Chap 1

True/False questions
1. Ethical decision making in business is limited to major corporate decisions with dramatic
social consequences. Answer: False

⇒ Ethical decision making in business is not at all limited to the type of major corporate
decisions with dramatic social consequences. At some point, every worker, and certainly
everyone in a management role, will be faced with an issue that will require ethical decision
making.

2. In business, every decision can be covered by economic, legal, or company rules and
regulations. Answer: False

⇒ At some point, every worker, and certainly everyone in a managerial role, will be faced with
an issue that will require ethical decision making. Not every decision can be covered by
economic, legal, or company rules and regulations.

3. The direct costs of unethical business practice are more visible today than they have ever
been before. Answer: True

⇒ The direct costs of unethical business practice are more visible today than perhaps they have
ever been before. The first decade of the new millennium has been riddled with highly publicized
corporate scandals, the effects of which did not escape people of any social or income class.

4. Ethics refers to how human beings should properly live their lives. Answer: True

⇒ Ethics refers not only to an academic discipline, but to that arena of human life studied by this
academic discipline, namely, how human beings should properly live their lives.

5. Norms appeal to certain values that would be promoted or attained by acting in a certain
way. Answer: True

⇒ Norms establish the guidelines or standards for determining what we should do, how we
should act, what type of person we should be. Another way of expressing this point is to say that
norms appeal to certain values that would be promoted or attained by acting in a certain way.

6. Technically speaking, values are not necessarily positive or ethical in nature. Answer:
True

⇒ In general, values are those beliefs that incline us to act or to choose one way rather than
another. One important implication of this guidance, of course, is that an individual’s or a
corporation’s set of values may lead to either ethical or unethical result.
 7. Ethical values are personal codes of ethics that ensure that individually, a person meets
hisor her standards of well-being.

Answer: False

⇒ It is important to know two elements of ethical values. First, ethical values serve the ends of
human well-being. Second, the well-being promoted by ethical values is not a personal and
selfish well-being. Thus, ethical values are those beliefs and principles that impartially promote
human well-being.

8. Ethical theories are patterns of thinking, or methodologies, to help us decide what to do.
Answer: True

⇒ Ethical theories are patterns of thinking, or methodologies, to help us decide what to do

9. The well-being promoted by ethical values is not a personal and selfish well-being.
Answer: True

⇒ It is important to know two elements of ethical values. First, ethical values serve the ends of
human well-being. Second, the well-being promoted by ethical values is not a personal and
selfish well-being. Thus, ethical values are those beliefs and principles that impartially promote
human well-being.

Multiple choice
1. Which of the following is one of the advantages of ethical decision-making as a long-
term business strategy?
A. Ethical behavior will increase short-term profits.
B. Ethical behavior will provide positive press opportunities.
C. Ethical behavior can ensure positive employee relationships.
D. Ethical behavior can provide significant competitive advantage.

2. Which of the following is defined as standards of what a group or individual feels is right
or wrong, or good or evil?

A. Morality

B. Ethics

C. Standards

D. Values

3. Which statement best describes ethics in business?

A. Business is outside the realm of ethical enquiry and morally neutral or amoral
 B. Ethics in business do exist but differ from ethics in other spheres and may appear
amoral in other spheres

C. Business, politics and private life share the same ethics as part of a moral
community

D. None of the above

4. Which of the following can be described as an example of a moral standard?

A. Do not be late for a meeting.
B. Do not harm others.
C. Do not use a work computer for personal use.
D. Do not discuss pay issues with others.

5. What do we mean by ethics?

A. Moral judgements

B. Determinants of what is right or wrong

C. Rules or standards governing a profession

D. Elements of all of the above

6. Which of the following best describes ethical standards?

a. Norms of behavior in a society
b. Laws that govern acceptable behavior
c. How reasonable moral standards are when applied to your life
d. Universal standards based on impartial rules

7. Ethical issues about the economic, political, or legal aspects that a business operates
under are referred to as _____ issues.

a. corporate

b. individual

c. governmental

d. systemic

8. Because companies intentionally engage in actions such as production and sales, some
people believe they should be held morally responsible for their decisions and actions.
This view considers companies as having to act as

a. moral agents
 b. machines

c. individuals

d. regulators

9. There have been several arguments against business ethics. Which argument best
supports the idea that when an organization makes money, it improves society, so
business ethics are not needed?

a. If it’s legal, it is ethical.

b. Profits benefit all.

C. The Loyal Agent states it.

d. Conflict is not unusual.

10. Which of the following statements is correct?

a. Business ethics is not a real concept as the rules and ethics of everyday life don't apply
to the world of business.

b. Business Ethics is the study of business situations, activities and decisions where
issues of right and wrong are addressed.

c. Business ethics cannot be defined as a real concept as it is an oxymoronic term.

d. Business ethics is concerned with the study of assessing the activities of a business
based on their profitability.

