BA 300 - Exam 2

_______________ is the decision rule focused on decision-maker's pursuit of his or her own rational self-=interest. _____________ is the decision rule focused on the decision-maker's preservation of relationships close to him or her.

a. Objectivism; virtue ethics

b. Objectivism; ethic of care

c. Ethic of care; integrative social contracts theory

d. Integrative social contracts theory; virtue ethics

b. Objectivism; ethic of care

Under Integrative social contracts theory, a businessperson doing business in a country other than his or her own generally should respect and follow all local laws and customs except to the extent that they conflict with "hypernorms." A hypernorm is:

a. A longstanding internal company rule developed after input from broad cross-section of company employees.

b. A rigorously enforced cultural tradition or norm unique to the businessperson's' home country

c. A fundamental norm broadly shared across religious, philosophical and cultural traditions

d. A businessperson's own deeply held cultural, philosophical or religious belief.

c. A fundamental norm broadly shared across religious, philosophical and cultural traditions

According to the text, if you decide to blow the whistle on unethical behavior within your company, usually you should approach the CEO:

a. First, since he or she is the only person who will be able to make a decision for the company that effectively addresses your concerns.

b. Only after addressing the issue with every other internal resource.

c. As part of a mass communication that is addressed to other stakeholders affected by the ethical misconduct so that the CEO will know the reputation and consequences of failing to address your concerns.

d. Only after alerting the press or government officials to your concerns, limit the chances that you will be fired for blowing the whistle.

b. Only after addressing the issue with every other internal resource.

The New York Times reported on September 25, 2012 that in Germany, "[permanent workers can usually be laid off only after long negotiations with employers that include hefty severance payments." According to the video of employee discipline and termination, in California and most other places in the U.S. most employees in the private workforce may be dismissed by their employers:

a. Only for violating a company policy or for poor performance

b. At will as long as the reason for the employee's dismissal does not offend fundamental public policy

c. After negotiations with the employee's union

d. At will only if the reason for dismissal is an economic slowdown

b. At will as long as the reason for the employee's dismissal does not offend fundamental public policy

According to the text, the Sarbanes-Oxley Act of 2002:

a. Imposes tough rules on the way publicity-traded companies do business, but does not provide for oversight of the accounting industry.

b. Subjects the CEO and CFO of a public company found to have falsely certified the accuracy of his or her company's financial statements to a $5 million fine and up to 20 years in prison.

c. Has all but stopped non-U.S. companies from seeking to be listed on U.S. stock exchanges

d. All of the above.

b. Subjects the CEO and CFO of a public company found to have falsely certified the accuracy of his or her company's financial statements to a $5 million fine and up to 20 years in prison.

The developer of one ethical decision rules was quoted in a 1964 magazine article as saying that those who place friends and family first in life, rather than themselves, are "immoral" and "emotional parasites. With what ethical rule is that negative attitude toward selflessness most consistent?

a. The ethic of care

b. Virtue ethics

c. Integrative social contracts theory

d. Objectivism

d. Objectivism

According to the video, the core of what ethical theory is an established way of doing things, a shared sense of value and significance, shared heroes and role models, a clear sense of what sort of person one should be rather than universal principle rules and objective rational principles?

a. The ethic of care

b. Virtue ethics

c. Objectivism

d. Integrative social contracts theory

a. Virtue ethics

According to the video, Levi Strauss's creative solution to the problem of the use of underage workers by Bangladeshi suppliers, discussed in the text, demonstrated what ethical decision rule in action?

a. Utilitarianism

b. The ethic of care

c. Virtue Ethics

d. Integrative Social Contracts Theory

d. Integrative Social Contracts Theory

According to Chris Moore, the author of the reading on the ethics of advertising, ethical advertising professionals:

a. Should put their clients in the best light consistent with the truth, even if it is not always the whole truth.

b. Must tell the whole truth about the product or service being advertised, even it is doing so will disclose unflattering features about their client's product or service.

c. Should omit anything in an ad that will offend the most sensitive 15% of the advertising audience.

d. Must tell the whole truth in advertising about a product or service aimed at an especially vulnerable audience, such as children or the elderly.

b. Must tell the whole truth about the product or service being advertised, even it is doing so will disclose unflattering features about their client's product or service.

