Exam 7: Business Ethics

In studying the legal environment of business, students also review ethics in a business context. Ethics includes the study of what constitutes​

Sam, the chief accounting officer of Texas Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. Sam should​

In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

Duncan is in charge of the ethics program of Earth Eggs, Inc., an organic egg raising company. As part of this responsibility, Duncan is most likely not in charge of

Donna works for eMarketing, Inc. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply​

SuperMeds Corporation develops a new drug that controls severe acne. The drug is not approved by the government for sale in the United States because one of its ingredients is a banned chemical. This chemical is not banned in Mexico. Whether it is ethical for SuperMeds to sell the drug in Mexico depends on​

Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are "padding," Mary should apply to management​

Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly complies with existing laws, the firm's business ethics obligations will​

Management's behavior sets the ethical tone of a firm.

Companies are required to set up confidential systems so that employees can "raise red flags" about suspected illegal or unethical accounting practices.

Effective corporate ethical policies must be clearly communicated to employees.

The effectiveness of internal company codes of ethics is determined by the degree of their enforcement by legal authorities.

Morgan and other executive officers of Regional Economic Development Associates, Inc., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on​

In business deals, Fiona, the chief executive officer of Glazed Pastry, Inc., follows duty-based ethical standards. These are most likely derived from​

Duty-based ethical standards often come from religious precepts or through philosophical reasoning.

In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with​

Major Construction & Manufacturing Corporation makes a side payment to a government official in India. Under the Foreign Corrupt Practices Act, this is permitted​

Business owners' misbehavior has no negative consequences for their business.

Ridgeline Excavation & Construction, LLC, creates an internal code of ethics. Like the codes of other firms, Ridgeline's company code is not

If an action is legal, it is ethical.