Chapters 4 & 5 – Flashcards
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• Why should a business be ethical
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o Most people want to act in ways that are right and wrong o Ethical behavior protects business firms from abuse by unethical employees and competitors o Society's stakeholders expect it from business o ALL THE ABOVE
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• Business executives are finding that a trusting, ethical relationship with a business partner is:
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o Often essential in conducting business
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• Under the Sarbanes Oxley Act, corporations are required to
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o Have executives vouch for the accuracy of a firm's financial reports
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• A bottom line mentality in business is reflected in which statement?
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o "We have to beat the others at all costs"
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• A purchasing agent directing her company's orders to a firm which she received a valuable gift, is an example of:
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o Conflict of Interest
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• Cross cultural contradictions arise due to:
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o Differences between home and host countries ethical standards
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• According to a 2009 opinion poll, Americans hold a dim view of
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Wall street executives
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• Mature adults typically base their ethical reasoning on broad principles and relationships such as
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o Human rights and constitutional guarantees of human dignity o Universal principles of justice o Both A and B, not C
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• All of the following values are present in most ethical decisions except
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Act resonsibly
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• Utilitarian reasoning primarily considers
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o The end results of an action o Distribution of benefits o Both of A and C, not B
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• If a manager approaches ethical issues with a self-centered approach, emphasis will be on:
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economic efficiency
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• If a manager approaches with benevolence in mind, he or she would stress what?
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friendly relations with an employee
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• By law, the financial records of publicly held companies are required to be:
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o Audited by a certified professional accounting firm
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• Building ethical safeguards into a company's everyday routines is called
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Institutionalizing ethics
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• A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:
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o Operating under the compliance-based approach
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• Integrity-based ethics programs:
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o Combines concern for the law with an emphasis on employee responsibility
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• A giant step is taken toward improving ethical performance throughout the company when:
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o Senior level managers signal to employees that they believe ethics is a high priority
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• Which of the following is not a typical use of an ethics reporting mechanism
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o To give employees an opportunity to discuss the appropriate rating on their annual performance reviews without management's influence
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• Typically, ethics training is offered to:
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Managers
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• Which of the following is a typical practice in an ethics audit procedure?
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o Auditor notes any deviations from company's ethics standard during the audit o Auditor brings deviations to the attention of the audit supervisor o Department managers are required to file a report with the auditor on the corrective action they took o All the Above
