the instrumental perspective of business ethics?
A) Organizational ethics B) Professional ethics C) Ethics as strategic management tool D) Ethics as risk management tool E) The meaning of a professional career for individual happiness
- Which of the following is an accurate description of the philosophical perspective of business ethics?
A) The philosophical perspective analyzes how ethics best supports business success B) The philosophical perspective provides ethical tools for strategic management C) The philosophical perspective discusses how business can be a positive force in the world D) The philosophical perspective despises business E) All of the above
- Which of the following is NOT part of the levels of business ethics?
A) Organizational level B) Individual level C) Societal level D) Global level E) Universal level
- Which of the following is a reason for the relevance of business ethics for contemporary business?
A) Increasing ethical challenges in modern business B) Increasing expectations from stakeholders and society C) Increasing legal expectations D) Business opportunities related to ethical challenges E) All of the above
CHAPTER 2
- Which of the following is a typical source of everyday norms and values?
A) Laws B) Religion C) Authority D) Etiquette
E) All of the above
- Which of the following is NOT an example of an action that is legal but unethical?
A) Lying to one‟s partner in a serious private matter B) Using a loophole in the law to cheat on business partners C) Stealing D) Observing as a bystander someone being beaten up and taking no action E) All of the above
- Which of the following is a typical question of normative ethics?
A) How ought one to live and act? B) How can one decide what is the right action? C) What is a good character? D) What is a good life? E) All of the above
- Which of the following statements properly characterizes normative ethics and its subject matter?
A) There is one and only one right answer to normative questions of right and wrong B) Normative ethics is completely subjective: one cannot rationally discuss what is ethically right and wrong C) Questions of normative ethics are reasonably approachable: one can develop arguments to distinguish the ethically better from the worse, but there is not one definite answer and more than one approach D) One can always answer normative questions of right and wrong by referring to empirical facts E) There is no such thing as normative ethics
- Which of the following is NOT a step of the Utilitarian Method?
A) Consider all possible alternative actions B) Consider the motives of the acting person(s) C) Consider who is affected by the consequences of the alternative actions D) Consider how everyone is affected in terms of pain and pleasure (harm and benefit) E) Sum up the harm/benefit for each possible action
- Which of the following is a typical limitation of utilitarianism?
A) Difficulties with determining who is affected by an action B) Difficulties with predicting consequences C) Difficulties with measuring and comparing happiness D) Ignores further ethically relevant aspects such as motivation E) All of the above
- Which of the following is an accurate formulation of the Golden Rule?
A) Treat others in a way that optimally benefits you B) Treat others in such a way as you want to be treated by them C) Treat others as they treat you D) Treat others as you like E) Always use others as a means for your own ends
C) My child depends on me and trusts me. I have specific responsibilities to my child. Therefore, I will rescue my child. D) I will rescue my spouse because we can have more children together and this maximizes overall happiness. E) All of the above
- Which of the following is an accurate formulation of the Rawlsian method?
A) To which decision/action would rational, self-interested persons agree behind a „veil of ignorance‟? B) What decision/action would rational persons hide behind a „veil of ignorance‟? C) What action is unpredictable behind a „veil of ignorance‟? D) To which action would an ignorant person agree? E) What actions are unpredictable?
Essay question: Applying ethical methods to a business case (at home assignment; about 1200 words)
Case: The Engineer's Dilemma
Ellen works as an engineer for XYZ Construction, Inc. The company recently signed a contract with the city for building a new pedestrian bridge across a busy street. XYZ is an experienced company and has done similar projects in the past. Construction was going well and the basic structure of the bridge already spans across the street. One day, Ellen visits the construction side to check the progress of the project. While inspecting the bridge, she recognizes a couple of cracks that indicate to her a problem with the stability of the construction. Ellen calls her supervisor, who is not an engineer, to let him know about the issue. She explains to him the safety issue and that she thinks the work needs to be stopped and authorities at the city should be informed. However, the supervisor rejects her suggestion. He tells Ellen that he would not consider stopping the work and informing the city, because this would result in a delay of the project and financial harm to the company. He points out to her that the construction project was previously approved by other engineers of the company and is in compliance with all regulations. He advises Ellen to not pursue the issue any further. However, Ellen feels that, as an engineer, she has the professional expertise and responsibility to evaluate and communicate the dangers of the situation. She is afraid that the bridge might collapse and crash on the busy road, potentially injuring and killing people. Ellen is wondering now, whether she should follow the advice of her supervisor or inform the city nevertheless?
