Chapter 4 Demanding Ethical and Socially Responsible Behavior – Flashcards
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An employee was fired for not carrying out an unethical request by his manager. This is an example of
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a negative consequence of acting ethically
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The _ is a systemic evaluation of an organization's progress toward implementing socially responsible and responsive programs
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social audit
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The statement by Patagonia that "A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of:
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corporate policy
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Elements of an integrity-based ethics code include
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clear guiding values trust and shared accountability
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The standards of right versus in a society are also called:
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ethics
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Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:
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allows them to connect directly with customers reaches broad and diverse groups allows them to reach specific groups more directly
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Making decision that we know are different from what is right erodes our _
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self-esteem
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Rank the following jobs according to their importance in influencing the implementation of ethical standards. List the most influential on top
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Top management Supervisor Full-time co-workers Part-time co-workers
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_ is a businesses concern for the welfare of society
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Corporate social responsibility
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Insiders, such as lower-level employees, who report concerns about a company's accounting or auditing practices are called:
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whistleblowers
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Companies that try to act in a socially responsible way are likely to focus on such activities as
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providing safety equipment and training for their workers using recyclable packaging increasing the diversity of their workforce
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The low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is _
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social media
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If the statement "ethics is caught more than it is taught" is true, then management facilitates this by:
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setting a good example
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Identify which of the following would classify as Internet plagiarism
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Cutting and pasting information from a website without giving proper credit Copying full article content from Internet sites and presenting it as your own Buying research papers online and submitting them as your own
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The use of private company information by an employee for personal financial gain is called_
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insider trading
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True or false: An employee with access to Internet at work, who does personal shopping during work hours is acting unethically
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True
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Corporate social responsibility (CSR) is based on the belief that business should be concerned with the welfare of _ and not one of their owners
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society
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Compliance-based ethics codes focus on:
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penalizing wrong-doers increasing control
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Using information form the internet or other sources without giving credit to the author is:
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plagiarism
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About one out of four adults in the U.S. chooses to take responsibility for the communities they live in through _ work
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volunteer
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Executives at Enron, and Tyco were found guilty of _ behavior that damaged their companies' reputations
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unlawful
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Which of the following are examples of green jobs that cannot be outsourced offshore
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Manufacturing solar panels Installing solar panels to existing buildings Weatherizing existing buildings
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According to some research, three out of five new businesses fail. Accordingly, if a business is to have a chance of survival, it is important to first be _ when dealing with customers
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honest
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Which of the following are examples of outside stakeholders that must be told about a company's ethics program
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Distributors Suppliers Customers
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Societies set the standards for moral behavior, known as _
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ethics
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Which of the following represent examples of how corporations set positive standards of ethical behavior
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Periodically asking every employee to evaluate the company's ethics performance Reevaluating its ethics codes based on the input of its customers
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Enhanced forms of philanthropy directly related to the company's competencies are called:
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corporate social initiatives
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The _ movement has had a positive impact on the U.S labor force by creating jobs in new industries such as the manufacture of social panels
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green
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Even small companies participate in _ through donations and volunteer support of local causes and national charities, such as the Red Cross and the United Way
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philanthropy
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Financial and political leaders can restore trust in the free market system by
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passing laws to make accounting records more transparent making businesspeople more accountable for their actions
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Setting a strong example is important, because organizational ethics are learned by observing _
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strong managers
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Which of the following facts best exemplifies the statement that "ethical problems are not unique to the United State"
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Top leaders from other countries have been charged with bribery
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Workers who have lost their commitment, confidence, and trust in the company and its management may
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manipulate budgets and expenses do the minimum to get by
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The SEC Regulations on Fair Disclosure are designed to prevent _
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insider trading
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Having a(n) _ is a vital in enforcing the ethics code of an organization
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ethics officer
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A person who lacks moral absolutes decides what is right or wrong:
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for their individuals needs at any time depending on the situation
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When faced with an ethical decision what should you ask yourself
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Is the proposed action legal Is it balanced How will it make me feel about myself
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The right to safety, to be informed, to choose, and to be heard are
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four basic rights of consumers
