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Sample Test An Introduction to Business Ethics, 6e (DesJardins) Chapter 3 Corporate Social Responsibility 1) The most influential theory of corporate responsibility of the past century is: A) the free society economic theory. B) the neoclassical economic theory. C) the social contract theory. D) the stakeholder theory. Answer: B Accessibility: Keyboard Navigation
2) In which of the following ideas are the ethical roots of the economic model of corporate social responsibility found? A) The interests of stakeholders are as important as the interests of the corporation’s stockholders. B) Managers are ethically obliged to make as much money as possible for their stockholders because to do otherwise would undermine the very foundations of our free society. C) Managers must prioritize stakeholders’ interests if there is a conflict between the interests of stockholders and the interests of employees, consumers, suppliers, or society. D) The actions of corporations can and should be restricted by the rights of anyone affected by their decisions. Answer: B Accessibility: Keyboard Navigation 3) The management of an online retailer is mostly interested in implementing strategies and pushing policies that result in the utilization of their stockholders’ property to serve the interests of its employees and the local community. The defenders of which of the following models are likely to consider these actions as theft? A) The triple bottom line theory B) The cyclical theory of social change C) The stakeholder theory of corporate social responsibility D) The economic model of corporate social responsibility Answer: D Accessibility: Keyboard Navigation
4) Which of the following statements does not represent a market failure, a situation in which the pursuit of profit will not result in a net increase in consumer satisfaction? A) The costs of pollution, groundwater contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties external to the economic exchange between buyer and seller. B) Where there is no mechanism for pricing, for setting a value on public goods, there is no guarantee that the markets will result in the optimal satisfaction of the public interest in regard to public goods. C) Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits. D) The pursuit of individual selfinterest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather than mere competition. Answer: C Accessibility: Keyboard Navigation 5) Which statement does not support the claim that an unconditioned ethical directive such as the one the economic model of corporate social responsibility demands of business management is inappropriate for utilitarian theory? A) Markets can work to prevent harm only by firsthand experience with harms that have to occur before they can be remedied. B) It is claimed that once market failures are adequately addressed by the government, business just needs to obey the law that addressed them. Business, however, has the ability to inappropriately influence government policy and the law. C) Business has the ability to influence consumers’ desires by helping shape those desires through advertising.
D) A more precise formulation of a utilitarianbased principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial. Answer: D Accessibility: Keyboard Navigation 6) According to the private property defense of the economic model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view? A) Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom. B) The connection between ownership and control that exist for personal property does not legally exist for corporate property. C) Investors buy their stocks with the hope of maximizing return on their investment. D) Stockholders in publicly traded corporations are better understood as investors rather than owners. Answer: C Accessibility: Keyboard Navigation 7) Which statement is true of Bowie’s Kantian approach to business ethics? A) People have a duty both to not cause harm and to prevent harm. B) Both causing no harm and preventing harm override other ethical considerations. C) While it is ethically good for managers to prevent harm or do some good, their duty to stockholders overrides these concerns.
D) A narrow interpretation of Bowie’s “cause no harm” imperative makes the duties faced by management under the neoclassical model significantly different from the economic model. Answer: C Accessibility: Keyboard Navigation 8) Which statement represents a challenge to Evan and Freeman’s defense of the stakeholder theory against the economic model of corporate social responsibility? A) The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, and the disabled. B) Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers’ fiduciary responsibility. C) The stakeholder theory cannot answer the question as to how, exactly, a manager should go about balancing the diverse and competing claims of all parties. D) There is no guarantee that when managers produce profits, they will serve the interests of either stockholders or the public. Answer: C Accessibility: Keyboard Navigation 9) Which of the following statements is true of the stakeholder model of corporate social responsibility? A) It is based on the premise that a business is a private property, and like any private property, the owners get to decide what to do with it. B) It appeals to such important ethical norms as utilitarianism and freedom because of its connection to the free enterprise system.
