BUS 240 Chapter 1 Why Ethics Matter

What does the phrase 'tragedy of the commons' mean?

• Overuse of shared resources

• A successful business strategy

• A type of economic model

• A form of government regulation

Who coined the phrase 'tragedy of the commons'?

• Adam Smith

• Garrett Hardin

• John Locke

• Karl Marx

Why is it in the best interest of business to be sustainability minded?

• To increase short-term profits

• To ensure long-term viability

• To avoid taxes

• To reduce employee turnover.

Why is it important to have some regulations in place for business?

• To limit competition

• To protect consumers and the environment

• To increase bureaucracy

• To reduce innovation

Would it be advisable to have a completely deregulated business environment? Why or why not?

• Yes, it encourages innovation

• No, it can lead to exploitation

• Yes, it reduces costs

• No, it increases competition

Describe what a carbon footprint is.

• A measure of carbon emissions

• A type of business strategy

• A government policy

• A financial metric

Which of the following best defines “ethics”?

• The laws established by a government to control business practices

• Standards of behavior we follow in our personal and professional lives

• The written rules of a company’s code of conduct

• A set of financial reporting requirements

What does it mean to be a professional of integrity?

• Always following company policy, even when it is unfair

• Achieving the highest possible profits for stakeholders

• Adhering to a code of moral values that unites words and actions

• Being consistent only when convenient

Which of the following statements best distinguishes ethics from law?

• Law sets minimum standards; ethics goes beyond them

• Law is voluntary, but ethics is mandatory

• Both require the same standards of behavior

• Ethics only applies to government officials

According to the text, stakeholders include all of the following EXCEPT:

• Customers and employees

• The government and the environment

• Competitors and suppliers

• Only the company’s shareholders