Which of the following statements is not true about the Foreign Corrupt Practices Act?

a. Both individuals and corporations are subject to criminal penalties under the Act.

b. The law prohibits representatives of U.S. corporations from offering significant payments to foreign political parties, candidates, or government officials to secure business for the company.

c. The law applies to promises to make substantial payments to foreign officials before a favorable decision is made, as well as payments after a favorable decision has been made.

d. The law does not apply to promises to make substantial payments to foreign officials before a favorable decision is made.

d. The law does not apply to promises to make substantial payments to foreign officials before a favorable decision is made.

According to a December 15, 2008 msnbc.com article, over the course of a year Carlsbad real estate professional Suzanne Beckstrom nervously watched a series of layoffs in her office at a small housing development. "Each time, [she] expected to be next. An each time, she got a reprieve, leaving her with mixed emotions of relief, uncertainty- and guilt. 'you felt like you were lucky to be one of the people who remained, but so sad for the people who left,' said Beckstrom. 'And it was extremely stressful wondering what was going to happen next."" Ms. Beckstrom feelings were an illustration of:

a. A conflict of interest

b. Integrative social contracts theory

c. The assumption of similarity

d. The survivor syndrome

d. The survivor syndrome

According to the text, a company's triple bottom line refers to:

a. Its income, expenses, and price to earnings ratio

b. The monetary value of its tangible assets, outstanding shares, and reputation.

c. Its economic impact on the states, countries, and continents in which it does business.

d. Its economic, social, and environmental impacts

d. Its economic, social, and environmental impacts

As prof. Eaton discussed in the video lecture about corporate social responsibility ("CSR"), venture capitalist Betsy Atkins' view regarding CSR-which was published in the magazine, Boardroom Briefing- is that corporations be all of the following, except:

a. Financially transparent

b. A fair and open employer

c. Philanthropic

d. Forthright about dangers to the public from products.

c. Philanthropic

In the assigned video lecture, Prof. Eaton talks about the pyramid of corporate values and gave examples what it means for a company to be socially responsible. In a play called "Other people's Money." A character named Larry "the Liquidator" Garfinkle urged New England Wire and Cable shareholders to authorize the break up of the company. "Let's have the intelligence, let's have the decency, to sign the death certificate, collect the insurance and invest the money in something with a future. Aha-but we can't, goes the prayer- we can't because we have a responsibility- a responsibility to our employees, our community. What will happen to them? I got two words for that- "Who cares?" Care about them? They didn't care about you. They sucked you dry. You have no responsibility to them.... Who care? I'll tell you- me! I'm not your best friend- I'm your only friend. I care about you in the only way that matters in business.

b. A limited view of corporate social responsibility

According to the discussion of whistleblowing in the text, if you suspect wrongdoing within your organization, but lack the power along to get the organization to do what you believe is ethically appropriate, you should:

A. wait to address the situation until you have developed sufficient influence within the organization to take action

B. consider how you may use your social network within the organization of those with power to address the situation to convince your manager or organization to do the right thing

C. immediately report the misconduct to law enforcement or other government authorities to bring your organization into line with legal or ethical requirements

D. consult an attorney for guidance

B. consider how you may use your social network within the organization of those with power to address the situation to convince your manager or organization to do the right thing

according to the discussion of conflicts-of-interest in the video and the text, a business decision-maker generally should not accept an invitation to an entertainment or sporting event from someone trying to persuade the business decision-maker to use his influence with the company to benefit the gift giver unless:

A. the decision-maker can reciprocate with the same kind of entertainment being offered

B. the decision-maker reasonably believes his company would approve accepting the entertainment

C. the decision-maker previously entertained the gift-giver, regardless of the cost of that entertainment

D. the gift-giver would be insulted because of her cultural background if the gift were to be refused and the company's relationship with the gift-giver is important

A. the decision-maker can reciprocate with the same kind of entertainment being offered

An article in the June 2010 Harvard Business Review provides guidance to multinational corporations seeking to do business in China. According to the article: "Primed by news reports about China's problems with pollution, corruption, unsafe products, and intellectual property theft, many executives [at multinational corporations] assume that business ethics can take a back seat to other concerns. They don't realize that the Chinese are more critical of foreign companies than of local ones and expect more from them." These executives have fallen into the trap of:

A. the assumption of cultural homogeneity

B. the assumption of behavioral consistency

C. ethical relativism

D. ethical imperialism

C. ethical relativism

According to the discussion of conflicts-of-interest in the video and the text, a business decision-maker generally should not accept an invitation to an entertainment or sporting event from someone trying to persuade the business decision-maker to use his influence with the company to benefit the gift giver unless:

A. the decision-maker can reciprocate with the same kind of entertainment being offered

B. the decision-maker reasonably believes his company would approve accepting the entertainment

C. the decision-maker previously entertained the gift-giver, regardless of the cost of that entertainment

D. the gift-giver would be insulted because of her cultural background if the gift were to be refused and the company's relationship with the gift-giver is important

A. the decision-maker can reciprocate with the same kind of entertainment being offered

Which of the following sources of law set up a new oversight board for the accounting profession and requires that companies change their lead auditor every five years?

b. The Sarbanes-Oxely Act

According to the text, in a society that accepts a "high power distance," employees:

d. Are less likely to blow the whistle on misconduct by their boss since the boss is entitled to respect by virtue of his or her position in the company

Corporate philanthropy that helps to solve problems that a public company has helped to create, but that does not advance the company's business interests in any other identifiable way:

A. Is considered ethically irresponsible even by those who accept the broadest concept of corporate social responsibility.

B. Is not a moral obligation under any concept of corporate social responsibility, although it is permissible under some of the more expansive views of CSR.

C. Is considered irresponsible to the company's shareholders under the limited view of corporate social responsibility addressed in the video segment.

D. Is considered morally required by all who embrace either a limited or expansive view of CSR.

C. Is considered irresponsible to the company's shareholders under the limited view of corporate social responsibility addressed in the video segment.

The text cites sources as saying that when Albert J. Dunlap became CEO of Scott Paper in 1994, a company founded in the city of Philadelphia 116 years earlier, he moved the company's headquarters to Boca Raton, Florida because:

a. He believed that the 750,000 square foot corporate headquarters were an extravagant waste of shareholder dollars and that the tired, slow company's culture needed to be shaken up by a change in location.

b. The city of Boca Raton offered Scott Paper substantial tax incentives for relocating that Philadelphia could not match.

c. He did not like the weather in Philadelphia.

d. The blue collar workforce in the city of Philadelphia could not meet the need Scott Paper had for workers with an engineering background which Dunlap determined were widely available in Florida.

c. He did not like the weather in Philadelphia

According to a February, 2010 issue of Business Week, the FBI caught 21 gun industry executives attending a trade convention in Las Vegas attempting to "pay illegal [bribes] to the defense minister of an African nation. In exchange, the small arms marketers thought they were securing the opportunity to sell millions of dollars in weapons and body armor." If true, the industry executives' alleged actions violated:

a. Title VII.

b. The Sarbanes-Oxley Act.

c. The Foreign Corrupt Practices Act.

d. The Transparency Index.

c. The Foreign Corrupt Practices Act

The text defines the assumption of cultural homogeneity as:

a. The belief that, if a businessperson understands how people tend to think and behave in their native environment, the businessperson will understand how a particular businessperson within that culture will behave toward the outsider doing business there.

b. The belief that everyone within a culture acts alike.

c. The belief that all cultural norms are entitled to equal respect.

d. The belief that countries perceived to be culturally similar to one's own will in fact behavior similarly to one's own in business.

b. The belief that everyone within a culture acts alike.

1. According to the text, Carol Gilligan, a former student of Lawrence Kohlberg, studied whether there were gender differences in moral reasoning. Through her research, Gilligan found that:

a. Males she interviewed focused almost exclusively on justice considerations in their moral reasoning while women were more likely to raise issues related to caring for others in their moral reasoning.

b. Females she interviewed focused significantly more on justice considerations in their moral reasoning than the men she interviewed.

c. Men and women both tended to emphasize the continuity of interdependent relationships in their approach to moral reasoning making further study of gender differences in decision-making fruitless.

d. Business managers of both genders tended to disregard considerations of either justice or care in their.

a. Males she interviewed focused almost exclusively on justice considerations in their moral reasoning while women were more likely to raise issues related to caring for others in their moral reasoning.