C) It assumes that compliance with the law is sufficient for being an ethically responsible business. D) It begins with the insight that every business decision affects a wide variety of people, benefiting some and imposing costs on others. Answer: D Accessibility: Keyboard Navigation 10) The free market, or neoclassical, theory of corporate social responsibility relies on utilitarianism and the concepts of individual rights to freedom and property for its ethical justification. Answer: TRUE Accessibility: Keyboard Navigation 11) To use a company’s resources for a project that does not contribute to maximizing profits is sometimes acceptable and even sometimes required under the economic model of corporate social responsibility. Answer: FALSE Accessibility: Keyboard Navigation 12) If the costs of externalities like air pollution, ground water contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties who are not involved in the exchange between buyer and seller, the exchange price does not represent an equilibrium between true costs and benefits. Answer: TRUE Accessibility: Keyboard Navigation
13) There is no reason to believe that ad hoc attempts to repair market failures, such as determining shadow prices for unpriced social goods, or exempting social goods from the market, or using the law to address social goods that are unattainable through individual choice, are socially inadequate. Answer: FALSE Accessibility: Keyboard Navigation 14) According to the private property defense of the economic model of corporate social responsibility, any use of a corporation’s resources for any purpose other than maximizing profits is a violation of the owners’ property rights and amounts to theft. Answer: TRUE Accessibility: Keyboard Navigation 15) Bowie’s Kantian model of corporate social responsibility obliges managers to do no harm, but they must also be prepared at times to do some good or prevent some harm. Answer: FALSE Accessibility: Keyboard Navigation 16) The stakeholder theory of corporate social responsibility is totally incompatible with the utilitarian ethical theory because the stakeholder concept requires balancing the interests of all the parties affected by business decisions. Answer: FALSE
Accessibility: Keyboard Navigation 17) A wider interpretation of the meaning of a stakeholder as any affected party places an impossible burden on managers who would have to account for everyone who might be affected by a business decision. Answer: TRUE Accessibility: Keyboard Navigation 18) The free market theory provides the rationale for the responsibility of managers to make as much money for their stockholders as possible. Answer: TRUE Accessibility: Keyboard Navigation 19) The significance of the moral minimum approach lies in its recognition that compliance with the law is insufficient for being an ethically responsible business. Answer: TRUE Accessibility: Keyboard Navigation 20) Market failures occur in a variety of situations in which the pursuit of profit will not result in a net increase in consumer satisfaction because in these situations markets fail to do what they were designed to do. Answer: TRUE Accessibility: Keyboard Navigation
21) Prisoners’ dilemma cases are examples of situations in which cooperation does not have a more optimal outcome than competition. Answer: FALSE Accessibility: Keyboard Navigation 22) We learn about market failures and thereby prevent harms in the future only by sacrificing the first generation as a means for gaining this information. Answer: TRUE Accessibility: Keyboard Navigation 23) Milton Friedman did not recognize that there are limits to the pursuit of profits. Answer: FALSE Accessibility: Keyboard Navigation 24) The pursuit of profit is the mechanism by which a business is thought to serve the utilitarian goal of satisfying consumer demand, thereby maximizing the overall good. Answer: TRUE Accessibility: Keyboard Navigation 25) Utilitarian ethics directs us to maximize happiness. Answer: TRUE
Accessibility: Keyboard Navigation 26) Efficient markets guarantee that an ethically worthy outcome has been achieved. Answer: FALSE Accessibility: Keyboard Navigation An Introduction to Business Ethics, 6e (DesJardins) Chapter 5 The Meaning and Value of Work 1) Select the statement that does not represent one of the common aspects of the contemporary work scene. A) Workers have significant choices and alternatives open to them in the workplace. B) More jobs today are temporary, parttime, or subcontracted out to third parties. C) Most workers will likely have no more than one or two jobs in a lifetime. D) The social values of work, such as camaraderie and social status, are lost to parttime and temporary workers. Answer: C Accessibility: Keyboard Navigation 2) Which of the following statements is a classical interpretation of work? A) Humans are intellectual, yet work is physical. B) For cultured and civilized people, work is undignified. C) Humans are free beings; work is a necessity.
D) Work diminishes human nature and human potential. E) All of the answers are correct. F) None of the answers are correct. Answer: E Accessibility: Keyboard Navigation 3) Which of these statements does not describe the hedonistic interpretation of work? A) Work is the price we pay to get the necessities of life and other things that make life pleasurable. B) Happiness is the enjoyment of cultural activities. C) There is no specific content for human happiness. D) Individuals are allowed to choose whatever ends they desire. Answer: B Accessibility: Keyboard Navigation 4) Which of the following statements is not true about the issues confronting business ethics? A) Not every job contributes to the development of human potential. B) The proper kind of workplace contributes to human development. C) Jobs do not have the potential for influencing and shaping individuals. D) Individuals exercise control over jobs. Answer: C Accessibility: Keyboard Navigation
5) Which of the following is a true expression of Marx’s concept of alienation? A) Alienation is the result of low wages. B) Alienation is the result of work that prevents the full development of human potential. C) Alienation means the separation and distinction of one social class from another. D) The capitalistic system does not inevitably mean a life of alienation for workers. Answer: B Accessibility: Keyboard Navigation 6) Select the statement that describes the human potentials that work can fulfill. A) Work provides the occasion for developing talents and exercising creativity. B) Through work, humans create their own society and culture and thereby their own identities. C) Work expresses our nature as social beings. D) Work allows us to experience our freedom and autonomy in making choices and directing our lives. E) All of the answers are correct. F) None of the answers are correct. Answer: E Accessibility: Keyboard Navigation 7) Indicate the statement that is not consistent with Bowie’s liberal theory of work. A) One of the moral obligations of a firm is to provide meaningful work.