11. The relationship between ethics and the law can be described as…
a. Incredibly close, in fact, in all instances what is ethical is also what is legal and vice
versa.
b. Not close, ethics and the law share a small amount of overlap, but fundamentally
address differing questions and themes.
c. Close, as there is considerable overlap between ethics and law, but the two are not
equivalent.
d. Not at all close, ethics and the law are virtually incompatible.
12. With which area are many of the ethical issues related to information technology
concerned?
a. Privacy b. Costs c. Accessibility d. Biology

13. Which of the following best describes ethics?

a. An academic discipline which originated in the early 1900s

 b. A descriptive approach that provides an account og how and why people do act the
way they do

c. The study of how human beings should properly live their lives

d. A descriptive approach such as psychology and sociology

14. Which of the following is true about values?

a. Values are the highest standards of appropriate and proper behavior.  

b. Corporate scandals prove the fact that individuals have personal values, but institutions
lack values.

c. Values cannot lead to unethical results.

d. Halues are underlying beliefs that cause us to act or to decide in a certain way.

15. Ethics seeks an account of how and why people should act a certain way, rather than how
they do act. This nature of ethics makes it a(n)____ discipline.

a. descriptive b. supererogatory c. normative d. stipulative

16. Which of the following best describes the idea that ethical standards are true based on a
particular culture or society, and will change based on the society in which we find
ourselves working?

a. Traditionalism b. Globalization c. Relativism d. Microsocial norms

17. Philosophers often emphasize that ethics is ____ which means that it deals with a
person’s reasoning about how he or she should act.

a. normative b. descriptive c. stipulative d. persuasive

18. Which of the following statements is true about ethical decision making in business?
a. Ethical decision making is limited to the type og major corporate decisions with social
consequences.
b. Every employee does not face an issue that requires ethical decision making.
c. All ethical decisions can be covered by economic, legal, or company rules
and regulations.
d. Ethical decision making should rely on the personal values and principles of
the individuals involved.

19. Which of the following observations is true of ethics?

a. It is descriptive in nature.
 b. It deals with our reasoning about how we should act.

c. It provides an account of how and what people act the way they do.

d. It is equivalent to law-abiding behavior

Chap 2

1. Corporate social responsibility

The firm's conscious effort (enlightened self-interest) to operate in a manner that

bakances all stakeholder interests

The action of an organization that are targeted toward achieving a social benefit over and
above maximizing profits for its shareholders and meeting all its legal obligations,

It is the responsibilities that businesses have to the societies within which they operate.

It may also refer to the voluntary actions that companies undertake to address economic,
social and environmental impacts of its business operations and the concerns of its
principal stakeholders.

2. Corporate conscience

An alternative term for corporate social responsibility implying that the organization is
run with an awareness of its obligations to society.

3. Legal CSR

Focus on maximizing profits while obeying the law.

4. Ethical csr

Focus on profitability and going beyond the law to do what is right, just, and fair.

5. Benevolent csr

Focus on profitability and helping society through philanthropy

6. Instrumental approach to csr

The perspective that the only obligation of a corporation is to maximize profits for its
shareholders in providing goods and services that meet the needs of its customers.
 The most famous advocate if this "classical" model is the Nobel Prize-winning economist
Milton Friedman

7. Social contract approach

The perspective that a corporation has an obligation to society over and above the
expectations of the shareholders.

The modern approach argues that since the corporation depends on society for its
existence and continued social contract growth, there is an obligation for the corporation
to meet the demands of that society rather than just the demands of a targeted group of
customers.

Corporation should be a recognized as social institutions as well as economic enterprises.

By recognizing all their stakeholders (customers, employees, shareholders, vendor

partners and their community partners) rather than just their shareholders, corporations, it
is argued, must maintain a longer-term perspective than just the delivery of quarterly
earnings numbers.

8. Transparency

We live in an information-driven economy where business practices have become

increasing transparent.Companies can no longer, sweep things under the rug- whatever
they do (for good or ill) will be known, almost immediately, around the world.

9. Knowledge

The transition to an information-based economy also means that consumers and investors
have more information at their disposal than at any time in history.Consumers visiting a
clothing store can now choose one brand over another based upon those companies'
respective environmental records

10. Sustainability

Corporations are under increasing pressure from diverse stakeholder constituencies to

demonstrate that business plans and strategies are environmentally sound and contribute
to sustainable development

11. Globalization

All of these reforms (such as the clean air act, clean water act, environmental protection
agency, etc.), constituted governmental efforts to intervene in the economy in order to
improve the worst excesses of market capitalism.
 Globalization represents a new stage of capitalist development, this time without public
institutions in place to protect society by balancing private corporate interests against
broader public interests

12. Failure of the public sector

Citizens arguably expect less of government than they used to, having lost confidence in
the public sector as the best or most appropriate venue for addressing a growing list of
social problems.

13. Ethical CSR

Organizations take a philanthropic approach by underwriting specific initiatives to give

back to the company's local community or to designated national or international
program.Of greater concern is that the choice of charitable giving is at the discretion of
the corporation.

