Please Clearly Identify The Choice Made

According to integrated social contracts theory,

Multiple Choice

the views and principles of the school of ethical universalism are definitely wrong; the correct view is that ethics is a matter of personal responsibility, not a matter of management concern.

the ethical standards a company should try to uphold are governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations, and (2) the circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not; however, universal ethical norms take precedence over local ethical norms.

the standards of what is ethically permissible and what is not should be based on a code of ethical and moral conduct that each society/country/culture adopts and then enacts into law.

the standards of what is ethically permissible should be determined by the terms of an ethics contract that each company employee signs as a condition of employment.

the only valid ethical standards are those that are universaland then only if the standards are not absolute and provide some wiggle room according to the circumstances of each situation.

Integrated social contracts theory maintains that

Multiple Choice

all ethical standards are determined by societal norms and individuals have an implied social contract to live up to these standards.

first-order universal ethical norms always take precedence over second-order local ethical norms.

there should be no absolute limits put on what is ethically or morally right.

few nations or cultures have common moral agreement on what is ethically right and wrong.

each country/culture/society has commonly held views about what constitutes ethically appropriate actions/behaviors that all individuals in that country/culture/society are obligated to observe.

Which of the following is an intangible or invisible cost that companies incur when ethical wrongdoing is disclosed?

Multiple Choice

legal and investigative costs incurred by the company

costs of taking corrective actions

sharp and sudden drops in the companys stock price

civil penalties arising from class-action lawsuits and other litigation aimed at punishing the company for its offense and the harm done to others

costs of complying with often harsher government regulations