BA 300, SDSU Business Ethics Exam
Questions and Answers
according iito iithe iiauthors iiof iithe iitext, iiwhich iiof iithe iifollowing iistatements iiis iior iiare
iitrue iiabout iithe iinorms iigoverning iiethical iibehavior iiin iibusiness ii- iiAnswers ii-a. iithere
iiis iimore iiagreement iithan iidisagreement iiabout iiwhat iithe iiethical iinorms iigoverning
iibusiness iibehaviors iishould iibe
Z: iiOn iiMay ii23, ii2013, iiThe iiWall iiStreet iiJournal iipublished iian iiarticle iientitled ii"How
iiCould iia ii.. iiThat iiSchool iiExams?" iiabout iihow iiparents iishould iiaddress iicheating iiby
iitheir iiyoung iichildren. iiOne iiparent iiwas iiquoted iias iisaying iishe iidiscouraged iiher
iichildren iifrom iicheating iiby iitelling iithem iithat ii"cheating iifiles iiin iithe iiface iiof iivalues iiof
iiour iifamily iiand iithe iirules iiof iithe iischool". iiIf iiher iichildren iido iinot iicheat, iibased iion
iiwhat iishe iitold iithem, iithe iichildren iiwould iibe iibehaving iiin iiline iiwith ii- iiAnswers ii-a.
iilevel iiII ii(conventional) iiof iiKohlberg's iiTheory iiof iiMoral iiDevelopment
Z: iiIn iithe iicontext iiof iiethical iidecision-making iiin iibusiness, iithe iiauthors iiof iithe iitext
iiargue iithat iithe iidecision-maker: ii- iiAnswers ii-c. iishould iitake iiinto iiconsideration iithe
iibroad iiinterests iiof iiall iiof iithose iiaffected iiby iithe iidecision, iiincluding iithe iicommunity iiin
iiwhich iithe iicompany iidoes iibusiness
Z: iiIn iian iiApril ii1, ii2012 iiinterview iiin iithe iiNew iiYork iiTimes, iiCharlotte iiBeers, iiformer
iihead iiof iiadvertising iigiant iiOgilvy ii& iiMather, iisaid iishe iihas iiobserved iithat iipeople iican
iichange iiwhen iithey iibecome iimanagers: ii"When iiyou iihave iisome iipower, iiyou iican
iilose iithe iisense iiof iihow iiyou're iibehaving iiand iiwho iiyou iiare iiand iiyou iidon't iiwant iito
iido iithat. iiIt's iidangerous. iiIt's iivery iiaddictive iito iibe iigiven iisome iipower," iiMs. iiBeers
iiobservation iiis iiconfirmed iiby: ii- iiAnswers ii-b. iithe iicentral iilesson iiof iithe iiZimbardo
iiPrison iiExperiment
Z: iiIn iia iiMay ii2013 iiinterview, iiin iiInc. iiMagazine, iiTim iiWestergren, iithe iifounder iiof
iiPandora iiRadio iiwas iiasked iiwhat iikind iiof iipolitical iiparty iihe iiwould iistart iiif iihe iicould.
iiMr. iiWestergren iianswered ii"A iiparty iibased iion iithe ii'veil iiof iiignorance' iitheory".