14. Strategic CSR

Philanthropic activities are targeted toward programs that will generate the most positive
publicity or goodwill for the organization.

By supporting these programs, companies achieve the best of both worlds; they claim to
be doing the right thing, and on the assumption that good publicity brings more sales,
they also can meet their fiduciary obligations to their shareholders.

15. Fiduciary responsibility

Ultimately based on trust, which is a difficult trait to test when you are hiring a manager
or to enforce once that manager is in place

16. Governance

The process of decision-making and the process by which decisions are implemented (or
not implemented)

17. Participation

A key cornerstone of good governance.

Could be either direct or through legitimate intermediate institutions of representatives. It

is important to point out that representative democracy does not necessarily mean that the
concerns of the most vulnerable in society would be take. Into consideration in decision
making.

18. Rule of law

 Good governance requires fair legal frameworks that are enforced impartially.

It also requires full protection of human rights, particularly those of minorities.

19. Transparency

Decisions taken and their enforcement are done in a manner that follows rules and
regulations.

Also means that information is freely available and directly accessible to those who will
be affected by such decisions and their enforcement.

Also means that enough information is provided and that it is provided in easily
understandable forms and media.

20. Responsiveness

Good governance requires that institutions and processes try to serve all stakeholders
within a reasonable timeframe.

21. Consensus oriented

There are server all factors and as many view points in a given society.

Good governance requires mediation of the different interests in society to reach a broad
consensus on what is in the best interest of the whole community and how this can be
achieved.

It also requires a broad and long-term perspective on what is needed for sustainable
human development and how to achieve the goals of such development.

This can only result from an understanding of the historical, cultural and social contexts
of a given society or community.

22. Equity and inclusiveness

A society's well-being depends on ensuring that all its members feel that they have a
stake in it and do not feel excluded from the mainstream of society.This requires all
groups, but particularly the most vulnerable, have opportunities to improve or maintain
their well-being.

23. Effectiveness and efficiency

Good governance means that processes and institutions produce results that meet the
needs of society while making the best use of resources at their disposal.
 The concept of efficiency in the context of good governance also covers the sustainable
use of natural resources and the protection of the environment.

24. Accountability

Key requirement of good governance

Cannot be enforced without transparency and the rule of law.

Not only governmental institutions but also the private sector and civil society
organizations must be accountable to the public and to their institutional stakeholders.

Who is accountable to whom varies depending on whether decisions or actions taken are
internal or external to an organization or institution.

In general, an organization or an institution is accountable to those who will be affected

by its decisions or actions.

25. Corporate governance

The system by which business corporations are directed and controlled.

Concerned with how well organizations meet their obligations to their stakeholders: their
customers, their vendor partners, state and local entities, and the communities in which
they conduct their operations.

About the way in which boards oversee the running of a company by its managers, and
how board members are in turn accountable to shareholders and the company.

26. Good corporate governance

Plays a vital role in underpinning the integrity and efficiency of financial markets.

27. Poor corporate governance

Weakens a company's potential and worst can pave the way for financial difficulties and
even fraud.

1. Corporate Social Responsibility

A manner of doing business that takes into account the economic, social and environmental
impact of the company's actions.

2. Relationships are associated with both organizational success and misconduct

 TRUE

3. Business exist because of what relationships?

The relationships between employees, customers, shareholders, and the community

4. What does the stakeholder framework identify?

The internal and external stakeholders who agree, collaborate, and engage in confrontations on
ethical issues

5. Stakeholder allows organizations to...

identify, monitor and respond to the needs and expectations of stakeholder groups

6. Stakeholders

People who have a stake or claim in some aspect of a company's operations, markets, and
industry

7. Normative Approach to Stakeholder Theory

Sets forth ethical guidelines that dictate how firms should treat stakeholders

8. Descriptive Approach Stakeholder Theory

Focuses on the actual behavior of a firm and addresses how decisions and strategies are made for
stakeholder relationships

9. Instrumental Approach Stakeholder Theory

Describes what happens if a firm behaves in a particular way

10. Stakeholders Role - foster decision making

the level of social responsibility of an organization can be assessed by scrutinizing its effects on
the issues of concern to its stakeholders

11. Role of stakeholders

provide resources that are critical to a firm's long-term success

12. Primary Stakeholders

 People whose support and resources are needed for a firm's survivalInclude employees,
customers, and shareholders
 13. Secondary Stakeholders

 Do not engage directly in transactions with a companyNot essential to a firm's

survivalInclude the media and trade associations

14. Examples of Primary Stakeholders

Customers, Government Regulatory Agencies, Community, Suppliers, Shareholders, Employees

15. Examples of Secondary Stakeholders

Special Interest Groups, The Mass Media, Competitors, Trade Associations

16. Stakeholder Orientation

Degree to which a firm understands and addresses stakeholder demands

17. Stakeholder Orientation activities

 Org.-wide generation of data about stakeholder groups and assessment of the firm's
effects on these groupsDistribution of the generated data throughout the
firmResponsiveness of the org. as a whole to the data generated

