LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

TERM 1 2002-03 EXAMINATION

NOVEMBER 2002

LGST001 G4-G6
ETHICS & SOCIAL RESPONSIBILITY
INSTRUCTIONS TO STUDENTS
1

The time allowed for this examination paper is 2 hours (150 minutes).

This examination paper consists of two parts. The First Part contains a total of Eighty
(80) multiple choice questions and the Second Part contains a total of Forty (40)
multiple choice questions. The examination paper comprises Twenty-one (21) pages
including this instruction sheet.

At the bottom of this examination paper, write your Name , Student UIN/EIN, and
Group (G4, G5, or G6).

In addition to this examination paper, you are provided Two (2) SMU/OMR forms. All
entries on these forms should be made in pencil only. Under Name of Instructor: label
one of the forms FIRST PART; and label the other form SECOND PART. On
both forms, write your Name , the Course code (LGST001), and todays Date (30.11.02).
On both forms, shade in your Group (G4, G5, or G6). On both forms, write and shade in
your Student UIN/FIN.

You are required to answer ALL questions in the examination paper on the SMU/OMR
forms provided. Answer the questions in the First Part of the examination paper on the
form you have labeled FIRST PART. Answer the questions in the Second Part of the
examination paper on the form you have labeled SECOND PART.

By the end of the time allowed, you must RETURN to the invigilator Three (3)
DOCUMENTS : 1) this examination paper; 2) the SMU/OMR form labeled FIRST
PART; and 3) the SMU/OMR form labeled SECOND PART.

Name: __________________________________________________________
Student UIN/FIN: _______________________________
Group (G4, G5, or G6): _________
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LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

FIRST PART

For each question below, on the SMU/OMR form you have labeled FIRST PART, please
shade the letter of the answer that is most correct.
1. According to Thomas Donaldson and Patricia Werhane, Introduction to Ethical Reasoning
(Donaldson & Werhane), most ethical theories articulated by ethical theorists throughout
history can be categorized under which of the following headings?
A. Deontology.
B. Consequentialism.
C. A and B.
D. None of the above.
2. If a manager says My job from a moral perspective is to balance and assess duties, rights,
and obligations, and determine which have priority, according to Donaldson and Werhane,
what approach to ethical reasoning is the manager NOT taking?
A. Consequentialist.
B. Deontological.
C. Teleological.
D. A and C.
3. If a manager says My job from a moral perspective is to weigh consequences of alternative
actions and consider which of the alternatives constitutes a maximization of the overall
good, according to Donaldson & Werhane, what approach to ethical reasoning is the
manager NOT taking?
A. Deontological.
B. Ethical egoism.
C. Utilitarian.
D. A and B.
4. According to Donaldson & Werhane, which are relevant in calculating the traditional
principle of utility?
A. Race.
B. Religion.
C. Intelligence.
D. None of the above.
5. According to Donaldson & Werhane, which of the following are NOT objections to
utilitarianism?
A. Inability to account for justice.
B. Difficulty of identifying and ranking whatever is to be maximized.
C. Conflict between principles.
D. None of the above.

LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

FIRST PART

6. According to Donaldson & Werhane, which of the following are formulations of Kants
categorical imperative?
A. One ought to treat others as having intrinsic value in themselves, and not merely as
means to achieve ones end.
B. One ought only to act such that the principle of ones act could become a universal law
of human action in a world in which one could hope to live.
C. A and B.
D. None of the above.
7. According to Donaldson & Werhane, which of the following are forms of deontology?
A. Virtue Theory.
B. Social contract theory.
C. Utilitarianism
D. None of the above.
8. According to Donaldson & Werhane, which person is associated with concept of the veil of
ignorance?
A. Robert Nozick.
B. Michael Walzer.
C. John Locke.
D. John Rawls.
9. According to Donaldson & Werhane, character is of primary importance in which approach
to ethical reasoning?
A. Act utilitarianism.
B. Rule utilitarianism.
C. Virtue ethics.
D. Kantian ethics.
10. According to Frederick Bird and James Waters, The Moral Muteness of Managers (Bird &
Waters), moral muteness occurs when?
A. Moral terms are used in speech.
B. Actions do not follow normative expectations.
C. A and B.
D. None of the above.
11. According to Bird & Waters, what are NOT consequences of moral muteness?
A. Moral amnesia.
B. Moral stress.
C. Increased authority of moral standards.
D. Neglect of abuses.

