Chapter 42

Question 1

set of moral principles or values that governs the conduct of an individual or group.

Answer 1

ethics

Question 2

that which must be obeyed and followed by citizens, subject to sanctions or legal consequences.

Answer 2

law

Question 3

A theory of ethics in which a person looks to an outside source for ethical rules or commands

Answer 3

ethical fundamentalism

Question 4

A theory of ethics stating that people must choose the action or follow the rule that provides the greatest good to society

Answer 4

utilitarianism

Question 5

A theory of ethics stating that people owe moral duties that are based on universal rules, such as the categorical imperative “Do unto others as you would have them do unto you.”

Answer 5

Kantian ethics

Question 6

2 important principles of Kantian ethics

Answer 6

consistency and reversibility

Question 7

federal statute that allows a competitor to sue another competitor for engaging in unfair competition, including false advertising and misleading labeling

Answer 7

Section 43 of the Lanham Act

Question 8

A theory of ethics asserting that fairness is the essence of justice. The theory says that each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony

Answer 8

Rawl’s social justice theory

Question 9

A theory of ethics stating that individuals must decide what is ethical based on their own feelings about what is right and wrong.

Answer 9

ethical relativism

Question 10

Theory in which rules are established from an original position of a “veil of ignorance.”

Answer 10

Rawl’s social justice theory

Question 11

4 theories of the social responsibility of business

Answer 11

maximize profits
moral minimum
stakeholder interest
corporate citizenship

Question 12

A theory stating that corporations and businesses should act with awareness of the consequences and impact that their decisions will have on others

Answer 12

social responsibility of business

Question 13

A theory of social responsibility stating that a corporation owes a duty to take actions that maximize profits for shareholders.

Answer 13

maximize profits

Question 14

A theory of social responsibility stating that a corporation’s duty is to make a profit while avoiding causing harm to others

Answer 14

moral minimum

Question 15

act which makes certain conduct illegal and establishes criminal penalties for violations

Answer 15

Sarbanes-Oxley Act of 2002

Question 16

A section of the act that requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.

Answer 16

Section 406 of the Sarbanes-Oxley Act

Question 17

A theory of social responsibility stating that a corporation must consider the effects that its actions have on persons other than its shareholders.

Answer 17

stakeholder interest

Question 18

A theory of social responsibility stating that a business has a responsibility to do good.

Answer 18

corporate citizenship

Question 19

The practice of a U.S. company hiring an independent third-party company in another country to produce a good or service.

Answer 19

outsourcing

Question 20

means that the U.S. company has relocated a business function to another country, retains ownership of the division or unit, but hires foreign workers to do the work.

Answer 20

offshoring

Question 21

A corporation that requires directors and officers to make decisions to accomplish general public benefits and stipulated specific public benefit purposes stated in the articles of incorporation and to consider stakeholders other than shareholders, such as employees, customers, suppliers, and the community, when making corporate decisions.

Answer 21

public benefit corporation