Questions:
a) What would be the ethically better decision? Apply the utilitarian method, CI method A, and virtue method A, to analyze the case and provide a recommendation. b) What would be the better decision with regard to the business success of XYZ Construction and Ellen's career?
CHAPTER 3
- What of the following is an accurate definition of capitalism?
A) Capitalism is an economic system in which the production means are owned privately B) Capitalism is an economic system is which the production means are owned collectively C) Capitalism is an economic system in which the production means are owned by the government D) Capitalism is an economic system is which the production means are owned by no one E) Capitalism is an economic system which does not have any concept of private property
- Which of the following is an accurate description of the meaning of Adam Smith‟s invisible hand concept:
A) In economic markets, individuals act with regard to their own self-interest and, by this, automatically serve the public interest without intending it
B) In economic markets all actors hide their self-interests C) In economic markets interactions between the actors are invisible D) In economic markets the self-interested actors contradict themselves E) There is no economic market
- Which of the following is the expected outcome of a deliberate deal between two parties (from an economic perspective and under perfect conditions): A) Both parties are better off B) One party wins, the other loses C) Both parties lose D) Both parties win, but at least one third party loses by necessity E) At least three parties are worse off
- Which of the following is an accurate formulation of the First Theorem of General Equilibrium Theory?
A) Market equilibria are just B) Given certain conditions, market equilibria are Pareto-efficient C) There exists always one and only one general equilibrium D) A market equilibrium is necessarily inefficient E) There is no market equilibrium
- What is the typical economic consequence of market failures?
A) Pareto efficiency B) Inefficiency C) Perfect competition D) Optimal allocation of resources E) All of the above
- Two companies are located on a river. Company A pollutes the river and the pollution has a negative impact on the profits of company B. Which of the following is the accurate economic concept that describes the impact of company A on company B: A) External effect B) Environmental injustice C) Harassment D) Pareto improvement E) Fair competition
- Which of the following is NOT a typical characteristic/outcome of the capitalist market economy?
A) Efficiency B) Fair competition C) Supports individual freedom and equal opportunities D) Stimulates innovation and economic growth E) Promotes equal distribution of income and wealth
- Which of the following is an accurate definition of traditional criticism of the capitalist market economy:
- Which of the following questions is NOT relevant for determining to what degree a business is responsible for some issue in the product life cycle? A) To what extent did the business cause the issue? B) How many shareholders does the business have? C) To what extent did the business know that the issue occurs? D) How much power/abilities does the business have to address the issue? E) All of the above
- Which of the following is NOT a potential ethical issue in the typical product life cycle of a smart phone?
A) Use of conflict minerals B) Working conditions in the production process C) Texting and driving D) Underage drinking E) E-waste
- A local brewery plans to sponsor shuttle services to local festivities as part of its new CR strategy. Which ethical issue in the life cycle of its product does this plan address: A) Issues with long term sustainable water supply in the region B) Underage drinking C) Driving under the influence (DUI) D) Waste water issues E) Supply chain issues
- Which of the following is an accurate definition of stakeholders?
A) Stakeholders of a business are all groups that have a substantiated interest in the business and its operations B) Stakeholders are only those groups that invest money in a business C) Stakeholders are always NGOs D) Stakeholders are all groups that unconditionally support the business E) Stakeholders are government agencies that oversee a business‟s activities
- Which of the following is NOT a step of the ESA method?
A) Identify all stakeholders of the business B) Determine specific moral rights of each stakeholder and specific responsibilities the business has to each stakeholder C) Determine moral responsibilities that result from the specific societal role of the business and its position in the stakeholder context D) Develop strategies for the business to adequately assume it‟s responsibilities E) Consider only stakeholder groups that can fully articulate and communicate their self-interests to the business
- How many of the largest 250 global companies issue corporate responsibility reports?
A) More than 90% B) About 75% C) About 50% D) About 25%
E) Less than 25%
- Which of the following is part of the Pillar Model of Corporate Responsibility?
A) Philanthropy B) Compliance C) Economic responsibilities D) Business-specific responsibilities E) All of the above
- Which of the following is a business reason for implementing a CR strategy?
A) Supports proactive risk management B) Improves stakeholder relationships C) Attracts highly qualified employees D) Improves efficiency, competitiveness, and market positioning E) All of the above
- Which of the following is NOT an economic criterion for a good CR strategy?
A) Does the CR strategy improve competitiveness? B) Does the CR strategy increase efficiency and identify new markets? C) Does the CR strategy improve stakeholder relationships? D) Does the CR strategy help to reduce risks? E) Does the CR strategy implement successful greenwashing?
