Business Ethics Exam 1

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Principles are

specific and pervasive boundaries for behavior that are universal and absolute

Social responsibility

an organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholder’s

The __________ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000’s.

Sarbanes-Oxley Act

The term business ethics is best described by the following statement:

It comprises the principles, values, and standards that guide behavior in the world of business.

Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumer’s Bill of Rights"?

The right to be ethical

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

Federal Sentencing Guidelines for Organizations

Business ethics, as a field, has passed through which of the following states?

Theological discussion to recognition of social issues to a field of study

The 1960’s saw a rise of consumerism. What consumerism?

Activities undertaken by independent individuals, and groups to protect their rights as consumers.

Ethics is a part of decision making

at all levels of work and management

Which of the following was developed in the 1980’s to guide corporate support for ethical conduct by established a method for discussing best practices?

Defense Industry Initiative on Business Ethics and Conduct

The _____________ focus(es) on firms taking actions to prevent and detect business misconduct in cooperation with government regulation.

Federal Sentencing Guidelines for Organization

The study of business ethics is important to better understand all of the following except

that business ethics is entirely an extension of an individual’s own personal ethics

According to the rule of ethical culture in performance, all of these are drivers of profit except

opportunity for misconduct

More than a compliance program, business ethics is becoming

a management issue to achieve competitive advantage

Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has

limited business experience

One of the major ethical issues President Obama’s administration focused on was

health care and consumer protection

Which of the following is generally not considered a business ethic issue?

Type of government

Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?

Sarbanes-Oxley Act

The Foreign Corrupt Practices Act outlawed

bribery of officials in other countries

Which of the following was not a provision of the Sarbanes-Oxley Act?

It outlawed bribery of officials in other countries

Because of Sarbanes-Oxley, publicly traded companies must develop __________ to assist in maintaining transparency in financial reporting.

code of ethics

__________ is essential in building long-term relationships between businesses and consumers.

Trust

The Dodd-Frank Wall Street Reform and Consumer Protection Act

was designed to make the financial services industry more responsible.

In the Reagan/Bush eras, the major focus of the business world was on

self-regulation rather than regulation by government.

The six principles of Defense Industry Initiative on Business Ethics and Conduct became the foundation for

the Federal Sentencing Guidelines for Organizations.

Ethical culture is defines as

the character of the decision-making process that employees use to determine whether their responses to ethical issues are right or wrong based on values and norms.

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by

codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct.

Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct?

United States Sentencing Commission

Most organizations with strong ethical climates usually focus on the core value of placing _____

customers’

Which of the following is not something a firm might do to encourage organizational ethics and compliance?

Ignoring potential ethical issues

Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?

They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties.

Which of the following is not one of the benefits of being ethical and socially responsible in business?

A high degree of employee discount

Employees’ perceptions of their firm as having an ethical climate leads to

enhanced performance

Employees fell less pressure to compromise ethically, observe less misconduct are more satisfied with their organizations, and feel more valued when

they see honesty, respect, and trust applied in the workplace

Investors are concerned about business ethics because they know that misconduct can

lower stock value and prices.

Stakeholders’ power over businesses stems from their

ability to withdraw or withhold resources

Those who have a claim in some aspect of a firm’s products, operations, markets, industry, and outcomes are known as

stakeholders

Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

Secondary stakeholders

A firm that makes use of a ___ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between firm’s internal and external environments.

stakeholders interaction model

The degree to which a firm understands and addresses stakeholder demands can be referred to as

a stakeholder orientation

Which of the following industries tends to generate a high level of trust from consumers and stakeholders?

Technology

Which of the following is not a benefit that primary stakeholders tend to provide to organizations?

Pro-bono bookeeping

A stakeholder group that is absolutely necessary for a firm’s survival is defined as

primary

When unethical acts are discovered in a firm, in most instances

there was knowing cooperation or complicity from within the company

Which of the following is not a method typically employed by firms when researching relevant stakeholder group?

Guessing

A stakeholder orientation can be viewed as a(n)

continuum

Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?

Material resources and/or intangible knowledge

Which of the following is not associated with the stakeholder interaction model?

Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders.

The first of the three activities that are associated with the stakeholder orientation is the

organization-wide generation of data

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

Community

Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?

Environmental groups

The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with

Milton Friedman

The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was

Adam Smith

Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory are they following most closely with this belief?

Milton Friedman

_____ argued that, although profits are required for business, profit is not the primary purpose of business.

Theodore Levitt

Who argued that when a business also cares about the well-being of stakeholders, it earns trust and cooperation that ultimately reduce costs and increase productivity?

Norman Bowie

Enlightened capitalism is associated with which individual?

