Chapter 4

Question 1

Utilitarian Rule

Answer 1

An ethical decision is a decision that produces the greatest good for the greatest number of people

Question 2

Practical Rule

Answer 2

An ethical decision is one that a manager has no reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable

Question 3

Justice Rule

Answer 3

An ethical decision distributes benefits and harms among people and groups in a fair, equitable, or impartial way

Question 4

Moral Rights Rule

Answer 4

An ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it

Question 5

Stockholders

Answer 5

want to ensure that mangers are behaving ethically and not risking investors’ capital by engaging in actions that could hurt the company’s reputation

Question 6

Managers

Answer 6

Responsible for using a company’s financial capital and human resources to increase its performance

Question 7

Organizational Ethics

Answer 7

The guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders

Question 8

Individual Ethics

Answer 8

Personal standards and values that determine how people view their responsibilities to others and how they should act in situations when their own self-interests are at stake

Question 9

Occupational Ethics

Answer 9

Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities

Question 10

Societal Ethics

Answer 10

Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual

Question 11

Obstructionist Approach

Answer 11

Companies and their managers choose not to behave in a socially responsible way and instead behave unethically and illegally

Question 12

Defensive Approach

Answer 12

Companies and their managers behave ethically to the degree that they stay within the law and strictly abide by legal requirements

Question 13

Accommodative Approach

Answer 13

Companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises

Question 14

Proactive Approach

Answer 14

Companies and their managers actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and using organizational resources to promote interests of all stakeholders

Question 15

Ethics Ombudsperson

Answer 15

A manager responsible for communicating and teaching ethical standards to all employees and monitoring their conformity to those standards