LGST001 G4-G6

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FIRST PART

12. According to Roger Crisp, Persuasive Advertising, Autonomy, and the Creation of Desire
(Crisp), persuasive advertising?
A. Creates nonautonomous desires.
B. Induces irrational desires.
C. Involves control or manipulation.
D. All of the above.
13. According to Crisp, persuasive advertising?
A. Is informative advertising.
B. Is morally acceptable.
C. Does not eliminate freedom of choice.
D. None of the above.
14. According to Robert Nozick, The Entitlement Theory (Nozick), distributive justice is
based on?
A. Utilitarian principles.
B. Historical principles of justice.
C. End-result principles of justice.
D. A and C.
15. According to Nozick, free exchange?
A. Will make an unjust distribution just.
B. Will have no effect on whether a distribution is just.
C. Will not make a just distribution unjust.
D. None of the above.
16. According to Albert Carr, Is Business Bluffing Ethical? (Carr), business?
A. Is a moral community.
B. Is like war.
C. Should be integrated with personal life.
D. Is like poker.
17. According to Carr, bluffing within the rules of the game?
A. Is ethically unacceptable.
B. Is necessary to survive in the competitive business world.
C. Is expected by participants.
D. B and C.
18. According to James Rachels, The Challenge of Cultural Relativism, which of the following
are claims of cultural relativism?
A. Different cultures have different moral codes.
B. There is no such thing as universal truth in ethics.
C. There are only various cultural codes, and nothing more.
D. All of the above.

LGST001 G4-G6

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FIRST PART

19. According to Michael Walzer, Complex Equality (Walzer)?

A. There has never been a distributive conspiracy.
B. The market is a complete distributive system.
C. There is a single just distributive system.
D. A and C.
20. According to Walzer?
A. We start from universalizing conditions.
B. We are the product of historical and cultural particulars.
C. For most societies one set of goods is dominant in all spheres of distribution
D. B and C.
21. According to Walzer, in a regime of complex equality?
A. Distribution is based on free exchange.
B. Goods are monopolized but no good is generally convertible..
C. Distribution is based on desert.
D. A and B.
22. According to Alan Singer and others, Ethical Myopia (Singer and others), consumers are
influenced by which of the following?
A. Mental models.
B. Framing.
C. Transaction utility.
D. All of the above.
23. According to Singer and others, the theatre ticket experiment illustrates?
A. Framing.
B. Mental accounting.
C. Transactional utility.
D. All of the above.
24. According to Norman Gillespie, The Business of Ethics (Gillespie)?
A. Business is like playing a piano.
B. Business is not like a game.
C. Executives may thwart ethical change.
D. B and C.
25. According to Gillespie, the cost of doing ones duty is too high when?
A. The moral cost is too high.
B. The individual cost is too high.
C. No one else is doing ones duty.
D. All of the above.

