IB Chap 5

Ethical dilemmas exist because many real-world decisions involve first-, second-, and third- order consequences that are hard to quantify. 

• True

• False

Which of the following enables managers to walk away from a decision that is profitable, but unethical?

• Noblesse oblige

• Moral courage

• The difference principle 

• The Friedman doctrine

Establishing _____ involves a business to resolve to place moral concerns ahead of other concerns in cases where either the fundamental rights of stakeholders or key moral principles have been violated. 

• a veil of ignorance

• a difference principle

• moral imagination

• moral intent

____ means standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder. 

• Veil of ignorance

• Difference principle

• Moral imagination

• Noblesse oblige

Which of the following is NOT an example of internal stakeholders? 

• Employees

•  Customers

• Stockholders

• The board of directors

External stakeholders: 

• are individuals or groups who own the business.

• include all employees, the board of directors, and stockholders. 

• typically comprise customers, suppliers, lenders, etc.

• are individuals or groups who work for the business.

According to John Rawl's difference principle,: 

• certain people or institutions are obligated to provide benefits or services that secure the rights ofothers.

• fundamental human rights should transcend national borders and cultures.

• the best decisions are those that produce the greatest good for the greatest number of people. 

• inequalities are justified if they benefit the position of the least advantaged person.

According to John Rawls: 

• each person should be permitted the maximum amount of basic liberty compatible with a similar liberty for others.

• freedom of speech and assembly is the single most important component in a justice system. 

• equal basic liberty is impossible in a pure market economy.

• ethics is culturally determined.

The Kantian approach to ethics suggests that: 

• human beings have fundamental rights and privileges that transcend national boundaries. 

• the moral worth of actions or practices is determined by their consequences.

• people should be treated as ends and never purely as means to the ends of others.

• ethics are nothing more than the reflection of culture.

According to the _____ approach, the best decisions are those that produce the greatest good for the greatest number of people. 

• naive immoralist

• Friedman doctrine

• Kantian ethics

• utilitarian