question

Business ethics

answer

Standards of conduct and moral values governing the actions and decisions in the work environment.

question

Social responsibility

answer

The enhancement of society's welfare through philosophies, policies, procedures, and actions.

question

Business ethics in the spotlight

answer

Companies realize that they have to work harder to earn the trust of the general public. This movement toward corporate social responsibility should benefit all— consumers, the environment, and the companies themselves.

question

Sarbanes-Oxley Act of 2002

answer

Federal regulation designed to deter and punish corporate accounting fraud and corruption and to protect the interests of workers and shareholders through enhanced financial disclosures, criminal penalties, and safeguards.

question

Individuals make a difference

answer

As executives, managers, and employees demonstrate their personal ethical principles, or lack of principles, the expectations of those who work for and with them can change.

question

Development of individual ethics

answer

Individuals develop ethical standards in three stages. In the first, preconventional stage, individuals mainly look out for themselves and follow rules only out of fear. In the second, conventional stage, individuals are aware of and act in response to their obligations to others. In the third, postconventional stage, individuals follow personal principles for resolving dilemmas, considering personal, group, and societal interests.

question

On-the-job ethical dilemmas

answer

Common business ethical dilemmas include honesty and integrity in business dealings, whistle-blowing, the interplay between loyalty to the organization and truthfulness in business relationships, and conflict of interest.

question

Ethical awareness

answer

Ethical awareness can be heightened through the development of a code of conduct, which is a formal statement that defines how an organization expects its employees to resolve ethical questions

question

Ethical education

answer

Employees also need to be educated in order to develop ethical reasoning abilities, including the skill to evaluate options and spot ethical issues in day-to-day decisions.

question

Ethical action

answer

Structures and approaches that allow decisions to be turned into ethical actions. Examples include company ethics hotlines, a set of ethics questions to guide decision making, and ethics compliance officers.

question

Ethical leadership

answer

Demonstration of ethical behavior by executives that can affect the firm's stakeholders: customers, investors, employees, and the public.

question

Social responsibility

answer

Management's acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm's performance.

question

Responsibilities to the general public

answer

These responsibilities include reducing dangers and promoting public health, protecting the environment, and developing the quality of the workforce. Many would also argue that businesses should support charities and social causes through corporate philanthropy.

question

Responsibilities to customers

answer

Consumerism is the idea that businesses should consider and safeguard certain customer rights. Businesses are obligated to protect the consumers' right to be safe, to be informed, to choose, and to be heard.

question

Responsibilities to employees

answer

In addition to pay, employees today expect a safe working environment, consideration of quality of life issues like family leave, and equal opportunity on the job. The workplace should also be free of age discrimination, sexual harassment, and sexism.

question

Responsibilities to investors and the financial community

answer

Businesses must be honest in reporting their profits and financial performance to avoid misleading investors. When firms fail in meeting these responsibilities thousands of investors, employees and customers can suffer. Therefore, government agencies exist to ensure that businesses follow proper accounting practices and to investigate alleged fraud and other financial misdeeds.

question

Employers with 50 or more employees must provide __________________________, an unpaid leave of up to 12 weeks to deal with new births, adoptions, or illness of workers or their relatives.

answer

family leave

question

_________________________ is the tainting or destroying of the natural environment.

answer

pollution

question

__________________________is reprocessing of reusable materials.

answer

recycling

question

A __________________________ is a formal statement that defines how the organization expects and requires employees to resolve ethical questions.

answer

code of conduct

question

__________________________ is the term used to describe a firm's formal examination of its social responsibility programs.

answer

social audit

question

__________________________ is the demand that business give proper consideration to consumer wants and needs when making decisions, and is based on the belief that consumers have certain rights.

answer

consumerism

question

The __________________________ is the federal commission created to aid in the elimination of job discrimination while increasing job opportunities for women and minorities.

answer

Equal Employment Opportunity Commission (EEOC)

question

Employees should be careful to avoid the appearance of any ___________________ ___________________ that is, any situation where a business decision benefiting one person has the potential to harm another person.

answer

conflict of interest

question

Many argue that social responsibility to the general public means businesses should give back to the communities in which they earn profits through __________

answer

corporate philanthropy

question

In addition to making a profit, there are obligations businesses have to the wider society, known as __________________________.

answer

social responsibility

question

________________________ deals with standards of conduct and moral values that arise in any work environment.

answer

business ethics

question

___________________________ has occurred when an employee discloses to the media or government authorities any suspected illegal, immoral, or unethical practices of the organization.

answer

whistle-blowing

question

___________________________ can include unwelcomed sexual advances, requests for sexual favors as a condition of employment or promotion, and/or the creation of what feels like a "hostile" work environment due to unwelcomed flirting, lewd comments, or obscene jokes.

answer

sexual harassment

question

Congress enacted the ___________________________ to further protect investors from unethical accounting practices. Among other things, this law requires a special oversight board to regulate public accounting firms that audit the financial records of corporations.

answer

Sarbanes-Oxley Act

question

__________________________ is demonstrated by people who adhere to deeply felt ethical principles in business situations.

