Byars Exam Questions Ch.1 Why Ethics Matters

Chapter 1: Why Ethics Matters

= Correct answer

Multiple Choice/Fill in the Blank

1. Which of the following is the best description for what it means to be a professional of integrity?

A. following the investment style of Warren Buffet

B. thinking long term when investing

C. having an ethical mindset in business

D. ensuring employee happiness

Difficulty: Easy

Blooms: Understand

AACSB: Ethics, Reflection, Diversity

1. Which of the following companies is considered ethical, according to the chapter?

A. Samsung

B. Kia

C. Au Bon Pain

D. Marriott

Difficulty: Moderate

Blooms: Application

AACSB: Ethics, Diversity, Real-world

1. What is the golden mean?

A. treating every person the same

B. the aim of ethical behavior

C. a middle ground value between deficiency and excess

D. justice as fairness

Difficulty: Moderate

Blooms: Analyze

AACSB: Ethics, Analytical, Application

1. Which of the following is an example of demonstrating ethical standards?

A. eudaimonia

B. consequentialism

C. junzi

D. categorical imperative

Difficulty: Moderate

Blooms: Remember, Understand

AACSB: Application

1. What is ethics?

A. standards of behavior for professional and personal lives

B. standards of behavior for business only

C. someone who is acting empathetic

D. setting norms for ways one interacts only with coworkers

Difficulty: Moderate

Blooms: Understand

AACSB: Ethics

1. Why do businesses care about ethics?

A. to gain greater wealth and power

B. to follow fiduciary duty

C. to uphold honorable standards of behavior

D. to receive status and recognition

Difficulty: Moderate

Blooms: Analyze

AACSB: Ethics, Analytical

1. Which of the following best describes the role of ethics in a business environment?

A. guiding the conduct by which companies abide by the law

B. respecting the right of shareholders

C. guiding the conduct by which companies and their agents abide by the law

D. respecting the community

Difficulty: Moderate

Blooms: Evaluate

AACSB: Reflection, Real-world

1. Are ethical and legal responsibilities the same?

A. Yes, they are the same standards of behavior and must be followed.

B. No, legal standards are necessary for a properly functioning society, and ethics deals with voluntary business conduct in accordance with laws, statutes, regulations, and policies.

C. No, because law is always superior to ethics.

D. Yes, because companies have duties of legal and ethical responsibility to assert right or wrong.

Difficulty: Difficult

Blooms: Apply

AACSB: Ethics, Analytical, Application

1. How does Patagonia exemplify ethics?

A. being a market leader in outdoor gear

B. caring about its employees by giving them a large discount for friends and family

C. supporting sustainability with a recycling initiative in all retail stores and warehouses

D. instituting a “1% for the Planet” program that promotes environmentalism

Difficulty: Moderate

Blooms: Evaluate

AACSB: Diversity, Reflection, Application, Real-world

1. Normative ethics means ________.

A. discovering right and not focusing on wrong

B. discovering right and delineating it from wrong

C. developing rules and norms for corporate decision-making only

D. developing rules or norms for the greatest good for the greatest number

Difficulty: Moderate

Blooms: Evaluate

AACSB: Ethics, Analytical, Application

1. What does deontology mean?

A. Conduct is determined by a philosophical process focused on Kantian religious teaching.

B. Ethics is a duty we owe to others.

C. Means justify the ends.

D. The means are the process driver for ancient Roman analytical thinking.

Difficulty: Moderate

Blooms: Apply

AACSB: Ethics, Analytical, Application

1. Adopting a consistent ethical standard is ________.

A. not in a manager’s best interests

B. selfless

C. in a government’s best interest

D. selfish

Difficulty: Moderate

Blooms: Evaluate

AACSB: Ethics, Analytical, Application

1. What characteristics contribute to the bottom line? (Select all that apply.)

A. funding philanthropy and charitable endeavors

B. sustainability, also known as “going green”

C. always giving a dividend to your shareholders

D. taking an interest in employees’ personal lives

Difficulty: Moderate

Blooms: Evaluate

AACSB: Ethics, Analytical, Application

1. Which personal philosophical approach does Warren Buffet believe in?

A. You can lose money for your firm.

B. Think short term.

C. Invest in yourself.

D. What matters is how much money you make.

Difficulty: Easy

Blooms: Analyze

AACSB: Ethics, Reflection

1. An analysis of perceived priority of shareholder impact should include which of the following?

A. stakeholders in reverse order of perceived priority

B. largest stakeholders by affiliation

C. interests and goals of shareholders

D. impact of action or decision of management

Difficulty: Easy

Blooms: Apply

AACSB: Analytical, Application, Real-world

1. Which company attributes increase in value as stakeholders view that company in a positive light? (Select all that apply.)

