Chapter 03 - Philosophical Ethics and Business

Chapter 03
Philosophical Ethics and Business
Globalization
True/False Questions

1.(p.66)Anethicaltheoryonlyattemptstoanswerthequestionofhowweshouldliveour
lives.
FALSE
Notonlydoethicaltheoriesattempttoanswerthequestionofhowweshouldlive,butthey
alsoprovidereasonstosupporttheiranswer.

AACSB:1
BT:Knowledge
Difficulty:Medium
LearningObjective:1

2.(p.66)Deontologicalethicaltraditionsdirectustoactonthebasisofmoralprinciplessuchas
respectinghumanrights.
TRUE
Deontologicalethicaltraditions,directustoactonthebasisofmoralprinciplessuchas
respectinghumanrights.

AACSB:1
BT:Knowledge
Difficulty:Easy
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

3.(p.67)Muchoftheneoclassicaleconomics,andthemodelofbusinessandmanagement
embeddedinit,hasitsrootsinutilitarianthinking.
TRUE
Utilitarianismwaspartofthesamesocialmovementthatgaverisetomoderndemocratic
marketcapitalism.Muchofneoclassicaleconomics,andthemodelofbusinessand
managementembeddedinit,hasitsrootsinutilitarianthinking.

AACSB:2
BT:Knowledge
Difficulty:Medium
LearningObjective:1

4.(p.67)Virtueethicstellsusthatweshouldactinwaysthatpromotehumanwellbeing,from
amongthealternativesweareconsidering.
FALSE
Utilitarianismtellsusthatweshouldactinwaysthatproducebetteroverallconsequences
thanthealternativesweareconsidering."Better"consequencesarethosethatpromotehuman
wellbeing.

AACSB:2
BT:Knowledge
Difficulty:Medium
LearningObjective:1

5.(p.68)Ifabasichumanvalueisindividualhappiness,thenanactionthatpromotesmoreof
thatisnotnecessarilyreasonableorjustifiedfromanethicalpointofview.
FALSE
Ifabasichumanvalueisindividualhappiness,thenanactionthatpromotesmoreofthatis
morereasonableandmorejustifiedfromanethicalpointofview.

AACSB:2,3
BT:Knowledge
Difficulty:Easy
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

6.(p.68)Utilitarianismopposespoliciesthataimtobenefitonlyasmallsocial,economic,or
politicalminority.
TRUE
Utilitarianismisasocialphilosophythatprovidesstrongsupportfordemocraticinstitutions
andpoliciesandopposesthosepoliciesthataimtobenefitonlyasmallsocial,economic,or
politicalminority.

AACSB:2
BT:Knowledge
Difficulty:Medium
LearningObjective:1

7.(p.69)Accordingtothetext,ifchildlaborproducesoverallpositiveconsequencestothe
economy,utilitarianismwillsupportit.
TRUE
Onemightargueonutilitariangroundsthatchildlaborpracticesareethicallypermissibleif
theyproducebetteroverallconsequencesthanthealternatives.

AACSB:2
BT:Knowledge
Difficulty:Easy
LearningObjective:1

8.(p.69)Deontologicaltraditionshaveastronginclinationtorelyonthesocialsciencesfor
helpinpredictingthesocialconsequencesofdecisions.
FALSE
Theutilitariantraditionhasastronginclinationtorelyonthesocialsciencesforhelpin
makingsuchpredictions.

AACSB:2,3
BT:Knowledge
Difficulty:Medium
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

9.(p.70)AccordingtotheutilitarianmovementimbibingthetraditionofAdamSmith,business
managersshouldfocusonprofitmaximization.
TRUE
OnemovementwithinutilitarianthinkinginvokesthetraditionofAdamSmith,claimingthat
freeandcompetitivemarketscanattainutilitariangoals.

AACSB:2
BT:Knowledge
Difficulty:Hard
LearningObjective:2

10.(p.70)Undertheframeworkofvirtueethics,competitivemarketsareconsideredthemost
efficientmeansofmaximizinghappiness.
FALSE
Economistsseecompetitivemarketsasthemostefficientmeanstotheutilitarianendof
maximizinghappiness.

AACSB:3
BT:Knowledge
Difficulty:Medium
LearningObjective:2

11.(p.71)The'market'versionofutilitarianismarguesthatquestionsofsafetyandriskshould
bedeterminedbyexpertswhoestablishstandardsthatthebusinessisrequiredtomeet.
FALSE
The'administrative'versionofutilitarianismarguesthatquestionsofsafetyandriskshouldbe
determinedbyexpertswhothenestablishstandardsthatbusinessisrequiredtomeet.

AACSB:2,3
BT:Knowledge
Difficulty:Medium
LearningObjective:3

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Chapter 03 - Philosophical Ethics and Business

12.(p.73)Utilitarianethicscansupportthebreakingofdutiesorresponsibilities.
TRUE
Sinceutilitarianismfocusesontheoverallconsequences,utilitarianismseemswillingto
sacrificethegoodofindividualsforthegreateroverallgood.

AACSB:2
BT:Knowledge
Difficulty:Medium
LearningObjective:4

13.(p.76)Asocialcontractfunctionstoorganizeandeaserelationsbetweenindividuals.
TRUE
Rulescanbethoughtofaspartofasocialagreement,orsocialcontract,whichfunctionsto
organizeandeaserelationsbetweenindividuals.

AACSB:1
BT:Knowledge
Difficulty:Easy
LearningObjective:5

14.(p.83)Anethicsofvirtueshiftsthefocusfromquestionsaboutwhoapersonis,towhata
personshoulddo.
FALSE
Anethicsofvirtueshiftsthefocusfromquestionsaboutwhatapersonshoulddo,toafocus
onwhothatpersonis.