B) It is a simple enough task to find a justification for any objective, normative definition of meaningful work. C) Meaningful work defined as nothing more than what employees say it is, is a subjective and individualistic definition of work. D) The more people are compelled to work, the greater the responsibility to make sure that workplace conditions are as humane as possible. Answer: B Accessibility: Keyboard Navigation 8) How might a liberal have to respond to the suggestion that some workers might prefer to work at highly routine, unchallenging, and boring jobs? A) Employers have no choice but to eliminate these jobs. B) Employers have no obligation to eliminate these jobs. C) These jobs do not necessarily suppress the human faculties of rational and autonomous choice. D) While it may be true, on the one hand, that as long as no one is forcing employees to do these jobs, employers don’t have to eliminate them, it is also true that accepting the ethical legitimacy of these jobs violates the fundamental values of rational and free choice. Answer: D Accessibility: Keyboard Navigation 9) In the context of the meaning of work, which of the following statements is true? A) Work means activities that involve perseverance, discipline, toil, usually performed with a degree of seriousness and concentration. B) The meaning of work is likened with being idle, relaxing, playing, and activities such as reading a book or playing a round of golf.
C) Work does not include any task, accomplishment, or undertaking unless it generates an income. D) An activity is not regarded as work unless the worker’s identity and the activity are “morally inseparable.” Answer: A Accessibility: Keyboard Navigation 10) Identify a true statement regarding a job. A) A job is a role that one steps into and out of as a means for earning money. B) A jobs refers to a tradition of work in which a person’s identity and activities are “morally inseparable.” C) A job involves developing relationship between the self and the activity. D) A job enables the evolution of social status and selfesteem in ways that a career does not. Answer: A Accessibility: Keyboard Navigation 11) The value of housework and child care have systematically been undervalued by social programs such as Social Security, unemployment insurance, and many public policies concerned with marriage and divorce. Answer: TRUE Accessibility: Keyboard Navigation 12) A job might be described simply as work in which selfidentity and the activity are independent of each other.
Answer: TRUE Accessibility: Keyboard Navigation 13) It is its potential to be intimately connected to our deepest values that makes the meaning and value of work have important implications for the structure and operation of the workplace. Answer: TRUE Accessibility: Keyboard Navigation 14) According to the classical interpretation of work, happiness is simply getting whatever one wants. Answer: FALSE Accessibility: Keyboard Navigation 15) The human fulfillment model of work believes that work is the primary means for developing human potential. Answer: TRUE Accessibility: Keyboard Navigation 16) According to the human fulfillment model, the psychological and social benefits of work do not reduce to merely subjective and personal values. Answer: TRUE Accessibility: Keyboard Navigation
17) Karl Marx was sure that industrial capitalism inevitably, necessarily, alienates workers from the product of their work, from the creative process of work, and from their very essence as social creatures. Answer: TRUE Accessibility: Keyboard Navigation 18) Both liberals who believe that the ethical assessment of work should be based on how work affects the workers’ ability to make free and autonomous decisions about their lives and the human fulfillment school that makes that judgment on the basis of what makes a good meaningful human life are saying essentially the same thing. Answer: FALSE Accessibility: Keyboard Navigation 19) The idea that the meaning and value of work is whatever the workers determine that it is simply doesn’t challenge in any significant way Bowie’s contention that employers have an obligation to provide meaningful work. Answer: FALSE Accessibility: Keyboard Navigation 20) Primary goods are those goods that are necessary in order to achieve whatever other goods an individual chooses to pursue. Answer: TRUE Accessibility: Keyboard Navigation
21) To the degree that work can be intellectual, leisurely, and free, it can be meaningful; employment and wage labor are as likely to attain these conditions. Answer: FALSE Accessibility: Keyboard Navigation 22) Social conditions of routine, unchallenging, boring jobs tend to suppress the human faculties of rational and autonomous choice. Answer: TRUE Accessibility: Keyboard Navigation 23) The critics of worklife balance practices believe that work can be a central part of an individual’s identity and it can have significant benefits for people. Answer: TRUE Accessibility: Keyboard Navigation 24) The Greek philosopher Aristotle disparaged work because of its very necessary, and therefore slavish, nature. Answer: TRUE Accessibility: Keyboard Navigation