,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…
a. …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
c. …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
d. …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?
a. 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
b. 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
d. 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
a. 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
a. Large corporation = Formal, public-relations and/or systems-based
b. Small business = Informal, trust-based
c. Civil society organization = Informal, values-based
d. 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
a. 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.
, a. 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
c. 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
d. 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?
a. 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
b. 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
c. 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
a. 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
b. Achieve universal primary education.
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