AACSB:2,3
BT:Knowledge
Difficulty:Easy
LearningObjective:8

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Chapter 03 - Philosophical Ethics and Business

15.(p.86)Virtueethicsremindustolooktotheactualpracticeswithinbusinessesandaskwhat
typeofpeoplethesepracticesarecreating.
TRUE
Virtueethicsremindsustolooktotheactualpracticeswefindinthebusinessworldandask
whattypeofpeoplethesepracticesarecreating.

AACSB:3
BT:Knowledge
Difficulty:Hard
LearningObjective:8

Multiple Choice Questions

16.(p.66)Anethicaltraditionthatdirectsustodecidebasedonoverallconsequencesofour
actionsistermed
a.deontologicalethics.
b.socialjustice.
C.utilitarianism.
d.virtueethics.
Utilitarianismisanethicaltraditionthatdirectsustodecidebasedonoverallconsequencesof
ouract.

AACSB:1
BT:Knowledge
Difficulty:Easy
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

17.(p.66)Thestudyofvariouscharactertraitsthatcancontributeto,orobstruct,ahappyand
meaningfulhumanlifeispartof
a.philosophicalethics.
B.virtueethics.
c.deontologicalethics.
d.utilitarianism.
Virtueethicsdirectsustoconsiderthemoralcharacterofindividualsandhowvarious
charactertraitscancontributeto,orobstructahappyandmeaningfulhumanlife.

AACSB:2
BT:Knowledge
Difficulty:Medium
LearningObjective:1

18.(p.66)Philosophicalethicsseeksfoundationsthatallreasonablepeoplecanaccept,
regardlessoftheir
a.educationalbackground.
b.economicalbackground.
c.culturalbackground.
D.religiousbackground.
Philosophicalethicsseeksfoundationsthatallreasonablepeoplecanaccept,regardlessof
theirreligiousconvictions.

AACSB:2,3
BT:Knowledge
Difficulty:Easy
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

19.(p.67)_____waspartofthesamesocialmovementthatgaverisetomoderndemocratic
marketcapitalism.
A.Utilitarianism
b.Virtueethics
c.Deontologicalethics
d.Ethicalrelativism
Utilitarianismwaspartofthesamesocialmovementthatgaverisetomoderndemocratic
marketcapitalism.

AACSB:2,3
BT:Knowledge
Difficulty:Medium
LearningObjective:1

20.(p.68)Whichamongthefollowingprovidesastrongsupportfordemocraticinstitutionsand
policies?
A.Utilitarianism
b.Virtueethics
c.Deontologicalethics
d.Socialjustice
Theemphasisonproducingthegreatestgoodforthegreatestnumbermakesutilitarianisma
socialphilosophythatprovidesstrongsupportfordemocraticinstitutionsandpoliciesand
opposesthosepoliciesthataimtobenefitonlyasmallsocial,economic,orpoliticalminority.

AACSB:1
BT:Knowledge
Difficulty:Medium
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

21.(p.69)Accordingtowhichtypeofethicalframeworkwouldchildlaborinanycountrybe
tolerated?
a.Virtueethics
b.Deontologicalethics
C.Utilitarianism
d.Socialjustice
Injudgingtheethicsofchildlabor,utilitarianthinkingwouldadviseustoconsiderallthe
likelyconsequencesofemployingyoungchildreninfactories.Iftheconsequencesaregood,
thenitistolerated.

AACSB:2
BT:Knowledge
Difficulty:Easy
LearningObjective:1

22.(p.69)Theutilitariantraditionhasalonghistoryofrelyingon_____fordecidingonthe
ethicallegitimacyofalternativedecisions.
a.intuition
b.experience
c.variableanalysis
D.socialsciences
Decidingontheethicallegitimacyofalternativedecisionsrequiresthatwemakejudgments
aboutthelikelyconsequencesofouractions.Howdowedothis?Theutilitariantraditionhas
astronginclinationtorelyonthesocialsciencesforhelpinmakingsuchpredictions.

AACSB:3
BT:Knowledge
Difficulty:Hard
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

23.(p.70)Utilitarianthinkingwouldpromotethefollowingpoliciesexceptto:
a.deregulateprivateindustry.
b.protectpropertyrights.
C.regulateadvertising.
d.allowforfreeexchanges.
UtilitarianthinkinginvokesthetraditionofAdamSmith,claimingthatfreeandcompetitive
marketsarethebestmeansforattainingutilitariangoals.Thisversionwouldpromotepolicies
thatderegulateprivateindustry,protectpropertyrights,allowforfreeexchanges,and
encouragecompetition.

AACSB:2,3
BT:Knowledge
Difficulty:Medium
LearningObjective:2

24.(p.70)Onesectorofeconomiststhatviewprofitmaximizationasacentralideatocorporate
socialresponsibilityarefollowingthe
a.socialjusticethroughfairnessframeworkofethics.
b.deontologicalframeworkofethics.
C.utilitarianframeworkofethics.
d.virtuebasedframeworkofethics.
OnemovementwithinutilitarianthinkinginvokesthetraditionofAdamSmith,claimingthat
freeandcompetitivemarketsarethebestmeansforattainingutilitariangoals.Giventhis
utilitariangoal,neoclassicalfreemarketeconomicsadvisesusthatthemostefficienteconomy
isstructuredaccordingtotheprinciplesoffreemarketcapitalism.Thisrequiresthatbusiness
managers,inturn,shouldseektomaximizeprofits.Thisideaiscentraltoonecommon
perspectiveoncorporatesocialresponsibility.