Adam Smith

A description of corporate social responsibility should include a list of all of the following except

environmentally friendly activities

In ascending order, Caroll’s four levels of social responsibility are

economic, legal, ethical, philanthropic.

Which ISO guideline was established as a corporate responsibility regulation that is meant to encourage discussions on the role of social responsibility and the importance of stakeholders?

ISO 26000

Which ISO guideline pertains to environmental regulation standards and was designed to help reduce a firm’s pollution, waste, and carbon footprint?

ISO 14000

The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is

corporate citizenship

Which economist espoused a kind of Darwinian or "wild west" version of capitalism?

Milton Friedman

In corporate governance, _____ is the process of auditing and improving organizational decisions and actions.

control

Accountability, oversight, and control all fall under the definition and implementation of corporate

governance

Major corporate governance issues normally involve _____ decisions. (Choose the response that is most correct)

strategic-level

Which of the following is a major concern among corporate boards of directors?

Compensation

Why were the International Organization for Standardization (ISO) 26000 guidelines established?

To promote a common understanding in the area of social responsibility.

One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _____

managers should earn no more than twenty times the pay of other employees.

The specific steps for implementing the stakeholder perspective do not include which of the following?

Identifying and gaining government feedback

What are the four levels of social responsibility?

Legal, economic, ethical, and philanthropic

The _____ model is founded in classic economic precepts.

shareholder

Which of the following are not typically secondary stakeholders?

Customers

Which of the following are not typically primary stakeholders?

Trade associations

Why do critics argue that high compensation for boards of directors is a bad thing?

It could cause conflicts of interest between the directors and the organization

Board members being linked to more than one company is an example of

interlocking directorate.

What is the first step in implementing a stakeholder perspective in an organization?

Assessing the corporate culture

A stakeholder orientation is not complete unless it includes

activities that actually address stakeholder issues.

An ethical issue is a problem, situation, or opportunity

Requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

Ethical issues in business typically arise because of conflicts between individuals’ personal moral philosophies and values and the

Values and attitudes of the organization in which they work and the society in which they live.

_____ is an important element of virtue and means being whole, sound, and in unimpaired condition.

Integrity

A court found an oil company guilty of placing profits over the safety and well-being of its employees. This situation can be classified as

An ethical issue

A person uncomfortable with his employer’s unspoken policy of hiring only white men is experiencing

An ethical issue.

Issues related to fairness and honesty may arise because business is sometimes regarded as a

Game governed by its own rules rather than those of society.

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because

It may foster the idea that honesty is unnecessary in business.

Conflicts of interest exist when employees must choose whether to

Advance their own personal interests, those of the organization, or those of some other group.

_____ is the offering of something of value in order to gain an illicit advantage

Bribery

Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?

Intellectual property rights

_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.

Fraud

In marketing communications, lying causes predicaments for companies because it destroys

Trust.

When a commercial states that a product is superior to any other on the market, the marketer risks accusations of

Puffery.

Optimization is defined as

A trade-off between equity and efficiency

Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?

Misuse of company resources

An activity is probably ethical if it

Is approved of by most individuals in the organization and is customary in the industry

The first step toward understanding business ethics is to

Develop ethical-issue awareness.

Among retail stores, _____ is a larger problem than customer shoplifting.

Internal employee theft

The ethical decision-making process begins

When stakeholders trigger ethical issue awareness and individuals openly discuss it with others.

Which of the following is not a side-effect of being the victim of workplace bullying?

Increased productivity

Accountants must abide by a strict code of ethics that defines their responsibilities to

Their clients and the public interest.

Which of the following statements is most correct?

Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.

Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred?

Is your boss treating you well and compensating you adequately?

_____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.

Bullying

Which of the following is not a consequence of ethical misconduct?

Increased sales

The Kyoto Protocol is an international treaty committed to

Lowering greenhouse gas emissions.

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people

Who are between 49-69?

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?

Performance probation

The _____ makes it illegal for individuals, firms, or third parties doing business in American markets to "make payments to foreign government officials to assist in obtaining or retaining business."

U.S. Foreign Corrupt Practices Act (FCPA)

Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of

Noise.

_____ involves tricking individuals into revealing their passwords or other valuable corporate information.

Social engineering

When Devon looked at what another employee was typing in order to get a password, he committed

Shoulder surfing.

A company can be sued for discrimination if it

Uses age as a hiring or firing criterion.

Affirmative action programs

Involve the recruitment, hiring, promotion, and training of qualified individuals.

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

Duplicity

What type of fraudulent activity involves an employee who assists a consumer in fraud?

Collusion

Prior to the 2008 financial meltdown, bond ratings agencies were accused of having _____ because they were paid by the organizations that they rated. The organizations would shop around for the agency that gave them the best rating.

