Business Ethics

According to the files, which type of organization typically manages ethics through an informal, trust-based approach?. Large Corporations. Public Sector Organizations. Small Businesses. Civil Society Organizations.

The "agency problem" in stakeholder theory highlights the potential conflict between: Customers and suppliers. The short-term interests of owners and the long-term interests of the company. Ethical theories and descriptive realities. National and organizational culture.

The concept of "Corporate Accountability" is most closely linked to: Profitability. Transparency. Market Share. Employee Satisfaction.

According to Kohlberg's theory, the Conventional level of moral development is characterized by: Obeying rules to avoid punishment. Conforming to meet the expectations of others. Following self-chosen ethical principles. Acting only in one's own self-interest.

According to the files, which of the following is a "business reason" or example of "enlightened self-interest" for CSR?. Corporations cause social problems. Corporations rely on a wide set of stakeholders. Forestalling government legislation. Corporations have a moral duty to help.

In the Purdue Pharma case, the company's response to early lawsuits was to: Immediately admit wrongdoing and recall the product. Blame patients for taking the drug incorrectly. Fire the Sackler family from leadership positions. Collaborate with the government to create addiction treatment programs.

In the "Heinz dilemma," a person at the Conventional level of moral development would be most likely to argue that Heinz should not steal the drug because: He might get caught and punished. Stealing is against the law and society disapproves of it. The druggist has a right to set his own price. The value of life is more important than the law against stealing.

According to the files, a key argument FOR corporate social responsibility is: It dilutes the primary business purpose. Businesses are not equipped to handle social problems. It is a way to ward off government regulations. It gives corporations too much power.

A company that adopts a "proactive" CSR strategy is one that: Denies any responsibility for social issues. Does only what is legally required. Accepts responsibility and initiates change. Responds to public pressure when forced.

The "veil of ignorance" is a thought experiment designed to promote: Self-interest. Fairness. Efficiency. Tradition.

According to Carroll's four-part model, which responsibility of a corporation is the foundation upon which all others are built?. Ethical. Legal. Philanthropic. Economic.

Rest's model of ethical decision-making includes all the following stages EXCEPT: Ethical Awareness. Ethical Judgement. Ethical Intention. Ethical Action.

Stakeholder theory, as proposed by Edward Freeman, defines a stakeholder as any group or individual who: Owns shares in the corporation. Works as a manager in the corporation. Can affect or is affected by the achievement of the organization's objectives. Is a direct competitor of the corporation.

The Triple Bottom Line concept expands the reporting of organizational success to include which three areas?. People, Planet, Profit. Product, Price, Promotion. Ethics, Law, Philanthropy. Shareholders, Employees, Customers.

The "voluntary character" of assuming responsibility is a common element in most definitions of: Ethical Egoism. Corporate Social Responsibility (CSR). The Categorical Imperative. Descriptive Ethics.

From a normative ethics perspective, which theory would most likely justify Purdue Pharma's actions by focusing on the massive profits and shareholder value created?. Ethics of Duty (Kantianism). Utilitarianism. Ethical Egoism. Virtue Ethics.

A key difference between Act-Utilitarianism and Rule-Utilitarianism is that: Act-Utilitarianism focuses on single actions, while Rule-Utilitarianism focuses on classes of actions. Act-Utilitarianism is deontological, while Rule-Utilitarianism is teleological. Rule-Utilitarianism is considered unethical in business contexts. Act-Utilitarianism is based on duty, while Rule-Utilitarianism is based on virtue.

Descriptive Ethical Theories primarily aim to: Prescribe what actions should be considered right or wrong. Describe and explain how ethical decisions are actually made. Develop management tools for enforcing ethical behavior. Critique the economic system of capitalism.

According to the case study on Purdue Pharma, what was a primary unethical marketing claim for OxyContin?. It was more effective than all other painkillers. It was a less addictive opioid. It was cheaper to produce than competitors' drugs. It was approved for all types of chronic pain.