1. According to the text, which of the following is not among the steps you should take before you blow the whistle on a situation confronting your organization?

a. Assemble the facts.

b. Confirm you are dealing with a serious issue.

c. Ensure that you will suffer no retaliation if you blow the whistle.

d. Ask peers or your manager for advice.

c. Ensure that you will suffer no retaliation if you blow the whistle.

Which of the following sources of law set up a new oversight board for the accounting profession and requires that companies change their lead auditor every 5 years?

Sarbanes-Oxley Act

Which of the following statements is not true about the Foreign Corrupt Policies Act?

The law does not apply to promises to make substantial payments to foreign officials before a favorable decision is made

The following appeared in a recent edition of the Wall Street Journal: "About 25% of employers in some industries refrain from asking would-be staffers about [criminal] convictions more than seven years ago, estimates Kevin Lindsey, an employment lawyer . . . in Minneapolis. The growing trend reflects 'enlightened self interest in expanding the applicant pool rather than fear of violating a specific state law,' he observes." Assuming Mr. Lindsey is correct, which of the following theories best reflects these employers' ethical reasoning in limiting their inquiry into the criminal records of applicants?

Objectivism

A recent Newsweek article addressed the growing practice of medical schools and hospitals to prohibit pharmaceutical salespeople from visiting doctors' offices to promote their products, often bearing free pens, or breakfast or lunch for the doctor and his or her staff. "'There's growing evidence that these relationships color doctors' prescribing practices, even if doctors think they don't,' says Dr. Karen Altman, dean of Boston University's medical school, which last month instituted a ban on all gifts and lunches from drug reps and allows reps to visit only if invited." Assuming Dr. Altman is right about the actual effect the gifts have on doctors' prescribing practices, which two concepts does her observation best illustrate?

Conflict of interest and illusion of superiority

In his recent book "Five Minds for the Future," Harvard Business School Professor Howard Gardner says that individuals in business must take a hard look in the mirror and ask whether the values under which they are operating are values that indicate they are an ethical person. Gardner concedes we are all subject to self-delusion and therefore we must have checks to consult whether what we are doing is ethical. In an interview in the Harvard Business Review, Gardner cites as an example the approach of Michael Hackworth, the co-founder and chairman of Cirrus Logic. According to Gardner, Hackworth "insists he will not do something that would embarrass him if it were printed in a morning paper. Even if the stock drops temporarily, he knows that his honesty . . . builds his credibility in the long run." Hackworth's approach to resolving ethical dilemmas is an application of a shortcut for:

Virtue ethics

It was tempting. Vandelay Skateboard District Manager Lucy Johnson had just been asked by the company's primary wheel supplier to go to see her favorite comedian - who else? - Jerry Seinfeld in concert. Lucy had told the client when the offer was made that there was no chance the supplier would get the contract for the company's related roller-blade line. Lucy:

Has a conflict of interest if she accepts the invitation because Lucy's interest in seeing her favorite comedian conflicts with Vandelay's interest in ensuring that she decides on an unbiased basis who supplies wheels to the company for its roller-blade line.

According to the text:

That which is legally permissible may not be ethical

Judy Ng, an hourly worker at Vandelay Surfing Gear and a member of the production crew, is deciding whether to go home early and have someone clock out for her at the time her shift normally would end. She has seen others do it before. If Judy does not recognize her decision to go home early as raising an ethical issue, according to the text she is:

Unlikely to make a moral judgment about her actions.

The Wall Street Journal recently reported that the Attorneys General of several states are investigating the manufacturers of alcoholic beverages with caffeine. The state officials are concerned that beverage makers are taking advantage of the popularity of such caffeinated beverages with young drinkers "by selling the drinks with misleading claims that they help users stay up late for partying." On which of the following four ethical values of advertising are the state officials most focused in their investigation?

Truth

According to the text, to whom or what do most employees look in getting ethical guidance the workplace?

To those in authority and those who are their peers.