Conflicts of interest

_____ are used to obtain or retain business and are not generally considered illegal in the U.S.
a. Facilitation payments

Facilitation payments

Which of the following is not an aspect of the institutionalization of social responsibility?

Familial responsibilities

Which of the following acts can be classified as procompetitive legislation?

Sherman Antitrust Act of 1890

Which of the following acts exempted the insurance industry from antitrust legislation?

McCarran-Ferguson Act of 1944

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair’s The Jungle, was the first consumer protection legislation?

Pure Food and Drug Act of 1906

The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes.

Consumer Financial Protection Agency

Which of the following is not a provision of the Sarbanes-Oxley Act?

Discourages the creation of ethical and legal compliance programs

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?

The competitive dimension

The _____ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.

The Food and Drug Administration

Which of the following groups is not a group that receives special legal protections?

The highly educated

The _____ was called "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression."

Dodd-Frank Wall Street Reform and Consumer Protection Act

_____ law defines the rights and duties of individuals and organizations (including businesses).

Civil

_____ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.

Criminal

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Creates an organization to pay the bills of low-income consumers

_____ ties giving to a business’ overall strategy and objectives.

Strategic philanthropy

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

Free samples.

Which is not one of the four sources of criminal and civil laws?

Judicial law

The _____ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."

Consumer Financial Protection Agency

The primary objective of U.S. antitrust laws is to

Distinguish competitive strategies that enhance consumer welfare from those that reduce it.

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

Because the large size creates economies of scale and they can charge lower prices

_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual’s morals.

Core practices

Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?

Comply with ISO 14000 guidelines

The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.

Public Company Accounting Oversight Board

_____ responsibilities relate to a business’s contributions to stakeholders.

Voluntary

Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.

Federal Sentencing Guidelines for Organizations

Donation of computer equipment to schools by Toshiba would be associated with _____ responsibilities.

Voluntary

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate

Conflicts of interest.

Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?

Improve employee compensation and retention

Companies that _____ will most likely be found in violation of procompetitive legislation.

establish monopolies

_____ tie(s) an organization’s product(s) directly to a social concern through a marketing program.

Cause-related marketing

Title VII of the Civil Rights Act of 1964

Prohibits discrimination on the basis of race, color, sex, religion, or national origin.

Cause related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.

buying patterns

Who provides information to managers, investors, tax authorities, and other stakeholders who make resource allocation decisions for corporations?

Accountants

The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.

institutionalization

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?

Institutionalization of ethics is now mandated for all organizations by governments around the world

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates

Cooperation

Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except

Most analysts were completely untrained and unprepared to do their jobs.

Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation

Is excessively complex and financially burdensome.

An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except

Employee compensation

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?

Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as

Any practice is permitted that does not substantially reduce competition and harm consumers or society.

Which of the following is the first step in the ethical decision making process?

Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong

Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue?

Educational attainment

The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control.

coercive

The perceived relevance or importance of an ethical issue to the individual, work group, or organization is

ethical issue intensity

Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _____.

internal pressures and ambiguity surrounding internal organizational rules.

According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.

opportunity

_____ have been found to decrease unethical practices and increase positive work behavior

Good personal values

_____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.

Obedience to authority

Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent.

organizational or social forces

A coaching leader builds a positive climate by

developing skills for success, delegating responsibility, and issuing challenging assignments.

If management fails to identify and educate employees about ethical problem areas, ethical issues may not reach the critical

awareness level.

The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization.

corporate culture

Which of the following would not be considered a negative reinforcement of employee behavior?

Ignoring the behavior

Codes, rules, and compliance are essential in organizations. However, an organization built on _____ is more likely to develop a high integrity corporate culture.

informal relationships

Which of the following types of leaders attempts to create employee satisfaction through bartering or negotiating for desired behaviors or level of performance?

Transactional leaders

Following the ethical directives of a superior relates to

obedience to authority.

Which of the following is not a habit of ethical leaders?

They are primarily concerned with themselves.

Which of the following leadership types has a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation?

Transformational leaders

Which of the following is not considered a significant other group in the workplace?

Spouses

Studies have shown that _____ within the organization have more impact on a worker’s decisions on a daily basis than any other factor.

significant others

External and internal rewards relate to which part of the ethical decision-making framework?

Opportunity

Which of the following is not a major trend in business today?

More isolationist businesses

Which of the following is not an issue that helps in business ethics evaluations and decisions?

Personal guilt

_____ is the first sign that an unethical decision has occurred.

Guilt

People who believe in _____, go with the flow because they feel the events in their lives are uncontrollable.

external locus of control

Which of the following is not an individual factor that affects business ethics?

Significant others

_____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.

Organizational culture

Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?