AACSB:2,3
BT:Knowledge
Difficulty:Medium
LearningObjective:2

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Chapter 03 - Philosophical Ethics and Business

25.(p.7071)Underwhichofthefollowingdothelegislative(bureaucratic)sideandthe
administrativesideofanorganizationworktogether?
a.Virtueethicsframeworkofethics.
B.Utilitarianframeworkofethics.
c.Socialjusticethroughfairnessframeworkofethics.
d.Deontologicalframeworkofethics.
Asecondinfluentialversionofutilitarianpolicyturnstopolicyexpertswhocanpredictthe
outcomeofvariouspoliciesandcarryoutpoliciesthatwillattainutilitarianends.This
approachtopublicpolicyunderliesonetheoryoftheentireadministrativeandbureaucratic
sideofgovernmentandorganizations.Fromthisview,thelegislativebodyestablishesthe
publicgoalsthatweassumewillmaximizeoverallhappiness.Theadministrativeside
executes(administers)policiestofulfillthesegoals.

AACSB:2,3
BT:Knowledge
Difficulty:Hard
LearningObjective:3

26.(p.71)Whataccordingtotheauthorswillprovebestforoptimallysatisfyingthevarious
interestsinthetwoapproachestoutilitarianism?
A.Marketbasedsolutions
b.Consumersupplierpartnerships
c.Deontologicalpractices
d.Strictgovernmentalregulations
Theverybasiceconomicconceptofefficiencycanbeunderstoodasaplaceholderforthe
utilitariangoalofmaximumoverallhappiness.Thus,marketbasedsolutionswillprovebest
atoptimallysatisfyingthesevariousandcompetinginterestsandwilltherebyservetheoverall
good.

AACSB:3
BT:Knowledge
Difficulty:Medium
LearningObjective:3

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Chapter 03 - Philosophical Ethics and Business

27.(p.72)Whichamongthefollowingframeworksofethicsbecomeslesspracticalwithan
increaseinthenumberofpeople,animals,etcthatcouldbeaffectedbydecisionsmade?
a.Virtueethicsframeworkofethics.
B.Utilitarianframeworkofethics.
c.Socialjusticethroughfairnessframeworkofethics.
d.Deontologicalframeworkofethics.
Someutilitariansarguethatthehappinessoffuturegenerationsoughttobeconsidered;others
includeanimalsandalllivingbeingscapableoffeelingpleasureandpain.Themore
expansivethelistweshouldconsider,thelesspracticalutilitarianthinkingbecomes.

AACSB:2,3
BT:Knowledge,Analysis
Difficulty:Medium
LearningObjective:4

28.(p.72)Theessenceofutilitarianismis
a.tocomparetheconsequencesofalternativeactions.
B.itsrelianceonconsequences.
c.itsfocusonjustoneconsequence.
d.toignoreharmfulconsequences.
Asecondchallengegoesdirectlytothecoreofutilitarianism.Theessenceofutilitarianismis
itsrelianceonconsequences.

AACSB:3
BT:Knowledge
Difficulty:Medium
LearningObjective:4

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Chapter 03 - Philosophical Ethics and Business

29.(p.7273)Whichethicalframeworkgoesagainsttheethicalprincipleofobeyingcertain
dutiesorresponsibilities,nomattertheendresult?
a.Deontologicalframeworkofethics.
b.Socialjusticethroughfairnessframeworkofethics.
c.Virtueethicsframeworkofethics.
D.Utilitarianframeworkofethics.
Asecondchallengegoesdirectlytothecoreofutilitarianism.Theessenceofutilitarianismis
itsrelianceonconsequences.Inshort,theendjustifiesthemeans.Butthisseemstodenyone
oftheearliestethicalprinciplesthatmanyofushavelearned:Theendsdonotjustifythe
means.Toputitanotherway,wehavecertaindutiesorresponsibilitiesthatweoughttoobey,
evenwhendoingsodoesnotproduceanetincreaseinoverallhappiness.

AACSB:2,3
BT:Knowledge
Difficulty:Easy
LearningObjective:4

30.(p.73)Amanagerhonoringacommitment,althoughresultinginunfavorableconsequences,
ishighlightingthedifficultiesassociatedwithwhichtypeofethicalframework?
a.Virtueethicsframeworkofethics.
B.Utilitarianframeworkofethics.
c.Socialjusticethroughfairnessframeworkofethics.
d.Deontologicalframeworkofethics.
Asecondchallengegoesdirectlytothecoreofutilitarianism.Theessenceofutilitarianismis
itsrelianceonconsequences.Inshort,theendjustifiesthemeans.Butthisseemstodenyone
oftheearliestethicalprinciplesthatmanyofushavelearned:Theendsdonotjustifythe
means.Toputitanotherway,wehavecertaindutiesorresponsibilitiesthatweoughttoobey,
evenwhendoingsodoesnotproduceanetincreaseinoverallhappiness.

AACSB:2,3
BT:Knowledge,Analysis
Difficulty:Hard
LearningObjective:4

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Chapter 03 - Philosophical Ethics and Business

31.(p.7475)Whichethicalframeworkisbasedonthefoundationsofrulesandtheneedfor
themtobefollowed,nomattertheconsequences?
a.Virtueethicsframeworkofethics.
b.Socialjusticethroughfairnessframeworkofethics.
c.Utilitarianframeworkofethics.
D.Deontologicalframeworkofethics.
Theideabehinddeontologicalethicsisbasedoncommonsense.Ethicalprinciplescansimply
bethoughtofastypesofrules,andthisapproachtoethicstellsusthattherearesomeruleswe
oughttofollow,evenifdoingsopreventsgoodconsequencesfromhappeningorevenifit
resultsinsomebadconsequences.

