EEBS2614 - Memo

Question 1 (20 Marks)

1. The three central concepts in ethics are ___________.
a. self, good and others

2. Business ethics refers to ________.

c. the values and standards that determine interaction between the organisation and its
stakeholders

3. The three elements of ethics are ________.

c. personal ethics, business ethics & professional ethics

4. What is the basis of the libertarian theory of justice?

c. Justice should be thought of in terms of personal freedom (liberty), with people
exercising their own choices, without interference, as long as they do not infringe on
others’ freedom (Nozick)

5. According to Plato, the four cardinal virtues on which our moral life is based are…
c. Prudence, temperance, courage and justice.

6. Mandatory corporate responsibilities include_______.

d. all of the options listed

7. Why do companies make discretionary contributions?

d. All of the options listed

8. When dealing with the workplace area of responsibility, the questions to ask include:
a. Does it invest sufficiently in the development of its employees?
9. One of the main reasons why companies need to respond to societal expectations:
a. To enhance their strategic interests: the strategic interest of companies to strengthen
their ties with their stakeholders.

10. Amoral managers______.

d. all of the options listed

11. When an organisation is primarily concerned with profit, it is said to have

___________.
a. shareholder value dominance

12. Shareholder value dominance means__________.

b. none of the options listed

13. Breaking down the myth on ethics not being able to exist with business, which of the
following statements is FALSE?
e. War-like words used in business circles provide leaders with focus and goal-oriented
direction.

14. What is the purpose of the compliance mode of ethics management?

e. To prevent unethical behaviour.

15. What is the nature of the integrity mode of ethics management?

c. Promotion of responsible ethical behaviour.

16. What is the underlying assumption of the virtue theory?

b. Morality is both necessary and vital for human beings.

17. What is the underlying assumption of deontological ethics?

a. Moral action requires conformity to rationally founded moral principles.

18. What is it that separates animals and humans, according to Kant?

b. Humans have the ability to think rationally and make free choices.

19. The following is the mean of fear and cowardice, according to Aristotle’s virtue
theory:
a. Courage

20. What is the ethics management mode of survival mode?

d. Condoning unethical behaviours and practices.

Question 2 (20 Marks)

1. List two different kinds of values that can be broadly distinguished within business
organisations? (Strategic; work; ethical values)

2. What metaphor is commonly used to draw the distinction between personal and
organisational ethics? (Apples and barrels)

3. Name two outstanding features of contemporary corporations (perpetual lifetime,

personhood, limited liability) (any 2)

4. List two mandatory responsibilities (legal or otherwise) corporations may face

from society? (Legislation – e.g. Anti-competition, labour, or environmental
laws; regulations, e.g. against insider trading; stock exchanges
requirements; standards set by professional associations)

5. What is the difference between an amoral and an immoral business person?

(Amoral: ethical considerations are inappropriate in business. Immoral:
ethical considerations must be subverted in business)

6. What modes of ethics management typically represent, respectively, a rule-based,

and values-based approach to managing ethics? (Compliance mode; Integrity
mode)
7. List two features found in an organisation operating in the reactive mode.
(Presence of ethical values but standards not applied; blind eye towards
unethical behaviour; detected unethical practices are not punished) (any 2
Listed)

8. Aristotle’s concept of the ‘mean’ indicates that our natural dispositions tend to err
either as an excess or a deficiency. What excesses and deficiencies would flank
either side of the mean of the following virtues:
8.1 patience (irascibility & lack of spirit); (1 Mark each)
8.2 modesty (shyness and shamelessness). (1 Mark each)

9. Friedman believes that a corporation has only one responsibility and is

answerable only to one group of stakeholders. What is this responsibility that
Friedman refers to and to whom is it owed? (To maximise its profits for the
benefit of its shareholders)

10. What does Evan & Freeman’s Principle of Corporate Rights state? (The
corporation and its managers may not violate the legitimate rights of others
to determine their own future).