LGST001 G4-G6

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FIRST PART

26. According to George Brenkert, Trust, Morality and International Business (Brenkert),
extended trust is required?
A. In ordinary market practice.
B. When monitoring devices and contracts are una vailable.
C. In normal contractual relationships.
D. All of the above.
27. According to Brenkert, guarded trust does NOT require?
A. Commonality of motives and values
B. Consistency of behavior with motives and values.
C. Openness.
D. Acknowledged competence.
28. According to Thoma s Donaldson and Thomas Dunfee, A Social Contracts Approach to
Business Ethics (Donaldson & Dunfee), principles so fundamental that they constitute
norms by which all others are to be judged are?
A. Hypernorms.
B. Authentic norms.
C. Legitimate norms.
D. None of the above.
29. According to Donaldson & Dunfee, norm priority is higher?
A. The more global is the norm in source.
B. The more the norm maintains the economic environment.
C. The less well-defined is the norm
D. A and B.
30. According to Milton Friedman, The Social Responsibility of Business Is to Increase Profits
(Friedman), profits must be maximized?
A. Taking into account effects on all stakeholders.
B. Subject to the law.
C. Subject to the ethical customs of society.
D. B and C.
31. According to Friedman, which of the following are social taxes or expenditures?
A. Increases in prices to maximize profits.
B. Reducing pollution to meet legal requirements.
C. Expenditures on research and development.
D. Hiring inefficient workers to promote welfare.
32. According to Friedman, who should determine social taxes or expenditures?
A. Stakeholders.
B. Shareholders.
C. Managers
D. None of the above.

LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

FIRST PART

33. According to Sessela Bok, Whistleblowing and Professional Responsibility (Bok), a

whistleblower is an employee who sounds an alarm regarding neglect or abuses?
A. By their firm that threaten shareholders interest.
B. By the government that threatens the firms interest.
C. By the government that threaten the public interest.
D. By their firm that threaten the public interest.
34. According to Bok, the dangers from whistleblowing are from?
A. Uses in error or malice.
B. Work or reputation unjustly lost.
C. Privacy invaded and trust undermined.
D. All of the above.
35. According to R. Edward Freeman, Stakeholder Theory of the Modern Corporation
(Freeman), which of the following are NOT stakeholders?
A. Suppliers.
B. Employees.
C. Managers.
D. None of the above.
36. According to Freeman, what are NOT examples of market breakdown?
A. Moral hazard.
B. Tragedy of the commons.
C. Avoidance of competitive behavior.
D. Price competition.
37. According to Freeman, which should be true?
A. Board of directors is responsible only to shareholders
B. Party externally impacted by firms contract should become party to contract.
C. Stakeholders can bring action against board of directors.
D. B and C.
38. According to Norman Bowie, A Kantian Approach to Business Ethics (Bowie ), Act as if
you are both subject and sovereign of an ideal kingdom of ends implies which of the
following?
A. Treat people with dignity and provide an environment in which they can thrive.
B. Adopt the theory Y of human nature.
C. Make business decision a universal principle without exception.
D. A and C.
39. According to Bowie, which formulation of the categorical imperative implies that one should
not breach contracts?
A. Always treat the humanity in a person as an end, and never as a means merely.
B. Act as if you are both subject and sovereign of an ideal kingdom of ends.
C. Act only on maxims that you can will to be universal laws of nature.
D. A and C.
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FIRST PART

40. According to Bowie, which formulation of the categorical imperative implies open book
management?
A. Always treat the humanity in a person as an end, and never as a means merely.
B. Act as if you are both subject and sovereign of an ideal kingdom of ends.
C. Act only on maxims that you can will to be universal laws of nature.
D. B and C.
41. According to Julian Simon, Scarcity or Abundance? (Simon), which of the following is
NOT true?
A. Human beings create more than they use, on average.
B. Increased prices provide incentive to discover and produce substitutes
C. The rate of known species extinction is low
D. None of the above.
42. According to Simon, which of the following is NOT a cause of doomsday thinking?
A. Seduction by exponential growth.
B. Appreciation for invisible hand.
C. A and B.
D. None of the above.
43. According to Tara Radin and Patricia Werhane, Employment at Will, Employee Rights, and
Future Directions for Employment, under employment at will employment may be
terminated without cause by?
A. The employee.
B. The employer.
C. A and B.
D. None of the above.
44. According to Amartya Sen, Does Business Ethics Make Economic Sense? the following
person did not believe that that the pursuit of self interest alone was sufficient to promote the
social good?
A. Norman Gillespie.
B. Kenneth Goodpaster.
C. John Rawls.
D. Adam Smith
45. According to Kenneth Goodpaster, Business Ethics and Stakeholder Analysis, which of the
following should NOT be true?
A. Board of directors owes fiduciary duty to shareholders.
B. Board of directors owes fiduciary duty to customers.
C. Board of directors owes nonfiduciary duty to employees.
D. A and C.

LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

FIRST PART

46. According to John Locke, The Justification of Private Property, the right to private
property is based on the premise that in the absence of a formally structured society all men?
A. Own their tools.
B. Have a right to vote.
C. Own their bodies.
D. A and B.
47. According to Wendy Warren and Andrea Larson, The Natural Step (Warren & Larson),
which of the following is NOT a claim of TNS?
A. Species survival requires the use of linear economic processes.
B. Industry is using cyclical economic processes.
C. No matter what are our values, we should be able to join forces to defend the cell.
D. A and B.
48. According to Warren & Larson, which of the following are TNS conditions for the
maintenance of quality in the biosphere?
A. Substances from the earths crust must not systematically increase in the ecosphere.
B. The physical basis for productivity and diversity of nature may be systematically
diminished
C. Substance produced by society must not systematically increase in the ecosphere.
D. A and C.
49. According to Richard Epstein, In Defense of Contract at Will (Epstein), which of the
following is NOT true of contract at will?
A. Employer can reduce cost of monitoring through ability to terminate without cause.
B. Employer who arbitrarily terminates an employee will suffer reputational loss amongst
remaining employees
C. Contract at will allows employee to diversify investment in job over time.
D. Contract at will promotes expensive litigation.
50. According to Epstein, which of the following is NOT true of contract at will?
A. Employee can reduce monitoring cost through option of quitting.
B. Employer who terminates an employee on efficiency grounds will incur reputational gain
amongst remaining employees.
C. Abrogating employment at will has a negative distributional effect.
D. At-will employment allows adaptation to imperfect information
51. According to Robert Frank, Can Socially Responsible Firms Survive in a Competitive
Economy? (Frank), socially responsible firms?
A. Compete in one-shot dilemmas.
B. Compete in repetitive dilemmas.
C. Cooperate in one-shot dilemmas.
D. Cooperate in repetitive dilemmas.

LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

FIRST PART

52. According to Frank, socially responsible firms may prosper by?

A. Solving commitment problems with employees.
B. Solving commitment problems with customers.
C. Solving commitment problems with other firms.
D. All of the above.
53. According to Adam Smith, Benefits of the Profit Motive (Smith), each individua l pursuing
his own end?
A. Decreases the social product.
B. Has no effect on the social product.
C. Increases the social product.
D. None of the above.
54. According to Richard De George, International Business Ethics and Incipient Capitalism
(De George), which of the following actions are wrong no matter what the system of
background institutions?
A. Violence.
B. Extortion.
C. Theft.
D. All of the above.
55. According to De George, which of the following is true?
A. Legislation and regulations that keep competition fair are required.
B. The plight of the worker in some developing nation(s) is worsening.
C. MNCs should adhere to host ethical standards.
D. B and C.
56. According to Steven Kelman, Cost Benefit Analysis, which of the following is NOT a
counterclaim to traditional cost-benefit analysis?
A. A decision may be right even though its costs outweigh its benefits.
B. Major resources should not be devoted to spreading the gospel of cost-benefit analysis.
C. Dollar values should be put on all non- marketed benefits and costs.
D. A and B.
57. According to Karl Marx, Alienated Labor (Marx)?
A. The worker is liberated by the product of his labor.
B. The worker acquires the right to the property of his labor.
C. The worker is alienated from the product of his labor.
D. None of the above.
58. According to Marx, alienation of labor alienates man from?
A. From his mental life.
B. From his body.
C. From his tools.
D. A and B.