AACSB:2
BT:Knowledge
Difficulty:Easy
LearningObjective:5

32.(p.75)Rolebaseddutiesconcernedwithprofessionalsinbusiness(lawyers,accountants,
financialanalysts,bankersetc.)areoftentermedas_____.
a.workculture
b.codeofconduct
c.activityalerts
D.gatekeeperfunctions
Perhapsthemostdramaticexampleofrolebaseddutiesconcernstheworkofprofessionals
withinbusiness.Theyhaveimportantrolestoplaywithinpoliticalandeconomicinstitutions.
Manyoftheseroles,oftendescribedas"gatekeeperfunctions,"insuretheintegrityandproper
functioningoftheeconomic,legal,orfinancialsystem.

AACSB:3
BT:Knowledge
Difficulty:Easy
LearningObjective:5

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Chapter 03 - Philosophical Ethics and Business

33.(p.76)Thissignifiesthefactthatnogroupcouldfunctionifmemberswerefreeatalltimes
todecideforthemselveswhattodoandhowtoact.
a.Ethicalstandards
B.Socialcontract
c.Socialmores
d.Personalnorms
Legalrules,organizationalrules,rolebasedrules,andprofessionalrulescanbethoughtof
beingapartofasocialagreement,orsocialcontract,whichfunctionstoorganizeandease
relationsbetweenindividuals.Nogroupcouldfunctionifmemberswerefreeatalltimesto
decideforthemselveswhattodoandhowtoact.

AACSB:3
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Difficulty:Medium
LearningObjective:5

34.(p.77)ImmanuelKantarguedthatthereisonefundamentalethicalprinciplethatonehasto
follow,nomatterwhattheconsequence.Identifyit.
a.Speakthetruthalways.
b.Remainloyaltofamily.
C.Respectthedignityofindividuals.
d.Alwayshelpthepoor.
Theforemostadvocateofthistraditioninethics,the18thcenturyGermanphilosopher
ImmanuelKant,arguedthatthereisessentiallyonesuchfundamentalethicalprinciple:
respectthedignityofeachindividualhumanbeing.

AACSB:2
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Difficulty:Easy
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Chapter 03 - Philosophical Ethics and Business

35.(p.77)Kant'sversionwhichdirectsustoactaccordingtothoserulesthatcouldbe
universallyagreedbyallpeopleformspartofthefamous"Kantian_____."
a.hypotheticalimperative
b.decisivecorrelations
C.categoricalimperative
d.moralobjectivism
Oneversiondirectsustoactaccordingtothoserulesthatcouldbeuniversallyagreedtobyall
people.(Thisisthefirstformofthefamous"Kantiancategoricalimperative.")

AACSB:3
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Difficulty:Medium
LearningObjective:6

36.(p.78)Fundamentally,theconceptof_____iscentraltothedeontologicaltradition.
a.socialjustice
b.normativeanalysis
c.personalethics
D.moralrights
AccordingtoImmanuelKant,bytreatinghumansasendsinthemselves,andnotasameans
toone'sownends,theconceptofamoralrightiscentraltothedeontologicaltradition.

AACSB:2
BT:Knowledge
Difficulty:Easy
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Chapter 03 - Philosophical Ethics and Business

37.(p.78)Whichamongthefollowingjustifiestheassumptionthathumanspossessspecial
dignity,andshouldbetreatedasendsinthemselves?
a.Theirabilitytomakerelyoninstinct.
b.Theirabilitytoloveandnourishtheiroffspring.
C.Theirabilitytomakefreeandrationalchoices.
d.Theirabilitytoactaccordingtoconditioning.
Whathumancharacteristicjustifiestheassumptionthathumanspossessaspecialdignity?
ThemostcommonanswerofferedthroughtheWesternethicaltraditionisthatthehuman
capacitytomakefreeandrationalchoicesisthedistinctivehumancharacteristic.

AACSB:2,3
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Difficulty:Medium
LearningObjective:6

38.(p.80)Whichamongthefollowingisnotalegalright?
a.Equalopportunity
b.Collectivebargainingaspartofaunion
C.Particularpensionfunds
d.Freedomfromsexualharassment
Legalrightsgrantedtoemployeesonthebasisoflegislationorjudicialrulingsincludearight
toaminimumwage,equalopportunity,tobargaincollectivelyaspartofaunion,tobefree
fromsexualharassment,andsoforth.Employeerightsmightalsorefertothosegoodsthat
employeesareentitledtoonthebasisofcontractualagreementswithemployers.Inthissense,
aparticularemployeemighthavearighttoaspecifichealthcarepackage,acertainnumberof
paidholidays,pensionfunds,andthelike.

AACSB:3
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Difficulty:Medium
LearningObjective:7

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Chapter 03 - Philosophical Ethics and Business

39.(p.81)Rawls'systemofsocialjusticeasfairnessisfoundedonallofthefollowingexcept
a.theveilofignorance.
b.unanimousagreement.
c.institutionalizedfairness.
D.equaldistributionofbenefitsofasociety.
Oneoftheprinciplesderivedfromtheveilofignoranceisthefactthatthebenefitsandthe
burdensofasocietyshouldgenerallybedistributedequally.

