Business Ethics 10th Ed. Ferrell: Chapter 1-6 Midterm Review (True/False Questions) – Flashcards
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The Sarbanes-Oxley Act made it illegal for U.S. businesses to issue bribes to foreign government officials.
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false
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The ethical component of a corporate culture relates to the values, beliefs, and established and enforced patterns of conduct that employees use to identify and respond to ethical issues.
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true
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Business ethics focuses mostly on personal ethical issues.
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true
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Business ethics deals with right or wrong behavior within a particular organization.
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true
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An ethical culture is based upon the norms and values of the company.
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true
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Business ethics contributes to investor loyalty.
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true
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The trend is away from cultural or ethically based initiatives to legal initiatives in organizations.
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false
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Investments in business ethics do not support the bottom line.
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false
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Social responsibility in business refers to maximizing the visibility of social involvement.
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false
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Stakeholders provide resources that are more or less critical to a firm's long-term success.
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true
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Three primary stakeholders are customers, special interest groups, and the media.
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false
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The most significant influence on ethical behavior in an organization is the opportunity to engage in unethical behavior.
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true
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The stakeholder perspective is useful in managing social responsibility and business ethics.
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true
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Steps 1 through 3 in stakeholder framework are geared toward generating information about social responsibility among a variety of influences in and around an organization. Step 4 brings these three stages together to arrive at an understanding of social responsibility that specifically matches the organization of interest.
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true
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Fortunately, social responsibility and ethics are completely interchangeable terms.
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false
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Business can be considered a game people play, like basketball or boxing.
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false
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Key ethical issues in an organization relate to fraud, discrimination, honesty and fairness, conflicts of interest, and privacy.
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true
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Only 10 percent of employees observe abusive behavior in the workplace.
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false
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Fraud occurs when a false impression exists, which conceals facts.
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false
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Time theft is the most commonly observed type of misconduct.
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true
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Active bribery is an offense committed by the official who receives the bribe.
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false
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In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made.
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true
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Voluntary practices include documented best practices.
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false
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The primary method for resolving business ethics disputes is through the criminal court system.
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false
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The FSGO provides an incentive for organizations to conscientiously develop and implement ethics programs.
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true
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The Sarbanes-Oxley Act encourages CEOs and CFOs to report their financial statements accurately.
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false
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Strategic philanthropy represents a new direction in corporate giving that maximizes the benefit to societal or community needs and relates to business objectives.
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true
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Congress passed the FSGO in 1991 to create an incentive for organizations to develop and implement programs designed to foster ethical and legal compliance. These guidelines, developed by the U.S. Sentencing Commission, apply to all felonies and class A misdemeanors committed by employees in association with their work.
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true
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The focus of core practices is on developing an individual's morals, rather than on structurally sound organizational practices and integrity for financial and nonfinancial performance measures.
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false
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The first step in ethical decision making is to understand the individual factors that influence the process.
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false
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"Opportunity" describes the conditions within an organization that limit or permit ethical or unethical behavior.
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true
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Core values are enduring beliefs about appropriate conduct.
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true
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The most significant influence on ethical behavior in an organization is the opportunity to engage in (un)ethical behavior.
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false
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Obedience to authority relates to the influence of corporate culture.
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false
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Applying a personal moral philosophy is the first step in the ethical decision-making process.
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false
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The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management.
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true
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Teleology defines right or acceptable behavior in terms of its consequences for the individual.
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false
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A relativist looks at an ethical situation and considers the individuals and groups involved.
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true
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A utilitarian is most concerned with bottom-line benefits.
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true
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Act deontology requires a person use equity, fairness, and impartiality in making decisions and evaluating actions.
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true
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Virtues supporting business transactions include trust, fairness, truthfulness, competitiveness, and focus.
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false
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The concept of a moral philosophy is inexact. For that reason, moral philosophies must be assessed on a continuum rather than as static entities.
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true
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A moral philosophy is a general set of values by which different people live.
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false