In the context of rationalizing unethical behavior, "balancing the ledger" refers to: Denying that anyone was harmed. Pointing out that others are worse. Claiming that one's good deeds outweigh the bad ones. Arguing that one was forced into the action.

A company that creates economic value by addressing societal needs and challenges is practicing: Corporate Social Performance (CSP). Creating Shared Value (CSV). Ethical Egoism. Moral Muteness.

The module suggests that the demands on businesses to be ethical are becoming more complex due to: Decreasing power of corporations. A reducing trust deficit in business. Increasing complexity and challenges from stakeholders. Fewer global supply chains.

The process by which unethical behavior becomes normalized within an organization through small, incremental steps is known as: Co-optation. Incrementalism. Moral Muteness. Social Weighting.

Postmodern ethics, associated with Zygmunt Bauman, emphasizes the importance of: Strict, universal moral codes. Rational calculation of consequences. An emotional 'moral impulse' and empathy for others. Following established organizational procedures.

Feminist Ethics (Ethics of Care) prioritizes: Abstract principles and impartiality. Empathy, relationships, and avoiding harm. Maximizing shareholder wealth. Strict adherence to legal contracts.

Milton Friedman's classic argument is that the social responsibility of business is to: Increase its profits while obeying the law. Address all social problems in its community. Balance the needs of all stakeholders equally. Donate a fixed percentage of profits to charity.

Utilitarianism, as proposed by Bentham and Mill, seeks to: Maximize the happiness of the decision-maker. Produce the greatest good for the greatest number of people. Fulfill one's duty regardless of the outcome. Develop a virtuous character within the organization.

The "Ethical Life Cycle Assessment" is a method used to determine: The cost-effectiveness of a product. A business's specific responsibilities for its product's impacts. The legal liability of a corporation. The marketing strategy for an ethical product.

According to the files, a "flourishing" business in the context of Virtue Ethics is one that: Maximizes short-term shareholder value. Achieves its purpose within a community of stakeholders. Obeys all laws and regulations. Donates the most money to charity.

The "difference principle" in Rawls's theory of justice states that social and economic inequalities are only justified if they: Benefit the wealthiest members of society. Are attached to positions open to all under fair equality of opportunity. Work to the benefit of the least advantaged members of society. Are approved by a majority vote.

The philosophical perspective on business ethics asks fundamental questions such as: How can ethics help us maximize profits?. What is the meaning of the economy for society?. What are the best tools for managing employee ethics?. How do we avoid government regulation?.

A manager who rationalizes unethical behavior by saying, "If I don't do it, someone else will," is using which rationalization tactic?. Denial of Responsibility. Denial of Injury. Appeal to Higher Loyalties. Social Weighting.

The concept that a corporation is an "artificial person" in the eyes of the law is most directly relevant to discussions about: Corporate Social Responsibility (CSR). Employee motivation. Supply chain management. Global marketing strategies.

Which ethical theory judges the morality of an action based solely on its consequences?. Deontology. Consequentialism. Virtue Ethics. Ethics of Rights.

A manager who makes a decision based on a "gut feeling" is likely relying on which perspective of ethical decision-making?. Rationalist Perspective. Intuitionist/Sentimentalist Perspective. Utilitarian Perspective. Deontological Perspective.

A key criticism of traditional ethical theories is that they can be too: Emotionally driven. Focused on relationships. Abstract and impersonal. Based on situational factors.

When managers avoid using moral language in their work, it is known as: Moral Framing. Moral Muteness. Ethical Egoism. Social Weighting.

According to Mitchell, Agle, and Wood, stakeholders are prioritized based on their possession of three attributes: Power, Legitimacy, and Urgency. Wealth, Influence, and Knowledge. Authority, Responsibility, and Accountability. Proximity, Impact, and Duration.

The principle that companies have a responsibility to respect human rights, even if they are not the direct cause of the abuse, is a key part of: The Friedman Doctrine. The Ruggie Principles. Act-Utilitarianism. Ethical Egoism.

The case of the "free drink" ethical dilemma primarily explores the conflict between: Personal friendship and professional responsibility. Short-term gains and long-term sustainability. Legal compliance and ethical obligation. Individual and organizational values.