answer

integrity

question

___________________________ is a type of discrimination in which people are treated differently in the workplace due to their gender.

answer

sexism

question

Environmental issues such as renewable sources of clean energy and developing ___________________________ agriculture are major environmental concerns for firms wishing to protect the environment.

answer

sustainable

question

Customers, employees, and investors are example of ___________________________.

answer

stakeholders

question

The responsibility that manufacturers face for injuries or damages caused by their products is called ___________________________.

answer

product liability

question

Companies who work to promote environmentally safe products and production methods are engaged in ___________________________.

answer

green marketing.

question

The biased treatment of a job candidate or employee in the workplace is known as ___________________________.

answer

discrimination

question

Social responsibility refers to management's consideration of the social as well as the economic effects of its decisions.

answer

True

question

Business ethics refers to standards of conduct and moral values applied in business decision making.

answer

True

question

Social responsibility and ethical conduct generally cost more than they create in business value.

answer

False

question

Practicing social responsibility cannot enhance a company's image.

answer

False

question

Employees, customers, government, and the general public all have a stake in the performance of modern organizations.

answer

True

question

Individual ethics in the workplace are influenced by:

answer

a. behaviors of managers. b. the organization's culture. c. ethical training. d. all of the above.

question

A firm's ability to behave ethically depends on:

answer

a. the ethical values of the firm's executives. b. the ethical values of the firm's employees. c. a climate within the organization that promotes ethical conduct. d. all of the above.

question

Unrealistic goals set by managers:

answer

can promote unethical behavior.

question

Managers who behave unethically:

answer

influence employees to do the same.

question

In the _____________________ stage of ethical development, individuals primarily consider their own needs, desires, and personal consequences in making ethical decisions.

answer

preconventional

question

Those who are aware of and respond to their duty to others have achieved the _____________________ stage of ethical development.

answer

conventional

question

An individual who can move beyond self-interest and duty, who considers the needs of the wider society, and who can employ ethical principles in a variety of situations, has attained the _____________________ stage of ethical development.

answer

postconventional

question

Top management plays a crucial role in developing an organizational culture that encourages ethical behavior.

answer

True

question

Most companies today don't bother with a code of conduct.

answer

False

question

A code of conduct gives guidance on how the organization expects employees to resolve ethical questions.

answer

True

question

A firm whose managers set unrealistic goals for employees invites unethical behavior.

answer

True

question

Social audits are regularly conducted by the government.

answer

False

question

Quantitative economic measures such as employment levels, sales, and profits are irrelevant in evaluating a firm's social performance.

answer

False

question

Conducting a social audit can help a firm measure its progress in meeting social responsibility objectives

answer

True

question

Consumers and public-interest groups have played an active role in helping firms recognize and meet their social responsibilities.

answer

False

question

Environmental protection, avoiding pollution, and promoting recycling are the responsibility of government, not the business community.

answer

False

question

American firms have found a significant competitive advantage in developing a culturally diverse and highly skilled workforce.

answer

True

question

In our current high-skill work environment, businesses need to encourage education and skill development among their employees.

answer

True

question

According to President John F. Kennedy's consumer bill of rights, consumers have the rights to safety, to be informed, to choose, and to be heard.

answer

True

question

The EEOC was created to increase job opportunities for all members of society and to help end discriminatory practices in employment.

answer

True

question

Family leave is a benefit companies may choose to offer, but no American firm is legally required to provide family leave.

answer

False

question

Sexism, or discrimination based solely on a person's gender, has been completely eliminated in today's global business environment.

answer

False

question

Businesses have both a legal and an ethical requirement to eliminate sexual harassment in the workplace.

answer

True

question

Corporate philanthropy involves businesses getting as much as possible from the communities in which they earn profits for the sole benefit of their shareholders

answer

False

question

Because investors are risk takers, there are no ethical requirements for managers to protect investor interests.

answer

False

question

Investors who believe management has not dealt honestly with them have legal recourse.

answer

True

question

Unethical business practices can have adverse effects on the financial community as a whole, both nationally and internationally.

answer

True

question

The Securities and Exchange Commission is the federal agency responsible for investigating alleged unethical or illegal financial behavior of publicly traded firms.

answer

True

question

Distribution of information about dangerous products and other public health issues is the sole responsibility of government, and there is no need for business to be involved.

answer

False

question

Social audits measure a firm's performance relating to such issues as employment practices, environmental responsibility, and philanthropy.

answer

True

question

While managers may conduct internal audits on social responsibility, public opinion rarely has any real impact on business practices.

answer

False

question

Consumerism is becoming an antiquated concept because of the rise in imported products.

answer

False

question

Smoking and alcohol use are legal and private matters and do not impact business responsibility to the wider society.

answer

False

question

Green marketing targets consumers who care whether or not businesses demonstrate environmental responsibility.

answer

True

question

Business ethics deal with the right and wrong actions that arise in any business environment.

answer

True

question

A firm must be able to prove that any claim made about the quality or superiority of a good or service has been substantiated.

answer

True

question

Before you accept a job, it is a good idea to review your new employer's code of ethics.