- Which of the following is NOT a formal criterion for a good CR strategy?
A) Does the company issue a CR report? B) Does the company advertise in social media? C) Does the CR report provide measurable data and well-defined goals? D) Does the company provide external assurance for its CR data? E) Does the CR report follow established reporting guidelines?
42. What is external assurance of a CR report?
A) Verification of the CR report and its data by an independent external firm B) Outsourcing of CR activities C) Insurance covering potential lawsuits from external stakeholders D) Public relation activities that promote the CR report to all external stakeholders E) All of the above
- Which of the following are characteristics of a strong ethical culture?
A) Fairness and equality B) Diversity, equity, and inclusion C) Respectful interactions D) Empowerment and individual thriving E) All of the above
Paper assignment: ELCA of a cotton shirt (at home assignment; about 1500 words)
Consider a hypothetical leading fashion label that is a global leader in the industry. Do an ELCA of a „cotton
shirt‟ of that label. Do some research to figure out what ethical issues typically occur in the product life cycle
of a cotton shirt. Provide concrete recommendations for the fashion company how to assume responsibility
and develop an action plan.
Instructions:
o Apply all four steps of the ELCA method. Make sure you always support/explain your
claims/evaluations and also provide some data.
o Address all stages of the life-cycle (sourcing, production, distribution, use, disposal) and discuss at
least one ethical issue of each stage.
o Provide at least 3 recommendations in step 4. Explain how your recommendations address the ethical
issues and make business sense.
Paper assignment: Apply the Method for CR analysis to a company of your choice (about 1500 words)
Analyze the CR strategy of a company of your choice by applying the Method for CR analysis defined in
section 4.4 of the book. Focus on those criteria that are relevant to your case. It is recommended that you
chose a company that issues a CR report or equivalent materials.
CHAPTER 5
- To which of the following do employees have a moral right?
A) Equal, fair, and respectful treatment B) Reason-based treatment C) Meaningful work and supportive environment D) Protection of safety and health E) All of the above
- Which of the following is NOT a moral responsibility of employees?
A) Professionalism B) Unconditional loyalty to the boss C) Ethical and legal conduct D) Avoiding harm to the organization in which one is employed E) Support the success of the organization in which one is employed
- According to the definition discussed in the book, great leadership is:
A) Efficient and hierarchical B) Effective and ethical C) Authoritarian and hierarchical D) Transformative and efficient E) All of the above
- Which aspect is NOT relevant for judging whether a leadership is effective?
A) Successfulness in achieving the ends of the leadership
B) Successfulness in making people follow C) Ethical means of leadership D) Efficiency E) All of the above
- Which of the following is NOT one of the ten principles of ethical leadership?
A) Ethical leadership is respectful B) Ethical leadership is based on oppressive and authoritarian power mechanisms C) Ethical leadership is responsible D) Ethical leadership empowers individual responsibility of followers E) Ethical leadership promotes excellence
- Which of the following is a traditional characteristic of a profession?
A) It is based on extensive education and qualification B) It develops its own standards and criteria C) It is self-regulated D) It serves a well-defined public interest E) All of the above
- Which of the following statements does NOT properly characterize professional ethics?
A) Specific professional expertise implies specific ethical responsibilities B) If you are an expert in a certain field, others rely on you and trust you C) Professions uphold and consider the public interest D) Professional ethics is identical with personal values E) Professional ethics reflects public expectations of how professionals should act
- Which of the following organizations develops an important ethics code in the field of accounting?
A) WTO B) UNESCO C) UN D) AICPA E) NBA
- Which of the following does the accounting profession recognize as the public interest it serves?
A) National security B) The orderly functioning of commerce C) Public health D) Environmental sustainability E) Public safety
- Which of the following is NOT a typical ethical issue of marketing?
A) Truthfulness B) Manipulation
D) Environmental justice E) Illegal accounting practices
- What is the main ethical issue with e-waste?
A) E-waste contains valuable materials B) E-waste contains harmful substances and is often shipped to poorer regions where it harms people and communities C) E-waste is stolen from companies D) E-waste is unconstitutional E) All of the above
- Which of the following cases is NOT primarily about an ethical issue in the supply chain?
A) Chocolate industry case B) E-waste case C) Outsourcing of manufacturing jobs D) All of the above E) None of the above
- Which of the following is NOT a main principle of basic global business ethics?