John Rawls's theory of justice introduces the "veil of ignorance" to ensure that principles of justice are chosen: By the most knowledgeable members of society. Without knowing what position one will occupy in society. Based on the historical traditions of a society. To maximize the efficiency of the economic system.

Discourse ethics, as proposed by Habermas, determines the ethical legitimacy of an action based on: The emotional impulse of the decision-maker. The quality of communication and debate leading to consensus. The virtuous character of the CEO. The overall utility produced for shareholders.

The UN Sustainable Development Goals are an example of a global framework that directly relates to which key goal for business ethics?. Profit Maximization. Sustainability. Ethical Egoism. Deregulation.

In the VW emissions scandal case, the use of "defeat devices" could be analyzed using Jones's concept of "Moral Intensity." Which dimension was likely very high?. Temporal Immediacy. Concentration of Effect. Social Consensus (against fraud and pollution). Proximity (to the engineers who designed it).

The dimension of "Moral Intensity" that refers to the physical or psychological closeness to the victims of an act is called: Magnitude of Consequences. Social Consensus. Proximity. Temporal Immediacy.

Immanuel Kant's categorical imperative includes the formula that one should only act on maxims that: Produce the most pleasure for oneself. Can be universally applied without contradiction. Are approved by the company's legal department. Have been successful in the past.

The interactionist model of ethical decision-making (Trevino) emphasizes that behavior is a result of the interaction between: National and corporate culture. Individual and situational factors. Legal and ethical frameworks. Shareholders and stakeholders.

Virtue Ethics, drawing from Aristotle, emphasizes: The consequences of actions for the community. The development of excellent character traits. Adherence to a set of universal rules. The protection of individual rights.

In the context of globalisation, the process of "deterritorialisation" refers to: The reduction of trade barriers between countries. The spread of Western culture globally. Social and economic activities no longer requiring a shared territorial basis. The universalization of human rights.

Hofstede's cultural dimension of "Power Distance" refers to: The extent to which unequal power distribution is accepted. The degree to which individuals act for their own benefit. The preference for certainty and clear rules. The valuation of money over relationships.

A key criticism of some of McDonald's healthier menu items was that: They were only available in high-income countries. Some, like certain salads, contained more fat and calories than a hamburger. They were not advertised. They used genetically modified ingredients.

A primary "business reason" or example of "enlightened self-interest" for corporate social responsibility is to: Fulfill a moral duty to society. Forestall government legislation. Redistribute wealth to the poorest members of society. Promote a specific political agenda.

Virtue Ethics, with origins in Aristotle's work, emphasizes the importance of: Calculating the consequences of an action for the majority. Following universal moral rules. Developing excellent and durable character traits. Maximizing individual pleasure and minimizing pain.

In Asia, McDonald's has been criticized for: Completely ignoring local tastes. Using dedicated online kids' zones to target children with unhealthy food, a practice scaled back in the West. Having higher prices than local competitors. Not accepting mobile payments.

The "state of nature" in Social Contract Theory is a hypothetical scenario used to understand: The historical origins of capitalism. Why individuals agree to form societies and governments. The biological instincts of human beings. The best practices for environmental management.

The "difference principle" in John Rawls's theory of justice states that social and economic inequalities are only permissible if they: Benefit the wealthiest members of society. Are approved by a majority vote. Work to the greatest benefit of the least advantaged. Encourage intense competition.

The ethical approach that relies on communication and debate to reach a consensus on ethical norms is known as: Virtue Ethics. Discourse Ethics. Ethical Egoism. Postmodern Ethics.

In the "free drink" ethical dilemma, the central conflict involves: Environmental pollution. Intellectual property theft. A personal friendship versus professional responsibility. International trade laws.

McDonald's "Track my Macca's" app in Australia allowed consumers to: Order and pay for food in advance. Track the delivery driver's location. Scan a burger's container to discover its source and processing location. Earn loyalty points for exercise.

