Ethics And The Conduct Of Business 7th Edition By Boatright – Test Bank

 

 

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Sample Test

Chapter 3
Ethical Theories
CHAPTER SUMMARY
This chapter presents the main concepts and theories of ethics that have been developed over centuries by major moral philosophers. The value of any theory for business ethics is its usefulness in evaluating business practices, institutional arrangements, and economic systems. In general, all of these theories justify most prevailing business practices, the institution of the modern corporation, and capitalism or the market system, but they also provide the basis for some criticism and improvement. In the subsequent chapters, this theoretical foundation is used to explore a wide range of practical business ethics topics.
CHAPTER OBJECTIVES
• I
dentify the role that ethical theories play in moral reasoning.
• E
xplain what utilitarianism is and its two types.
• E
xplain the basis and the cardinal rule of Kantian ethics.
• E
xplain the basis of virtue ethics.
• D
escribe various emphases of rights and justice in ethical theory.
SUGGESTED DISCUSSION PROMPTS
1.
What would an act utilitarian and a rule utilitarian say differently when evaluating the same case?
2.
What specific problem is posed to utilitarianism by its economic application?
3.
What is the major contrast between utilitarianism and Kantian ethics?
4.
What are the attractive features of virtue theory? What are its limitations in application to business?
5.
In what ways is the rights and justice perspective a fitting ethical theory for business ethics?
© 2012 Pearson Education, Inc. All Rights Reserved.
8
ASSESSMENT FOR IN-CLASS USE
The following assessment has been created for in-class use. This assessment may be available through Pearson’s MyTest website—allowing for easy access for creating your own tests. This assessment may also be offered in a Blackboard/Angel/D2L/WebCT package. Please contact your local Pearson sales representative to learn about the options available. Visit, http://www.pearsonhighered.com/replocator.
Multiple Choice Questions
Choose the BEST possible answer for each of the following.
1.
What does the P&G case show about the applicability of ethics to business?
A.
When a company makes unethical decisions, it is usually breaking the law.
B.
Ethics in business applies differently from how it does in the rest of the world.
C.
A company’s behavior many be unethical even if no harm is done.
D.
A company’s ethical decisions should always affect its bottom line.
Answer: C
2.
Teleological theories of ethics locate goodness in .
A.
the outcome of actions
B.
the intentions of the agent
C.
the obligations of people to each other
D.
the maximization of economic opportunity
Answer: A
3.
Rule utilitarianism favors rules that .
A.
always benefit the most people
B.
everyone agrees with
C.
utilitarians think are good rules
D.
would maximize goodness if everyone followed them
Answer: D
4.
What is the most fundamental drawback of having cost-benefit analyses serve as the basis for ethical decisions in business?
A.
Some things do not really have value.
B.
A determinate value must be placed on things that have incalculable value.
C.
Cost-benefit analyses are time-consuming and require specialized skill.
D.
Cost-benefit analyses require a commitment to consequentialism.
Answer: B
© 2012 Pearson Education, Inc. All Rights Reserved.
9
5.
A “maxim,” according to Kant’s terminology, is .
A.
the outcome of an action
B.
the reason that one undertakes an action
C.
the moral principle that one has in mind
D.
that which would make an action moral
Answer: B
6.
Kant’s rule requiring respect for persons asks that we .
A.
not use people as means to an end
B.
view each person as a moral agent
C.
view each person as an end unto himself
D.
only use another person if we have sufficient reason for doing so
Answer: C
7.
Virtue ethics defines a moral action as that which .
A.
a wise person would do
B
. leads to the most virtue overall
C
. is done with the most virtuous intentions
D
. is done according to the proper rules
Answer: A
8
. A drawback to theorizing about business ethics in terms of rights is that .
A.
not everyone has rights
B.
people’s rights may conflict
C.
it is hard to draw the line between different types of rights
D.
conceptions of rights differ between cultures
Answer: B
9.
The notion of justice is most basically concerned with .
A.
fairness
B.
equality
C.
rights
D.
economics
Answer: A
Essay Questions
1.
In what ways is the need to calculate utility a problem for utilitarianism?
2.
What is Kant’s categorical imperative? Explain its two formulations.
3.
Describe how rights and justice can be explained in terms of one another.
© 2012 Pearson Education, Inc. All Rights Reserved.
10
Chapter 4
Whistle-Blowing
CHAPTER SUMMARY
Whether or not to blow the whistle on misconduct in an organization is the most difficult decision that some people ever have to make. The decision is wrenching personally because the stakes are so high. Yet many whistle-blowers say that they could not have lived with themselves if they had stayed silent. The decision is also difficult ethically, because whistle- blowing involves a conflict between two competing duties: to protect the public and to be loyal to an organization. Although loyalty is not always overriding, as the loyal agent argument holds, neither is it inconsequential. Deciding between these duties often requires that an employee exercise very careful judgment.