A) Uphold global norms and fundamental rights B) Adhere to one‟s own ethical principles and core values C) Respect other cultures and cultural values D) Impose one‟s own cultural values on others E) All of the above
- Which of the following is a main principle of advanced global business ethics?
A) Create a win-win among all global business partners B) Participation C) Empowerment D) Promote development E) All of the above
CHAPTER 7
- What is the Anthropocene?
A) The age of climate stability B) The age of biodiversity increase C) The age of human dominance on earth D) The age of human irrelevance E) All of the above
- Which of the following characterizes best the literal meaning of sustainability?
A) Sustainability means the ability to maintain something over time B) Sustainability means the ability to change C) Sustainability means the ability to grow D) Sustainability means continuing any ability E) None of the above
- Which of the following is a reason for sustainability becoming an increasingly important topic?
A) Increasing evidence that the current economic system overburdens the global environment B) Increasing evidence for systemic limits to global economic activities C) Concerns about negative effects that current actions have on future generations and nature D) Concerns about the long-term continuance and stability of the economic system E) All of the above
- Which of the following describes best the ethical dimension of sustainability?
A) Sustainability is based on the ethical claim that current actors have moral responsibilities toward future people, people around the world, and nature B) Sustainability is essentially about etiquette C) Sustainability is a requirement which is explicitly formulated in the US constitution D) Sustainability reflects the norm of survival of the fittest E) Sustainability is mainly referring to the self-interests of Western countries
- Which of the following is an accurate characterization of a “sustainable business”?
A) Systematically considers environmental, societal, and future aspects of its business operations and, by this, ensures an overall positive impact and long-term success B) Aims at sustaining itself by all means C) Does not pay any taxes D) Is not interested in making any profits E) Is exclusively devoted to environmental activism
- Which of the following is NOT an accurate characteristic of the benefit corporation?
A) Benefit corporations are a new type of corporate legal entity B) Benefit corporations must have a well-defined purpose of creating public benefit C) Benefit corporations must be non-profit organizations D) Benefit corporations are legally obligated to consider the interests of all stakeholders E) Benefit corporations must report on their progress in achieving their purpose
Key to the multiple-choice questions
[Correct answers are highlighted]
CHAPTER 1
- Which of the following is NOT a typical topic of the instrumental perspective of business ethics?
A) Organizational ethics B) Professional ethics C) Ethics as strategic management tool D) Ethics as risk management tool
E) All of the above
- Which of the following statements properly characterizes normative ethics and its subject matter?
A) There is one and only one right answer to normative questions of right and wrong B) Normative ethics is completely subjective: one cannot rationally discuss what is ethically right and wrong C) Questions of normative ethics are reasonably approachable: one can develop arguments to distinguish the ethically better from the worse, but there is not one definite answer and more than one approach D) One can always answer normative questions of right and wrong by referring to empirical facts E) There is no such thing as normative ethics
- Which of the following is NOT a step of the Utilitarian Method?
A) Consider all possible alternative actions B) Consider the motives of the acting person(s) C) Consider who is affected by the consequences of the alternative actions D) Consider how everyone is affected in terms of pain and pleasure (harm and benefit) E) Sum up the harm/benefit for each possible action
- Which of the following is a typical limitation of utilitarianism?
A) Difficulties with determining who is affected by an action B) Difficulties with predicting consequences C) Difficulties with measuring and comparing happiness D) Ignores further ethically relevant aspects such as motivation E) All of the above
- Which of the following is an accurate formulation of the Golden Rule?
A) Treat others in a way that optimally benefits you B) Treat others in such a way as you want to be treated by them C) Treat others as they treat you D) Treat others as you like E) Always use others as a means for your own ends
- Which of the following is an accurate formulation of the CI Method B?
A) Which decision respects the dignity of all persons (as reasonable beings) involved / affected? B) Which decision maximizes overall happiness? C) Which decision maximizes profits? D) Which decision does least harm to all persons involved/affected? E) Which decision uses best legal loopholes in the global economy?
- Which of the following is an implication of the CI method B for business contexts?
A) Respectful treatment of all persons B) no treatment of people as mere means C) no exploitation D) no manipulation E) all of the above
- Which of the following is a typical business virtue?
A) Integrity B) Honesty C) Fairness D) Responsibility E) All of the above
- Which of the following is an accurate formulation of the Virtue method A?
A) Which decision/action is generalizable? B) Which decision/action is consistent with who someone is and wants to be, referring to reasonable concepts of excellence? C) Which decision/action maximizes overall happiness? D) Which decision/action maximizes my happiness? E) Which decision/action is most profitable?
