Business Ethics
Pre-Test Questions
Course Introduction
Business Ethics explores the moral principles and standards that guide behavior in the world of business. The course examines critical issues such as corporate social responsibility, ethical decision-making, stakeholder management, and the impact of globalization on ethical practices. Students will analyze real-world cases, ethical dilemmas, and frameworks used to resolve conflicts in various business contexts. Through discussions and assignments, the course aims to develop students' ability to identify ethical challenges, apply ethical reasoning, and foster a culture of integrity and accountability within organizations.
Recommended Textbook
Business and Society Ethics Sustainability and Stakeholder Management 10th Edition by Carroll
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Page 2
Chapter 1: The Business and Society Relationship
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Sample Questions
Q1) CEOs such as Virginia Rometty of IBM or Tim Cook of Apple hold which level of power?
A) macro
B) micro
C) individual
D) intermediate
Answer: C
Q2) Business interacts with only a limited number of stakeholder groups.
A)True
B)False
Answer: False
Q3) Which of the following is not a weakness of pluralism?
A) prevention of concentrations of power
B) pursuit of self-interest
C) overlapping goals, causing confusion about which groups best serve particular interests
D) emphasis on conflict
Answer: A
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Page 3
Chapter 2: Corporate Social Responsibility, Citizenship, and Sustainability
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Sample Questions
Q1) Corporate social responsiveness is focused on the action phase of management response to social demands.
A)True
B)False
Answer: True
Q2) The ____ portrays the concurrent fulfillment of the firm's economic, legal, ethical and philanthropic responsibilities
A) Pyramid of Corporate Social Responsibility
B) Corporate Citizenship concepts
C) Social Response Cycle
D) None of these
Answer: A
Q3) The socially responsible firm should strive to do all of the following EXCEPT
A) Make a profit
B) obey the preferred laws
C) Be ethical
D) Be a good corporate citizen
Answer: B
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Chapter 3: The Stakeholder Approach to Business, Society, and Ethics
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Sample Questions
Q1) Considering the textbook example of Switzerland scientists, and looking at the examples of primary and secondary social and nonsocial stakeholder, distinguish between social and nonsocial stakeholders. Does your definition of the difference seem useful to you? Why or why not?
Answer: The lists of social stakeholders appear to include only humans or groups of humans that are concerned about human welfare. On the other hand, the lists of nonsocial stakeholders show nonhuman species, future generations (i.e., humans who do not yet exist), general concepts, such as the natural environment, or human groups who represent these interests. Thus, the distinction appears to be whether the stakeholder is human or not. Although this may be a convenient dichotomy, there are several problems with it. For one, the line between human and nonhuman is already blurred by the inclusion of future generations in the nonsocial category. Those babies will be human--they just aren't here yet. Second, a sizeable group of humans view us as only equal to, but not more important than, other species. Categorization of social and nonsocial stakeholders denies this viewpoint.
Q2) The key to effective stakeholder management is in its implementation.
A)True
B)False
Answer: True
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Chapter 4: Corporate Governance: Foundational Issues
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Sample Questions
Q1) Why are inside directors seen as problematic in corporate governance?
Q2) Wages have grown faster than CEO salaries over the past decade.
A)True
B)False
Q3) Compensation recovery mechanisms that enable a company to recoup compensation funds is called ____.
A) proxy process.
B) risk arbitrage.
C) golden parachutes.
D) clawback provisions.
Q4) Although initially, companies did not object to the compliance costs of Sarbanes-Oxley, after 10 years experience with the law, they now object strenuously
A)True
B)False
Q5) Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.
A)True
B)False
Q6) Explain Harry Markopolos' opinion regarding the SEC.
Page 6
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Chapter 5: Strategic Management and Corporate Public Affairs
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Sample Questions
Q1) Which is not a step of strategic management?
A) strategy evolution
B) environmental analysis
C) strategic control
D) brand management
Q2) Why would a firm elect to perform a sustainability report, when it is not required? What benefits can accrue from a sustainability report?
Q3) Public Affairs activities and functions include all of these EXCEPT:
A) community relations
B) public relations
C) public advertising
D) government affairs
Q4) Explain the relationship of ethics to strategic management.
Q5) For the public affairs function to be effective in representing issues affecting business decision making, they should have influence at the middle management level.
A)True
B)False
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Q6) Compare the public affairs office of today with its predecessor from twenty years ago.
Chapter 6: Risk, Issue, and Crisis Management
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Sample Questions
Q1) The most dramatic growth in importance of issues has been in ____ issues.
A) financial
B) social, ethical, and political
C) practical
D) military
Q2) Discuss some of the relevant considerations when forming a crisis team.
Q3) From a managerial point of view, a crisis is common in business.
A)True
B)False
Q4) An issue is a gap between what stakeholders expect and what the firm is doing.
A)True
B)False
Q5) Planning aspects of the issues management process include all of the following except
A) identification.
B) analysis.
C) ranking.
D) monitoring.
Q6) Discuss what personal stakes managers might have in issues definition.
Q7) Describe the issues development process.
