Week 5 Quiz

An illustrative bike shop learns that a brake pad it fitted on about 80 bikes wears out early. In this case, no rule requires the shop to warn its past buyers. Which statement best describes the shop's choice to stay quiet?

Select one.

• It is illegal, because anything unethical is also against the law
• It is legal, but whether it is right is a separate ethical question
• It is legal, so the law has already settled whether it is right
• It is ethical, because the law sets the highest standard a shop can meet

Which set lists the three ethical-reasoning questions this course teaches a manager to run on any decision?

Select one.

• Is it profitable; is it popular; is it fast
• Is it legal; is it cheap; would the owners approve
• Is it required; is it rewarded; is it reversible
• Is it legal; is it fair to everyone it touches; would I be comfortable if it were public

An illustrative hospital kitchen posts a written rule that every allergy tray is labeled and checked twice, and it trains every cook on the rule. During the lunch rush, the head cook skips the check in full view of the line. Which of the four tools that shape conduct is missing?

Select one.

• Leadership by example
• A code of ethics
• Ethics training
• A cash incentive for every checked tray

Which description matches a protected reporting channel?

Select one.

• A posted list of the values an organization expects its people to follow
• A way to report suspected wrongdoing that shields a good-faith reporter from punishment
• A training session on how to use the code when the right choice is unclear
• A manager following the same rules in plain view of the people they lead

In the pyramid of corporate social responsibility, Carroll (1991), which order runs from the base to the top?

Select one.

• Philanthropic, ethical, legal, economic
• Legal, economic, ethical, philanthropic
• Economic, legal, ethical, philanthropic
• Ethical, legal, philanthropic, economic

True or false: the triple bottom line is an accounting standard that every firm must report.

True or false.

• True
• False

The illustrative appliance-parts plant has 120 employees. Automating one line eliminates 40 positions, and the plant retrains 15 of those workers for maintenance roles. What is the net change in positions?

Select one.

• 40 positions, the number of line positions automation ends
• 105 positions, found by subtracting 15 from 120
• 55 positions, found by adding the 15 retrained workers to the 40
• 25 positions, found by subtracting 15 from 40

According to the shareholder position, Friedman (1970), to whom does a corporate executive's duty run, and within what limits?

Select one.

• To everyone who can affect the firm or is affected by it, with no limits
• To the owners who employ the executive, within the law and ethical custom
• To the owners who employ the executive, with no limits as long as profits rise
• To the government that regulates the firm, within the firm's own code of ethics

Which statement matches the stakeholder position, Freeman (1984)?

Select one.

• A firm is managed only for the owners who put their money at risk
• A firm is managed for its customers, because they pay the bills
• A firm is managed for everyone who can affect it or is affected by it
• A firm should give its profits to charity before paying its owners

The illustrative appliance-parts plant is a corporation owned by stockholders. Which statement correctly describes who owns it?

Select one.

• The stockholders, because they hold its shares
• The line workers own it, because their work makes the parts
• The town owns it, because the town is affected by its payroll
• The customers own it, because they buy the parts it makes