In a Wall Street Journal essay entitled "Character Counts," the writer explained that it is better for consumers to deal with businesspeople who "explain the flaws as well as the allure of whatever we're considering. And they care about how they're regarded in the community." A businessperson who takes that approach to selling goods and services to his or her customers is guided by what combination of concepts:

Carson's moral minimums of salesmanship and virtue ethics

According to a recent cover story in Fortune entitled "Confessions of a CEO," Dominic Orr had ethical difficulty downsizing Hewlett-Packard's Tokyo workforce. "Employees lost face with their families, and Orr says the wife of one displaced worker called him, begging him to rehire her spouse. For the first time in his skyrocketing career, Orr, who always thought of himself as a compassionate manager, began to wonder whether being a business success was compatible with being a good human being. 'What right do I have' to mess with other people's lives? he asked his boss and mentor, Wim Roelandts. . . . Roelandts lectured him about the greater good. 'Look at the jobs you're saving,' Roelandts told him." Mr. Orr's ethical concerns about the layoffs were rooted in ________. His boss urged Orr to consider the layoffs from a perspective rooted in __________ instead.

The Ethics of care; utilitarianism

In a recent edition of the Taipei Times, two authors wrote: "In many developing countries, access to credit and insurance is determined by village associations through a system that relies entirely on trust and peer pressure. To outsiders, these systems might smack of corruption and bribery, but for villagers the established provisions carry a high degree of credibility. Formalizing and regulating these community-based financial structures could damage the social system in small villages." Under the Integrative Social Contracts Theory, which of the following statements is true about the above quote?

The villagers system is legitimate and authentic and should not be judged unethical simply because it does not conform to western ethical values.

The former General Counsel of General Electric wrote in a recent issue of the Harvard Business Review: "The fundamental costs of systems, processes, and talented people focused on performance with integrity pale in comparison to the benefits, especially the benefit of avoiding catastrophic integrity minefields. Indeed, sound practices in areas like environment, health and safety, and consumer finance can simplify basic business processes and make them more effective and less costly. Similarly, the cost of rejecting corrupt payments, deals, or contracts, in my judgment and experience, is far outweighed by the risks of external exposure - which are especially consequential for transnational enterprises - and by the benefit of preventing internal corrosion." The writer's view of ethical behavior most reflects which of the following kinds of reasoning?

Objectivism

According to an article in BusinessWeek, a United States Food and Drug Administration advisory panel voted unanimously not to recommend for approval a weight-loss treatment called Accomplice produced by the company Sanofi-Aventis. The treatment has been approved in 37 countries outside of the United States. The FDA panel was concerned with reports linking Accomplice to depression and, in extreme cases, suicidal thoughts. If Sanofi-Aventis advertises the drug in the other 37 countries notwithstanding the FDA panel's recent action, the ethical value in advertising most likely to be brought into question is:

Well-being

According to a May 14, 2008 on-line legal newsletter, the former president of American multinational corporation Pacific Consolidated Industries Martin Self was awaiting sentencing for committing a crime. He admitted that "he approved a marketing contract for the relative of an employee with the United Kingdom [Great Britain] Ministry of Defence, which resulted in more than $70,000 in payments. But the relative did no work. Instead, the money was meant to [get] contracts for Pacific." What federal law did Mr. Self violate?

Foreign Corrupt Practices Act

Foreign Corrupt Practices Act

n a recent New York Times Magazine article entitled "The Moral Instinct," the author contrasts two kinds of ethical cultures: "In the West, we believe that in business . . ., fairness should trump community and nepotism [favoritism toward relatives] and cronyism [favoritism toward friends and close associates]. In other parts of the world, this is incomprehensible - what heartless creep would favor a perfect stranger over his or her own brother?" This passage best describes the difference between which two kinds of ethical cultures?

Individualist versus Collectivist.

Joan Marshall, secretary to Vandelay Vice President Suzanne Williams, woke up with a mild cold and called in sick on Thursday. The following morning she felt much better. Joan remembered, however, overhearing a conversation between Ms. Williams and another Vice President, Jack Straw, in which Ms. Williams complained that secretaries who call in sick on Thursday almost always call in sick on Friday, even if they are perfectly well, to enjoy a four-day weekend. Joan decided to call-in sick Friday as well and take a three-day trip to Vegas. By calling in sick on Friday after remembering what she had overheard Suzanne, Joan illustrated what concept?

The Pygmalion effect

Jack and Suzy Welch believe that information that an employee has been fired for ethical violations should be:

Made widely known to other employees so that they may learn that the company will not tolerate ethical lapses.

In an interview published in the March 2008 Harvard Business Review, the great American historian David McCullough was asked what lessons he would emphasize if he were teaching a graduate business school course. He replied: "In teaching a course for future leaders I'd . . . warn against the insidious disease of greed. . . . [¶] With a knowledge of history comes the understanding that one day you, too, will be judged by later generations. How will you measure up? . . . . [¶] I would also tell a young MBA, 'Conduct yourself in a way that lives up to your own high standards.' . . . If eventually you do rise in the system, your good conduct will become a standard for others." Mr. McCullough urges future business leaders to be guided by:

Virtue Ethics

Business Week recently ran a story entitled "Can Greed Save Africa?" The article described the failure of aid from the developed world to improve the economies of the 34 African nations ranked among the 40 lowest in human development. The greed of foreign investors hoping to profit from Africa's natural resources may end up improving the lives of Africans more than government aid has. ESV Biofuels is a private company doing business in the Mozambique village of Inhassune. The company turns a local, drought resistant plant into fuel. Because of the company's presence as the country's largest private employer, "Inhassune's revival is already under way. Mosquito control, power lines, and potable water have quickly arisen from a barren stretch of bush. 'I'd be the last person in history to go down as a philanthropist, says Renier van Rooyen, ESV's South African on-site manager. 'But you cannot run a business when your wo

Objectivism and Friedman/Atkins's limited view of corporate social responsibility.

On April 22, 2010, the Wall Street Journal reported on a new PepsiCo partnership with Waste Management to put as many as 3,000 "Dream Machines" in busy places this year to accept recyclable containers. "'There's got to be something in it for people, both through material rewards and emotional rewards,' said Jeremy Cage, PepsiCo's 'Dream Machine' project director. The Dream Machine is an attempt to be all things to all people. 'Dark green' environmentalists can carry key fobs that track and reward their personal recycling efforts, and link them to a social network with regular news feeds. People who recycle at home but not on the go would get an incentive such as a chance to win a baseball cap. Those cool to environmental causes might be interested in the sponsors' promise of a per-bottle donation to the Entrepreneurship Bootcamp for Veterans, a business training program for disabled veterans." PepsiCo is presuming th

Objectivism.

An attorney's employer agreed to be bought. Just before the deal closed, he was asked to join a leading biotech. It would have been a great career move, but if he left, three of his staff would be fired. One had a baby on the way, one was close to retirement, and one was a big family provider. He declined the job because it would hurt his "team members." Had he decided the most ethical choice was to accept the position, he would have followed:

Objectivism.

An April 4, 2010 New York Times article entitled "A Bronx Mom-and-Pop Store, Scraping By" reported the current struggles of the Scanlons, owners of a mom-and-pop appliance store in New York. "Like many small business owners, they prided themselves on their commitment to community and their flexibility. A longtime customer needed extra time to make payments? No problem. The leukemia society wanted a donation? Done. But the lingering downturn has stripped away such freedom. The other morning a customer called, wanting to buy a water heater. Could Mr. Scanlon carry him for 90 days? 'No,' he said, gritting his teeth. 'We just can't do it anymore.'" The recession's impact on the home center caused the Scanlons to abandon:

Ethic of Care

A December 17, 2009 Wall Street Journal story says that 30-year-old Derek Figg has concluded that it is in his best interests to walk away from his $318,000 mortgage debt, even though he can afford the payments, because he figures the home's value has dropped to $230,000 or less. Mr. Figg plans to rent an apartment nearby, saving himself about $700 a month. Mr. Figg's decision to walk away from his mortgage debt was rooted in:

a. Rawls' Theory of Justice.

b. Integrative Social Contracts Theory.

c. The Ethic of Care.

d. Kant's Categorical Imperative.

e. Objectivism. [No duty holds him back. His focus is on the most rational consequences for himself.]

Objectivism

An August 14, 2011 New York Times story entitled "First, Make Money. Also, Do Good." describes a program that technology giant Intuit offers to low-income taxpayers. "The company offers free online income-tax preparation software and filing services for lower-income households. The cost is relatively inexpensive for Intuit, as the service exploits the efficiency of online distribution. And the program blurs the line between charity and marketing, because millions of people who are sampling the company's product may well become paying customers as their incomes rise." Explains Intuit founder Scott Cook: "We look for places where we can use our strengths as a company to help solve big problems." This Intuit program is a good illustration of:

The hybrid approach to corporate social responsibility.