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Chapter 7: Business Ethics Essentials
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Sample Questions
Q1) The ethical management model that conforms to high standards of behavior or professional standards of conduct is
A) immoral management.
B) semi-moral management.
C) moral management.
D) amoral management.
Q2) Managers who simply fail to consider moral questions when making business decisions use the
A) immoral management model.
B) moral management model.
C) intentional amoral management model.
D) unintentional amoral management model.
Q3) Powers and Vogel have suggested that there are six major elements or capacities that are essential to making moral judgments: (1) moral imagination, (2) moral identification and ordering, (3) moral evaluation, (4) tolerance of moral disagreement and ambiguity, (5) integration of managerial and moral competence, and (6) a sense of moral obligation. What is the link of each of these to personal and organizational ethics?
Q4) Describe and evaluate the "what is?" ethics question.
Q5) What is the distinction that the textbook draws between ethics and morality?
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Chapter 8: Managerial and Organizational Ethics
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Sample Questions
Q1) One of the most powerful ethical tests is the test of A) one's best self.
B) making something public.
C) ventilation.
D) the purified idea.
Q2) Utilitarianism can be summarized by the saying "the greatest good for the greatest number."
A)True
B)False
Q3) The personal level of ethical challenges include situations we face in our personal lives
A) at work.
B) and in our families.
C) outside of the work context.
D) and spiritual lives.
Q4) Kant's categorical imperative emphasizes all of the following concepts except A) respect for persons.
B) virtues.
C) universalizability.
D) duty.
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Chapter 9: Business Ethics and Technology
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Sample Questions
Q1) Genetic profiling, which provides a perfect means for identifying a person, raises questions of privacy and possible discrimination.
A)True
B)False
Q2) All of the following are commandments of computer ethics except
A) Thou shalt not use the company's computer for personal business.
B) Thou shalt not snoop around in other people's computer files.
C) Thou shalt not copy or use proprietary software for which you have not paid.
D) Thou shalt not appropriate other people's intellectual output.
Q3) "Big Data" is:
A) the world's largest super computer.
B) Google's data store.
C) the largest size hard drive that can hold data.
D) data proliferation and overload.
Q4) Technology is
A) the scientific method used in achieving a practical purpose.
B) the science of replacing human effort with mechanical power.
C) used primarily in the computer field.
D) the opposite of art.
Q5) Evaluate the use of GPS to monitor the activities and locales of employees.
Page 11
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Chapter 10: Ethical Issues in the Global Arena
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Sample Questions
Q1) Transparency International has sought to fight world corruption. Reflect on the meaning of their five priorities and two principles.
Q2) Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to help protect their citizenry.
A)True
B)False
Q3) According to Transparency International's Corruption Perception Index (CPI), underdeveloped countries typically rank low in corruption.
A)True
B)False
Q4) Peter Drucker has labeled the expanded global marketplace the A) moral free space.
B) hypercompetitive economy.
C) transnational economy.
D) multinational competitive sphere.
Q5) Corruption, at its core, is essentially an abuse of power.
A)True
B)False
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Chapter 11: Business, Government, and Regulation
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Sample Questions
Q1) Which of the following is not a role increasing government's complex relationship with business?
A) government is a major purchaser.
B) government can elevate some businesses while devaluing others.
C) government cannot have buying power
D) government can create new businesses through subsidization.
Q2) Compare and contrast economic regulation and social regulation.
Q3) Discuss the likelihood that the United States can develop a planned, successful industrial policy.
Q4) Which of the following is not a method that government uses to influence business?
A) lobbying
B) taxation
C) regulation
D) industrial policy
Q5) After the 1950s, most Congressional legislation that affected business was
A) economic in nature.
B) concerned largely with the quality of life.
C) supportive of business.
D) aimed at promoting competition.
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Chapter 12: Business Influence on Government and Public Policy
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Sample Questions
Q1) The power of businesses to drive the political agenda in Washington, D.C. is now
A) subject to special interests.
B) virtually unchecked.
C) largely impeded.
D) in government's interest.
Q2) The Business Roundtable is an association of
A) Fortune 500 companies.
B) CEOs of leading companies.
C) leading consulting firms.
D) human resource executives.
Q3) To be effective, grassroots lobbying must be genuine.
A)True
B)False
Q4) Political accountability is:
A) arguing against corporate political spending.
B) making direct financial contributions.
C) raising unlimited amounts of money to support a political candidate.
D) responsibility for political actions and a willingness to answer for them.
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Q5) Why might PACs lose their effectiveness?
Q6) What's the danger of a company not being able to define a public issue.
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Page 15
Chapter 13: Consumer Stakeholders: Information Issues
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Sample Questions
Q1) The origin of consumer activism can be traced back to the late 1700s, to the Boston Tea Party.
A)True
B)False
Q2) Information that is direct and straightforward, that is not deceptive or manipulative is
A) clear.
B) concise.
C) convincing.
D) creative.
Q3) Describe the ways in which the Internet has facilitated the consumer movement.
Q4) The most recent trend in sex-appeal advertising campaigns is:
A) to target the Christian right.
