Exam 5: Ethics and Business Decision Making

In making business decisions, Brian, personnel manager for Conservative Investments, Inc., applies his belief that all persons have fundamental rights. This is

In studying business law, Professor Smith's students also study ethics in a business context. Ethics is the study of what constitutes

The legality of a particular action is always clear.

Fine Clothes Company buys clothing assembled by Gamma, Ltd., a for?eign firm that employs young children for long hours and low pay. Gamma's na?tion does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Fine Clothes' connection to Gamma and plans to reveal this information. Before HIP does so, however, Fine Clothes publicly releases the informa?tion itself and announces that it is severing its relationship with Gamma. Fine Clothes publicizes its action in its advertising, and the company's sales and profits increase, apparently as a direct result. Has Fine acted unethically in any way? From an ethical perspective, is Fine Clothes' conduct in this situation more important than whatever its mo?tive might be?

One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."

Business ethics is consistent only with short-run profit maximization.

Delta Equity Corporation provides other firms with capital to expand op?erations. If Delta strictly complies with existing laws, the firm will

Olaf, an executive with Product Distribution, Inc., has to decide whether to market a product that might have undesirable side effects for a small per?centage of users. What is the balance that must be struck in de?cid?ing whether to sell the product? How does the standard of ethics that is applied affect this balance?

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What con?flicts might arise if the firm stops selling this product?

Ethics is not concerned with the philosophical basis for morality.

To be ethical is to "do the right thing" but it does not otherwise "pay."

Steele Tool Company's decision makers view a particular risk in the use of Steele's product as open and obvious. Continuing to market the product without telling consumers of the risk could be justified from a perspective of

Tina, the chief financial officer for USA Products Corporation, at?tempts to apply Christian precepts in making ethical decisions and in do?ing busi?ness. In applying duty-based ethical standards that are derived from a re?ligious source, Tina would most likely consider the motive behind an act to be

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

In making decisions for United Merchandising Company, Viv uses a cost-benefit analysis. This is part of

Kit follows certain religious principles. With respect to the behavior of Kit and other adherents of her religion, its principles are most likely

Quality Business Corporation (QBC) makes and sells its products nationwide. To be considered socially responsible when making a business decision, QBC could take into account the needs of

Corporations can behave as good citizens by promoting goals that society deems worthwhile.

Del, vice-president of sales for EZ Products, Inc., adheres to relig?ious ethical standards. Their application involves an element of

Corporations can be perceived as owing ethical duties to groups other than their shareholders.