On June 14, 2011, the Wall Street Journal reported that many companies were once again contributing matching funds to their employees' 401k tax-deferred retirement accounts after suspending such contributions during the recession. Eclipse, Inc., an Illinois heating equipment manufacturer is one such company, explained why it took this action. "The big reason: It worried about losing highly skilled welders and machinists to other nearby [competitors]. 'There is quite a bit of competition for a skilled work force,' said Gregory Bubp, Eclipse's chief financial officer." Eclipse's reason for resuming 401k contributions is most consistent with:

Objectivism. (Why? The company's motive is pure self-interest.)

On August 15, 2011, the New York Times reported that Dick's Sporting Goods chain has pledged to donate $1 for every pair of shoes sold up to $1 million to a program designed to help determine whether student-athletes have suffered a concussion on the playing field so that, if they have, they may be treated properly rather than risking further brain injury. A company official said: "As the leader in sporting goods retail, we care very much about the health and safety of our consumers, so we felt very much like we wanted to get involved." One business consultant said that she liked the chain's new program because it was consistent with the chain's business operations and addressed a critical need. The consultant added that the program probably would increase Dick's profits by drawing more parents to the store to pick athletic gear for their children since parents fear that their children will suffer such injuries. Dick

The hybrid approach to corporate social responsibility.

In a 2007 press conference, Mexican telecom billionaire Carlos Slim Helu dismissed the idea that he or his corporations had any ethical obligation to make charitable contributions. "Poverty isn't solved with donations," he said. He added that he does more good by focusing on building businesses and creating jobs than by "going around like Santa Claus." Mr. Helu's views are most in line with:

A limited approach to corporate social responsibility.

Businessweek recently reported on the growing use of temporary workers in the aftermath of the recession: "After making deep staff cuts following the subprime implosion, UBS, Credit Suisse, and American Express hired psychology lecturer Shawn Achor to train their remaining employees in positive thinking. Says Achor: 'All the employees had just stopped working.'" Mr. Achor was brought in to help the companies deal with the effects of:

The survivor syndrome

In July 2010, basketball superstar LeBron James explained why he was abandoning his longstanding ties to the city of Cleveland to play for the Miami Heat. He said he left the Cleveland Cavaliers team because he wanted a real shot at greatness. It was a business decision and, he said, he made it without emotion. "I wanted to do what was best for LeBron James and make him happy." Mr. James's business decision to leave the Cavaliers for the Heat was driven by:

Objectivism.

A June 2011 New York University study concluded: "[T]he single bottom line keeps companies doing what they are good at and improves the overall efficiency of investments in society's wellbeing. [¶] This efficiency stems not just from companies' improved selection of investments and sharper focus on their core operations, but also from their renewed adherence to the objective of profit. For-profit companies are expected to maximize value for their shareholders. To do otherwise without shareholders' guidance" would create problems. The study concludes that the best approach for publicly traded companies to take toward corporate social responsibility is:

The limited approach.

On March 14, 2012, Greg Smith, a former Vice President of investment giant Goldman Sachs, published an essay in the New York Times explaining why he was resigning from the firm. He had joined Goldman 12 years before right out of college, but he said he was leaving because he had come to believe that Goldman had developed a culture of putting quick profits for the firm ahead of the interests of the firm's clients. Smith wrote: "My proudest moments in life - getting a full scholarship to go from South Africa to Stanford University, being selected as a Rhodes Scholar national finalist, winning a bronze medal for table tennis at the Maccabiah Games in Israel, known as the Jewish Olympics - have all come through hard work, with no shortcuts. Goldman Sachs today has become too much about shortcuts and not enough about achievement. It just doesn't feel right to me anymore." Mr. Smith's decision was driven by:

Virtue Ethics. (Made decision based on how reflected on his character)

An October 28, 2011 Wall Street Journal column was headlined "Are Companies Responsible for Creating Jobs?" The article discusses a group of CEO's from leading American companies that argue that there should be a tight link between corporate social responsibility programs and corporate self-interest. "The group, through their New York-based Committee Encouraging Corporate Philanthropy, highlights projects such as Wal-Mart's efforts to reduce packaging in its supply chain (good for the environment, good for Wal-Mart's costs); IBM's 'Service Corps,' which sends young executives to help developing countries (good for the countries, good for scouting for future IBM business) and PepsiCo's program to train corn farmers in Mexico (good for the farmers, good for PepsiCo, which needed an improved supply of corn). To do it right, the group says, companies should pick issues that are 'integral to the achievement of larger busi

The hybrid approach to corporate social responsibility.

