UExcel Business Ethics 1 — Questions and Answers
Question 1: Which ethical theory holds that the morality of an action is determined solely by its consequences?
- Deontology
- Virtue ethics
- Consequentialism (Correct answer)
- Contractarianism
Correct answer: Consequentialism
Consequentialism judges actions as right or wrong based on the outcomes they produce, with utilitarianism being its most well-known form.
Question 2: A corporate code of ethics primarily serves to:
- Replace government regulations entirely
- Provide legal immunity to executives
- Guide employee behavior and establish organizational values (Correct answer)
- Maximize shareholder profits
Correct answer: Guide employee behavior and establish organizational values
A corporate code of ethics communicates organizational values and provides guidelines for ethical decision-making by employees.
Question 3: What is the concept of corporate social responsibility (CSR)?
- A company's legal obligation to pay taxes
- The idea that businesses have obligations to society beyond profit generation (Correct answer)
- A government mandate requiring companies to donate to charities
- The responsibility of the board to maximize stock value
Correct answer: The idea that businesses have obligations to society beyond profit generation
CSR refers to a business's commitment to operating ethically and contributing positively to society, the environment, and stakeholders.
Question 4: Which of the following is an example of a conflict of interest?
- A manager gives positive feedback to a high-performing employee
- A purchasing officer selects their spouse's company for a contract without disclosure (Correct answer)
- A company donates to a nonprofit unrelated to its business
- An employee disagrees with a supervisor's decision
Correct answer: A purchasing officer selects their spouse's company for a contract without disclosure
A conflict of interest occurs when personal interests could inappropriately influence professional decisions.
Question 5: What is whistleblowing in a business context?
- Reporting a competitor's illegal activities to authorities
- An employee reporting their own company's illegal or unethical conduct (Correct answer)
- A manager disciplining an employee for misconduct
- A regulatory agency fining a company for violations
Correct answer: An employee reporting their own company's illegal or unethical conduct
Whistleblowing occurs when an employee reports internally or externally about organizational wrongdoing or illegal activities.
Question 6: Deontological ethics, associated with Kant, judges actions based on:
- Their outcomes and consequences
- Adherence to rules and duties regardless of outcome (Correct answer)
- The character of the person performing the action
- Social contracts and agreements
Correct answer: Adherence to rules and duties regardless of outcome
Kantian deontology holds that certain actions are inherently right or wrong based on duty, regardless of their consequences.
UExcel Business Ethics 1
Which ethical theory holds that the morality of an action is determined solely by its consequences?