iiAccording iito iiDr. iiLori iiRyan, iihow iidid iiJohn iiRawls iiuse iithe iiveil iiof iiignorance, iiwhich
iiRawls iiconceived, iiin iihis iitheory iiof iijustice? ii- iiAnswers ii-a. iias iia iithought iiexperiment
iithat iiexplains iiwhy iisomeone iiunaware iiof iithe iicharacteristics iihe iiwould iichoose iian
iiethical iidecision-making iirule iifavoring iithe iileast iiadvantaged
Z: iiOne iiof iithe iieight iisteps iiin iiethical iidecision iimaking iiis iito iithink iicreatively iiabout
iipotential iiactions. iiThe iitext iicites iithe iiexample iiof iiCummins iiEngine iiCompany iiwhich
iiresolved iithe iiproblem iiof iilocal iichildren iicutting iithrough iia iiwire iifence iion iicompany
iiproperty iiand iistealing iivaluable iiequipment iiby: ii- iiAnswers ii-d. iimaking iiclassrooms
,iiavailable iion iithe iicompany iisite iisince iithere iiweren't iienough iiclassrooms iiat iithe iilocal
iischool
according iito iithe iitext, iiin iithe iiage iiof iisocial iinetworking, iia iiperson's iireputation iifor
iiintegrity iiin iibusiness iiis: ii- iiAnswers ii-c. iiespecially iiimportant iisince iinews iiof iibad
iibusiness iican iireach iia iibroad iiaudience iiin iiseconds
Z: iiOne iischolar iihas iiobserved iithat iisome iipeople iibelieve iithat iiit iiis iiethically
iiappropriate iifor iibusiness iiexecutives iito iihave iilots iiof iifreedom iito iimake iihigh-risk
iibusiness iidecisions iiwithout iitoo iimuch iigovernment iiinterference. ii"Their iiview iiis iithat
iithe iifraudulent iiexecutives iiare iibad iiapples iiin iia iibasically iisweet iibarrel", iiaccording iito
iithe iischolar, iiwhat iiethical iidecision-rule iimost iiclosely iimatches iithis iiview? ii- iiAnswers
ii-d. iiNozick's iiRights iiTheory
Z: iiThe iitext iisays iithe iiculpability iiscore iiassigned iiby iithe iiFederal iiOrganizational
iiSentencing iiGuidelines iiin iia iigiven iicase: ii- iiAnswers ii-a. iiis iidesigned iito iireflect iithe
iilevel iiof iimoral iiblameworthiness iiof iian iiorganization iifor iiits iiconduct iiand iiinfluences
iithe iilevel iiof iipunishment iithe iiorganization iiwill iireceive.
Z: iiOn iiOct. ii6, ii2012, iithe iiWall iiStreet iiJournal iireported iion iia iirecent iistudy iiin iiwhich
iihundreds iion iifinancial iiplanners iiwere iiasked iito iievaluate iiconflict-of-interest iirules iifor
iidoctors. iiThe iifinancial iiplanners iifavored iibarring iidoctors iifrom iiaccepting iifree iimeals
iiand iiexpensive iieducational iitrips iifrom iidrug iicompanies, iiyet iisaid iirestricting iifinancial
iiplanners iifrom iireceiving iithe iisame iikinds iiof iibenefits iifrom iiinvestment iicompanies
iithat iisought iito iido iibusiness iiwith iithe iiplanners iiwould iibe iiunecessarily iiburdensome.
iiOne iiof iithe iistudy iiresearchers iisaid ii"Each iiof iius iitends iito iithink iithat iiwe iiare iimuch
iimore iifair iiand iiimpartial iithan iiother iipeople iiare". iithe iistudy iiillustrated: ii- iiAnswers ii-b.