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Developing _ between management and employees through fairness, honesty and moral integrity is he basis for an ethical organizations
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trust
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Facing a decision is either act unethically at the request of a supervisor or be fired for not acting as directed is referred to as an:
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ethical dilemma
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Effective ethics officers:
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relate well to employees at all levels can be trusted to maintain confidentiality
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Enforcement in a timely manner is the _ and most critical step in the development of an ethics code program
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last
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Joseph has taken a sick day, although he is not actually sick. This is an example of a decision that is legal but not _
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ethical
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Many businesses believe that they should have an influential and important role in:
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building communities
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Economic Milton Friedman believed that a business's only social responsibility was to make _ for its owners and that anything else was socialism
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money
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Which of the following are reasons a business should be managed ethically
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To avoid lawsuits To maintain a good reputation To attract customers
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True or false: A company that treats employees with respect will usually have employees who respect the company in return
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True
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Which of these categories should social audits measure
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Community relations Product safety Environment
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Which of the following examples would be a situation in which you would want to question the legality of the decision before acting upon it
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The decision to terminate an employee
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Which of the following represents ethical behavior beyond what is legally required
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Offering clients the best product for their needs regardless of profitability Investing in local communities in which a company does business
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Is ethical behavior more than obeying the law
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yes
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Written ethics codes can be categorized as
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integrity-based compliance- based
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The strong relationship between academic dishonesty and dishonesty at work is likely to
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make employers reluctant to hire those who have cheated
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Ethic codes that emphasize control and punishment of wrong-doers are _-_ ethics codes
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compliance based
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True or false: Corporate Social Responsibility (CSR) and corporate profits can at time go hand in hand
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True
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Making ethical decisions that are fair and balanced over the long term is important to maintaining healthy _
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relationships
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Increasing public concern for the environment created by the _ movement has more businesses looking for environmentally friendly ways to do business
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green
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True or false: Individuals have social responsibilities regarding their ethical behavior in the business world
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True
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Which of the following behaviors are illegal in the United States, but potentially put our companies at a disadvantage in overseas markets
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Influence peddling Hiring young children for factory work Bribery
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What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008
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Greed
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Studies show that companies with good ethical reputations also enjoy which of the following outcomes as a result
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Draw more customers Attract and retain better employees
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New accounting laws that produce more transparency will hopefully restore _ in the accounting profession
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trust
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Socially _ companies are views more favorably by consumers
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conscious
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_ are the activists who apply pressure by publicly naming companies that pollute the air and water
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environmentalists
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A company that has socially responsible human resources management is
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likely to perform better financially
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Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and _ charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets
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bribery
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_ make business people more accountable for their actions than knowing what is ethical
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Law
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By making socially conscious decisions about whether or not to buy a company's products, customers are:
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acting as watchdogs affecting a company's sales
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The most forceful way to communicate the importance of an ethics code is to:
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enforce it
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Companies, such as Sears and Dow chemical, have tried to influence their international suppliers by:
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refusing products made by prison labor requiring they conform to U.S. standards for pollution and safety
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Socially conscious investors insist that a company extend its own high standards to its _
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suppliers
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Which of the following is an example of a corporate social initiative
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Legman's Supermarkets donating regularly to Foodlink
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Corporate social initiatives are an enhanced form of corporate philanthropy dealing directly with a company's core_
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competencies
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Whistleblowers can be helped by protecting them from:
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retaliation
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Which of the following are dimensions of social performance
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Corporate responsibility Corporate policy Corporate philanthropy
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Which of the following illustrates the difficulties in enforcing U.S. ethical standards on foreign countries
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Banning child labor when the child's salary is needed to support the family Sometimes what would be considered as bribes in the United States are considered gives in other countries
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_ guide people's decisions about how to treat one another in an honest and responsible way, whereas _ are narrower and protect us from fraud, theft, and violence
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ethics laws
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Trust and cooperation between workers and managers must be based on which of the following
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fairness moral integrity honesty