AACSB:2
BT:Knowledge
Difficulty:Hard
LearningObjective:7

40.(p.86)Whichofthefollowingfocusesontheconceptofpracticesandwhattypeofpeople
thesepracticesarecreating?
A.Virtueethicsframeworkofethics.
b.Socialjusticethroughfairnessframeworkofethics.
c.Utilitarianframeworkofethics.
d.Deontologicalframeworkofethics.
Virtueethicsremindsustolooktotheactualpracticeswefindinthebusinessworldandask
whattypeofpeoplethesepracticesarecreating.Manyindividualmoraldilemmasthatarise
withinbusinesscanbestbeunderstoodasarisingfromatensionbetweenthetypeofperson
weseektobeandthetypeofpersonbusinessexpectsustobe.

AACSB:3
BT:Knowledge
Difficulty:Medium
LearningObjective:8

Fill in the Blank Questions

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Chapter 03 - Philosophical Ethics and Business

41.(p.66)___________providesarationaljustificationforwhyweshouldactanddecideina
particularway.
Philosophicalethics
Anyonecanofferprescriptionsforwhatyoushoulddoandhowyoushouldact,but
philosophicalethicsanswersthe"Why?"questionaswellbyconnectingitsprescriptionswith
anunderlyingaccountofagoodandmeaningfulhumanlife.

AACSB:1
BT:Knowledge
Difficulty:Medium
LearningObjective:1

42.(p.66)Virtueethicsdirectsustoconsiderthe_____ofindividualsandhowvarious
charactertraitscancontributeto,orobstructahappy,meaningfullife.
moralcharacter
Virtueethics,directsustoconsiderthemoralcharacterofindividualsandhowvarious
charactertraitscancontributeto,orobstruct,ahappyandmeaningfulhumanlife.

AACSB:2
BT:Knowledge
Difficulty:Easy
LearningObjective:1

43.(p.67)_____waspartofthesamesocialmovementthatgaverisetomoderndemocratic
marketcapitalism.
Utilitarianism
Thefirstethicaltraditionthatwewilldiscuss,utilitarianism,hasitsrootsin18thand19th
centurysocialandpoliticalphilosophy.Utilitarianismwaspartofthesamesocialmovement
thatgaverisetomoderndemocraticmarketcapitalism.

AACSB:1
BT:Knowledge
Difficulty:Medium
LearningObjective:1

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Chapter 03 - Philosophical Ethics and Business

44.(p.68)Theemphasisonproducingthegreatestgoodforthegreatestnumbermakes
utilitarianisma_____.
socialphilosophy
Theemphasisonproducingthegreatestgoodforthegreatestnumbermakesutilitarianisma
socialphilosophythatprovidesstrongsupportfordemocraticinstitutionsandpoliciesand
opposesthosepoliciesthataimtobenefitonlyasmallsocial,economic,orpoliticalminority.

AACSB:2,3
BT:Knowledge
Difficulty:Hard
LearningObjective:1

45.(p.69)Peopleendorsingchildlaborandjustifyingthatitbringsinforeigninvestmentwithin
poorcountriesaremostly_____.
utilitarians
Utilitariansconsiderchoicesanddecisionsintermsoftheconsequenceoftheaction,andit
theyfeelthatchildlaborwillhavemorepositiveendresultsthannegativeones;thenchild
laborcouldbeendorsedbyutilitarians.

AACSB:2
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Difficulty:Medium
LearningObjective:1

46.(p.69)Utilitarianreasoningusuallysuppliessomesupportforeach_____.
competingavailablealternative
Utilitarianreasoningalsousuallysuppliessomesupportforeachcompetingavailable
alternative.

AACSB:2,3
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Difficulty:Hard
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Chapter 03 - Philosophical Ethics and Business

47.(p.70)Inautilitariangoal,neoclassicalfreemarketeconomicsadvisesusthatthemost
efficienteconomyisstructuredaccordingtotheprinciplesof_____.
freemarketcapitalism
OnemovementwithinutilitarianthinkinginvokesthetraditionofAdamSmith,claimingthat
freeandcompetitivemarketsarethebestmeansforattainingutilitariangoals.Giventhis
utilitariangoal,neoclassicalfreemarketeconomicsadvisesusthatthemostefficienteconomy
isstructuredaccordingtotheprinciplesoffreemarketcapitalism.

AACSB:3
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Difficulty:Medium
LearningObjective:3

48.(p.71)The_____versionoftheutilitarianframeworkofethicsissympatheticwith
governmentregulationofbusinesssincesuchregulationwillinsurethatbusinessactivities
contributetotheoverallgood.
administrative
Asecondversionofutilitarianpolicyturnstopolicyexpertswhocanpredicttheoutcomeof
variouspoliciesandcarryoutpoliciesthatwillattainutilitarianends.Thisapproachtopublic
policyunderliesonetheoryoftheentireadministrativeandbureaucraticsideofgovernment
andorganizations.Thisutilitarianapproach,forexample,wouldbesympatheticwith
governmentregulationofbusinessonthegroundsthatsuchregulationwillinsurethat
businessactivitiesdocontributetotheoverallgood.

AACSB:3
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Difficulty:Medium
LearningObjective:3

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Chapter 03 - Philosophical Ethics and Business

49.(p.71)The_____versionoftheutilitarianframeworkofethicsarguesthatthebestjudges
ofacceptableriskandsafetyofproductsaretheconsumersthemselves.
market
Thedisputebetweenthesetwoversionsofutilitarianpolicy,whatwemightcallthe
"administrative"andthe"market"versionsofutilitarianism,characterizesmanydisputesin
businessethics.Oneclearexampleconcernsregulationofunsafeorriskyproducts.