Affiliative leadership

An ethical corporate culture needs _____ along with _____ to establish an ethics program and monitor the complex ethical decisions being made by employees .

shared values; proper oversight

Those who have influence in a work group are referred to as significant others and include

peers, managers, coworkers, and subordinates.

Sherry’s leadership style often creates a negative working climate because of the high standards she sets. Sherry is most likely a(n) _____ leader.

pacesetting

_____ are a primary influence on employee’s ethical behavior because they are role models for the organization’s values.

Leaders

As one of the seven habits of strong ethical leaders, _____ is "the glue that holds ethical concepts together." This trait can be developed early in life or developed over time through experience.

the passion to do right

The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative.

pacesetting

Research concerning nationality and the ability to make ethical decisions

is hard to interpret in a business context because of cultural differences.

The relationship between business ethics and age

is complex, although experience helps older employees make ethical decisions.

Employees that see themselves as going with the flow because that’s all they can do have a(n)

external locus of control.

The _____ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics.

leadership style

For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?

This is in keeping with my personal morals and the code of conduct, so it is okay

Ethical leadership should be based on

holistic thinking that embraces the complex issues facing firms every day.

A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is

to teach individuals intellectual skills that address the complexities of ethical issues in business.

Strong ethical leaders have a passion for all of the following except to

satisfy shareholders before other stakeholder groups.

Leaders whose decisions and actions are contrary to the firm’s values send a signal

that the firm’s values are trivial or irrelevant.

Which attribute of ethical leaders will not be effective unless the leader is personally involved in the organization’s key ethical decisions?

Transparency

Which type of leader relies on participation and teamwork to reach collaborative decisions?

Democratic

What is not a necessity for strong ethical leaders to make good decisions?

The ability to coerce subordinates

Moral philosophy refers to

the principles or rules that people use to decide what is right and wrong.

Which moral philosophy evaluates the morality of an action on the basis of its consequences for everyone affected (seeks the greatest good for the greatest number)?

Utilitarianism

Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result?

Teleology

Which moral philosophy focuses on the rights of individuals and on the intentions associated with a particular behavior, rather than its consequences?

Deontology

_____ are person-specific, whereas _____ are based on decisions made by groups or when carrying out tasks to meet business objectives.

Moral philosophies; business ethics

According to Kohlberg’s model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she

may change his/her values and ethical behavior

An individual who defines what is right by considering his/her duty to society, not just to other specific people, is in which of Kohlberg’s stages of cognitive moral development?

Social system and conscience maintenance

Which is the last of Kohlberg’s stages of cognitive moral development?

Universal ethical principles

A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)

relativist

Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights?

Rule deontology

_____ is considered the father of free market capitalism. He believed that business was and should be guided by the morals of good men.

Adam Smith

_____ believe that no one thing is intrinsically good.

Pluralists

Kant’s categorical imperative and the Golden Rule are examples of which moral philosophy?

Deontology

A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a(n) _____ because he believes in the rights of all individuals.

deontologist

Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually?

Rule utilitarianism

Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the action, with rules serving as guidelines in the decision-making process?

Act deontology

Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?

The relativist perspective

Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives?

The relativist perspective

_____ typically focuses on the end result of actions and happiness created by them, whereas _____ emphasizes the means and motives by which actions are justified.

A goodness theory; an obligation theory

An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)

relativist.

Enlightened egoism

centers on one’s long-term self-interest but takes others’ well-being into account

Which moral philosophy is based on the premise that equal respect must be given to all persons?

Deontology

_____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.

Relativists

_____ justice is based on the evaluation of outcomes or results of the business relationship.

Distributive

Kohlberg’s six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level

define right as that which conforms to the expectations of good behavior of the larger society.

_____ argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate.

Virtue ethics

When a person defines right and wrong on the basis of legal contracts, he or she is using which of Kohlberg’s stages of development?

Prior rights, social contract, or utility (5th stage)

_____ deals with the issue of what individuals feel they are due based on their rights and performance in the workplace, and therefore is more likely to be based on deontological moral philosophies than on teleological or utilitarian ones.

Justice

A central problem with virtue ethics is

that it emphasizes people’s differences, not similarities.

Which is not considered a white collar crime?

Mugging someone

An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg’s stages of development?

Mutual interpersonal expectations, relationships, and conformity (3rd stage)

Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint?

Utilitarianism

In Kohlberg’s model, the stage of mutual interpersonal expectations, relationships, and conformity (Stage 3) differs from the stage of individual instrumental purpose and exchange (Stage 2) in terms of the individual’s motives in

considering fairness to others.

The elements of _____ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness.

virtue

_____ justice considers the processes and activities that produce the outcome or results.

Procedural

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