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Many U.S. businesses demand socially responsible behavior from their international_ to assure they do not violate U.S. human rights and environmental standards
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suppliers
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From the list below identify the groups considered to be a type of watchdog group
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Customers Union officials Environmentalist
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A product's carbon_ is one possible, although sometimes controversial, measure of the product's impact on the environment
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footprint
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The management of Enron committed which of the following illegal acts
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Created off the books partnerships to hide debts
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Which of the following exemplify possible outcomes of insider trading
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the SEC brings charges against those involved Insider trading charges are brought Investors purchase stock only to see the price plummet as the real information is made public
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_ protect people form fraud, theft, and violence, while _ are used to decide how we treat others responsibly according to society's views of right and wrong
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laws ethics
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Which of the following are true regarding ethical behavior
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It does not subtract from the bottom line; it adds to it
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Which of the following are examples of how U.S companies try to influence overseas suppliers to act according to our ethics
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Starbucks buying only fair-trade coffee from overseas suppliers Refusing to buy goods produced by prison labor Companies choosing not to do business with unethical overseas suppliers
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The Dodd-Frank Wall Street Reform and Consumer Protection Act:
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provides a "bounty" for successful whistleblowers
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Socially conscious research organizations exist to analyze and _ on corporate social responsibility
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report
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Some believe that there are six steps a company must follow to improve its business ethics. Some of these steps are:
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managers and others must be trained to consider the ethical implications of all business decisions Having an ethics office to allow anonymous reports of unethical conduct Top management must adopt and unconditionally support an explicit corporate code of conduct
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True or false: Many investors believe that by choosing to put their money into companies whose goods and services benefit society, the can improve society's financial health as well as their own
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True
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In the 1970s, the Foreign Corrupt Practices Act sent a chill throughout the U.S. business community by criminalizing the act of _ foreign business or government leaders to get business
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paying
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True or false: Perceptions of ethics can differ in different societies
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True
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Identify examples of how companies contribute to social justice
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Contributing toward caring for the elderly Cleaning up the environment Building community toilets
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Many investors believe that it make both _ and moral sense to invest in companies that plan ahead to create a better environment
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financial
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Enron's management committed which of the following ethical violation
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Company executives created off- the- books partnerships to hide losses
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In the case involving a secretary at IBM who spread inside information to her friends and family, the U.S. Securities and Exchange Commission (SEC) required the defendants to pay a penalty of twice their profit gain. This is an example of:
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how the government tries to deter people from engaging in insider trading
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The watch dog group that is most concerned with workers' right and hunts down companies who them is:
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union leaders
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Patagonia's statement that they donate at least 1 percent of sales to reverse the steep decline in the overall health of our planet is an example of
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corporate policy
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True or false: Trust and cooperation must exist between workers and management, but it is not a prerequisite for positive relationships between businesses or nations
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False
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The objective "create an environment that supports ethically sound behavior" describes which type of ethical code
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Integrity based
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One effect of Enron management's unethical behavior was that its employees
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lost jobs and pensions
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Foundations, universities, and other nonprofit organizations own shares in publicly held companies, whose value is dependent directly upon the _ of those companies
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performance
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True or false: All manufactures make sure they are not misusing the "green label"
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False
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Which of the following would be an example of a difference in ethics between U.S. businesses and foreign business
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Allowing businesses to employ children
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True or false: It is unfair to a company competing in a global market if all companies in that market are not held to the same ethical standard
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True
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Chiba Specialty Chemicals' process that decreases production costs while reducing damage to the environment allows it to charge a higher price on its patented dye product. This is an example of:
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increasing profits by reducing environmental damage
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Which of the following behaviors create ethical choices, but are not illegal
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Using the internet for personal use at work
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Which of the following would be immediate steps you could take as a business owner to be socially responsible
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Invest in the local community in which you do business
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The United States is charged with setting the standard for ethics and social responsibility for which one of the following reasons
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Its size and influence as a "super power"
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Ture or false: Bribery is a business practice unanimously held as an ethical violation across the globe
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False
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The _ protects whistleblowers by requiring all public corporations to allow employee concerns about accounting and auditing to be submitted confidentially and anonymously
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Sarbanes- Oxley Act
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What level of management sets the tone for the ethics of the organization
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Top- level leaders
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When CEOs of publicly traded companies resign amidst allegations of wrongdoing, the company's shareholders are affected in which of the following way(s)
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The company's stock price plummets as a result of wrongdoings