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FIRST PART

59. According to Felice Schwartz, Management Women and the New Facts of Life (Schwartz),
which of the following is NOT true?
A. The cost of employing women in management is greater than the cost of employing men.
B. Career interruptions, plateauing, and turnover are expensive.
C. Managers need not provide flexibility and family support to career-and-family women.
D. There are managerially relevant differences between the sexes.
60. According to Schwartz, which is NOT one of the requirements for managers to clear the
way to the top for career-primary women?
A. Identify them early.
B. Have different expectations for them than for career-primary males.
C. Accept them as valued members of the management team.
D. Recognize that the management environment is more stressful for them than for careerprimary males.
61. According to Thomas Donaldson, Values in Tension (Donaldson), which of the following
are principles of ethical imperialism?
A. There should be the same ethical behavior around the world.
B. Moral truths are expressed with one set of concepts.
C. There is a global standard of ethical behavior.
D. All of the above.
62. According to Donaldson, which is NOT a balancing principle?
A. Context does not matter when deciding what is right and what is wrong.
B. Respect core human values, which determine the absolute moral threshold for all
business activities.
C. Respect the local traditions.
D. B and C.
63. According to Donaldson, if the manager asks the question Would the host country practice
be acceptable at home if the home country were in a similar stage of economic
development, the manager is addressing?
A. Conflicts of cultural tradition.
B. Conflicts of relative development.
C. A and B.
D. None of the above.
64. According to Robert Solomon, Corporate Roles, Personal Virtues, which are NOT
dimensions of virtue ethics?
A. Apply principles.
B. Simply do no harm.
C. Integrate personal and business life.
D. A and B.

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LGST001 G4-G6

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FIRST PART

65. According to Peggy McIntosh, White Privilege and Male Privilege (McIntosh), which of
the following is NOT true of male privilege?
A. It is acknowledged by the privileged.
B. It is unearned by the privileged.
C. It is damaging to the privileged.
D. All of the above.
66. According to McIntosh, white privilege?
A. Is overrewarding to the privileged.
B. Protects the privileged against hostility, distress, and violence.
C. Confers dominance and power to the privileged.
D. All of the above.
67. According to Lester Thurow, Needed: A New System of Intellectual Property Rights
(Thurow), the old system of intellectual property rights does not work because?
A. Centrality of intellectual property rights.
B. Emergence of new technologies to evade intellectual property protections.
C. Globalization of the economy.
D. All of the above.
68. According to Thurow, which should NOT be true for a new sys tem of intellectual property
rights?
A. There must be a right balance between the production and distribution of new ideas.
B. System must determine rights and resolve disputes efficiently.
C. Unenforceable laws may continue to exist.
D. All of the above.
69. According to John Reed, Management Research and Practice (Reed), which of the
following is NOT true?
A. The objective in running a business is the long-term, evolutionary success of the firm.
B. Profit is sufficient for evolutionary success.
C. A and B.
D. None of the above.
70. According to Reed, which of the following is true?
A. Businesses are looking for ways to perform more effectively.
B. Understanding who human beings are, how they respond to opportunities, what they
dream about is essential to business practice
C. A and B.
D. None of the above.

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FIRST PART

71. According to Patricia Werhene, The Very Idea of a Conceptual Scheme (Werhene), which
is NOT true?
A. We all have mental models.
B. Different models generate different expectations.
C. Different expectations do not generate harm.
D. None of the above.
72. According to Werhane, the Ford Pinto recall coordinator followed which ethical principle?
A. Do no harm.
B. Maximize profits.
C. Make business decision a universal principle without exception.
D. Be no worse than your competitor.
73. According to Lynn Paine, Managing for Organizational Integrity (Paine), which of the
following is NOT true?
A. Organization compensation and goal setting can motivate illegal behavior by employees.
B. Unethical business practice is not just matter of individual misdeed but is a matter of
organizational operating culture.
C. An integrity-based approach to ethics management does not go beyond concern for the
law.
D. None of the above.
74. According to Paine, which of the following is true?
A. U.S. Federal Sentencing Guidelines provide a rationale for a legal comp liance program.
B. A legal compliance relies on deterrence.
C. Obedience to the law is strongly influenced by belief in the legitimacy and moral
correctness of the law
D. All of the above.
75. According to Paine, under a compliance strategy for ethics management which of the
following is NOT true?
A. The ethos is one of self- governance according to chosen standards.
B. Education covers decision making and values.
C. Methods include reducing discretion.
D. A and C.
76. According to Paine, under an integrity strategy for ethics manageme nt which of the following
is NOT true?
A. The objective is to enable responsible conduct.
B. Leadership and staffing is provided by lawyers.
C. Employees are assumed to be autonomous beings guided by material self- interest.
D. B and C.