18. Most basic level of Social Responsibility

Economic - maximizing stakeholder wealth and/or value

19. Second level of Social Responsibility

Legal - abiding by all laws and government regulations

20. Third level of Social Responsibility

Ethical - following standards of acceptable behavior as judged by stakeholders

21. Fourth level of Social Responsibility

Philanthropic - "giving back" to society

22. Corporate Citizenship

Degree to which businesses strategically meet the economic, legal, ethical, and philanthropic
responsibilities placed on them by their stakeholders

23. 4 Interrelated Dimensions of Corporate Citizenship

 1. Strong sustained economic performance
2. Rigorous compliance
3. Ethical actions beyond what the law requires
4. Voluntary contributions that advance the reputation and stakeholder commitment of the
organization

24. Reputation

One of the organization's greatest intangible assets with tangible value

25. Social Issues in Social Responsibility

Associated with the common good, deal with concerns affecting large segments of society and
the welfare of the entire society

26. Examples of Social Issues

Jobs lost through outsourcing, abortion, gun rights, and povertyDirectly related to business:
obesity, smoking, exploitation, Internet tracking/privacy

27. Consumer Protection in Social Responsibility

Often occurs in the form of laws passed to protect consumers from unfair & deceptive business
practices- usually have an immediate impact on consumers after purchase

28. Major areas of consumer protection

Advertising, disclosure, financial practices, and product safety

29. Sustainability in Social Responsibility

Defined as the potential for the long-term well-being of the natural environment, including all
biological entities, as well as the mutually beneficial interactions among nature and individuals,
organizations, and business strategies

30. Examples of Sustainability

New efforts regarding global warming and pollution

31. Corporate Governance

Involves the development of formal systems of accountability, oversight, and control- good corp.
governance removes the opportunity for employees to make unethical decisions

32. Friedman's view

Stakeholders do not have any role in requiring businesses to demonstrate responsible and ethical
behavior

33. Adam Smith's view

Values that a firm should adopt to produce in a more socially responsible way correlates with the
needs and concerns of the stakeholders

34. Stakeholder support for companies that are sociallyresponsible enhances a firm's
profitability

TRUE

35. Accountability

Degree to which workplace decisions align with a firm's goals and its compliance with ethical
and legal considerations

Chap 3
 Moral philosophy refers toa. a subject that most business people do not consider very
important.

c. 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)?

d. Utilitarianism

 Which moral philosophy considers an act to be morally right or acceptable if it produces

some desired result?

a. Teleology

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

a. Deontology

 _____are person-specific, whereas _______ are based on decisions made by groups or

when carrying out tasks to meet business objectives

e. 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

b. 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?

d. Social system and conscience maintenance

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

e. 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)

c. utilitarian.

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

e. 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.

d. Adam Smith

 ________ believe that no one thing is intrinsically good.

b. Pluralists

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

b. 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.

c. 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?

a. 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?

d. Act deontology

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

c. The relativist perspective

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

a. 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.

e. 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)

b. relativist.

 Enlightened egoism

d. centers on one's long term self interest but takes others' wellbeing into account.

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

b. 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.

a. Relativists
  _______ justice is based on the evaluation of outcomes or results of the business
relationship.

c. Distributive

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

a. 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.

b. 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?

d. 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.

c. Justice

 A central problem with relativism is

a. that it emphasizes people's differences, not similarities.

 Which is not considered a white collar crime?

e. 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?

b. 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?

d. 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

a. considering fairness to others.

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

e. virtue

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

b. Procedural

Chap 4
1. According to Lawrence Kohlberg, developer of a key theory of moral reasoning, role
taking is useless as nothing is gained by putting yourself in the shoes of others. ⇒ False
2. According to Kohlberg, as individuals move forward through the sequence of stages they
are cognitively capable of comprehending all reasoning stages below and above their
own. ⇒ False
3. According to cognitive moral development theory, the actual moral decision is not as
important as the reasoning process used to arrive at it ⇒ True
4. Kohlberg argued that the higher the reasoning stage, the more ethical the decision ⇒ True
5. There are major differences in levels of moral reasoning between men and women. ⇒
False
6. According to cognitive moral development theory, individuals move to a higher
reasoning stage: When there is a contradiction between his or her current moral
reasoning stage and the next higher one.
7. At what stage of Kohlberg's Cognitive Moral Development Model, what is right is judged
in terms of a "you scratch my back, I'll scratch yours" reciprocal relationship? ⇒ Stage 2
8. As a new hire at ABC Manufacturing, Susan's focus is on sticking to rules to avoid
punishment. Susan can be described at what stage of Kohlberg's Cognitive Moral
Development Model? ⇒ Stage 1
9. At work, you are driven by living up to what is expected by peers and people close to
you. You can be described at what stage of Kohlberg's Cognitive Moral Development
Model? ⇒ Stage 3
10. A _______ person recognizes that rules and laws often exist for good reason, and she
follows them because the social system works better when everyone does that. ⇒ Stage 4
11. Most adults are at the ____________ level of cognitive moral development and their
action is ____________. ⇒ Conventional; based on what others think, say, and do
 12. Sally attributes her success at work to luck. Sally can be characterized by: high external
locus of control
13. Roger believes that his success at work is primarily the result of his own efforts and hard
work. Roger can be characterized by: high internal locus of control
14. Which of the following is true? People's locus of control is relatively stable, but can
change over time.
15. Which of the following is false? Lawrence Kohlberg developed the cognitive moral
development theory by studying male adult behavior.

