Consequences of a Crisis of Trust and Confidence in Business

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Questions and Answers

What was the initial perception of business ethics back in 1993?

  • It was viewed as the most critical aspect of business success.
  • It was believed to be an essential component of new managerial training programs.
  • It was seen as a passing trend that would soon fade away. (correct)
  • It was considered a deeply-rooted aspect of business operations.

How was business ethics being incorporated into companies in the early 1990s?

  • By introducing strict regulations enforced by the government.
  • By conducting frequent audits to ensure compliance.
  • Through exclusive partnerships with academic institutions.
  • Through new-hire orientations and management training programs. (correct)

What was the academia's stance towards business ethics in the early 1990s?

  • It was considered irrelevant and unnecessary for students.
  • It was gaining traction as a subject for serious academic study. (correct)
  • It was not recognized as a legitimate field of study.
  • It was mandated for all students to take a course on business ethics.

How did one prominent business writer for Fortune Magazine describe the state of American business in 2007?

<p>Praising its resurgence after a period of humiliation. (B)</p> Signup and view all the answers

What did Smith propose as the source of a good life?

<p>Expression of beneficence (B)</p> Signup and view all the answers

Why did Smith argue that self-love can spur individuals to improve their condition?

<p>To better one's own condition (A)</p> Signup and view all the answers

According to Smith, what must individuals balance to be considered virtuous?

<p>Prudence, strict justice, and benevolence (D)</p> Signup and view all the answers

What did Kidder emphasize about the success of capitalism?

<p>It needs a moral foundation (D)</p> Signup and view all the answers

What event is mentioned as outdoing itself on the shame index just about a year after business seemed to be back?

<p>The financial markets collapse (D)</p> Signup and view all the answers

Why is business ethics considered far from a fad?

<p>Because it's an ongoing phenomenon that must be better understood and managed (B)</p> Signup and view all the answers

Who are mentioned as contributing to Enron's collapse besides Enron executives and employees?

<p>Enron's auditors and bankers (D)</p> Signup and view all the answers

What scandal is described as unparalleled in scope and fueling public outrage like no other business disaster in the text?

<p>Financial industry debacle in 2008 (D)</p> Signup and view all the answers

Why were people angry and mistrustful after the financial debacle?

<p>Due to the lack of regulations in business practices (C)</p> Signup and view all the answers

What did Rushworth Kidder emphasize in relation to Adam Smith's work?

<p>The significance of aligning business practices with ethical values (D)</p> Signup and view all the answers

Why does the text mention Adam Smith's book 'The Theory of Moral Sentiments'?

<p>To illustrate the disconnect between business practices and ethical principles (D)</p> Signup and view all the answers

What does Adam Smith's quote at the beginning of his book suggest about human nature?

<p>Human beings are primarily selfless and empathetic (D)</p> Signup and view all the answers

What is defined as ethical behavior in business according to the text?

<p>Behavior consistent with society's agreed upon business principles (C)</p> Signup and view all the answers

How do many of the standards surrounding ethical behavior in business manifest?

<p>As laws (A)</p> Signup and view all the answers

Why is it important to consider the relationship between law and business ethics?

<p>To understand that following the law doesn't always encompass ethical behavior (D)</p> Signup and view all the answers

What influences the decisions of individuals in work organizations?

<p>Characteristics of both individuals and organizations (D)</p> Signup and view all the answers

What does the text suggest about the role of good upbringing in determining ethical conduct?

<p>It is an important factor but not the only one. (B)</p> Signup and view all the answers

Why do some individuals believe ethics should not be taught?

<p>It is believed that ethics should be a personal issue. (B)</p> Signup and view all the answers

In the context of organizational ethics, what is one reason mentioned for teaching employees about ethical dilemmas?

<p>To help recognize and deal with ethical issues at work. (C)</p> Signup and view all the answers

Why is it likened to failing to teach a machinist how to operate a machine safely if employees are not helped to recognize the risks in their jobs?

<p>It poses a danger similar to operating a machine without proper training. (B)</p> Signup and view all the answers

What does the text define as 'ethics'?

<p>A code of conduct governing individuals or groups (D)</p> Signup and view all the answers

How does the text suggest employers handle ethical conduct?

<p>By focusing on conduct and developing policies for employee activities (C)</p> Signup and view all the answers

What is the primary emphasis of the text regarding ethics?

<p>Conduct and ethical standards governing individuals or groups (B)</p> Signup and view all the answers

Why might there be controversy about teaching ethics, according to the text?

<p>'Ethics' having multiple definitions (C)</p> Signup and view all the answers

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