Stockholders seek to maximize the return on their investment and therefore show interest in the ethical practices of a company.
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Question 2
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True/False
Stakeholders benefit in the long run if companies make the right choices.
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Question 3
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Under the moral rights rule, an ethical decision is one that distributes benefits and harms among people and groups in an equitable way.
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Question 4
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From a moral rights perspective, managers should consider courses of action that respect the fundamental rights of others.
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Question 5
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Decisions that managers take to protect the rights of some stakeholders often hurt the rights of others.
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Question 6
True/False
"An ethical decision is one that a typical person in a society would think is acceptable" is a statement that reflects the practical rule.
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Question 7
True/False
Jim is comfortable with his decision and would have no problem with people reading about it on the front page of a morning paper.This indicates that he is following the practical rule.
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Question 8
True/False
When one person starts to profit by behaving unethically, it encourages other people to act in the same way.
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Question 9
True/False
Websites that allow free downloading of songs and movies illustrate the "tragedy of the commons" because there is pursuit of self-interest with no consideration for societal interest.
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Question 10
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Organizational ethics are the standards that govern how members of a profession should conduct themselves.
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Question 11
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Organizational ethics are the way a company's managers view their duty to make decisions that enhance the well-being of stakeholders.
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Question 12
True/False
People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.
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Question 13
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If a company's top managers consistently endorse the ethical principles in its corporate credo, they can prevent employees from going astray.
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Question 14
Multiple Choice
Dianna has witnessed her manager harassing a coworker on multiple occasions.Dianna knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job.This example illustrates a(n)
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justice rule.
ethical dilemma.
moral dilemma.
utilitarian rule.
moral rights rule.
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Question 15
Multiple Choice
_____ are the moral principles and beliefs about what is the right or appropriate way to behave.
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Societal norms
Laws and regulations
Ethics
Values and norms
Individual values
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Question 16
Multiple Choice
_____ are thoughts and feelings that tell people what is right or wrong.
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Moral scruples
Ethical dilemmas
Practical rules
Norms
Individual rights
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Question 17
Multiple Choice
Which of the following statements is true about ethics?
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Ethics and laws are fixed principles.
Ethical beliefs remain constant as time passes.
Laws change to reflect the changing ethical beliefs of a society.
Absolute and indisputable rules and principles can be developed to decide whether an action is ethical or unethical.
Ethics evolve over time, but laws related to ethical beliefs remain constant.
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Question 18
Multiple Choice
Which of the following statements is true about stockholders?
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They are often regarded as the most critical stakeholder group because if a company cannot attract them to buy its products, it cannot stay in business.
They are least interested in the company's profits.
They bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
They are responsible for using a company's financial, capital, and human resources to increase its performance and thus its stock price.
They have a claim on a company because when they buy its stock or shares, they become its owners.
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Question 19
Multiple Choice
_____ watch the company and its managers closely to ensure that management is working diligently to increase the company's profitability.
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Community members
Suppliers
Stockholders
Customers
Distributors
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Question 20
Multiple Choice
_____ have the right to expect a good return or reward by investing their human capital to improve a company's performance.