Question 1
1. Which of the following is an accurate statement?
If business fails to be sufficiently social responsible it is thereby acting immorally too.
A corporation is recognized legal “person” but it is not a moral “person” for the purposes of ethical evaluation of corporate activities.
According to the Friedman view of the corporation, it has no moral or social responsibility, and its only obligation is to make money legally.
The corporation only is obligated morally to its shareholders, and thus owes no moral responsibilities to any other stakeholder groups.
0.5 points
Question 2
1. Advocate Antonio believes that corporations should not only be held accountable for their financial states, but also for some level of charitable and community and civic involvement. Antonio’s beliefs would most likely be defined as:
A code of ethics
A social responsibility view
A corporate moral audit
A distributive justice legal theory.
0.5 points
Question 3
1. The following statements pertain to the use of the law as a device to control corporate misbehavior. Which statement is most accurate?
A factor operating as a limit on the law’s effectiveness is that rational corporate actors may at times consciously decide it makes more sense to violate a legal rule to advance their self-interest if they think they can “get away with it.”
Because business entities seldom have a significant voice in determining the law’s content, the law has generally proved to be an ineffective control device.
A basic assumption underlying the use of the law as a control device is that corporations frequently behave irrationally.
The law as a control device is irrelevant since market forces eventually will curb all illegal and immoral conduct.
0.5 points
Question 4
1. What is true about advertising?
a. A deceptive ad will generally be deemed to be illegal pursuant to FTC legal standards as well as immoral pursuant to Kantian ethics.
b. A “half-truth” ad will always be legal and moral since something is only missing, and no intentional affirmative misrepresentation is made.
c. Suggestive ads are always illegal and immoral since they are clearly deceitful, coercive, and manipulative.
d. Companies and advertisers today need not worry at all about any socially responsible aspects to advertising, since, so long as the ads are not outright falsehoods and lies, they will not be called into account.
0.5 points
Question 5
1. Maria owns her own business and has just attended a cash flow management seminar where it was suggested the businesses should delay paying their suppliers as long as absolutely possible even if doing so violates the stated payment terms. Maria decides to continue paying her supplies on time in accordance with their payment terms because Maria would like her customers to pay her on time. Maria has reached her decision primarily in accordance with:
Ethical relativism
Corporate social responsibility
Kantian ethics.
0.5 points
Question 6
1. International Manufacturing Corporation’s “side payments” to government officials in exchange for favorable business contracts in foreign countries over more deserving competitors are likely to be considered in the United States as
Illegal only
Unethical only
Illegal and unethical
None of the above.
0.5 points
Question 7
1. Which of the following corporate governance reform strategies, if adopted, would be LEAST LIKELY to decrease the amount of immoral and “irresponsible” corporate behavior?
Requiring the study of business ethics and applied business ethics in business schools and corporate training
Increasing the amount of legal regulation of business and imposing stronger penalties for violations
Increasing shareholder power to approve executives’ compensation packages
Reducing the amount of government regulation of business since market forces invariably will operate to deter corporate misconduct.
0.5 points
Question 8
1. Delta Equity Corporation provides other firms with capital to expand operations. If Delta strictly complies with existing laws, the firm likely will
Fulfill all business ethics obligations
Fulfill no business ethics obligations
Fulfill some business ethics obligations.
Fulfill all social responsibility obligations
0.5 points
Question 9
1. What did Kant mean by the “Categorical” part to his Categorical Imperative?
You must act legally, period, because the “law is the law.”
You and your company must act in a socially responsible manner if you and your company want to be placed in the “good corporate citizen” category.
You must act morally if the consequences are definitely good for you and your firm.
You must act morally based on what your reason informs you is the supreme ethical principle and the correct moral course of action regardless of consequences.
0.5 points
Question 10
1. Zapco is a small company of 14 employees that makes fireworks. The company contributes to local charities and sponsors a youth sports team. Federal safety regulations require that large firecrackers have two dividing walls inside, so that all their gunpowder does not explode at once. Zapco is unaware of the regulations, and includes only one dividing wall in each of its large firecrackers. Little Timmy lights a Zapco firecracker, and before he can throw it, it explodes and seriously injures him. At the trial, it is established that a second dividing wall would have prevented the harm. Zapco is best described as
Not morally responsible since they are good corporate citizens in the local community
Not morally responsible since they were unaware of the regulations and they were just a small company
Not legally responsible because their company employs under 15 people and they were unaware of the regulations
None of the above.

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