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People in Kohlberg's conventional stage of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family, or peers.

A) True
B) False

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Collins, a senior manager at an organization, is approached by a competitor with an offer of a large sum of money in exchange for sensitive information. He refuses to leak the information because he believes that it would be wrong to betray his company. According to Kohlberg's model of cognitive moral development, Collins resides in the _____ stage.


A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

F) D) and E)
G) B) and C)

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Scenario B. Use the information given below to answer the following three questions: A sales manager is facing an ethical situation wherein his toy company sold a scooter with a defective component. If he informs the customer and issues a recall, it would cost him a substantial amount of money. If the toy malfunctions, it could cause serious injury to the child playing with it. His colleagues have suggested three options: Option 1: Keeping quiet about the defect Option 2: Reviewing company policy, toy industry practices, and advice from colleagues Option 3: Disclosing the defect and suggesting alternatives to eliminate the risk of injury AACSB: Reflective Thinking Blooms: Apply Topic: Five Perspectives Shape Your Ethics -Which ethical approach is illustrated by option 1?


A) Egoism
B) Utilitarianism
C) Relativism
D) Virtue ethics
E) Life-cycle analysis

F) A) and B)
G) A) and C)

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According to the ethical system of utilitarianism, which of the following is true?


A) Some values must always be upheld, regardless of the consequences.
B) Societal rules or customs should be used to order values.
C) Society will be enhanced if we all take care of ourselves and do not harm others.
D) Individuals might choose between conflicting values by tallying the final results of the various acts.
E) Seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

F) C) and E)
G) C) and D)

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Describe the four levels of corporate social responsibility.

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Most people have unconscious biases that favor themselves and their own group.

A) True
B) False

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Two basic ethical ideals underpin the Caux Principles for Business.They are:


A) right and wrong.
B) okolu-na and shinpai suna.
C) systematize and sanitize.
D) kyosei and human dignity.
E) self-fulfillment and happiness.

F) A) and E)
G) A) and B)

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According to _____, an ethical system, individual self-interest is the actual motive of all conscious action.


A) egoism
B) universalism
C) relativism
D) utilitarianism
E) virtue ethics

F) A) and E)
G) A) and D)

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_____ is the ethical system stating that all people should uphold certain values that society needs to function.


A) Egoism
B) Relativism
C) Universalism
D) Virtue ethics
E) Utilitarianism

F) B) and C)
G) B) and E)

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It is a common perception that business leaders use illegal means to gain competitive advantage or improve their personal positions.

A) True
B) False

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Unethical behavior happens only in a business environment.

A) True
B) False

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Scenario A. Use the information given below to answer the following three questions: An energy drink corporation faces an ethical question. There has been a problem with the accounting process that has resulted in higher profits being reported than what was actually earned. A meeting is held where senior management decides how to handle the situation. The people at the table have varying views of the appropriate action to be taken. Sarah wants to report the error because she is worried about her job should the information about a cover-up be leaked. Ben wants to report the error because it is the honest thing to do, and he feels that is fundamental to business and society. After hearing the opinion of his colleagues, Ray says he wants to report the error as well because he prefers to agree with the consensus. -Which ethical system does Ray use to guide him in his decision making?


A) Universalism
B) Egoism
C) Utilitarianism
D) Relativism
E) Conventionalism

F) None of the above
G) B) and D)

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An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) _________ ethics program.


A) integrity-based
B) compliance-based
C) awareness-based
D) mutuality-based
E) responsibility-based

F) D) and E)
G) C) and E)

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While working as a receptionist in a lawyer's office, Marcus was instructed to inform callers that the lawyer was in court when, in fact, the lawyer was playing golf. He eventually quit the job because he could not bring himself to lie to people. Marcus was following the ethical system known as:


A) egoism.
B) social justice.
C) the Taylor Principles.
D) relativism.
E) universalism.

F) A) and B)
G) A) and C)

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In the context of a transcendent education, _____ refers to feeling your decisions as potential victims might feel them, to gain wisdom.


A) empathy
B) generativity
C) mutuality
D) intolerance of ineffective humanity
E) civil aspiration

F) B) and E)
G) A) and E)

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In the context of corporate social responsibility, _____ responsibilities are to obey local, state, federal, and relevant international laws.


A) economic
B) legal
C) administrative
D) philanthropic
E) ethical

F) A) and B)
G) C) and D)

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In the context of business ethics, which of the following is true of an ethical leader?


A) An ethical leader does not let ethics be "managed" by "benign neglect."
B) An ethical leader merely has a strong personal character.
C) An ethical leader should solely focus on being a moral manager.
D) An ethical leader is quick to take credit for the accomplishments of his subordinates.
E) An ethical leader places personal interest before the common good of the organization.

F) C) and E)
G) B) and C)

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A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been taken to create a strong _____ in the company.


A) decision-making environment
B) social awareness
C) individual accountability
D) legal responsibility
E) ethical climate

F) A) and B)
G) C) and D)

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In the context of the process for ethical decision making, recognizing all moral impacts includes:


A) determining the economic outcomes.
B) considering the legal requirements.
C) evaluating the ethical duties.
D) determining benefits and harms of various alternatives.
E) determining the potential media coverage.

F) B) and C)
G) A) and D)

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Which of the following may prevent the creation of a business climate conducive to unethical behavior?


A) Excessive emphasis on short-term revenues
B) Failure to establish a written code of ethics
C) A desire for "quick fix" solutions to ethical problems
D) Consideration of ethics solely as a legal issue or a public relations tool
E) Willingness to take an ethical stand that may impose financial costs

F) B) and C)
G) C) and D)

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