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FIRST PART

77. According to John Rawls, Distributive Justice (Rawls), justice is a set of principles for?
A. For choosing between the social arrangements which determine distributive shares.
B. Determining how to make ethical decisions.
C. For underwriting a consensus as to the proper distributive shares
D. A and C.
78. According to Rawls, the principle that no one gains or loses from his place in the distribution
without giving or receiving compensating advantages in return is referred to as?
A. The open offices principle.
B. The difference principle.
C. The first princip le of justice.
D. None of the above.
79. According to Rawls, a just distribution requires that?
A. Resources are fully employed.
B. A social minimum is maintained.
C. Markets are competitive.
D. All of the above.
80. According to Peter Senge, The Leaders New Work, surfacing and testing mental models
does NOT involve which of the following?
A. Seeing leaps of abstractions.
B. Balancing inquiry and abstraction.
C. Distinguishing espoused theory from abstraction.
D. Recognizing and reinforcing defensive routines.

End of First Pa rt
(You are finished using SMU/OMR Form labeled FIRST PART)

Go To Second Part

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TERM 1 2002-03 FINAL EXAM

SECOND PART

For each question below, on the SMU/OMR form you have labeled SECOND PART, please
shade the letter of the answer that is most correct.
1. An innocent product, that a U.S. company manufactures and sells in a foreign country, is
used for illicit purposes by children. Which of the following cases raises the issue of what
the company should do in this situation?
A. Plasma International.
B. Merck & Co., Inc.
C. H. B. Fuller in Honduras
D. None of the above.
2. Which of the following readings is relevant in addressing the issue in the previous question?
A. Julian Simon, Scarcity or Abundance?
B. Kenneth Goodpaster, Business Ethics and Stakeholder Analysis
C. Thomas Donaldson, Values in Tension
D. B and C.
3. Which of the following cases raises the issue of whether a company has the right to sell its
subscriber information to other advertisers?
A. Fingerhuts Price Strategy
B. Kate: Dot-Com CEO
C. The Case of Unequal Opportunity
D. None of the above.
4. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Neil Postman, The Judgment of Thamus
B. Wendy Warren and Andrea Larson, The Natural Step
C. Alan Singer and others, Ethical Myopia
D. B and C.
5. Which of the following cases raises the issue of whether a company should become directly
involved in the issues of the environment and human rights in a country in which it operates?
A. Shell and Nigerian Oil
B. Levi Strauss & Co., Inc.
C. Sears Auto Centers
D. None of the above.
6. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Wendy Warren and Andrea Larson, The Natural Step
B. Albert Carr, Is Business Bluffing Ethical?
C. Thomas Donaldson and Thomas Dunfee, A Social Contracts Approach to Business
Ethics
D. A and C.

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SECOND PART

7. Does a worker have the right to blow the whistle on a dangerous product without reprisal
from management? Which of the following cases raises this issue?
A. What Price Safety?
B. The Aircraft Brake Scandal.
C. McMadness Hong Kong Style
D. None of the above.
8. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Peter Senge, The Leaders New Work
B. Richard De George, International Business Ethics and Incipient Capitalism
C. Richard Epstein, In Defense of Contract at Will
D. None of the above.
9. Which of the following case studies raises the issue of whether a business man should
participate in bribery in the host country that would be illegal if carried out in the home
country but is accepted in the host country?
A. Italian Tax Mores
B. Just When Is a Tip ONLY To Insure Promptness?
C. Plasma International
D. None of the above.
10. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Bowen McCoy, The Parable of the Sadhu
B. Thomas Donaldson and Thomas Dunfee, A Social Contracts Approach to Business
Ethics
C. Michael Walzer, Complex Equality
D. None of the above.
11. Which of the following case studies raises the issue of whether a company should continue to
trade with, and expand its business in, a country where there is strong evidence of rights
violations?
A. H.B. Fuller in Honduras
B. Plasma International
C. Levi Strauss & Co.
D. None of the above.
12. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Thomas Donaldson, Values in Tension
B. James Rachels, The Challenge of Cultural Relativism
C. Sissela Bok, Whistleblowing and Professional Responsibility
D. A and B.