Postmodern ethics, associated with Zygmunt Bauman, locates morality in: Strict adherence to religious texts. An emotional 'moral impulse' towards others. A rational calculation of costs and benefits. The legal system.

Utilitarianism is a consequentialist theory that judges an action as morally right if it: Obeys a universal moral law. Develops virtuous character in the actor. Results in the greatest good for the greatest number of people. Maximizes the decision-maker's self-interest.

The PETA "McCruelty" campaign against McDonald's was primarily focused on the issue of: Low wages for restaurant workers. Animal suffering in the company's supply chain. The environmental impact of its packaging. The use of hormones in beef production.

The view that no single ethical theory is the best, but that all can shed light on a moral dilemma from different angles, is known as: Ethical Absolutism. Ethical Relativism. Pluralism. Ethical Egoism.

A company that focuses its ethics management solely on legal compliance is said to have a: Values orientation. Compliance orientation. Protection orientation. External orientation.

A major challenge for McDonald's in Asia, as identified in the case study, is: A complete lack of brand recognition. Lower rates of obesity compared to the West. Replicating the same level of health information transparency as in Western markets. Stronger advertising regulations than in North America.

The McLibel case against McDonald's resulted in a ruling that the activists had proven several claims, including that the company: Was directly responsible for government corruption. Exploited children with its advertising and was culpably responsible for animal cruelty. Held a monopoly in the fast-food industry. Engaged in intentional accounting fraud.

The "Cultural Web" is a model used to analyze and shape: Global marketing campaigns. National cultural dimensions. Organizational culture. Stakeholder power dynamics.

The ethical theory that judges an action based on the actor's intention and duty, rather than its consequences, is: Consequentialism. Deontology. Virtue Ethics. Ethical Egoism.

Milton Friedman's central argument is that the social responsibility of business is to: Balance the needs of all stakeholders equally. Increase its profits while conforming to the basic rules of society. Donate a significant portion of its earnings to charity. Act as a moral agent for social change.

Social accounting is defined as the voluntary process of assessing and communicating an organization's social, ethical, and environmental impacts to its: Shareholders only. Government regulators. Stakeholders. Board of directors.

According to ISO 26000, corporate responsibility is defined as the responsibility of an organization for the impacts of its decisions and activities on society and the environment, exercised through: Maximizing shareholder returns. Transparent and ethical behavior. Aggressive market expansion. Lobbying against government regulation.

The view that ethics is a crucial factor for business success, creating a potential win-win situation, is known as the: Philosophical Perspective. Instrumental Perspective. Deontological Perspective. Critical Perspective.

A corporate code of ethics is best defined as a: Legally binding contract with employees. Government-mandated set of regulations. Voluntary statement committing an organization to specific beliefs, values, and actions. Financial reporting standard.

A key finding in the McLibel case was that McDonald's was "strongly antipathetic" to: Technological innovation. Unions. Local sourcing of ingredients. Franchisee autonomy.

The UN Global Compact is an example of: A binding international treaty on corporate taxation. A global code of ethics that defines minimum standards for businesses. A consumer boycott organization. A mandatory environmental reporting framework.

A company that prioritizes building long-term, mutually supportive relationships with its stakeholders is aligning most closely with which ethical theory?. Ethical Egoism. Virtue Ethics. Kantian Deontology. Utilitarianism.

McDonald's response to health criticisms included introducing healthier options and which of the following broader initiatives?. Lobbying for lower food safety standards. Launching sports and exercise programmes under the theme of "balanced lifestyles". Reducing the wages of its employees to fund marketing. Eliminating all advertising.

The ethical decision-making perspective that considers the role of quick moral intuitions and emotions is known as the: Rationalist perspective. Intuitionist/Sentimentalist perspective. Utilitarian perspective. Deontological perspective.

The concept of "deterritorialisation" in the context of globalisation refers to: The reduction of trade barriers between countries. The spread of Western culture globally. The diminishing necessity of a shared territorial basis for social and economic activities. The universalization of human rights.