iithe iiillusion iiof iisuperiority
Z: iithe iitext iisays iithat iia iisupervisor iiwho iitries iito iiget iisubordinates iito iifollow iithe
iiethical iistandards iiexpected iiin iithe iiworkplace: ii- iiAnswers ii-d. iishould iibe iiviewed iias iia
iipart iiof iinatural iimanagement iiprocess iiof iiproviding iiclear iiand iiinternational iiguidance
iion iiwhat iiis iiconsidered iiappropriate iibehavior iiin iithe iiparic iiworkplace
Z: iiOn iiJan. ii20, ii2013, iithe iiNY iitimes iiran iia iistory iiabout iia iinew iikind iiof iibeer iihall
iiwhere iithe iiproceeds iigo iito iicharity iiinstead iiof iithe iiowner. iiIn iione iisuch iipub iiin
iiHouston, iipatrons iigot iione iivote iiper iidrink iias iito iiwhich iicharity iishould iiget iithe
iifollowing iimonth's iiprofits. iiOne iigroup iiin iiPortland iiis iiconsidering iiopening iia iiworker-
run iicollectively iimanaged iipub iirun iiby iiand iifor ii"people iiwho iiresist iioppression iion iiall
iilevels" iiand iifight iifor ii"unrepresented iiand iiunwaged iiworkers". iithe iiethical iiphilosophy
iiin iibusiness iidecision-making iidriving iithe iiopening iiof iithe iiportland iipub iiis iiMOST iiin
iiline iiwith: ii- iiAnswers ii-c. iiRawls' iiTheory iiof iiJustice
Z: iiMost iiadults iiwill iicarry iiout iian iiauthority iifigure's iiorders, iiin iibusiness iiand iiother
iisettings, iieven iiif iithese iiorders iiare iicontrary iito iitheir iipersonal iibeliefs iiabout iiwhat's
iiright. iiThat iiis iithe iicentral iimessage iiof: ii- iiAnswers ii-c. iiThe iiMilgram iiexperiment
,Z: iiHarvard iiBusiness iiSchool's iiDean iiexplained iihis iischool's iinew iifocus iion iiethics.
iiWhen iia iibusiness iihas iia ii"system" iiin iiwhich iiit iifeels iilike iithe iipressure iifor iishort-term
iireturns iiare iiextraordinary iiand iithe iigains iifrom iidoing iithings iiin iithe iishort iirun iiare
iiamazing....some iiof iius iimay iihave iibeen iitempted iito iido iibad iithings". iithe iidean's
iicomments iiilustrate: ii- iiAnswers ii-b. iithe iinegative iiside iiof iisetting iiperformance iigoals
Z. iiAfter iiAAA iiagency iilost iia iibig iiaccount iidue iito iian iierror, iisam iisupervisor's....Sam
iibelieves iiin iiutilitarianism; iisam iiis iimost iilikely iito: ii- iiAnswers ii-c. iifire iiCarl iibecause
iisacrificing iiCarl iifor iiBeth's iimistake, iiand iikeeping iiBeth, iiwill iiresult iiin iithe iigreatest iinet
iibenefit iito iithe iigreatest iinumber iiof iipeople iiaffected iiby iithe iidecision
According iito iithe iitext, iia iimultinational iicompany iibased iiin iithe iiUS iithat iiis iioperating
iiin iideveloping iicoutryu iiwith iienvironmental iilaws iithat iiwould iiallow iithe iicompany iito
iipollute iithe iicountry's iiair iiand iiwater: ii- iiAnswers ii-c. iishould iiconsider iiadhering iito
iiethical iistandards iithat iiare iihigher iithan iithe iilegal iistandards iiin iithe iideveloping
iicountry. iithe iideveloping iicountry's iilaws iido iinot iinecessarily iidefine iithe iicountry's
iiethical iiduties
Z: iiThe iilate iiRay iiKroc, iifounder iiof iithe iiMcDonalds iirestaurant iiwrote iiin iihis iimemoirs:
ii"i iihave iialways iibelieved iithat iieach iiman iimakes iihis iiown iihappiness iiand iiis
iiresponsible iifor iihis iiown iiproblems" iiMr. iiKroc iibelieved iiin ii- iiAnswers ii-d. iia iihigh
iiinternal iilocus iiof iicontrol
Z: iiIn iiJan. ii2011, iiGil iiMeche, iithe iia iipitcher iiwith iithe iiKansas iiCity iiRoyals, iiretired,
iiturning iidown ii12 iimillion iihe iiwould iihave iireceived iiin iithe iifinal iiyear iiof iifive iiyear
