Test Bank for Business Ethics 5e
Crane, Matten, Glozer, Spence
(All Chapters)
Type: multiple choice question
Title: Chapter 1 - Question 1
01) Issues relating to business ethics often lead to _______ conflict, where there may simply not be
a(n) _______ correct answer. Therefore, it may not just be a case of deciding between right and
wrong but often at an individual level it involves deciding between different courses of action that
different _______ both believe to be right or wrong.
a. Value, Subjectively, Organizations
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
*b. Value, Objectively, Actors
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
c. Economic, Objectively, Actors
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
d. Economic, Subjectively, Organizations
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
Type: multiple choice question
Title: Chapter 1 - Question 2
02) Which of the following statements regarding morality and ethics are correct?
1. Morality is concerned with norms, values and beliefs embedded in social processes
2. Ethics define what is right and wrong for an individual or community
3. Morality is concerned with the study of ethics and the application of reason to elucidate
specific rules and principles
4. Ethical theories are the codification of rules and principles
*a. 1,4
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
b. 1,3
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
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,c. 1,2,3
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
d. 1,2,3,4
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
Type: multiple response question
Title: Chapter 01 - Question 03
03) Which of the three following factors characterise public sector organisations engagement with
ethical issues?
a. Informal organisational structure, Accountability to general public, Focus on employee and
community issues
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
b. Formal organisational structure, Accountability to shareholders, Focus on employee and community
issues
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
c. Informal organisational structure, Accountability to Shareholders, Focus on conflict of interests
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
*d. Formal organisational structure, Accountability to general public, Focus on conflict of interests
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
Type: fill-in-blank
Title: Chapter 01 - Question 04
04) The following sentence describes the relationship between morality, ethics and ethical theory. Fill
in the missing word. Ethics rationalizes morality to produce ethical _______ that can be applied to any
situation.
Feedback: Ethics rationalizes morality to produce ethical theory that can be applied to any situation.
For a graphical depiction, see Figure 1.2.
Page reference: p.8-9
a. Theory
Type: multiple response question
Title: Chapter 01 - Question 05
05) An information and mobile technology company might call itself ethical because it... Please select
all that apply.
*a. Ensures that its pricing practices are fair
Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
*b. Protects children from harmful materials
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,Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
*c. Provides philanthropic support for related causes (e.g. human rights).
Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
*d. Manages and reduces its carbon emissions
Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
Type: matching question
Title: Chapter 01 - Question 06
06) Match the different types of organization with their different approaches to managing ethics.
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
a. Large corporation = Formal, public-relations and/or systems-based
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
b. Small business = Informal, trust-based
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
c. Civil society organization = Informal, values-based
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
d. Public sector organization = Formal, bureaucratic
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
Type: fill-in-blank
Title: Chapter 01 - Question 07
07) According to Crane et al, globalization as defined in terms of the deterritorialization of economic
activities is particularly relevant for business ethics, and this is evident in three areas – culture, law,
and ______________.
Feedback: According to Crane et al, globalization as defined in terms of the deterritorialization of
economic activities is particularly relevant for business ethics, and this is evident in three areas –
culture, law, and accountability.
Page reference: p.20-22
a. Accountability
Type: multiple choice question
Title: Chapter 01 - Question 08
08) There are clear regional differences in business ethics. Read the following statements carefully
and decide which of the following is correct.
a. In North America, the key actors in business ethics are government, trade unions and corporate
associations. In Europe it is government and corporations, while in Asia it is the corporation.
Feedback: In Europe, the key actors in business ethics are government, trade unions and corporate
associations. In Asia it is government and corporations, while in North America it is the corporation.
Page reference: p.23-25
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, *b. Key issues in business ethics in Asia are corporate governance and accountability. In North
America they are misconduct and immorality in single decision situations. In Europe, key issues in
business ethics are social issues in organizing the framework of business.
Feedback: Key issues in business ethics in Asia are corporate governance and accountability. In
North America they are misconduct and immorality in single decision situations. In Europe, key issues
in business ethics are social issues in organizing the framework of business.