According to stakeholder theory, a stakeholder is any group or individual who can: Vote in corporate elections. Affect or is affected by the achievement of the organization's objectives. Own shares in the corporation. Work as a senior manager in the organization.

The "veil of ignorance," a thought experiment proposed by John Rawls, is designed to help determine principles of: Utility maximization. Justice and fairness. Virtuous character. Corporate governance.

The concept of "Corporate Accountability" is most closely linked to an organization being answerable for its actions, which requires a high degree of: Profitability. Secrecy. Transparency. Market Share.

McDonald's introduction of the "McVegan" burger and sustainably sourced coffee are examples of the company responding to criticisms related to: Labor unions and wages. Marketing to children. Environmental and ethical sourcing. The high cost of its products.

Carroll's four-part model of corporate social responsibility places which responsibility as the foundational layer?. Ethical Responsibilities. Legal Responsibilities. Philanthropic Responsibilities. Economic Responsibilities.

The "Ethical Life Cycle Assessment" is a method used to determine a business's specific responsibilities by examining the impacts of a product: Only during its manufacturing phase. From sourcing through production, distribution, use, and disposal. Solely based on its profitability. In comparison to its direct competitors.

Act-Utilitarianism differs from Rule-Utilitarianism in that it focuses on: The moral character of the individual. The intentions behind an action. The consequences of a single action. Universal moral duties.

The ethical perspective that encourages individuals to question everyday practices and follow their emotions or 'gut feelings' is: Kantian Ethics. Postmodern Ethics. Utilitarianism. Discourse Ethics.

The concept that corporations are "artificial persons" in the eyes of the law has significant implications for debates about: Product design and innovation. Corporate moral responsibility. Employee training programmes. International currency exchange.

The "Our Food. Your Questions" campaign allowed consumers to directly: Order custom-made menu items. Submit questions about McDonald's food to be answered publicly. Complain about slow service for a discount. Apply for franchising opportunities.

An effective code of ethics requires not just how it is written, but also how it is: Marketed to consumers. Supported and enforced. Used to lobby governments. Translated into other languages.

The ethical approach that prioritizes empathy, harmonious relationships, and care for one another over abstract principles is known as: Utilitarianism. Feminist Ethics (Ethics of Care). Kantian Deontology. Ethical Egoism.

John Locke's theory of natural rights includes the rights to: Life, freedom, and property. Universal healthcare and education. Maximum profit and market dominance. Privacy and data security.

The triple bottom line framework for reporting organizational success expands traditional metrics to include which three areas?. Product, Price, Promotion. People, Planet, Profit. Ethics, Law, Philanthropy. Sales, Growth, Market Share.

The "agency problem" in corporate governance refers to a potential conflict between: Customers and suppliers. The short-term interests of shareholders and the long-term interests of managers and other stakeholders. Different ethical theories. National and organizational cultures.

A flourishing business, in the context of Virtue Ethics, is one that: Maximizes its quarterly dividends. Achieves its purpose within a community of stakeholders. Has the lowest production costs in its industry. Avoids all negative media attention.

Immanuel Kant's categorical imperative includes the formula that one should never treat people simply as a means to an end, but always simultaneously as: A cost to be minimized. An end in themselves. A resource to be managed. A competitor to be beaten.

The concept of "Creating Shared Value" (CSV) posits that businesses should: Focus solely on maximizing shareholder value. Create economic value in a way that also creates value for society by addressing its needs. Outsource all social responsibilities to government and NGOs. Use philanthropy to offset unethical core business practices.

When operating across different cultures, it is suggested that multinational enterprises should be guided by respect for core human values, respect for local traditions, and: The belief that home country laws always take precedence. The need to maximize profits in every market. The belief that context matters when deciding right and wrong. A strict adherence to head office ethical codes without exception.

A company that only acts socially responsible when forced by public pressure or regulation is employing which strategy of social responsiveness?. Proactive. Accommodative. Defensive. Reactive.

The two pillars of ethical leadership are being both a moral person and a: Strategic visionary. Moral manager. Financial expert. Public speaker.