- Which of the following is an accurate formulation of the Virtue method B?
A) Which action/decision supports best the development of professional/personal potential and ensures thriving of all affected? B) Which action/decision supports best individual freedom? C) Which action/decision supports best societal welfare? D) Which action/decision maximizes overall happiness? E) Which action/decision is in the best interest of the existing powers?
- Consider the following case: You are on a boat with three others: your mother, your child, and your spouse. The boat is sinking. None of them can swim and you can only save one. Which of the following arguments is NOT an ethics of care argument? A) My spouse and I deliberately chose each other and promised to care for each other. Therefore, I have a special moral obligation to my spouse and will rescue my spouse. B) My mother gave birth to me and raised me. I owe my mother. I will rescue her. C) My child depends on me and trusts me. I have specific responsibilities to my child. Therefore, I will rescue my child. D) I will rescue my spouse because we can have more children together and this maximizes overall happiness. E) All of the above
- Which of the following is an accurate formulation of the Rawlsian method?
A) To which decision/action would rational, self-interested persons agree behind a „veil of ignorance‟? B) What decision/action would rational persons hide behind a „veil of ignorance‟? C) What action is unpredictable behind a „veil of ignorance‟? D) To which action would an ignorant person agree? E) What actions are unpredictable?
A) External effect B) Environmental injustice C) Harassment D) Pareto improvement E) Fair competition
- Which of the following is NOT a typical characteristic/outcome of the capitalist market economy?
A) Efficiency B) Fair competition C) Supports individual freedom and equal opportunities D) Stimulates innovation and economic growth E) Promotes equal distribution of income and wealth
- Which of the following is an accurate definition of traditional criticism of the capitalist market economy:
A) Traditional criticism questions whether the capitalist market economy is good for the individual and society in the way it claims to be B) Traditional criticism questions whether the capitalist market economy is good for the environment C) Traditional criticism questions whether there are any profits made in a capitalist market economy D) Traditional criticism questions whether there is any capital in a capitalist market economy E) Traditional criticism doubts whether there exists such a thing as markets
- Which of the following is NOT a typical critique of capitalism stated by traditional criticism?
A) The capitalist market economy makes people dependent of the market system and, with this, is unfree B) The capitalist market economy results in an increasing inequality of wealth and income distribution C) The capitalist market economy is based on too narrow assumptions about the economic actor D) The capitalist market economy ignores the mechanisms of supply and demand E) All of the above
- Which of the following is an accurate definition of new criticism of capitalism?
A) New criticism questions whether the existing capitalist market economy is good for all people around the world, future generations, and nature B) New criticism is based on Communism C) New criticism questions whether we need a market economy at all D) New criticism focuses primarily on inequality in wealth and income distribution E) New criticism is based on fundamental criticism of the democratic system
CHAPTER 4
- Which of the following is NOT a relevant condition for constituting responsibility?
A) Causality B) Knowledge C) Free will D) Gender E) Ability and power
- Which of the following is NOT a step of the ELCA method?
A) Identifying crucial societal, environmental, global and long-term impacts of the product life cycle B) Ethically evaluating the impacts of the product life cycle C) Determining what degree of responsibility the business has for the ethical issues in the product life cycle D) Identifying strategies for the business to assume responsibility and take action E) Donating money to a cause that is not related to the business and its products
- Which of the following is NOT part of a product life cycle?
A) Sourcing B) Production C) Shareholder value D) Use E) Disposal
- Which of the following questions is NOT relevant for determining to what degree a business is responsible for some issue in the product life cycle? A) To what extent did the business cause the issue? B) How many shareholders does the business have? C) To what extent did the business know that the issue occurs? D) How much power/abilities does the business have to address the issue? E) All of the above
- Which of the following is NOT a potential ethical issue in the typical product life cycle of a smart phone?
A) Use of conflict minerals B) Working conditions in the production process C) Texting and driving D) Underage drinking E) E-waste
- A local brewery plans to sponsor shuttle services to local festivities as part of its new CR strategy. Which ethical issue in the life cycle of its product does this plan address: A) Issues with long term sustainable water supply in the region B) Underage drinking C) Driving under the influence (DUI) D) Waste water issues E) Supply chain issues
- Which of the following is an accurate definition of stakeholders?
A) Stakeholders of a business are all groups that have a substantiated interest in the business and its operations B) Stakeholders are only those groups that invest money in a business C) Stakeholders are always NGOs D) Stakeholders are all groups that unconditionally support the business