Chap 6
EX 1:

Ethics - A code of moral principles and values that govern the behaviors of a person or group
with respect to what is right or wrong. An ethical issue is present in a situation when the actions
of a person or organization may harm or benefit others.

Domain of Ethics - No specific laws, yet it does have standards of conduct based on shared
principles and values about moral conduct that guide an individual or company.

Discretionary Responsibilty - Contribute to the community and quality of life. Example:

Patagonia

Ethical Responsibility - Be ethical. Do what is right. Avoid harm. Obligation to do what is

right, just and fair.

Legal Responsbility - Law is society's codification of right and wrong. Obey the law. Example:
Gambling - they just want it to be legal.

Corporate Responsibility - Be profitability. Foundation upon which all others rest.

Pre-conventional

 Follows existing rules to avoid punishment.

 Acts in own interest.Obedience for it's own sake.

Example: Cookie jar breaks, you blame it on someone else to avoid punishment.

Conventional

 Lives up to expectations of others.

 Fulfills duties and obligations of social system.
 Uphold laws.Follows societal expectations.

Example: Morals come from world around you. Following laws.

Post-Conventional

 Follows self-chosen principles of justice and right.

 Seek creative solutions to ethical dilemmas.
 Balances concern for individuals with concern for the common good.
 Self-chosen ethical principles. Not falling back of rules of family and society. I hold these things
to be acceptable and not, personally.


Legal Principle - Making decisions that follow both the letter and the spirit of the law.

Individual Rights Principle - Making decisions that do not infringe upon the rights of other
people.

Virtuous Principle - Making decisions that you would be publicly proud of.

Long-term Principle - Making decisions that support the long-term interests of yourself and
your organization.

Community Principle - Making decisions that contribute to the strength and well-being of the
community.

Utilitarian Principle - Making decisions that greatest good to the greatest number.

Distributed Justice Principle - Making decisions that do not harm those who are already
disadvantaged.

Practical Rules for Deciding if an Action is Ethical or Not

 Is it fair?
 Is it right?
 Does anyone get hurt?
 Would you be comfortable with your decision showing up in the news?
 Would you tell you child to do it?
 Does it smell? (Does it seem weird?)


Social Responsibility - Firms have obligations to society beyond their economic responsibilities
to owners or stockholders and also beyond those prescribed by law or contract.

Stockholder Viewpoint - The company's only obligation is satisfying the interests of the
stockholder's.

Stakeholder Viewpoint - The company has some responsibility for all they they have a part in.

Promoting Ethics
  Create a strong ethical climate.
 Screen prospective employees.
 Institute ethics code and training programs.
 Reward ethical behavior including whistle-blower.

EX 2:

Value Statement - A description of the beliefs, principles, and basic assumptions about what is
desirable or worth striving for in an organization

Code of Conduct

 Enforced by an external power and authority

 Convey rules that tell people what they must or must not do

Code of Ethics

 Voluntary codes of ethics suggest guidelines to follow and empower individuals to act
accordingly to their consciences
 They are who we are and what we stand for

Type of Codes

1. Corporate or business enterprise - Individual corporations prepare codes for their own use
2. Professional organizations - Professions such as lawyers, accountants, and architects have
been early users of codes and are influenced by hem when employed by business
enterprises
3. Industry and sector - Industry associations formulate codes that enterprises in the industry
or sector may voluntarily follow
4. Codes from national and international bodies - International NGO's or agencies such as
the United Nations or the Organization for Economic Co-operation and Development
prepare codes

Criticisms of Codes

 UnenforceableIf enforced, penalties are insignificant

 Often idealistic
 Written in meaningless generalities
 Mere response to public criticism

Pagano Ethics Test (About a particular situation)

1. Is it legal?
2. The benefit/cost test - Employ utilitarian perspective of greatest good for greatest number
3. The categorical imperative - Do you want this action to be a universal standard?
4. The light of day test - What if your actions appeared on TV? Would you be proud?
 5. Do unto others - Do you want the same to happen to you?
6. The ventilation test - Get a second opinion from a wise friend with no investment in the
outcome

Conflict of Interest - A situation in which an individual has a personal or private interest that is
sufficient to appear to influence the objective exercise of that individual's duties