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Difficulty:Medium
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50.(p.72)Oneproblemassociatedwithutilitarianismisthattheessenceofutilitarianismisits
_______.
relianceonconsequences
Asecondchallengegoesdirectlytothecoreofutilitarianism.Theessenceofutilitarianismis
itsrelianceonconsequences

AACSB:3
BT:Analysis
Difficulty:Medium
LearningObjective:4

51.(p.73)Keepingone'sword,andensuringcontractualagreementsnomatterthe
consequences,isanexampleof_____.
dutiesorresponsibilities
Wehavecertaindutiesorresponsibilitiesthatweoughttoobey,evenwhendoingsodoesnot
produceanetincreaseinoverallhappiness.

AACSB:2
BT:Knowledge
Difficulty:Medium
LearningObjective:4

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Chapter 03 - Philosophical Ethics and Business

52.(p.76)Legalrules,organizationalrules,rolebasedrules,andprofessionalrules,allforma
partofasocialagreementcalledthe_____.
socialcontract
Legalrules,organizationalrules,rolebasedrules,andprofessionalrulescanbethoughtofas
partofasocialagreement,orsocialcontract,whichfunctionstoorganizeandeaserelations
betweenindividuals.

AACSB:1
BT:Knowledge
Difficulty:Easy
LearningObjective:4

53.(p.77)ThebasisoftheethicalprincipleemphasizedbyImmanuelKantisto______.
respectthedignityofindividuals
The18thcenturyGermanphilosopherImmanuelKant,arguedthatthereisessentiallyone
suchfundamentalethicalprinciple:respectthedignityofeachindividualhumanbeing.

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54.(p.78)Thathumansareabletomakefreechoicesabouthowtheylivetheirlives,andmake
decisionabouttheirownends,enablesustosaythathumanshave_____.
autonomy
Humansdonotactonlyoutofinstinctandconditioning;theymakefreechoicesabouthow
theylivetheirlives,abouttheirownends.Inthissense,humansaresaidtohaveautonomy.

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55.(p.83)Virtueethicsdiffersfromutilitariananddeontologicalapproachesfromthe
perspectiveof_____.
egoism
Tounderstandhowvirtueethicsdiffersfromutilitariananddeontologicalapproaches,
considertheproblemofegoism.Asmentionedabove,egoismisaviewthatholdsthatpeople
actonlyoutofselfinterest.

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Essay Questions

56.(p.66)Whatisanethicaltheoryandhowdotheyhelp?
Anethicaltheoryisnothingmorethananattempttoprovideasystematicanswertothe
fundamentalethicalquestion:Howshouldhumanbeingslivetheirlives?Notonlydoethical
theoriesattempttoanswerthequestionofhowweshouldlive,buttheyalsoprovidereasons
tosupporttheiranswer.Asthepreviouschaptersuggested,accountabledecisionmaking
requiresgivingreasonstojustifyouractions.Ethicaltheoriesseektoprovidearational
justificationforwhyweshouldactanddecideinaparticularway.
Philosophicalethicsanswersthe"Why?"questionaswellbyconnectingitsprescriptionswith
anunderlyingaccountofagoodandmeaningfulhumanlife.

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57.(p.70)Explainhowthebranchofutilitarianismclaimsfreeandcompetitivemarketscan
helpmaximizetheoverallgood?
Utilitarianismanswersthefundamentalquestionsofethicswhatshouldwedo?by
referencetoarule:Maximizetheoverallhappiness.Onemovementwithinutilitarianthinking
invokesthetraditionofAdamSmith,claimingthatfreeandcompetitivemarketsarethebest
meansforattainingutilitariangoals.Thisversionwouldpromotepoliciesthatderegulate
privateindustry,protectpropertyrights,allowforfreeexchanges,andencouragecompetition.
Insuchsituations,decisionsofrationallyselfinterestedindividualswouldresult,asifledby
"aninvisiblehand"inAdamSmith'sterms,inthemaximumsatisfactionofindividual
happiness.
Thusneoclassicalfreemarketeconomicsadvisesusthatthemostefficienteconomyis
structuredaccordingtotheprinciplesoffreemarketcapitalism.Thisrequiresthatbusiness
managers,inturn,shouldseektomaximizeprofits.Thisideaiscentraltoonecommon
perspectiveoncorporatesocialresponsibility.Bypursuingprofits,businessinsuresthat
scarceresourcesgotothosewhomostvaluethemandtherebyinsuresthatresourceswill
provideoptimaloverallsatisfaction.Thus,theseeconomistsseecompetitivemarketsasthe
mostefficientmeanstotheutilitarianendofmaximizinghappiness.

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58.(p.7071)Describetheadministrative'versionoftheutilitarianframeworkofethics,as
appliedtoincreasingtheoverallgood.
Thisversionofutilitarianpolicyturnstopolicyexpertswhocanpredicttheoutcomeof
variouspoliciesandcarryoutpoliciesthatwillattainutilitarianends.Theseexperts,usually
trainedinthesocialsciencessuchaseconomics,politicalscience,andpublicpolicy,are
familiarwiththespecificsofhowsocietyworks,andtheythereforeareinapositionto
determinewhichpolicywillmaximizetheoverallgood.Thisapproachtopublicpolicy
underliesonetheoryoftheentireadministrativeandbureaucraticsideofgovernmentand
organizations.Fromthisview,thelegislativebody(fromCongresstolocalcitycouncils)
establishesthepublicgoalsthatweassumewillmaximizeoverallhappiness.The
administrativeside(presidents,governors,mayors)executes(administers)policiestofulfill
thesegoals.
Thepeopleworkingwithintheadministrationknowhowthesocialandpoliticalsystemworks
andusethisknowledgetocarryoutthemandateofthelegislature.Thisutilitarianapproach,
forexample,wouldbesympatheticwithgovernmentregulationofbusinessonthegrounds
thatsuchregulationwillinsurethatbusinessactivitiesdocontributetotheoverallgood.

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59.(p.7274)Brieflyhighlighttheproblemsassociatedwithutilitarianthinking.
Ifutilitarianismadvisesthatdecisionsbemadebycomparingtheconsequencesofalternative
actions,thenwemusthaveamethodformakingsuchcomparisons.Thustherewillbea
tendencytoignoretheconsequences,especiallytheharmfulconsequences,toanyoneother
thanthoseclosesttous.Thisproblemisintensifiedwhenwerecognizethatouractionsmay
impactthehappinessnotonlyofourselvesandthosepeoplesurroundingus,butunknownand
untoldpeopleindistantplacesandinthedistantfuture.
Asecondchallengegoesdirectlytothecoreofutilitarianism.Theessenceofutilitarianismis
itsrelianceonconsequences.Ethicalandunethicalactsaredeterminedbytheirconsequences.
Inshort,theendjustifiesthemeans.Butthisseemstodenyoneoftheearliestethical
principlesthatmanyofushavelearned:Theendsdonotjustifythemeans.
Utilitarianreasoningdemandsrigorousworktocalculateallthebeneficialandharmful
consequencesofouractions.Perhapsmoreimportant,utilitarianreasoningdoesnotexhaust
therangeofethicalconcerns.Consequencesareonlyapartoftheethicallandscape.
Responsibleethicaldecisionmakingalsoinvolvesmattersofduties,principles,andpersonal
integrity.

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60.(p.75)Brieflyexplainhowtheconceptofrolebasedruleswork.
Asanemployee,onetakesonacertainrolethatcreatesduties.Everybusinesswillhaveaset
ofrulesthatemployeesareexpectedtofollow.Sometimestheserulesareexplicitlystatedina
codeofconduct,othertimesinemployeehandbooks,stillotherssimplybymanagers.
Likewise,asabusinessmanager,oneoughttofollowmanyrulesinrespecttostockholders,
employees,suppliers,andotherstakeholders.
Perhapsthemostdramaticexampleofrolebaseddutiesconcernstheworkofprofessionals
withinbusiness.Lawyers,accountants,auditors,financialanalysts,andbankershave
importantrolestoplaywithinpoliticalandeconomicinstitutions.Manyoftheseroles,often
describedas"gatekeeperfunctions,"insuretheintegrityandproperfunctioningofthe
economic,legal,orfinancialsystem.

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61.(p.77)ExplainhowImmanuelKantmeansthathumansaresubjects,andnotobjects.
GermanphilosopherImmanuelKant,arguedthatthereisessentiallyonesuchfundamental
ethicalprinciple:respectthedignityofeachindividualhumanbeing.Onewaytodoso
requiresustotreatallpersonsasendsinthemselvesandneveronlyasmeanstoourown
ends.Inotherwords,ourfundamentaldutyistotreatpeopleassubjectscapableoflivingtheir
ownlivesandnotasmereobjectsthatexistforourpurposes.Tousethefamiliar
subject/objectcategoriesfromgrammar,humansaresubjectsbecausetheymakedecisions
andperformactionsratherthanbeingobjectsthatareactedupon.
Humanshavetheirownendsandpurposesandthereforeshouldnotbetreatedsimplyasa
meanstotheendsofothers.

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62.(p.78)Howistheconceptofmoralrightcentraltotheconceptofdeontologicalethics?
Theconceptofamoralrightiscentraltothedeontologicaltraditionsincetheinherentdignity
ofeachindividualmeansthatwecannotdojustanythingwechoosetoanotherperson.Moral
rightsprotectindividualsfrombeingtreatedinwaysthatwouldviolatetheirdignityandthat
wouldtreatthemasmereobjectsormeans.Moralrightsimplythatsomeactsandsome
decisionsare"offlimits."
Accordingly,ourfundamentalmoralduty(the"categoricalimperative")istorespectthe
fundamentalmoralrightsofothers.Ourrightsestablishlimitsonthedecisionsandauthority
ofothers.

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63.(p.80)Distinguishbetweenlegal,contractualandemployeerightsofanemployee.
Legalrightsarethosegrantedtoemployeesonthebasisoflegislationorjudicialrulings.
Thus,employeeshavearighttoaminimumwage,equalopportunity,tobargaincollectively
aspartofaunion,tobefreefromsexualharassment,andsoforth.
Employeerightsmightrefertothosegoodsthatemployeesareentitledtoonthebasisof
contractualagreementswithemployers.Inthissense,aparticularemployeemighthavea
righttoaspecifichealthcarepackage,acertainnumberofpaidholidays,pensionfunds,and
thelike.
Finally,employeerightsmightrefertothosemoralentitlementstowhichemployeeshavea
claimindependentlyofanyparticularlegalorcontractualfactors.Suchrightswouldoriginate
withtherespectowedtothemashumanbeings.