The one certain conclusion of this chapter is that whistle-blowing is ethically permissible under certain carefully specified conditions. (Whether it can ever be ethically required is a different question that seldom arises. Everyone has an obligation not to be a part of illegal and immoral activity, but exposing it at great risk to oneself is usually regarded as beyond what duty requires.) Blowing the whistle is only one response that an employee can make to corporate misconduct, however, and the act of whistle-blowing itself can take many different forms. So in addition to whether to become a whistle-blower, employees are faced with the further question of how to blow the whistle in a justified manner. Finally, it is evident that employees who are justified in blowing the whistle ought not to suffer retaliation. What ought to be done to protect whistle-blowers from this fate is less clear. A plausible case can be made for legislation in this area, but the difficulty is drafting laws that achieve the desired result without interfering unduly in the legitimate conduct of business.
CHAPTER OBJECTIVES
• D
escribe the process of whistle-blowing.
• E
xplain the dilemma between whistle-blowing and loyalty.
• I
dentify appropriate conditions for whistle-blowing.
• I
dentify employer and legal issues relating to whistle-blowing protection
SUGGESTED DISCUSSION PROMPTS
1.
Why do employees want to blow the whistle?
2.
Do employers have valid reasons to frown on whistle-blowing?
3.
What must an employee do in order to ensure that they blow the whistle properly?
4.
What are the objectives of legal protection for whistle-blowers?
5.
Why would a company develop a whistle-blowing policy?
© 2012 Pearson Education, Inc. All Rights Reserved.
11
ASSESSMENT FOR IN-CLASS USE
The following assessment has been created for in-class use. This assessment may be available through Pearson’s MyTest website—allowing for easy access for creating your own tests. This assessment may also be offered in a Blackboard/Angel/D2L/WebCT package. Please contact your local Pearson sales representative to learn about the options available. Visit, http://www.pearsonhighered.com/replocator.
Multiple Choice Questions
Choose the BEST possible answer for each of the following.
1.
A whistle-blower is primarily motivated by .
A.
retaliation
B.
ethical concern
C.
personal gain
D.
fear of retribution
Answer: B
2.
Which of the following is necessary for whistle-blowing to occur?
A.
information
B.
legal protection
C.
a nondisclosure agreement
D.
managing authority
Answer: A
3.
Some corporations have an ombudsman, whose role is to .
A.
blow the whistle
B.
release information to the public
C.
report on employees
D.
hear complaints
Answer: D
4.
How does the disloyalty argument against whistleblowing receive support from the law?
A.
Loyalty to a single company is enforced by the law.
B.
There is little legal precedent for whistleblower protection.
C.
There are many laws enforcing corporate confidentiality.
D.
Employees of a corporation are by legal definition agents of that corporation.
Answer: D
5.
The biggest weakness in the disloyalty argument against whistleblowing is that .
A.
an employee differs in many ways from an agent
B.
employees do not receive protection when whistleblowing
C.
employers have no right to expect loyalty from employees
D.
it does not apply to at-will employment
Answer: A
© 2012 Pearson Education, Inc. All Rights Reserved.
12
6. L
oyalty to a corporation can sometimes lead to whistleblowing if .
A.
the corporation is a large one
B.
the whistleblower enjoys legal protection
C.
the whistleblower wants to see change in the corporation
D.
the government is paying the employee for their information
Answer: C
7.
Employees who are most upset with a company will most often .
A.
write to the CEO
B.
simply leave the company
C
. go public with their complaints
D
. hope the company will reform from within
Answer: B
8
. The main motivation for there to be whistleblower-protection laws is that whistleblowers .
A.
represent a minority
B.
are likely to be oppressed
C.
benefit society
D.
should enjoy freedom of speech
Answer: C
9.
The main reason that companies should have a whistle-blowing policy is that .
A.
it avoids tension and strife
B.
whistle-blowing helps business
C.
it enhances employee satisfaction
D.
wrongdoing harms them
Answer: D
10
. All whistle-blowing policies should include .
A.
a guarantee against retaliation
B.
a guarantee of continued employment
C.
a way for employees to go public
D.
specific monetary awards
Answer: A
Essay Questions
1.
Describe ways in which employers can deal with potential cases of whistle-blowing.
How do they further their interests in this regard?
2.
Explain the ironic dimension of whistle-blowing with respect to employee loyalty.
3.
Describe the pros and cons of legal protection for whistle-blowing.