Ethics should be required study for business students Options

[mipadi]

I studied computer science as an undergraduate. At my school, computer science students are required to take a course on computing ethics. This courses requires students to think about the ethics of computing technology. For example, computer scientists may have the technology to build a system to record every phone call, email, and online chat of every American, but should we, as computer scientists, build such a system?

Such a discourse on professional ethics was not required for business students at my school (which had a pretty strong business program).

This situation occurred to me after reading an article about Trafigura, an oil trading company that is responsible for illegally dumping hazard waste in Africa's Ivory Coast, and poisoning thousands of people as a result:

The news of the settlement came as a UN report on claims that people had fallen sick or died as a result of the dump was published.

The report says there is "strong prima facie evidence that the reported deaths and adverse health consequences are related to the dumping of the waste from the cargo ship".

The chemical waste came from a ship called Probo Koala and in August 2006 truckload after truckload of it was illegally fly-tipped at 15 locations around Abidjan, the biggest city in Ivory Coast.

In the weeks that followed the dumping, tens of thousands of people reported a range of similar symptoms, including breathing problems, sickness and diarrhoea.

This sort of behavior is hardly unique to Trafigura. Shell Oil recently agreed to pay $15.5 million for complicity in the execution of several Nigerian activists, including Ken Saro-Wiwa (see Wiwa family lawsuits against Royal Dutch Shell). And these two cases, of course, are just the tip of the iceberg.

I am amazed that the officers of corporations such as Trafigura and Shell Oil can sleep at night, knowing that their own actions have directly resulted in the deaths of dozens, hundreds, even thousands of individuals. Operating sweatshops in developing countries through a complex system of subcontractors is one thing (such activity is still morally bankrupt and deplorable) but ordering actions that directly cause death to innocents clearly shows that the officers of such corporations, as well as lower-level employees, lack a sense of morality.

Do actions such as these (and I stress that the two incidents listed above are part of a pattern of behavior of large corporations, not just isolated incidents) demonstrate a flaw in the way we teach business in developed nations? Do these incidents occur because of the stress to turn a profit for shareholders, which often neglects the human aspect of doing business? Should business students be required to take at least one course on ethics in order to more fully understand the consequences of the large corporations for which they will work (and maybe eventually lead)? Or are these actions an inevitable consequence of large, multinational corporations wielding more power than most governments?

[Elba]

Yeah. Honestly though, I took it a year ago and don't remember much. Here's one of the exams to give you an idea of what the material was about. Very simple class. They actually had to curve the grades down.

BA 300 Hybrid
Block 1 and 2 Version 1

1. One of the individual influences that can affect the ethical judgment phase of ethical decision-making is:
a. Cognitive bias
b. Group pressures
c. Diffusion of responsibility
d. Organization culture
e. Company policies

2. Going outside the company, to regulatory agencies or to the media, as a part of the whistle blowing process should be:
a. The first thing you do, in order to protect yourself
b. The next step if your manager will not resolve the issue
c. One of the last things to consider, when all other attempts to resolve the issue have failed
d. Undertaken in secret at the same time you are pursuing the issue within the company
e. Done only with the permission of the CEO

3. Ethics in business, as defined in your text and described in the videos, is fundamentally about:
a. Academic philosophy
b. Conduct and behavior
c. Theories of right and wrong
d. Historical knowledge
e. Obedience to the law

4. One of the important organizational influences on ethical decision-making is:
a. Organizational culture
b. Cognitive bias
c. Individual differences
d. Moral training in your childhood
e. Level of cognitive moral development

5. Which of the following is/are triggers for moral awareness as described in your text and in the videos?
a. Moral language is used to describe the problem
b. Peers express concern about a moral dimension
c. You are being pressured to approve a given solution for financial reasons
d. Answers (a) and (b)
e. Answers (a), (b) and ©

6. Joan is a manager for a group of financial advisors. She constantly reminds them how she is very proud of their high ethical standards and level of integrity. She also makes it clear that she expects nothing less from her staff. She knows that by doing this, people on her staff are less likely to engage in any unethical behavior. Joan is making use of:
a. Illusion of control
b. Illusion of optimism
c. The Pygmalion effect
d. Moral awareness
e. Diffusion of responsibility

