Business Ethics & Society DSST Exam
Full Review Q&A 2023-2024
Deontology - ANS-Strict adherence to rules regardless of consequences, moral duty
moral
... [Show More] absolutism - ANS-same standards apply regardless of situation or the culture
virtue ethics - ANS-not a person's actions, but his character determines morality
ethical behavior - ANS-acting consistent with business' moral principles/values
Major ethical problems in business - ANS-lack of integrity, organization relational
problems, misleading advertising
Ethical code of conduct - ANS-guidelines on how EEs act at work
Ethics - ANS-beliefs about right and wrong in workplace characterized by social
expectations of people's moral actions, different than law b/c ethics has multiple
outcomes and alternatives while the law is either legal or illegal
Laws - ANS-rules of behavior sanctioned by government for workplace, 4 elements:
universal, published, accepted, enforced, define boundaries of what is legal and written
guidelines
Fraud - ANS-company hides truth from public knowledge. Other unfair business
practices include insider trading and bribery.
Bhopal Disaster - ANS-leak led to cloud of poison gas, Union Carbide Co.
Utilitarianism & John Stuart Mill - ANS-ethical if it results in greatest amount of
happiness, # of people helped vs. harmed, degree of benefit vs. degree of harm, rule or
act
Ethical Nihilism - ANS-acts are neither intrinsically moral or immoral
Jeremy Bentham - ANS-people act according to self-interest
Social contract of business - ANS-businesses have special responsibilities to society
including philanthropy (giving money) and social responsibility
CSR - ANS-use business resources to solve social problems and achieve goals, acting
as trustees to protect stakeholders, balancing stakeholder needs
Service principle - ANS-service society through creation of profitable business
CSR levels - ANS-1. Economic: fulfill needs with G or S 2. Legal 3. Ethical 4.
Philanthropic
Sustainability - ANS-creating a G or S to fulfill a need, they will then profit
Stakeholder Theory - ANS-Central focus of CSR is giving attention to every stakeholder
Arguments against CSR - ANS-main purpose is to make $, companies exist to make G
or S and don't have knowledge to actual help society, less competitive globally b/c extra
expense
Arguments for CSR - ANS-right to do, government intervention decreases, success
Corporate citizenship - ANS-balance stakeholder need & protecting envirionment, bene:
good EE relations, improved customer relations, enhanced marketing
Corp Citizenship Stages - ANS-1. Elementary: comply with legal regulations, building
profits, jobs, pay taxes
2. Engaged: w/ community stakeholders, philanthropy
3. Innovative: stakeholder management, bus. development while organizing crossfunctional teams
4. Integrated: proactive partnerships with all stakeholders 5. Transforming: MKT creator,
transparent with all issues.
Corporate Social Performance Model - ANS-1. Social responsibility categories:
economic, legal, ethical, philanthropic
2. Mode of social responsiveness: reactionary, accommodating, defensive
3. Social issues of stakeholders: product safety, discrimination, occupational safety,
environment
Global responsibility - ANS-Environmental & Social. Climate change, green trade
practices, sweatshops, social pressure drive this. Environmental movement, internet,
and grassroot campaigns have made this a big deal, also is free marketing. Customers
are likely to pay for goods of globally responsible companies.
Bottom of Pyramid - ANS-poorest but largest group within capitalism, global rising class,
ethics in this? possible short sighted sales techniques, ex: China
Mo Ibrahim - ANS-made billions building cell network in Africa, an African telecom
mogul
B Corporation - ANS-Do good for society, receives goodwill form community,
shareholders can sue company for proof of performance, secretary of state receives
proof, founders of company set this up not current owners, do NOT have to file public
paperwork
Sherman Act - ANS-1890, fair competition, monopolies are illegal
Robinson-Patman Act - ANS-1936, illegal to offer different price to different buyers of
same good
Federal Trade Commission - ANS-1914, regulates competitive environment,
government has more power to approve corporate mergers and maintain competitive
business balance, deals with false advertising, notice of collection of personal
information, choice of sharing information (opting out option), security of information
enforcement, investigate unethical business practices, violations of antitrust statutes,
recommend new legislation to protect act, holds trials to handle disputes
Consumer Product Safety Commission - ANS-CPSC, safety standards for products,
product recalls
FDA - ANS-regulations about distribution and selling hazardous foods/drugs
Business ethics - ANS-determine everyday conduct
Morals - ANS-rules developed from cultural norms/values
Lawrence Kholberg - ANS-ethical development, Pre-conventional (self-centered,
rewards and punishment), conventional (societal rules/expectations, social acceptance),
post-conventional (universal moral principles, internal moral path)
Ethical target market - ANS-analyze consumers to see predisposed ways (preferences,
cultural norms, habitual purchasing), unethical to target easily manipulated consumers.
It's ethical to persuade, inform, ask, & advise.
Vulnerable population - ANS-Psychological or lack of maturity, children
Deceptive advertising - ANS-ambiguity, weasel words, puffery, hiding facts
Controversial advertising - ANS-shockery to gain consumer attention, scare tactic
Cause related marketing - ANS-team marketing efforts for-profit and non-profit
business, creates public relations & happy customers, can cause consumer burnout
from constant donation requests
Persuasive messages - ANS-to change individual intentions, actions, beliefs, ensure
legally & ethically sound by FTC
legal communications - ANS-EE have understanding to not violate ethics, standards,
laws pertaining to business communications (disclaimers, disclosures, marketing
communications, reporting of finances, internal communications..
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