The three types of conflict:

1. Real - The conflict is clear to everyone

2. Apparent - Conflict may be deduced from appearances
3. Potential - It could develop in a situations with a conflict of interest

Common conflicts of interest:

 Self-dealing - Exists where a manager or employee takes an action in an official capacity that
involves dealing with oneself in a private capacity and that confers a benefit to oneself.
 Accepting gifts or benefits - Involves the acceptance of some benefit
 Influence peddling - The practice of soliciting some form of benefit
 Using employer's property - self explanatory

Ethics Audits and Consultants - Systematic effort to discover actual or potential unethical
behaviour in an organization

Ethical Approaches

1. Formal- Code of conduct- Organization determines what is right and wrong

2. Monological- Code of ethics- Allows members of organization to determine what is right
and wrong
3. Dialogical- Discussion- Communication before decisions are made and implemented

Compliance-based Approach

 Rules, laws, policies

 Conformity with externally imposed standards
 Prevent criminal misconduct
 Code of conduct

Value-based Approach

 Values, ethics, guiding principles

 Self-governance to chosen standards; self imposed
 Enable responsible conduct
 Code of ethics

Criteria for evaluating the effectiveness of an ethics program:

 1. Visibility - Employers know of it
2. Ownership - How was it developed?
3. Fit - Appropriate for our firm
4. Balance - ...

Potential benefits of ethics programs:

 Business practices more likely to benefit society

 Avoidance of criminal acts
 More favourable public image
 Recognition of stakeholder impacts

Some reasons why ethical leadership and programs fail:

 Managers are morally imperfect

 Self-interest
 Tolerance to risk-behavior

EX 3:

Q._____ is the systematic study of values guiding our decision making

Ethics

Managing

Administrating

Empowerment

Q._____ affect other people in a way that personal preferences do not

Ethical reasons

Ethical dilemmas

Ethical decisions

Ethical values

Q. Few areas of sport management present managers more difficulty than _____

moral issues

ethical dilemmas
ethics

codes of conduct

Q._____ are probably the most visible statements of a company, business, or organizational
ethical philosophy and beliefs

Ethical principles

Moral principles

Codes of conduct

Morality codes

Q._____ are the fundamental baseline values dictating appropriate behavior within a society

Ethics

Codes of conduct

Codes of ethics

Morals

Q. Academic discussions of morality often start with a discussion of _____ versus _____

absolutism, relativism

morality, corruption

values, moral issues

society, behavior

Q._____ argues that moral precepts are universal; that is, applicable to all circumstances

Morality

Behavior

Absolutism

Relativism

Q._____ argues that what is moral depends on the situation

Morality

Behavior

Absolutism

Relativism

Q. Which of the following does not ensure that sport managers and employees make the "right"
decisions?

Self-examinations

Social values and issues

Incorporating codes of ethics

Forums for moral disclosure

Q. One of the biggest distinctions between moral decision making and other ethical decisions is

deciding what is right and wrong

incorporating codes of ethics

the extensive ramification of immoral choices

None of the above

Đề mid

1. Which of the following statements is true about business ethics? 

a. A firm that has ethical management will succeed financially.

b. Codes of ethics should cover every business ethics issue.

c. Business ethics focuses more on laws over values.

d. Individuals apply the same ethical rules in business as they do at home.

e. There is no conflict between profits and business ethics

2. True or False?
A challenge involved in using a strictly consequentialist approach is that it is often difficult to
obtain the information required to evaluate all of the consequences for all stakeholders who may
be directly or indirectly affected by an action or decision True

3. More than a compliance program, business ethics is becoming

a. a management issue to achieve competitive advantage.

b. a guaranteed way to earn higher financial returns.

c. mainly a government regulatory issue.

d. an initiative led by nonprofit organizations.

e. a program that decreases profits but increases societal benefits.

4. Stakeholders' power over businesses stems from their

a. ability to withdraw or withhold resources.

b. ability to generate profits.

c. media impact.

d. political influence.

e. stock ownership.

5. The normative approach ______________________.

a. focuses on the actual behavior of the firm and usually addresses how decisions and strategies
are made for stakeholder relationships

b. describes what happens if firms behave in a particular way

c. is the degree to which a firm understands and addresses stakeholder demands

d. describes reciprocal relationships between the firm and a host of stakeholders

e. identifies guidelines that dictate how firms should treat stakeholders

 

6. Which of the following describes the four levels of social responsibility? 

a. economic, social, legal, and voluntary

b. economic, legal, environmental, and ethical

c. financial, legal, environmental, and philanthropic

d. economic, financial, legal, and ethical

e. economic, legal, ethical, and philanthropic

7. Which of the following are not typically primary stakeholders?

a. Customers

b. Trade associations

c. Employees

d. Shareholders

e. Suppliers

8. The _____ approach focuses more on the integrity of the moral actor (the person) than on the
moral act itself (the decision or behavior).

