Exam 2: Business Ethics

The ethical theory that underlies cost-benefit analysis is:

It is possible for legal acts to be immoral.

Jeremy Bentham was a proponent of utilitarianism.

Intuitionism holds that rational persons possess inherent powers to assess the correctness of actions.

An ethical relativist looks to a central authority, such as the Bible, to guide her in ethical decision making.

Ethical relativism holds that when any two individuals or cultures differ regarding the morality of a particular issue or action, they are both correct because morality is relative.

In some respects, Kant's categorical imperative is a variation of the Golden Rule.

Under a Kantian approach to ethics, a person should not lie to colleagues unless that person supports the right of all colleagues to lie to one another.

To a libertarian, it is not unjust for some people to accumulate fortunes while others live in poverty.

Kant's philosophy rejects the idea that the end justifies the means.

In what way or ways are situational ethics and ethical relativism similar?

Deontologists are criticized for rigidity and excessive formalism.

Although corporations are not persons but artificial entities created by the state, it is clear that they can and should be held morally accountable.

The ethical decision making approach that views ethical decisions from the actor's perspective and then judges whether the decisions were ethical is:

Like legal analyses, analyses of ethics have a central authority and follow clear-cut, universal standards.

Adam Smith, in The Wealth of Nations , said the capitalistic system was composed of six institutions, which include all but which of the following?

Bill would like to propose to the board of directors of Bizmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor. To Milton Friedman and others, Bill's proposal might be considered unethical, because it violates the purpose for which the corporation was established.

Social egalitarians believe:

A person who believes in the situational ethics theory would agree that precise guidelines for business behavior must be developed and adhered to by business professionals.

Discuss each of the following ethical theories with regard to whether you accept or reject them for your own actions and decisions. a. Intuitionism and the "Television Test." b. Rule utilitarianism. c. Ethical relativism. d. Ethical fundamentalism. e. The deontological approach. f. Milton Friedman's ideas on corporate governance.