7. People may not feel personally responsible for their actions because of diffusion of responsibility in an organization. Which of the following promotes this effect?
a. Responsibility is taken away by others in the hierarchy
b. Responsibility is shared with others in decision-making groups
c. Psychological or physical distance from those affected
d. Answers (b) and ©
e. Answers (a), (b) and ©

8. Goals are useful in an organization to focus efforts and create clear expectations. However, a negative aspect of goals discussed in this course is that:
a. They may not be met, leading to conflict
b. It causes undue stress for employees
c. It detracts from other things that need to be done
d. Unrealistic goals can encourage unethical behavior
e. You cannot insist that goals must be reached by ethical means

9. Which of the following statements about the Federal Sentencing Guidelines for Organizations is TRUE?
a. The culpability score is applied to an organization accused of a federal crime to reflect the severity of the accusation.
b. The culpability score is applied to the individual in the organization deemed most responsible for the crime.
c. Obstructing a federal investigation of a corporate criminal violation is likely to increase the culpability score and increase the probability of conviction
d. Obstructing a federal investigation of a corporate criminal violation is likely to increase the culpability score and increase the penalty if the organization is found guilty of the crime
e. Since the base fine is set according to the offense, the culpability score does not affect the penalty imposed for corporate crime

10. An individual’s focus on their role in an organization may decrease or eliminate their sense of personal responsibility for their actions. This is called:
a. Illusion of control
b. Deindividuation
c. Diffusion of responsibility
d. Low ego strength
e. The Pygmalion effect

11. The relationship between ethics and the law, as explained in your text, is most accurately described by which of the following statements?
a. There is broad overlap between ethics and the law, but there are potentially things that are legal but unethical, and things that are illegal but ethical.
b. There is no connection whatsoever; the law and ethics are completely unrelated.
c. Everything that is legal is, by definition, ethical because society has made that decision and codified it into law.
d. Anything that is illegal is, by definition, unethical because obedience to the law is an absolute ethical principle, even if the law is wrong.
e. There is absolutely no ethical obligation to obey any particular law. It all depends on what you think is right.

12. In the early stages of making an ethical decision, it is important to:
a. Think creatively about potential solutions
b. Consult with several people who are experts in that issue
c. Check your instincts and emotions
d. Gather the facts and define the ethical issue
e. Talk to a lawyer

13. The Federal Sentencing Guidelines for Organizations are sometimes described as a “carrot and stick” approach to regulatory compliance. This means that:
a. An organization is required to have an ethics and compliance program or face punishment.
b. An organization can benefit from reduced legal risk if they have an effective compliance program and meet other requirements of the law, but may face increased risk if they don’t
c. An organization will receive a tax reduction for having an effective compliance program and a tax surcharge if they do not
d. An organization is in violation of the law if they do not have a compliance program that meets the due diligence requirements
e. If an organization fails to take effective measures to reduce corporate crime, the fine will be doubled if they are convicted of a federal offense

14. A person with a high internal locus of control is likely to:
a. Refuse to cooperate with others
b. Believe that they have control over events
c. Believe what they read in fortune cookies
d. Blame others for their failures
e. Feel helpless and manipulated
15. Which of the following statements is FALSE, according to the information in your text and in the video presentations?
a. People with high internal locus of control tend to take responsibility for their actions.
b. Cognitive moral development is fixed at birth and does not change during your lifetime.
c. Someone with low ego strength may be reluctant to act in the face of resistance
d. When choosing a course of action, people tend to overlook consequences affecting only a small number of individuals.
e. When choosing a course of action, consequences for yourself tend to given more weight that consequences for others

16. In an experiment at Stanford University, a simulated prison environment was created. During this experiment, there were drastic changes in the behavior of the experimental subjects as a result of their roles as guards or prisoners. This famous psychological study was called:
a. The Role Study Group
b. Milgram’s obedience experiment
c. The Stanford prison investigation
d. Zimbardo Prison
e. Rawls’ Prison Experiment

17. Where do young children function with regard to Kohlberg’s model of cognitive moral development?
a. Level 1
b. Level 2
c. Level 3
d. Between levels 1 and 2
e. Between levels 2 and 3