a) utilitarian

b) deontological

c) teleological

d) virtue ethics

9. Ethics and social responsibility can be used interchangeably.

a. True
b. False

10. 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)?

a. Act deontology

b. Rule deontology

c. Egoism

d. Utilitarianism

e. Hedonism

11. 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?

a. Punishment and obedience

b. Individual instrumental purpose and exchange

c. Mutual interpersonal expectations, relationships, and conformity

d. Social system and conscience maintenance

e. Prior rights, social contract, or utility

12. _____ believe that no one thing is intrinsically good.

a. Hedonists

b. Pluralists

c. Relativists

d. Deontologists

e. Teleologists
 

13. 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.

a. egoist

b. utilitarian

c. deontologist

d. relativist

e. hedonist

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

a. The relativist perspective

b. Teleology

c. Deontology

d. Egoism

e. Rule deontology

15. 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?

a. Punishment and obedience (1st stage)

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

c. Social system and conscience maintenance (4th stage)

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

e. Universal ethical principles (6th stage)

 

16. If an individual coincidentally acts ethically correct, but without knowing why he or she does
so, and without recognizing that there is actually an ethical issue or opportunity we can call this
neither an ethical decision nor ethical behavior.

a. True

b. False

17. At work, you are driven by living up to what is expected by peers and people close to you.
You can be described at what stage of Kohlberg’s Cognitive Moral Development Model?

a) Stage 3

b) Stage 6

c) Stage 4

d) Stage 1

18. Which of these is the first step in the sound ethical decision making in business?

a) Define the ethical issues

b) Gather the facts

c) Identify the affected parties

d) Check your gut

19. True or False?

American political philosopher John Rawls proposed that decision makers use a veil of
ignorance exercise to arrive at fundamental principles of justice that should guide ethical
decision making True

 
20.  A ________ focuses on doing what is “right” (based on moral principles or values such as
honesty), whereas a _________ focuses on doing what will maximize societal welfare.

a) utilitarian; virtue follower

b) deontologist; consequentialist

c) virtue follower; utilitarian

d) consequentialist; deontologist

Đề mẫu
1. Which of the following statements about responsible management is wrong?

Responsible management  
a. incorporates the three dimensions of sustainability, responsibility and ethics. 
b. should aim to optimize the triple bottom line and stakeholder value and to create moral
excellence. 
c. may also be called prime management if it succeeds in all three domains of sustainability,
responsibility, and ethics. 
d. is a synonym for responsibility management, the management of stakeholder relations
*

 2. Which is the last of Kohlberg's stages of cognitive moral development? 

a. Individual instrumental purpose and exchange
b. Need achievement 
c. Social system and conscience maintenance 
d. Punishment and obedience 
e. Universal ethical principles 

3. Imagine a country, in which the environmental footprint is still above the sustainability line, but
decreasing and in which economic wealth is increasingly equal in distribution? Which would be
the right term to describe the country on the sustainability Kuznets curve?

a. Economically underdeveloped country. 

b. Sustainably developing country. 
c. Economically developing country.
d. Sustainably developed country. 

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

a. ethical decision making            b. internal locus of control 

c. an ethical culture           d. external locus of control              e. significant others. 

5. In the Venn diagram of sustainability, a situation that is satisfies all the social, environmental
and economic dimensions is called
a. bearable.       b. sustainable.         c. economic.             d. equitable.

1. In the Venn diagram of sustainability, a situation that is satisfies all the environmental
and economic dimensions is called 
a. bearable
b. sustainable  
c. viable.  
d. equitable.

1. Normative approaches focus on 

a. how organizational decision makers should approach an issue. 
b. methods for adopting values and norms within an organization. 
c. models that describe an individual's moral philosophies. 
d. how organizational decision makers make ethical decisions.

1. A situation that requires an ethically relevant decision where right or wrong is questioned
through a set of alternative actions that are likely to have significant effects on others."
Which of the following terms is described by this definition?

a. Compliance 
b. Moral dilemma 
c. Ethics 
d. Moral laxity problem 

1. Those who have a claim in some aspect of a firm's products, operations, markets,
industry, and outcomes are known as 
a. shareholders. 
b. stockholders. 
c. stakeholders. 
d. special-interest groups.

1. The company GoodCorp has just begun to provide employees with free gym
membership which they can use during work hours. The employees are stunned. They
had not even thought that such a thing was possible. Which of the following statements
can we make about the company's corporate social performance? 
a. The company is proactive in stakeholder responsiveness. 
b. The company has achieved the highest level of organizational implementation. 
c. The company assumes responsibilities in the legal responsibility category. issues
maturity.
d. The company scores low in the performance dimension of issues maturity

12. ___________is the ability to perceive whether a situation or decision has an ethical
dimension.
a. Ethical issue intensity
b. Locus of control 
c. Ethical awareness 
d. Moral intensity

13. What is measured by the ratios between the triple bottom line capital used and created, the
stakeholder input and value created, and the moral issues encountered and moral excellence
achieved throughout the management process? 
a. Effectiveness of responsible management. 
b. Efficiency of responsible management.
c. Resources used in the responsible management process.
d. Responsible management performance.