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SECOND PART

13. Does the moral responsibility of a company extend to funding the development and
distribution of a drug that can improve the quality of human life with a profit motive?
Which of the following cases raises this issue?
A. Merck & Co., Inc.
B. Dorrence Corporation Trade-offs.
C. W.R. Grace & Co. and the Neemix Patent
D. None of the above.
14. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Roger Crisp, Persuasive Advertising, Autonomy, and the Creation of Desire
B. Robert Frank, Can Socially Responsible Firms Survive in a Competitive Economy?.
C. Tara Radin and Patricia Werhane, Employment at Will, Employee Rights, and Future
Directions for Employment
D. B and C.
15. Can a life-saving [product] be deemed private property? If so, should there be any limits
on this property type? Which of the following cases raises these issues?
A. RUN, Inc.
B. The Aircraft Brake Scandal
C. Plasma International.
D. None of the above.
16. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Amartya Sen, Does Business Ethics Make Sense?
B. Karl Marx, Alienated Labor
C. John Locke, The Justification of Private Property
D. All of the above.
17. Which of the following cases raises the issue of whether the CEO of a company should strive
to meet profit targets that have human costs?
A. Dorrence Corporation Trade-offs
B. Italian Tax Mores
C. McMadness Hong Kong Style
D. None of the above.
18. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Milton Friedman, The Social Responsibility of Business Is to Increase Profits
B. Karl Marx, Alienated Labor
C. Andrew Carnegie, Wealth
D. All of the above.

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TERM 1 2002-03 FINAL EXAM

SECOND PART

19. Should a female manager, who has been the beneficiary of a manager committed to
breaking the glass ceiling, recommend an African American for an overseas post in which
blatant discrimination exists? Which of the following cases raises this issue?
A. The Oil Rig
B. Shell and Nigerian Oil
C. H. B. Fuller in Honduras
D. None of the above.
20. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Peggy McIntosh, White Privilege and Male Privilege
B. Felice Schwartz, Management Women and the New Facts of Life
C. Thomas Donaldson and Thomas Dunfee, A Social Contracts Approach to Business
Ethics
D. A and C.
21. Which of the following cases raises the issue of whether a firm should use a structured
incentive system with quotas to boost productivity?
A. Italian Tax Mores
B. The Case of Unequal Opportunity
C. Sears Auto Centers
D. None of the above.
22. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. John Rawls, Distributive Justice
B. Robert Jackall, Moral Mazes.
C. Lynn Paine, Managing for Organizational Integrity
D. A and B.
23. Which of the following cases raises the issue of what should be freely available and what
constitutes private property deserving of protection?
A. Just When Is a Tip ONLY To Insure Promptness?
B. McMadness Hong Kong Style
C. Kate: Dot-Com CEO
D. None of the above.
24. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Lester Thurow, Needed: A New System of Intellectual Property Rights
B. Frederick Bird and James Waters, The Moral Muteness of Managers.
C. Patricia Werhane, The Very Idea of a Conceptual Scheme
D. A and C.