Page reference: p.23-25
c. In North America, the individual is responsible for ethical conduct in business, while in Asia it is
social control by the collective and in Europe the responsibility lies with top management.
Feedback: In North America, the individual is responsible for ethical conduct in business, while in
Europe it is social control by the collective and in Asia the responsibility lies with top management.
Page reference: p.23-25
d. In North America, a formalized multiple stakeholder approach is the dominant perspective on
stakeholder management. Asia focuses on shareholder value, while Europe tends to take an implicit
multiple stakeholder and benign managerialism approach.
Feedback: In Europe, a formalized multiple stakeholder approach is the dominant perspective on
stakeholder management. North America focuses on shareholder value, while Asia tends to take an
implicit multiple stakeholder and benign managerialism approach.
Page reference: p.23-25
Type: multiple response question
Title: Chapter 01 - Question 09
09) Which of the following statements regarding stakeholder management approaches are incorrect?
1. North American corporations tend to be smaller than their European counterparts and focus
more on multiple stakeholders
2. European, African and Asian models of capitalism tend to not be so dominated by shareholder
value maximization compared to the North American approach
3. North American companies and often managed by large executive and supervisory boards
4. The Calvinist-Protestant religious tradition in Europe led to the rise of a distinctly different
capitalist economic system.
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
Page reference: p.23-25
*a. 1,3,4
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
Page reference: p.23-25
b. 2,3,4
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
Page reference: p.23-25
c. 1,2,3
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
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Crane, Matten, Glozer, Spence
(All Chapters)
Type: multiple choice question
Title: Chapter 1 - Question 1
01) Issues relating to business ethics often lead to _______ conflict, where there may simply not be
a(n) _______ correct answer. Therefore, it may not just be a case of deciding between right and
wrong but often at an individual level it involves deciding between different courses of action that
different _______ both believe to be right or wrong.
a. Value, Subjectively, Organizations
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
*b. Value, Objectively, Actors
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
c. Economic, Objectively, Actors
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
d. Economic, Subjectively, Organizations
Feedback: Business ethics are not always clear correct and often stray into very grey areas due to
value conflict where an objectively correct answer simply does not exist, therefore it can often be a
case of trying to understand and reconcile different actors’ points of view.
Page reference: p.6
Type: multiple choice question
Title: Chapter 1 - Question 2
02) Which of the following statements regarding morality and ethics are correct?
1. Morality is concerned with norms, values and beliefs embedded in social processes
2. Ethics define what is right and wrong for an individual or community
3. Morality is concerned with the study of ethics and the application of reason to elucidate
specific rules and principles
4. Ethical theories are the codification of rules and principles
*a. 1,4
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
b. 1,3
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
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,c. 1,2,3
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
d. 1,2,3,4
Feedback: Statements 1 and 4 are correct. Morality is concerned with the norms, values, and beliefs
embedded in social processes which define right and wrong for an individual or a community. Ethics is
concerned with the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable course of actions. Ethical theories are the codification of
these rules and principles.
Type: multiple response question
Title: Chapter 01 - Question 03
03) Which of the three following factors characterise public sector organisations engagement with
ethical issues?
a. Informal organisational structure, Accountability to general public, Focus on employee and
community issues
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
b. Formal organisational structure, Accountability to shareholders, Focus on employee and community
issues
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
c. Informal organisational structure, Accountability to Shareholders, Focus on conflict of interests
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
*d. Formal organisational structure, Accountability to general public, Focus on conflict of interests
Feedback: Public sector organisations are often characterised by formal, bureaucratic organisational
structures, as well as being accountable to the general public and higher-level government
organizations, and conflict of interest and corruption are key ethical priorities.
Page reference: p.16-17
Type: fill-in-blank
Title: Chapter 01 - Question 04
04) The following sentence describes the relationship between morality, ethics and ethical theory. Fill
in the missing word. Ethics rationalizes morality to produce ethical _______ that can be applied to any
situation.
Feedback: Ethics rationalizes morality to produce ethical theory that can be applied to any situation.
For a graphical depiction, see Figure 1.2.
Page reference: p.8-9
a. Theory
Type: multiple response question
Title: Chapter 01 - Question 05
05) An information and mobile technology company might call itself ethical because it... Please select
all that apply.