A. stock price

B. company name or logo

C. competition

D. trademark

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world, Application

1. Which elements constitute corporate culture?

A. shared focus on the environment

B. shared profit of stakeholders

C. how the CEO interacts with his or her employees and managers

D. how the CEO compensates his or her employees and managers

Difficulty: Moderate

Blooms: Analyze

AACSB: Application, Real-world, Interpersonal

1. Positive goodwill ________. (Select all that apply.)

A. is generated by ethical business practices

B. is separate from profitability

C. yields better public relations

D. generates long-term business success

Difficulty: Easy

Blooms: Remember

AACSB: Analytical

1. An ethical financial advisor must ________.

A. donate to charitable causes

B. be truthful about all fees

C. focus only on potential profit to clients

D. have the same fees as other financial advisors

Difficulty: Moderate

Blooms: Apply

AACSB: Application, Real-world

1. How was management in the Equifax data breach case held accountable?

A. The chief information officer resigned.

B. Hackers accessed information because of insider trading.

C. Customers were offered free Equifax services.

D. The chief executive officer left the firm after he testified before Congress.

Difficulty: Moderate

Blooms: Understand

AACSB: Application, Real-world

1. Which of the following most likely contributes to a corporation’s positive work atmosphere over the long term?

A. having remote working policies for employees

B. treating suppliers fairly

C. engaging in cross-border business

D. being committed to ethical business practices

Difficulty: Difficult

Blooms: Evaluate

AACSB: Ethics, Diversity, Application, Real-world

1. What is the best reason for a universal ethical standard?

A. It is good business practice.

B. It is easier to apply for business leaders.

C. It provides transparency in application.

D. Having different rules is confusing to employees.

Difficulty: Moderate

Blooms: Analyze

AACSB: Reflection, Ethics

1. Which are the universal principles of behavior?

A. honesty and integrity

B. virtue ethics and utilitarianism

C. loyalty to management

D. respect for business diversity

Difficulty: Moderate

Blooms: Apply

AACSB: Ethics

1. What did Milton Friedman believe?

A. A business should promote social consciousness.

B. The responsibility of a business is to decrease profits.

C. The only responsibility of a business is to increase profits.

D. One of the drivers of a business is to increase publicity.

Difficulty: Easy

Blooms: Understand

AACSB: Analytical

1. Which is a characteristic of successful corporate leaders?

A. They will not take pride in their company unless it is profitable.

B. They are focused on short-term results.

C. They treat customers fairly.

D. They take a competitive, though not always fair, approach to business.

Difficulty: Easy

Blooms: Apply

AACSB: Reflection, Application

1. Why is ethical relativism a good concept to adopt? (Select all that apply.)

A. We should use different standards for different contexts.

B. Friends and family should be treated differently than coworkers.

C. One does not want an inconsistent outcome.

D. Our reputation could increase.

Difficulty: Moderate

Blooms: Apply

AACSB: Interpersonal, Analytical, Application

True/False

1. True or false? Employees consider whether a company is ethical when selecting potential employers.

Difficulty: Easy

Blooms: Understand

AACSB: Reflection, Ethics

1. True or false? The environment is not considered a stakeholder.

Difficulty: Easy

Blooms: Remember

AACSB: Ethics, Application, Real-world

1. True or false? Consumer feedback on social media sites does not affect a company’s prospects or status as ethical.

Difficulty: Moderate

Blooms: Apply

AACSB: Application, Real-world

1. True or false? The Forbes list of ethical companies is based on the publication’s own research rather than a governmental standard.

Difficulty: Easy

Blooms: Remember

AACSB: Application, Real-world

1. True or false? Phronesis is a practical wisdom that enables us to act virtuously.

Difficulty: Moderate

Blooms: Remember

AACSB: Ethics

1. True or false? Goodwill only applies to shareholders, and it is the amount of money a shareholder could make after selling a holding in a company.

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. True or false? The business practice of Toyota was deemed ethical when it started to sell cars in the United States in the 1950s.

Difficulty: Moderate

Blooms: Understand

AACSB: Ethics, Application, Real-world

1. True or false? Most admired companies are typically the least profitable.

Difficulty: Easy

Blooms: Remember

AACSB: Application, Real-world

1. True or false? The prevailing current business philosophy is that the sole purpose of business is to make money for shareholders.

Difficulty: Moderate

Blooms: Understand

AACSB: Application, Real-world

Short Answer

1. Provide five examples of stakeholders.

Difficulty: Easy

Blooms: Apply

AACSB: Application, Diversity

1. What motivated Mark Faris to be a white-collar criminal? How does he think such crimes could be addressed?

Difficulty: Moderate

Blooms: Remember

AACSB: Ethics, Application, Real-world

1. How are stockholders also stakeholders? Explain your answer.

Difficulty: Easy

Blooms: Analyze

AACSB: Application, Ethics

1. What is compliance, and how is does it operate?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Ethics, Application, Real-world

1. Explain the concept of corporate social responsibility. Provide at least three examples of companies that follow CSR.

Difficulty: Moderate

Blooms: Evaluate

AACSB: Application, Real-world

1. Explain how a company enters into a social contract with its stakeholders. Be sure to address the reciprocity of society and companies.

Difficulty: Difficult

Blooms: Apply

AACSB: Ethics, Application

1. What happened in the Bradley Birkenfeld case, and how does that relate to whistleblowing? Comment on the irony of the award.

Difficulty: Moderate

Blooms: Remember

AACSB: Reflection, Real-world, Application

1. Who is Warren Buffet, and what is he known for in the business world?

Difficulty: Moderate

Blooms: Apply

AACSB: Ethics, Application, Real-world

1. How does TOMS Shoes exemplify corporate social responsibility?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Ethics, Application, Real-world

1. What is ethical relativism? Provide three examples.

Difficulty: Difficult

Blooms: Evaluate

AACSB: Reflection, Ethics, Application

1. How does Immanuel Kant’s theory of being duty bound (categorical imperative) apply in a corporate setting today?

Difficulty: Moderate

Blooms: Analyze

AACSB: Application, Ethics

1. It is less ethical to take a job with a large company that is focused on sustainability and donates a significant amount of money to environmental causes than to work for a nonprofit organization that researches climate change and pays you only if you bring in a certain amount of donations. Do you agree or disagree with this statement?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Communication, Interpersonal, Reflection, Real-world

1. Do the concepts of deontology, virtue ethics, and utilitarianism come under a single code under normative theory or are they different?

Difficulty: Difficult

Blooms: Apply

AACSB: Analytical

1. What is the importance of Johnson & Johnson’s corporate code of conduct (or credo) and what does it mean?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Ethics, Communication, Real-world

1. Is it ethical to allow a friend or relative to take advantage of an employee discount?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Interpersonal, Ethics, Reflection, Application

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