A December 23, 2011 story in The New York Times entitled "The Bank Around the Corner" focused on the Bank of Cattaraugus, which has only $12 million in assets and serves a small village in upstate New York of 950 residents. The story mentions Carol Bonner, a 61 year-old retired secretary, who once fell behind in her property taxes and was forced to sell the home where she lived with her disabled sister. "[T]he bank's president, Patrick J. Cullen, who held the mortgage on the house, had his son Thomas Cullen buy it. Thomas Cullen, who lives in Chicago, never intended to live there. Ms. Bonner and her sister were able to stay as renters." Ms. Bonner was amazed. "I just didn't realize there were people like that in the world, people who would help you - especially, a banker." In the way he runs his bank, Patrick Cullen appears to be guided by what ethical decision-making rule:

The Ethic of Care. (Focus on closest relationships)

In October 2010, Facebook CEO Mark Zuckerberg told a Stanford audience that Facebook probably would do business in China, even though the Chinese government engages in censorship. "I don't want Facebook to be an American company that just spreads American values all across the world. For example, we have this notion of free speech that we really love and support at Facebook, and that's one of the main things that we're trying to push with openness. But different countries have their different standards around that. My view is that you want to be really culturally sensitive and understand the way that people actually think." Mr. Zuckerberg rejected:

Ethical imperialism.(MZ rejects applying American rules abroad.)

A November 26, 2010 USA Today story focused on the owner of a small background check business in Florida, Lola Gonzalez, who decided to lay off herself and give up a six-figure salary rather than lay off any of her other nine employees. Ms. Gonzalez took a job as a social worker paying half as much. '"How could you let somebody else go that you trusted and that trusted you?" says Gonzalez, 51, who's still a social worker. "We have one of the highest unemployment rates in the state."' Ms. Gonzalez's decision to sacrifice her own job so that the members of her staff could keep theirs is most consistent with:

The Ethic of Care. (Self-sacrifice)

A recent issue of Inc. magazine ran an interview with 23 year-old Sawyer Sparks, a senior at Purdue University who founded a company that makes gluten-fee modeling clay called Soy-Yer Dough, an alternative to Play-Doh for kids with wheat allergies. Sparks turned down a $500,000 offer from toy giant and Play-Doh maker Hasbro to license his product because Hasbro would not commit to making the product in America. Instead, Sparks built a factory in his hard-hit hometown of Bloomfield, Indiana, which now employs 30 people. He explained: "It's a sad situation when people you grew up with are looking for jobs. This town is hanging by a thread. Somebody needs to sew it back up. Whether we hire three or 20 or 100 full-time employees, these are people who didn't have jobs before." Mr. Sparks' decision to reject Hasbro's offer and build a factory in his hometown was guided by:

The Ethic of Care. (Focus on closest rels. - Sorry, didn't mean to make last 3 all ethic of care, but at least you know it.)

A May 2010 article in Black Enterprise magazine entitled "Does God Have a Place in Your Portfolio?" describes the growing popularity of investment funds that appeal to followers of specific Christian denominations, such as Methodist and Baptist. Those funds avoid certain businesses whose product or business values followers of the religion find objectionable. The article quotes Yaron Brook, president of the Ayn Rand Institute, who rejects the idea that investing should be based on anything other than a company's expected profitability. "'You should evaluate an investment based on whether it achieves its intended goal,' says Brook. 'In general, the goal of a business is to make money, not to serve a social agenda. Companies should be left alone to maximize their profits.'" Mr. Brook's view is most consistent with:

a. An expansive view of corporate social responsibility and a stakeholder orientation toward business.

e. A limited view of corporate social responsibility and a shareholder orientation toward business. [If you read these answers carefully, this is the only choice that made sense. The business is focused on the business of profits. And that's it.]