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Assessment Questions

1.  Which of these concepts relates to utilitarianism?
  1. consequences
  2. actions
  3. character
  4. duty
correct answer

1. A 

2. True or false? According to the Greek system of logic introduced by Socrates, normative ethical theories ultimately are grounded in reason.
correct answer

2. True


3. Explain why ethical responsibilities go beyond legal compliance.
correct answer

3. Behaving ethically requires that we meet the mandatory standards of the law and then go above and beyond them to recognize that an action may be legal but we personally may consider it unacceptable. Ethical reasoning often is more topical than law and reflects the changes in consciousness that individuals and society undergo. Often, ethical thought precedes and sets the stage for changes in the law.


4. Describe the difference between normative and descriptive ethical theories.
correct answer

4. Normative ethical theories are philosophical theories based on reason that tell individuals how they ought to behave. Descriptive ethical theories are based on scientific evidence describing how people tend to behave in a particular context. The theories discussed in this book are normative..


5. Which of the following is not a stakeholder?
  1. the media
  2. corporate culture
  3. the environment
  4. customers
correct answer

5. B


6. True or false? According to Milton Friedman, a company’s social responsibility consists solely of bettering the welfare of society.
correct answer

6. False. In Friedman’s view, a company’s social responsibility consists of enhancing stockholder value.



7. What is corporate social responsibility (CSR)?
correct answer

7. CSR is the practice of viewing a business within a broader context, as a member of society with certain implicit social obligations, rather than considering the maximization of shareholder wealth as a company’s sole purpose and objective.


8. Describe a practical way to prioritize the claims of stakeholders.
correct answer

8. In three columns, list stakeholders in order of perceived priority, their perceived interests, and the likely impact of the business decision on them. This will aid comprehension of the decision’s impacts as well as provide justification for the course of conduct ultimately chosen.


9. Describe how a company’s ethical business practices affect its goodwill.
correct answer

9. The ethical behavior of managers has a positive influence on the value of a variety of components affecting the company’s overall goodwill, including its brand, its workforce, and its customer relationships. Positive goodwill generated by ethical business practices, in turn, generates long-term business success.


10. True or false? Family is generally a strong influence on our ethical standards.
correct answer

10. True.


11. Which normative ethical theory supports the idea of holding multiple ethical standards?
  1. deontology
  2. utilitarianism
  3. virtue ethics
  4. none of the above
correct answer

11. D


12. Describe the benefits of having a single ethical standard.
correct answer

12. Having a single ethical standard maximizes ethical behavior no matter who the other party is and supports an internally consistent rule of behavior toward all family, friends, customers, clients, and others with whom we interact.

 

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