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TERM 1 2002-03 FINAL EXAM

SECOND PART

25. A newly hired controller[, who is a certified public account,] is asked by the business
owners and senior management to approve year-end financial statements that do not
accurately represent the firms profitability. Which of the following cases raises this issue?
A. RUN, Inc.
B. Italian Tax Mores
C. Dorrence Corporation Trade-offs
D. None of the above.
26. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. George Brenkert, Trust, Morality and International Business
B. R. Edward Freeman, Stakeholder Theory of the Modern Corporation
C. Norman Gillespie, The Business of Ethics
D. All of the above.
27. Which of the following cases raises the issue of whether a firm should bundle the extension
of credit with the sale of goods targeted to lower income households?
A. Levi Strauss & Co.
B. Sears Auto Centers
C. Fingerhuts Price Strategy.
D. None of the above.
28. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Alan Singer and others, Ethical Myopia
B. Adam Smith, Benefits of the Profit Motive
C. Wendy Warren and Andrea Larson, The Natural Step
D. A and B.
29. Which of the following cases raises the issue of whether justice requires that a manager
eliminate or reduce inequalities between managers and ordinary workers?
A. Shell and Nigerian Oil
B. The Oil Rig
C. The Case of Unequal Opportunity
D. None of the above.
30. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Peter Senge, The Leaders New Work
B. Robert Nozick, The Entitlement Theory
C. Thomas Donaldson, Values in Tension
D. B and C.

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LGST001 G4-G6

TERM 1 2002-03 FINAL EXAM

SECOND PART

31. How to enforce what seem to be basically universal, morally minimal standards of worker
safety in a culture where local customs and value differences appear to question that
standard. Which of the following cases raises this issue?
A. H. B. Fuller in Honduras
B. Plasma International
C. The Aircraft Brake Scandal
D. None of the above.
32. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Albert Carr, Is Business Bluffing Ethical?
B. Thomas Donaldson and Thomas Dunfee, A Social Contracts Approach to Business
Ethics
C. James Rachels, The Challenge of Ethical Relativism
D. B and C.
33. Which of the following cases raises the issue of whether the manager of a subsidiary of a
U.S. company in a foreign country should follow that countrys tax procedures, which
conflict with U.S. tax procedures, and may require filing a false corporate tax return?
A. Shell and Nigerian Oil.
B. Just When Is a Tip ONLY To Insure Promptness?
C. The Oil Rig
D. None of the above.
34. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Thomas Donaldson & Tho mas Dunfee, A Social Contracts Approach to Business
Ethics
B. Alan Singer and others, Ethical Myopia
C. Wendy Warren & Andrea Larson, The Natural Step
D. None of the above.
35. Which of the following cases raises the issue of whether a firm should forego the protection
of a U.S. patent for a completely natural, environmentally natural pesticide?
A. McMadness Hong Kong Style
B. H. B. Fuller in Honduras
C. Plasma International
D. None of the above.
36. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Richard Goodpaster, Business Ethics and Stakeholder Analysis
B. Felice Schwartz, Management Women and the New Facts of Life
C. James Rachels, The Challenge of Cultural Relativism
D. A and C.

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TERM 1 2002-03 FINAL EXAM

SECOND PART

37. Which of the following cases raises the issue of whether a manager of a European chemical
companys U.S. operations should build a plant in a state of the United States, where the
pollution standards in the state may be more relaxed than they are in Europe.
A. What Price Safety?
B. The Oil Rig
C. BASF
D. None of the above.
38. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Thomas Donaldson and Thomas Dunfee, A Social Contracts Approach to Business
Ethics
B. Peter Senge, The Leaders New Work
C. Robert Solomon, Corporate Roles, Personal Virtues
D. A and C.
39. Which of the following cases raises the issue of whether a pharmaceutical company should
withdraw bottles of its best selling nonprescription drug which were tampered with?
A. Merck & Co., Inc.
B. What Price Safety
C. Levi Strauss & Co.
D. Johnson & Johnson
40. Which of the following readings is relevant in addressing the issue in the immediately
previous question?
A. Thomas Donaldson and Patrick Werhane, Introduction to Ethical Reasoning
B. Neil Postman, The Judgment of Thalmus
C. Peter Senge, The Leaders New Work
D. A and C.

- End of Paper -

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