Exam 3: Ethics in Business

When the chief financial officer, or other executive, of a corporation is unsure whether a certain business action is legal, she should act

In addressing an ethical problem, a business decision maker evaluates possible solutions to the problem and then considers what should be done. In terms of the IDDR approach, this is

Adhering to utilitarian ethics in making a business decision is likely to result in an action that is considered morally correct if it produces the greatest good for

"Be honest and treat people fairly." In regard to business ethics, implementing this motto is

When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except

Duty-based ethical standards are most likely to derive from

When making ethical decisions, a business should evaluate the financial implications.

Cloud Source LLC sells to Distribution Inc. a promising idea for a technological innovation that looks promising but that is still being developed. This is

The study of ethics goes no further than the requirements of the law to evaluate what is right for society.

Ethical decision makers should test and reflect on the outcome of their decisions.

Peanut Products Company (PPC)makes goods that can cause severe health problems to those with peanut allergies. PPC analyzes the cost of warning people of the risk (which the company's management sees as obvious)and the harm to people if no warning is provided. This analysis most likely is part of

Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.

Under the "stakeholder view," no group ever has a greater stake in company decisions than the shareholders do.

When adopting duty-based ethics, corporations often demonstrate the duties they owe

Compliance with the law is not always sufficient to determine "right" behavior because

Considering the triple bottom line requires looking at how business decisions impact all of the following except

The Sarbanes-Oxley Act was enacted to reduce the number of unethical business decisions by requiring the accountability of publicly traded companies.

Sports Equipment Corporation sells a profit-generating product that is capable of seriously injuring consumers who misuse it in a foreseeable way. The firm's managers are contemplating adding a warning to the product but that warning will increase the cost of the product, and they are worried that it may deter some potential customers from buying it. Thinking about the two main theories of the role of business in society, discuss whether the corporation would behave ethically by continuing to sell the product without warning.

Making a business decision based on its projected financial outcome and then arguing that the decision is ethical is

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes