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Business Ethics Managing Corporate Citizenship And Sustainability In The Age Of Globalization 3rd Edition by Andrew Crane – Test Bank
 
Sample  Questions

 

 

Type: multiple choice question

Title: Chapter 01 – Question 01

01) Crane and Matten define the subject of business ethics as, “The study of business situations, activities, and decisions where…

  1. …maximizing profit is reconciled with society’s expectations.”

Feedback:  See the definition provided in Chapter 1. Although there will inevitably be disagreements about what exactly constitutes ‘ethical’ business activity, Crane and Matten consider the definition they provide of the subject itself to be fairly uncontroversial.

Page reference: 5

*b. …issues of right and wrong are addressed.”

Feedback:  See the definition provided in Chapter 1. Although there will inevitably be disagreements about what exactly constitutes ‘ethical’ business activity, Crane and Matten consider the definition they provide of the subject itself to be fairly uncontroversial.

Page reference: 5

  1. …examples of corporate malfeasance are highlighted.”

Feedback:  See the definition provided in Chapter 1. Although there will inevitably be disagreements about what exactly constitutes ‘ethical’ business activity, Crane and Matten consider the definition they provide of the subject itself to be fairly uncontroversial.

Page reference: 5

  1. …questions are raised about corporate motivations.”

Feedback:  See the definition provided in Chapter 1. Although there will inevitably be disagreements about what exactly constitutes ‘ethical’ business activity, Crane and Matten consider the definition they provide of the subject itself to be fairly uncontroversial.

Page reference: 5

 

Type: multiple choice question

Title: Chapter 01 – Question 02

02) The law can be said to be a definition of the minimum acceptable standards of behaviour, with many morally contestable issues not covered by the law. What does this imply for business ethics?

  1. Businesses should prevent laws from being enacted so as to give themselves maximum freedom to act.

Feedback:  Business ethics can be said to begin where the law ends. There is typically no definitive ‘right’ answer to business ethics problems, and while one may choose to argue that business should try and prevent laws from being enacted, this does not automatically follow from the fact that many morally contestable issues are not covered by the law.

Page reference: 5-8

  1. Business ethics is about uncovering the definitive answer to business ethics problems in the absence of guidance from the law.

Feedback:  Business ethics can be said to begin where the law ends. There is typically no definitive ‘right’ answer to business ethics problems, and while one may choose to argue that business should try and prevent laws from being enacted, this does not automatically follow from the fact that many morally contestable issues are not covered by the law.

Page reference: 5-8

*c. In a sense, business ethics can be said to begin where the law ends.

Feedback:  Business ethics can be said to begin where the law ends. There is typically no definitive ‘right’ answer to business ethics problems, and while one may choose to argue that business should try and prevent laws from being enacted, this does not automatically follow from the fact that many morally contestable issues are not covered by the law.

Page reference: 5-8

  1. The other three answers are all correct.

Feedback:  Business ethics can be said to begin where the law ends. There is typically no definitive ‘right’ answer to business ethics problems, and while one may choose to argue that business should try and prevent laws from being enacted, this does not automatically follow from the fact that many morally contestable issues are not covered by the law.

Page reference: 5-8

 

Type: multiple response question

Title: Chapter 01 – Question 03

03) Why is business ethics important? Please select all that apply.

Feedback:  These are all reasons why business ethics is important, but there are others also: Crane and Matten list eight in total.

Page reference: 9-13

*a. Business has greater power and influence in society than ever before.

*b. Business has the potential to provide a major contribution to our societies.

*c. Business malpractices have the potential to inflict enormous harm on individuals, communities and the environment.

*d. Business continues to violate ethics, across countries and sectors.

 

Type: fill-in-blank

Title: Chapter 01 – Question 04

04) The following sentence describes the relationship between morality, ethics and ethical theory. Fill in the missing word. Ethics rationalizes morality to produce ethical _______ that can be applied to any situation.

Feedback: Ethics rationalizes morality to produce ethical theory that can be applied to any situation. For a graphical depiction, see Figure 1.2.

Page reference: 8

  1. Theory

 

Type: multiple response question

Title: Chapter 01 – Question 05

05) A sex shop might call itself ethical because it… Please select all that apply.

Feedback: All are possible reasons for a sex shop to call itself ethical. Consider Carroll’s four part model of CSR, which is discussed in Chapter 2 (fig 2.1, p53). Note that all the initiatives listed here are aimed at the top two tiers of Carroll’s pyramid, doing what society expects or desires rather than sticking to what society requires.

Page reference: 11-12

*a. sells sex toys made with environmentally friendly materials.

*b. uses fair trade materials in its toys and aides.

*c. provides philanthropic support for related causes (e.g. human rights).

*d. promotes a label to certify that sex industry workers have not been exploited in the making of labelled products.

 

Type: matching question

Title: Chapter 01 – Question 06

06) Match the different types of organization with their different approaches to managing ethics.

Feedback: Different kinds of organizations also face different priorities in addressing business ethics, have different constraints, and are responsible or accountable to different kinds of stakeholder. See Figure 1.5.

Page reference: 17

  1. Large corporation = Formal, public-relations and/or systems-based
  2. Small business = Informal, trust-based
  3. Civil society organization = Informal, values-based
  4. Public sector organization = Formal, bureaucratic

 

Type: fill-in-blank

Title: Chapter 01 – Question 07

07) According to Crane and Matten, globalization as defined in terms of the deterritorialization of economic activities is particularly relevant for business ethics, and this is evident in three areas – culture, law, and ______________.

Feedback: According to Crane and Matten, globalization as defined in terms of the deterritorialization of economic activities is particularly relevant for business ethics, and this is evident in three areas – culture, law, and accountability.

Page reference: 20-24

  1. Accountability

 

Type: multiple choice question

Title: Chapter 01 – Question 08

08) There are clear regional differences in business ethics. Read the following statements carefully and decide which of the following is correct.

  1. In North America, the key actors in business ethics are government, trade unions and corporate associations. In Europe it is government and corporations, while in Asia it is the corporation.

Feedback:  In Europe, the key actors in business ethics are government, trade unions and corporate associations. In Asia it is government and corporations, while in North America it is the corporation.

Page reference: 26

*b. Key issues in business ethics in Asia are corporate governance and accountability. In North America they are misconduct and immorality in single decision situations. In Europe, key issues in business ethics are social issues in organizing the framework of business.

Feedback:  Key issues in business ethics in Asia are corporate governance and accountability. In North America they are misconduct and immorality in single decision situations. In Europe, key issues in business ethics are social issues in organizing the framework of business.

Page reference: 26

  1. In North America, the individual is responsible for ethical conduct in business, while in Asia it is social control by the collective and in Europe the responsibility lies with top management.

Feedback:  In North America, the individual is responsible for ethical conduct in business, while in Europe it is social control by the collective and in Asia the responsibility lies with top management.

Page reference: 26

  1. In North America, a formalized multiple stakeholder approach is the dominant perspective on stakeholder management. Aisa focuses on shareholder value, while Europe tends to take an implicit multiple stakeholder and benign managerialism approach.

Feedback:  In Europe, a formalized multiple stakeholder approach is the dominant perspective on stakeholder management. North America focuses on shareholder value, while Asia tends to take an implicit multiple stakeholder and benign managerialism approach.

Page reference: 26

 

Type: multiple choice question

Title: Chapter 01 – Question 09

09) What is Crane and Matten’s definition of sustainability?

  1. Sustainability means the capacity of a business to survive over time whilst contributing to the local communities and protecting the local environments in which it operates.

Feedback:  This could be a company’s sustainability statement. In fact, it is a pastiche of sustainability statements presented in Figure 1.8 (p32).

Page reference: 35

  1. Sustainability means that business must extend its goals beyond that of adding economic value, to incorporate adding environmental and social value also.

Feedback:  This is a reformulation of John Elkington’s Triple Bottom Line idea, not Crane and Matten’s definition.

Page reference: 35

  1. Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Feedback:  This is the famous definition of sustainable development set out in the so-called Brundtland Report (World Commission on Environment and Development, 1987).

Page reference: 35

*d. Sustainability refers to the long-term maintenance of systems according to environmental, economic and social considerations.

Feedback:  This is Crane and Matten’s definition.

Page reference: 35

 

Type: multiple choice question

Title: Chapter 01 – Question 10

10) Crane and Matten point out that the development of social perspectives on sustainability has tended to trail behind that of the environmental and economic perspectives on sustainability. One attempt to address social elements is the UN’s Millennium Development Goals (MDGs), which is a set of eight goals to be achieved by 2015. Which of the following is not an MDG?

incorrect

  1. Reduce child mortality.

Feedback:  This is one of the MDGs. The MDGs are primarily governmental responsibilities, but some of them have direct implications for business.

Page reference: 36

  1. Achieve universal primary education.

Feedback:  This is one of the MDGs. The MDGs are primarily governmental responsibilities, but some of them have direct implications for business.

Page reference: 36

*c. Reduce domestic violence.

Feedback:  The reduction of domestic violence is not a specific MDG. The MDGs are primarily governmental responsibilities, but some of them have direct implications for business.

Page reference: 36

  1. Eradicate extreme poverty and hunger.

Feedback:  This is one of the MDGs. The MDGs are primarily governmental responsibilities, but some of them have direct implications for business.

Page reference: 36

 

 

 

 

Type: fill-in-blank

Title: Chapter 03 – Question 01

01) Crane and Matten define ethical theories as “the______ and principles that determine right and wrong for a given situation.”

Feedback: Crane and Matten define ethical theories as “the rules and principles that determine right and wrong for a given situation.”

Page reference: 92

  1. rules

 

Type: multiple choice question

Title: Chapter 03 – Question 02

02) De George (1999) suggests two extremes in locating a place for ethical theory. What are these two extremes?

  1. Normative / instrumental

Feedback:  Normative and instrumental approaches can be found on both sides of De George’s spectrum: the issue is rather of how morality is to be decided.

Page reference: 92-93

  1. Moral / immoral

Feedback: The issue is one of how morality is to be decided or judged, not on whether ethical theories are by their nature moral or immoral.

Page reference: 92-93

*c. Absolutism / relativism

Feedback: Absolutism claims there are eternal, universally applicable moral laws, whereas relativism claims morality is context-dependent and subjective.

Page reference: 92-93

  1. Religious / non-religious

Feedback: There are often disagreements between religious and non-religious people, but these are not two extreme positions on different sides of an ethical spectrum. The issue is rather of how morality is to be decided.

Page reference: 92-93

 

Type: true-false

Title: Chapter 03 – Question 03

03) Consequentialist ethical perspectives base their moral judgement on the motivations and/or principles of the actors.

  1. True

Feedback: The moral judgement in consequentialist approaches is based on the intended outcomes of a certain action. Motivations and/or principles are important for non-consequentialist ethics.

Page reference: 97-98

*b. False

Feedback: The moral judgement in consequentialist approaches is based on the intended outcomes of a certain action. Motivations and/or principles are important for non-consequentialist ethics.

Page reference: 97-98

 

Type: matching question

Title: Chapter 03 – Question 04

04) Match the major normative theories of business ethics with the rules they employ.

Feedback: These are the four main Western modernist ethical theories, and they dominate thinking on business ethics in Western societies.

Page reference: 98, see Fig 3.2

  1. Egoism = Self-interest
  2. Utilitarianism = Act or rule utility
  3. Ethics of duties = Categorical imperative
  4. Rights and justice = Respect for human beings

 

Type: multiple response question

Title: Chapter 03 – Question 05

05) What, according to Crane & Matten, are the main problems with utilitarianism? Please select all that apply.

Feedback: The problems listed here show the limits to the utilitarian approach. These have led to utilitarianism being refined over time. For one example of how this has happened, see p104 in Crane and Matten’s book.

Page reference: 103

*a. Distribution of utility

*b. Subjectivity

  1. Limited social acceptability

*d. Problems of quantification

 

Type: multiple choice question

Title: Chapter 03 – Question 06

06) Kant’s categorical imperative contains three parts. Maxim 3 states, “Act only so that the will through its maxims could regard itself at the same time as universally lawgiving”. What does this mean?

  1. Humans deserve respect as autonomous, rational actors and human dignity should never be ignored.

Feedback:  The issue of human dignity is dealt with in the second maxim. Kant’s third maxim scrutinises the element of universality: it tries to overcome the risk of subjectivity by asking us to check if other rational actors would endorse our judgement of a particular situation. This has also been referred to as the New York Times test: if you would be uncomfortable with your actions being reported in the press, it is likely that they are of dubious moral status.

Page reference: 105

*b. It is a test to check whether other rational actors would endorse our judgement of a certain situation.

Feedback: Kant’s third maxim scrutinises the element of universality: it tries to overcome the risk of subjectivity by asking us to check if other rational actors would endorse our judgement of a particular situation. This has also been referred to as the New York Times test: if you would be uncomfortable with your actions being reported in the press, it is likely that they are of dubious moral status.

Page reference: 105

  1. It is a consistency test to check whether the principle underlying an action could be followed by everyone.

Feedback:  Kant’s first maxim deals with the question of consistency. Kant’s third maxim scrutinises the element of universality: it tries to overcome the risk of subjectivity by asking us to check if other rational actors would endorse our judgement of a particular situation. This has also been referred to as the New York Times test: if you would be uncomfortable with your actions being reported in the press, it is likely that they are of dubious moral status.

Page reference: 105

  1. The maxim celebrates the inherent subjectivity of our moral decisions.

Feedback:  Kant’s third maxim scrutinises the element of universality: it tries to overcome the risk of subjectivity by asking us to check if other rational actors would endorse our judgement of a particular situation. This has also been referred to as the New York Times test: if you would be uncomfortable with your actions being reported in the press, it is likely that they are of dubious moral status.

Page reference: 105

 

 

Type: multiple response question

Title: Chapter 03 – Question 07

07) According to John Rawls, justice is achieved when certain tests are met. What are they? Please select all that apply.

Feedback: In his theory of justice, Rawls (1971) suggests two criteria – two tests – to decide whether an action could be called just. The second test is based on the assumption that inequalities are unavoidable in a free, competitive society, and is split into two parts.

Page reference: 113

*a. Social and economic inequalities are to be arranged so that they benefit the least advantaged the most.  Crane and Matten list this as test 2a.

  1. Social and economic inequalities are to be arranged to ensure the greatest good for the greatest number of people whilst ensuring liberty for all.

*c. Each person is to have an equal right to the most extensive total system of basic liberties compatible with a similar system of liberty for all. Crane and Matten list this as test 1.

*d. Inequalities are to be arranged so that they are attached to offices and positions open to all under conditions of fair equality of opportunity.  Crane and Matten list this as test 2b.

 

Type: multiple response question

Title: Chapter 03 – Question 08

08) Crane and Matten define feminist ethics as an approach that prioritises the following above abstract principles: (Please select all that apply.)

Feedback: This approach is often also called an ethics of care because of its close attention to the embeddedness in a network of interpersonal relationships. Key elements include relationships, responsibility and experience (following Borgerson, 2007).

Page reference: 120

*a. Harmonious social relationships

*b. Care for one another

  1. Attention to the least privileged

*d. Avoidance of harm

 

Type: multiple choice question

Title: Chapter 03 – Question 09

09) According to Crane and Matten, postmodern ethics recommends the following way of deciding what is right and wrong in a given situation:

  1. None of these options is correct.

Feedback: See Crane and Matten’s definition of postmodern ethics. Postmodern ethics has neither a recipe for ethical decision-making nor any specific rules or principles. Rather (following Gustafson, 2000), it takes a holistic approach, focuses on examples rather than principles, and sees ethical reasoning as a constant learning process (preliminary character of reasoning). It also rejects the notion of general or universal principles, focussing instead on the principle of ‘Think local, act local’.

Page reference: 125

  1. The best way for deciding between right and wrong is for individuals to enter into discussion with others to generate situational norms.

Feedback:  See Crane and Matten’s definition of postmodern ethics. Postmodern ethics has neither a recipe for ethical decision-making nor any specific rules or principles that must always be followed. Rather (following Gustafson, 2000), it takes a holistic approach, focuses on examples rather than principles, and sees ethical reasoning as a constant learning process (preliminary character of reasoning). It also rejects the notion of general or universal principles, focussing instead on the principle of ‘Think local, act local’.

Page reference: 125

  1. Individuals should always follow the morals of their local communities.

Feedback:  See Crane and Matten’s definition of postmodern ethics. Postmodern ethics has neither a fixed recipe for ethical decision-making nor any specific rules or principles. Rather (following Gustafson, 2000), it takes a holistic approach, focuses on examples rather than principles, and sees ethical reasoning as a constant learning process (preliminary character of reasoning). It also rejects the notion of general or universal principles, focussing instead on the principle of ‘Think local, act local’.

Page reference: 125

*d. Individuals should follow their emotions, inner convictions and gut feelings.

Feedback:  See Crane and Matten’s definition of postmodern ethics. Postmodern ethics has neither a recipe for ethical decision-making nor any specific rules or principles. Rather (following Gustafson, 2000), it takes a holistic approach, focuses on examples rather than principles, and sees ethical reasoning as a constant learning process (preliminary character of reasoning). It also rejects the notion of general or universal principles, focussing instead on the principle of ‘Think local, act local’.

Page reference: 125

 

Type: multiple choice question

Title: Chapter 03 – Question 10

10) Crane and Matten suggest a pragmatic use of ethical theory, in which the business actor sees an ethical dilemma through a ‘prism’ of ethical theories. What do they see as a main advantage of this approach?

  1. The business actor is in a position to ethically justify any decision to stakeholders.

Feedback: Crane and Matten’s focus is on enabling the business actor to be as fully aware of the issues at hand as possible, and to see a variety of possible solutions. For a graphical representation of this pragmatic perspective, see Figure 3.7.

Page reference: 128

  1. The business actor is in a strong position to argue within the organization for the firm to take ethical actions.

Feedback:  Crane and Matten’s focus is on enabling the business actor to be as fully aware of the issues at hand as possible, and to see a variety of possible solutions. For a graphical representation of this pragmatic perspective, see Figure 3.7.

Page reference: 128

  1. The business actor can draw up a general nine-point plan for ethical decision making.

Feedback:  Crane and Matten’s focus is on enabling the business actor to be as fully aware of the issues at hand as possible, and to see a variety of possible solutions. For a graphical representation of this pragmatic perspective, see Figure 3.7.

Page reference: 128

*d. The business actor is able to fully understand the issues and possible solutions.

Feedback:  Crane and Matten’s focus is on enabling the business actor to be as fully aware of the issues at hand as possible, and to see a variety of possible solutions. For a graphical representation of this pragmatic perspective, see Figure 3.7.

Page reference: 128