iicontract iiwith iithe iiteam. iiHe iiretired iibcause iihis iiright iishoulder....Meche's iidecision iito
iidecline iihis iisalary iiso iithat iihe iicould iifeel iibetter iiabout iihimself iiis iia iigood iiillustration
iiof iisomeone: ii- iiAnswers ii-a. iiwith iia iihigh iiDesire iifor iiMoral iiApprobation iiof iiSelf
Process iiof iiIndividual iiDecision iiMaking ii- iiAnswers ii-Moral iiAwareness ii-> iiEthical
iiJudgement ii-> iiEthical iiBehavior
ALL iibehavior iiis iicontrolled ii... ii- iiAnswers ii-intentionally iior iiunintentionally
Law ii- iiAnswers ii--reflects iisociety's iiminimum iinorms iiand iistandards iiof iibusiness
iiconduct
classical iieconomist ii- iiAnswers ii-assume iiall iihuman iibehavior iiis iimotivated iisolely iiby
iiself iiinterest; iihumans iiare iipurely iirational iiand iimake iichoices iibased iion iicost-benefit
iianalysis
Z: iiWhy iiis iiethics iiimportant iiin iibusiness? ii- iiAnswers ii--most iipeople iiprefer iito iiwork
iifor iiethical iiorganizations
- iipeople iiwant iito iifeel iigood iiabout iithemselves iiand iitheir iiwork
-employees iiare iimore iiattracted iito iiand iicommitted iito iiethical iiorganizations
, The iiDefense iiIndustry iiand iiInitiative iion iiBusiness iiConduct iiand iiEthics ii- iiAnswers ii-
consortium iiof iiUS iibusiness iiindustry iicontractors iiwhich iisubscribes iito iia iiset iiof
iiprinciples iifor iiachieving iihigh iistandards iiof iibusiness iiethics/conduct
Organizational iiValues iiStatements ii- iiAnswers ii-aim iito iicreate iia iishared iisense iiof
iipurpose iiamong iiemployees, iiand iito iiconvey iisomething iiabout iithe iiorganization's
iiidentity iito iiothers
6 iiOrganizational iiInfluences iiin iiMoral iiDecision iiMaking ii- iiAnswers ii-1. iiWho iishapes
iiyou iiethical iidecisions
2. iithe iiPygmalion iieffect
3. iihow iirewards iiand iipunishment iieffect iiconduct
4. iigoals ii
5. iidiffusion iiof iiresponsibility ii
ii1. iiResponsibility iiis iitaken iiaway
- iiex. iieveryone iihas iinarrowly iidefined iiroles iiwith iiuncertain iirelationship iito iifinal
iioutcome ii
2. iiResponsibility iiis iishared iiwith iiothers
ii-ex. iilarge iiteam iiwith iino iidefined iipositions
3. iiResponsibility iiis iiobscured iiby iiorganizational iihierarchy
ii-ex. iilayers iiof iicorporation iimanagement iidesignated iito iiaccomplish iitasks
4. iiResponsibility iiis iidiluted iiby iipsychological iidistance iito iipotential iivictims
ii-ex. iilayoff iiof iiworkers iior iiclosing iiof iiplant iithat iiis iifar iifrom iiwhere iidecision iiis iibeing
iimade ii(out iiof iisight iiout iiof iimind)
6. iiroles iiand iideindividualation
Roles. iiFinally, iia iifirmly iiestablished iirole iiin iian iiorganization iimay iireduce iian
iiindividual's iisense iiof iihis iior iiher iiown iiresponsibility iifor iia iigiven iiethically iirelated
iiaction. ii
Deindividuation, iiaccording iito iithe iitext, iiis iithe iiprocess iiby iiwhich iian iiindividual
iiminimizes iihis iior iiher iipersonal iiresponsibility iifor iian iiaction iiby iifocusing iion iihis iior
iiher iiassigned iirole. iiIn iiother iiwords, iiyou iican iijustify iior iiexplain iian iiaction iior iireaction
iiby iisaying iithat iiyou iiwere iionly iifulfilling iithe iifunction iithe iiorganization iigave iiyou iito
iifulfill.
Z: iiWho iishapes iiyou iiethical iidecisions? ii- iiAnswers ii--peers
-superiors
-how iiothers iiin iiorganization iiact/respond
-the iiway iithey iiperceive iihow iiothers iiwithin iiorganization iiwould iirespond