Chapter 5 Business Ethics

Question 1

The Utilitatian categorical imperative encourages

Answer 1

people to evaluate their actions in light of the consequences that would follow if everyone acted the same way

Question 2

egoism

Answer 2

, How does this action perfect me?—Ponzi Scheme

Question 3

Utilitarianism

Answer 3

Who is effected by this action?
Cost Benefit Analysis
Choice of alternatives that will produce max social utility

Question 4

Kantian

Answer 4

People are not a means to an end

Question 5

Stockholder

Answer 5

Social responsibility is to earn profit

Question 6

Stakeholder

Answer 6

Customers, suppliers, environment, shareholders, community, government, creditors, competitors

Question 7

Social Contract

Answer 7

Company that benefits society and does no harm should be allowed to exist

Question 8

Difference between Duty-Based and Outcome-based Ethics

Answer 8

Duty based - Focused on action itself and moral values

Outcome based - Focuses on consequences of action

Question 9

The Sarbanes-Oxley Act helps reduce fraud by

Answer 9

requiring companies to set up confidential systems that allow employees to raise red flags about illegal or unethical accounting practices

Question 10

Not relying on a ____ _____ is a good way to discourage unethical behavior

Answer 10

strict hierarchy

Question 11

having _____ _____ channels is a good way to discourage unethical behavior

Answer 11

Clear communication