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64.(p.81)Explaintheconceptofveilofignorance'.
JohnRawlshasdevelopedoneofthemostpowerfulandinfluentialaccountsofjustice.Rawls
offersacontemporaryversionofthesocialcontracttheorythatunderstandsbasicethicalrules
aspartofanimplicitcontractnecessarytoinsuresocialcooperation.Imaginerationaland
selfinterestedindividualshavingtochooseandagreeonthefundamentalprinciplesfortheir
society.Theimageofmembersofaconstitutionalconventionisahelpfulmodelforthisidea.
Toensurethattheprinciplesarefairandimpartial,imaginefurtherthattheseindividualsdo
notknowthespecificdetailsorcharacteristicsoftheirownlives.Theydonotknowtheir
abilitiesordisabilitiesandtalentsorweaknesses;theyhavenoideaabouttheirpositioninthe
socialstructureofthisnewsociety.Theyare,inRawls'sterms,behinda"veilofignorance"
andmustchooseprinciplesbywhichtheywillabidewhentheycomeoutfrombehindthe
veil.

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65.(p.83)Brieflyexplaintheconceptofvirtueethics.
Anethicsofvirtueshiftsthefocusfromquestionsaboutwhatapersonshoulddo,toafocus
onwhothatpersonis.Thisshiftrequiresnotonlyadifferentviewofethicsbut,atleastas
important,adifferentviewofourselves.Implicitinthisdistinctionistherecognitionthatour
identityasapersonisconstitutedinpartbyourwants,beliefs,values,andattitudes.A
person'scharacterthosedispositions,relationships,attitudes,values,andbeliefsthat
popularlymightbecalleda"personality"isnotafeatureindependentofthatperson's
identity.
Thecharacterisnotlikeasuitofclothesthatyoustepintoandoutofatwill.Rather,theself
isidenticaltoaperson'smostfundamentalandenduringdispositions,attitudes,values,and
beliefs.Notehowthisshifttoanemphasisontheindividualchangesthenatureof
justificationinethics.

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66.(p.69)Explainhowchildlabormaybejustifiedintheeyesofautilitarian.
Utilitarianismbeginswiththeconvictionthatweshoulddecidewhattodobyconsideringthe
consequencesofouractions.Onemightargueonutilitariangroundsthatchildlaborpractices
areethicallypermissiblebecausetheyproducebetteroverallconsequencesthanthe
alternatives.

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67.(p.69)Whatdoesutilitarianismrelyupontomakepredictionsaboutpossibleconsequences
ofouractions?
Decidingontheethicallegitimacyofalternativedecisionsrequiresthatwemakejudgments
aboutthelikelyconsequencesofouractions.Howdowedothis?Theutilitariantraditionhas
astronginclinationtorelyonthesocialsciencesforhelpinmakingsuchpredictions.

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68.(p.70)Accordingtooneversionofattainingtheutilitariangoal,andwithreferencetoAdam
Smith'saninvisiblehand',howisitpossibletohavethemostefficienteconomy?
OnemovementwithinutilitarianthinkinginvokesthetraditionofAdamSmith,claimingthat
freeandcompetitivemarketsarethebestmeansforattainingutilitariangoals.Giventhis
utilitariangoal,neoclassicalfreemarketeconomicsadvisesusthatthemostefficienteconomy
isstructuredaccordingtotheprinciplesoffreemarketcapitalism.

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69.(p.72)Howdoesutilitarianismdirectlygoagainstthefundamentalethicalprinciple?
Theessenceofutilitarianismisitsrelianceonconsequences.Ethicalandunethicalactsare
determinedbytheirconsequences.Inshort,theendjustifiesthemeans.Butthisseemsto
denyoneoftheearliestethicalprinciplesthatmanyofushavelearned:Theendsdonot
justifythemeans.

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70.(p.73)Howdoesutilitarianismcontributetoresponsibledecisionmaking?
Throughutilitarianism,weareremindedofthesignificanceofconsequences.Responsible
decisionmakingrequiresthatweconsidertheconsequencesofouracts.But,asanethical
theory,utilitarianismalsoremindsusthatwemustconsidertheconsequencestothewell
beingofallpeopleaffectedbyourdecisions.

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71.(p.75)Whataretherolesenactedbyprofessionalswithinbusinesstermedas,andwhatdo
theyentail?
Lawyers,accountants,auditors,financialanalysts,andbankershaveimportantrolestoplay
withinpoliticalandeconomicinstitutions.Manyoftheseroles,oftendescribedas"gatekeeper
functions,"insuretheintegrityandproperfunctioningoftheeconomic,legal,orfinancial
system.

AACSB:2,3
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72.(p.76)Whatisthesocialcontract?
Legalrules,organizationalrules,rolebasedrules,andprofessionalrulescanbethoughtofas
partofasocialagreement,orsocialcontract,whichfunctionstoorganizeandeaserelations
betweenindividuals.

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Chapter 03 - Philosophical Ethics and Business

73.(p.77)Whatisamoralright?
Moralrightistherighttobetreatedwithrespect,toexpectthatotherswilltreatusasanend
andneverasameansonly,therighttobetreatedasanautonomousperson.

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74.(p.81)ExplainbrieflyRawls'stheoryoffairnessasbeingthecentralelementofajust
decisionorajustorganization.
Theideaofthe"originalposition,"ofhavingtomakedecisionsbehindaveilofignorance,is
attheheartofRawls'stheorythatfairnessisthecentralelementofajustdecisionorjust
organization.Hecontendsthatourdecisionsoughttobemadeinsuchaway,andoursocial
institutionsoughttobeorganizedinsuchaway,thattheywouldproveacceptabletousno
matterwhosepointofviewwetake.

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75.(p.83)Whatisthebiggestchallengeposedbyegoism'?
Thebiggestchallengeposedbyegoismand,accordingtosome,thebiggestchallengeto
ethics,istheapparentgapbetweenselfinterestandaltruism,orbetweenmotivationthatis
"selfregarding"andmotivationthatis"otherregarding."Ethicsrequiresus,atleastattimes,
toactforthewellbeingofothers.

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