18. A person with high ego strength is likely to:
a. Believe he or she is superior to others
b. Follow through with an ethical decision even in the face of resistance
c. Be fearful and indecisive
d. Not trust their judgment and lack confidence
e. Be demanding and arrogant

19. The three types of moral approbation discussed by Dr. Ryan in the video presentations are related to praise, blame, and:
a. Approval from supervisors
b. Tangible rewards
c. Approval from society
d. Approval from yourself
e. Acceptance from family and friends

20. John is performing an investigation to determine why an aircraft crashed. He is convinced that it was pilot error, so he is looking specifically for evidence to support that conclusion. This is an example of:
a. Illusion of optimism
b. Illusion of control
c. Confirmation trap
d. Cognitive bias
e. Illusion of superiority

21. The libertarian ethical theory that opposes, on principle, government interference in business is:
a. Rawls’ Theory of Justice
b. Utilitarianism
c. Nozick’s Theory of Rights
d. Virtue ethics
e. None of the above

22. The decision rule for utilitarianism can be expressed as:
a. Using ethical means to achieve results
b. Performance of duties and obligations
c. The greatest utility for you
d. The greatest good for the greatest number
e. Focus on the least advantaged

23. One of the problems with Nozick’s Theory of Rights is that:
a. It requires a very complex analysis
b. It does not acknowledge the rights of secondary stakeholders
c. It fails to consider your interests
d. It results in too much government interference
e. It is too difficult to apply in practice

24. The ethical theory that does not take into consideration the means that are used to produce the result is:
a. Nozick’s Theory of Rights
b. Rawls’ Theory of Justice
c. Utilitarianism
d. Virtue ethics
e. None of the above

25. The social justice theory that favors the “least advantaged” is associated with:
a. Rawls
b. Virtue ethics
c. Nozick
d. Kant
e. Gilligan

26. The ethical theory that attempts to approach to moral decision-making in a scientific and objective way is:
a. Rawls’ Theory of Justice
b. Consequentialism
c. Utilitarianism
d. Virtue ethics
e. Nozick’s Theory of Rights

27. Which of the following statements about John Rawls’ Theory of Justice is TRUE?
a. It is a scientific and objective approach to ethical reasoning
b. It is a biased and unbalanced approach to social justice
c. One problem with the theory is denial of the validity of meritocracy
d. It allows virtually complete freedom of action
e. It rejects all government interference in business affairs

28. Bob is deciding whether to restructure his administrative staff to flatten the hierarchy in the organization. He has determined that 15 managers will have to be terminated, but large savings will result, and the organization will be much more efficient. Some of the gains can be channeled into employee raises, stockholders will benefit, and the company will remain competitive. After quantifying the various benefits and disadvantages, considering all of the various stakeholders, and making all possible efforts to assist the terminated managers in finding other employment, he goes ahead with his plan. His analysis is most consistent with:
a. Nozick’s Theory of Rights
b. Rawls’ Theory of Justice
c. Utilitarianism
d. Virtue ethics
e. None of the above

29. An appliance salesman receives a large incentive if he sells a certain store-branded product. Therefore, he makes every effort to sell that product to every customer, even if it is not the product that best meets their needs. He is very careful not to outright lie to anyone or engage in any coercion. As long as he obeys those self-imposed rules, he believes he can do almost anything else without being unethical. This is most consistent with which ethical theory?
a. Nozick’s Theory of Rights
b. Rawls’ Theory of Justice
c. Utilitarianism
d. Virtue ethics
e. None of the above

30. Jorge owns a company that makes garden hoses. For many years, his company has been the major employer in a small mountain community with few other opportunities. He also employs many people who are disabled. He has been approached by a city in Texas to move his manufacturing facility there, and has been offered tax breaks and incentives to do so. While this would benefit him financially, Jorge is already wealthy and really doesn’t need the extra money. Moving the plant would devastate his community, and create severe hardship for the low-income, disabled and disadvantaged people who work for him. He decides that he cannot, on ethical grounds, accept the offer. This is most consistent with which ethical theory?
a. Nozick’s Theory of Rights
b. Rawls’ Theory of Justice
c. Utilitarianism
d. Virtue ethics
e. None of the above