14. Which of the following is a situational influence factor? 

a. Locus of control. 
b. Moral philosophy and ethical judgement. 
c. Awareness and moral imagination. 
d. Moral intensity.

15. Kohlberg's six stages of cognitive moral development can be reduced to three levels of
ethical concern. Persons at the second level 
a. define right as that which conforms to the expectations of good behavior of the larger society. 

b. see beyond the norms, laws ,and authority of groups or individuals.

c. are concerned with their immediate  interests and with external rewards and
punishments.
d. are unethical.

16. While he is normally against the idea of harming animals, 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?
a. Egoism 
b. Relativism 
c. Humanitarianism 
d. Utilitarianism 
e . Individualism

17. Which of the following statements about responsible management is WRONG? Responsible
management
a. incorporates the three dimensions of sustainability, responsibility and ethics.
b. should aim to optimize the triple bottom line and stakeholder value and to create moral
excellence.
c. may also be called prime management if it succeeds in all three domains of sustainability,
responsibility, and ethics.
d. is a synonym for responsibility management, the management of stakeholder
relations. 
12. "It judges right or wrong by referring to higher duties that must be derived from universal
rules." Which of the following terms does the definition describe?

a. Deontology
b. Consequentialism. 
c. Virtue Ethics.
d. Moral philosophy.
e philanthropic 

13. 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? 
a. Universal ethical principles (6th stage) 
b. Mutual interpersonal expectations, relationships, and conformity (3rd stage) 
c. Social system and conscience maintenance (4th stage) 
d. Punishment and obedience (st stage) 
e. Prior rights, social contract, or utility (5th stage) he 

14. What are the four levels of social I responsibility? 

a. Financial, religious, ethical, and philanthropic
b. Ethical, philanthropic, selfish, and short-sighted 
c. Economic, long-term, ethical, and philanthropic.
d. Economic, legal, ethical, and philanthropic
e. Economic, compliance, legal, and philanthropic 

15. What is measured by the ratios between the triple bottom line capital used and created,
stakeholder input and value created, and the moral issues encountered and moral the
excellence achieved throughout the management process? 

a. Effectiveness of responsible management 

b. Efficiency of responsible management,
c. Resources used in the responsible management process. 
d. Responsible management performance. 

16. _______is essential in building long-term relationships between businesses and consumers.

a. Profit           b. Governance 
c. Trust             d. Knowledge
e. A code of ethics

17. You started discussing with a friend about sustainable development. Your friend opines that
environmental sustainability is not a real issue. "All you have to do is to invent a machine that
absorbs carbon dioxide better than any plant. That solves global warming and everything can go
on as always. Who cares about a couple of extinct bugs and weeds, if they weren't even of any
use to us? We are the ones ruling the planet." Which of the following statements describes the
attitude of your friend accurately?

a. Your friend could be characterized as a proponent of strong sustainability. 

b. Your friend asks for drastic systemic changes to make sustainability work. 
c. Your friend, among others, argues from a "substitutionist" viewpoint of sustainability.
d. Your friend tends in the "masters versus equals” polarization toward the "equals" point of
view.

1. A factory with an own wastewater treatment system is not able to completely filter all
phosphates out of its wastewater, which is channeled into a local marsh area. Before the
water was allowed to be channeled into the marsh, an environmental impact analysis
had shown that the marsh is able to completely absorb the phosphate without negative
effects. The environmental impact of the wastewater in this example is 
a. unsustainable. 
b. restoratively sustainable. 
c. restorative                d. neutrally sustainable.

1. Which of the following statements related to stakeholder assessment is WRONG?

a. Employees are internal and primary stakeholders at the same time. 
b. External stakeholders are also always secondary stakeholders.
c. An environmental stakeholder is one that is neither important for the survival, nor for
the success of a company. 
d. A non-stakeholder is one that has no relationship with the focal entity.

1. Which sequence of the components of the ethical decisions and actions framework is
correct? 
a.Motivation, awareness, judgment, behavior. 
b. Awareness, judgment, motivation, behavior. 
c. Individual factors, situational factors, ethics management. 
d. Descriptive ethics, normative ethics, ethics management. 

1. Accountability, oversight, and control all fall under the definition and implementation of
corporate
a. profit.
b. loyalty.
c. care. 
d. governance. 
e. diligence.

1. Which of the following are NOT typically primary stakeholders? 

a. Customers
b. Trade associations 
c. Employees
d. Shareholders

18. In corporate governance, is the process of auditing and improving organizational decisions
and actions.
a. profit 
b. loyalty 
c. accountability
d. control 
e. diligence 

20. Which of the following is a situational influence factor? 

a. Locus of control. 
b. Moral complexity. 
c. Level of education. 
d. Gender.