*a. Ensures that its pricing practices are fair
Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
*b. Protects children from harmful materials
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,Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
*c. Provides philanthropic support for related causes (e.g. human rights).
Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
*d. Manages and reduces its carbon emissions
Feedback: All are possible reasons an information and mobile technology company to call itself
ethical.
Page reference: p.15
Type: matching question
Title: Chapter 01 - Question 06
06) Match the different types of organization with their different approaches to managing ethics.
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
a. Large corporation = Formal, public-relations and/or systems-based
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
b. Small business = Informal, trust-based
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
c. Civil society organization = Informal, values-based
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
d. Public sector organization = Formal, bureaucratic
Feedback: Different kinds of organizations also face different priorities in addressing business ethics,
have different constraints, and are responsible or accountable to different kinds of stakeholder. See
Figure 1.5.
Page reference: p.16
Type: fill-in-blank
Title: Chapter 01 - Question 07
07) According to Crane et al, globalization as defined in terms of the deterritorialization of economic
activities is particularly relevant for business ethics, and this is evident in three areas – culture, law,
and ______________.
Feedback: According to Crane et al, globalization as defined in terms of the deterritorialization of
economic activities is particularly relevant for business ethics, and this is evident in three areas –
culture, law, and accountability.
Page reference: p.20-22
a. Accountability
Type: multiple choice question
Title: Chapter 01 - Question 08
08) There are clear regional differences in business ethics. Read the following statements carefully
and decide which of the following is correct.
a. In North America, the key actors in business ethics are government, trade unions and corporate
associations. In Europe it is government and corporations, while in Asia it is the corporation.
Feedback: In Europe, the key actors in business ethics are government, trade unions and corporate
associations. In Asia it is government and corporations, while in North America it is the corporation.
Page reference: p.23-25
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, *b. Key issues in business ethics in Asia are corporate governance and accountability. In North
America they are misconduct and immorality in single decision situations. In Europe, key issues in
business ethics are social issues in organizing the framework of business.
Feedback: Key issues in business ethics in Asia are corporate governance and accountability. In
North America they are misconduct and immorality in single decision situations. In Europe, key issues
in business ethics are social issues in organizing the framework of business.
Page reference: p.23-25
c. In North America, the individual is responsible for ethical conduct in business, while in Asia it is
social control by the collective and in Europe the responsibility lies with top management.
Feedback: In North America, the individual is responsible for ethical conduct in business, while in
Europe it is social control by the collective and in Asia the responsibility lies with top management.
Page reference: p.23-25
d. In North America, a formalized multiple stakeholder approach is the dominant perspective on
stakeholder management. Asia focuses on shareholder value, while Europe tends to take an implicit
multiple stakeholder and benign managerialism approach.
Feedback: In Europe, a formalized multiple stakeholder approach is the dominant perspective on
stakeholder management. North America focuses on shareholder value, while Asia tends to take an
implicit multiple stakeholder and benign managerialism approach.
Page reference: p.23-25
Type: multiple response question
Title: Chapter 01 - Question 09
09) Which of the following statements regarding stakeholder management approaches are incorrect?
1. North American corporations tend to be smaller than their European counterparts and focus
more on multiple stakeholders
2. European, African and Asian models of capitalism tend to not be so dominated by shareholder
value maximization compared to the North American approach
3. North American companies and often managed by large executive and supervisory boards
4. The Calvinist-Protestant religious tradition in Europe led to the rise of a distinctly different
capitalist economic system.
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
Page reference: p.23-25
*a. 1,3,4
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
Page reference: p.23-25
b. 2,3,4
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
Page reference: p.23-25
c. 1,2,3
Feedback: Statements 1, 3, and 4 are incorrect. European corporations tend to be smaller than their
North American counterparts and focus more on multiple stakeholders, and as such, are often
managed by large executive and supervisory boards. The Calvinist-Protestant religious tradition in
North America led to the rise of a distinctly different capitalist economic system, while European,
African and Asian models of capitalism tend to not be so dominated by shareholder value
maximization compared to the North American approach
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