B) to target feminists.
C) to target sex workers.
D) to target younger and younger girls.
Q5) What role do you think the Warranty Act should play in new extended warranty scams.
Q6) Why is the role of business's social responsibility so central to the question of advertising?
Page 16
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Chapter 14: Consumer Stakeholders: Product and Service Issues
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Sample Questions
Q1) A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to
A) strict liability.
B) absolute liability.
C) relative liability.
D) market share liability.
Q2) Reasons to be concerned about product liability include all of the following except A) the sheer number of cases.
B) the number of trial attorneys being licensed.
C) the propensity of people to sue when they are unhappy.
D) the growing size of financial awards.
Q3) The Food and Drug Administration regulates all of the following except A) food.
B) drugs.
C) cosmetics.
D) personal care products.
Q4) What main issues hurt Takata when the public learned of its recalls of defective airbags? What does this illustrate?
Page 17
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Chapter 15: Sustainability and the Natural Environment
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Sample Questions
Q1) Describe the ethics of the solution that some businesses have for hazardous wastes - transporting and dumping them elsewhere, legally or illegally.
Q2) Which of the following adds to soil erosion problems and is a major cause of the greenhouse effect?
A) ozone depletion
B) carbons
C) deforestation
D) sustainability
Q3) Which of the following is not a problem central to the toxic substances issue?
A) not being aware of the effects
B) the need for daily reports to the EPA
C) population increase
D) toxic substances can be associated with industrial accidents
Q4) Which of the following is not a CERES principle?
A) protection of the biosphere
B) sustainable use of natural resources
C) reduction of waste
D) cooperation with business and government
Q5) What are the likely effects of degraded marine environments?
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Chapter 16: Business and Community Stakeholders
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Sample Questions
Q1) Which of the following is a reason that businesses give to arts programs?
A) to improve quality of community life
B) to improve academic performance for students
C) to create a vibrant community
D) All of these.
Q2) According to Braithwaite, advice for communicating with employees who are being lad off include all the following except
A) Be complete.
B) Be consistent.
C) Inform affected employees first.
D) Inform competitors.
Q3) The categories of recipients to whom corporations give remain stable over time.
A)True
B)False
Q4) Calls for more transparency in corporate giving programs have again raised the question of the role of business in society. Summarize the reasons for more transparency and the reasons against it.
Q5) Describe the Dollars for Doers service program in depth. What are some examples of current programs?
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Chapter 17: Employee Stakeholders and Workplace Issues
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Sample Questions
Q1) A good way to avert whistle-blowing is for management to make a visible effort to listen and be responsive to employees' concerns.
A)True
B)False
Q2) The Sarbanes-Oxley Act makes whistle-blowing much easier.
A)True
B)False
Q3) Evaluate the differences between the old and new social contracts between employer and employee. Does one seem more fair than the other? If so, why?
Q4) Which of the following is true about the average whistle-blower?
A) They are more highly paid than inactive observers.
B) They have lower job performance reviews than inactive observers.
C) They are less likely to hold supervisory or professional status than inactive observers.
D) They are more likely to be single than inactive observers.
Q5) The concept of due process is a basis for the employment-at-will doctrine.
A)True
B)False
Q6) What are the impacts of a global economic recession on employee loyalty?
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Chapter 18: Employee Stakeholders: Privacy, Safety, and Health
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Sample Questions
Q1) Integrity tests are known as the father of the polygraph.
A)True
B)False
Q2) The issue of smoking in the workplace
A) was the spur that started the antismoking sentiment in society.
B) has been important since the 1950s.
C) is a result of antismoking sentiment in society at large.
D) grew out of the Prohibition era.
Q3) Review the policy guidelines for ensuring employees' right of privacy in the workplace.
Q4) All hazardous chemicals must be accompanied by ____ to ensure proper use and handling.
A) Child-Proof Safety Lids (CPSL)
B) Material Safety Data Sheets (MSDS)
C) Rubber Gloves (RG)
D) Chemical Safety Data Guides (MSDG)
Q5) The central questions of this chapter, privacy, safety, and health, are presented in terms of employees' rights. The underlying assumption is that business should provide as many of these rights as possible. How much responsibility should business shoulder for its employees' lives?
Page 21
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Chapter 19: Employment Discrimination and Workplace
Diversity
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Sample Questions
Q1) The concept of disparate impact is significant in employment law because it A) created the four-fifths rule.
B) negates many of the earlier antidiscrimination laws.
C) runs counter to many traditional employment practices.
D) is the first common law regarding job discrimination.
Q2) The Supreme Court has weakened the anti-retaliation claim of Title VII.
A)True
B)False
Q3) Hispanics are the only minority group to be categorized by language.
A)True
B)False
Q4) Either a man or a woman can be the victim of sexual harassment.
A)True
B)False
Q5) By definition, sexual harassment cannot take place between two parties of the same sex.
A)True
B)False
Q6) Why do you suppose retaliation claims to the EEOC are at their highest?
Q7) Briefly explain how reverse discrimination evolved from affirmative action. Page 22
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