answer

True

question

It makes good sense to have all employees aware of the firm's stance on social and ethical issues.

answer

True

question

Most new jobs in developed countries require college-educated workers.

answer

True

question

All charges of sexual harassment involve unwelcomed sexual advances.

answer

False

question

Today we find no significant differences between the average pay of men and women.

answer

False

question

Programs that increase social responsibility and ethical practices in a firm may be good for public relations, but they generally cost more than they create in economic benefits.

answer

False

question

Social responsibility and business ethics reach beyond national borders and are a factor of growing importance in global business.

answer

True

question

In order to promote ethical behavior in an organization:

answer

a. ethical guidelines should be clearly stated and communicated to employees. b. managers must show a personal commitment to ethical values and a willingness to enforce them. c. the organization may design training programs to help employees develop ethical reasoning skills. d. the organization's structure and business practices should reflect and reinforce ethical values. e. all of the above.

question

The agency charged with ensuring the accuracy of financial statements provided by publicly traded companies is the:

answer

. SEC.

question

In a social audit:

answer

a firm attempts to measure its own performance relating to social responsibility.

question

Business responsibilities to the general public include:

answer

a. dealing with public health issues. c. developing a quality workforce. b. protecting the environment. d. all of the above.

question

The Family and Medical Leave Act of 1993:

answer

requires firms with 50 or more employees to provide up to 12 weeks of unpaid leave for workers who need to attend to family matters.

question

Discrimination based on gender:

answer

is known as sexism.

question

The federal agency charged with ensuring universal access to jobs and ending discrimination in the workplace is the:

answer

EEOC.

question

In the U.S. economy, the social responsibility of a firm is evaluated:

answer

a. by consumers who may patronize or avoid a firm based on its behavior. b. on the basis of the firm's contribution to economic growth and employment opportunities. c. by outside groups who create and monitor standards of corporate performance. d. by the firm itself doing a social audit. e. all of the above are methods for evaluating social responsibility.

question

After graduating from trade school, Ann accepted a position as a mechanic in a shop where she is the only woman. After a few months she complained to her supervisor about lewd jokes and sexually explicit posters in the workplace. Her supervisor should:

answer

realize that these occurrences can be construed as sexual harassment and need to be addressed.

question

In the highest level ethical and moral behavior, the individual is able to move beyond mere self-interest and duty and take the larger needs of society into account as well. This stage of ethical development is the:

answer

postconventional stage

question

Two sales representatives from competing companies regularly have lunch together and discuss corporate decisions about new products that their companies are developing.

answer

It is probably unethical for these sales people to share such information since they each have a responsibility to protect the interests of their own employer.

question

A wheelchair-bound secretary is denied a job because the employer has no restroom that can accommodate a wheelchair.

answer

Under the Americans with Disabilities Act (1991) this employer is obligated to make the appropriate accommodations so that the qualified candidate can work despite her disability.

question

Jill is an executive secretary and John is an assistant administrator for the same company. They both oversee large budgets, handle some contract negotiations, deal with customers, and have otherwise similar responsibilities. The company pay scale for assistant administrators is significantly higher than its pay scale for executive secretaries. Hence, John makes a lot more than Jill does.

answer

This is an example of the continuing inequity in pay between the genders. This company needs to review its salary schedules to eliminate pay differentials for jobs where people have like skills and responsibilities.

question

Patty is the owner of her own small business. She is a smoker, and has always felt free to smoke in her own office. She hires a worker who objects to cigarette smoke in the work environment, since the EPA has identified second-hand smoke as a public health risk.

answer

Patty may have to start smoking outside, even though this is her business. As the employer, if she exposes employees to second-hand smoke she may later be held liable for any smoke-related illness an employee develops.

question

Aside from earning a profit for owners, what responsibilities should business managers have?

answer

Business managers have a whole range of responsibilities. They include: a. Responsibilities to employees. Such issues as equal opportunity, fair pay, a safe work environment, attention to the diversity of the work force, and prevention of sexual harassment and sexism. b. Protection of the environment. Business managers today need to be concerned with minimizing pollution, recycling, promoting sustainable environmental practices, conservation of scarce resources, and proper disposal of toxic waste. c. Responsibilities to consumers. Business managers have an obligation to make certain that products are safe, and that they have been truthful in advertising and labeling. They also need to insure that consumers are informed and heard. d. Responsibilities to the general public. In addition to environmental protection, today's business manager should be aware of public health issues and other needs of society that business may be in a unique position to meet. This includes practicing corporate philanthropy and social responsibility.

question

How can firms and their employees promote ethical business practices?

answer

Firms can help build ethical awareness by articulating a code of conduct. People within the organization must then learn how to apply critical thinking skills to reasoning out ethical issues. The organization's structure and processes must make it possible for workers to translate their ethical conclusions into concrete actions. Finally, ethical business practices depend on top management articulating and communicating the ethical standards expected of those within the organization. Managers must personallydemonstrate ethical leadership and be prepared to take actions to enforce business ethics. Above all, managers must themselves behave ethically. Employees are quick to notice when ethical standards get no more than "lip service" from managers.

Flashcards and Answers – Business 121

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards