question

Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"?

answer

the right to be ethical

question

The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.

answer

Sarbanes-Oxley Act

question

Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct?

answer

United States Sentencing Commission

question

he 1960s saw a rise of consumerism. What is consumerism?

answer

Activities undertaken by independent individuals, and groups to protect their rights as consumers

question

The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.

answer

Federal Sentencing Guidelines for Organizations

question

The ____ model is founded in classic economic precepts

answer

shareholder

question

Why do critics argue that high compensation for boards of directors is a bad thing?

answer

It could cause conflicts of interest between the directors and the organization

question

One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that ____

answer

managers should earn no more than twenty times the pay of other employees

question

A firm that makes use of a ____________ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments.

answer

stakeholder interaction model

question

In corporate governance, ____ is the process of auditing and improving organizational decisions and actions.

answer

control

question

Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?

answer

Improve employee compensation and retention

question

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate

answer

conflicts of interest.

question

________ law defines the rights and duties of individuals and organizations (including businesses).

answer

Civil

question

__________ tie(s) an organziation's product(s) directly to a social concern through a marketing program.

answer

Cause-related marketing

question

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

answer

Pure Food and Drug Act of 1906

question

___ is essential in building long-term relationships between businesses and consumers.

answer

Trust

question

Employees feel less pressure to compromise ethically, observe less misconduct, are more satisfied with their organizations and feel more valued when

answer

they see honesty, respect and trust applied in the work place.

question

The Dodd-Frank Wall Street Reform and Consumer Protection Act

answer

was designed to make the financial services industry more responsible

question

The six principles of the Defense industry initiative on Business Ethics and Conduct became the foundation for

answer

the Federal Sentencing Guidelines for Organizations

question

The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was

answer

Adam Smith

question

What are the four levels of social responsibility?

answer

Legal, economic, ethical and philanthropic

question

The first of the three activities that are associated with the stakeholder orientation is the

answer

organization wide generation of data

question

A stakeholder orientation is not complete unless it includes

answer

activities that actually address stakeholder issue

question

A firm that makes use of a ____ recognizes other stakeholders, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments

answer

stakeholder interaction model

question

The ethical decision making process begins

answer

when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.

question

Which of the following is not a consequence of ethical misconduct

answer

increased sales

question

The following are consequences of ethical misconduct

answer

decreased reputation shaken customer loyalty reduced investor confidence legal actions by wronged parties

question

____ are used to obtain or retain business and are not generally considered illegal in the US

answer

Facilitation payments

question

___ is an important element of virtue and means being whole, sound, and in unimpaired condition.

answer

Integrity

question

When Devon looked at what another employee was typing in order to get a password, he committed

answer

shoulder surfing

question

Which of the following acts exempted the insurance industry from antitrust legislation?

answer

McCarran-Ferguson Act of 1944

question

An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except

answer

employee compensation

question

Donation of computer equipment to schools by Toshiba would be associated with ____ responsibilities.

answer

voluntary

question

The ____ was called a "sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression"

answer

Dodd-Frank Wall Street Reform and Consumer Protection Act

question

Part of the reason why credit ratings firms fit not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates

answer

a conflict on interest

question

Investors are concerned about business ethics because they know that misconduct can

answer

lower stock value and prices

question

Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?

answer

They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties

question

One of the major ethical issues President Obama's administration focused on was

answer

health care and consumer protection

question

The Foreign Corrupt Practices Act outlawed

answer

bribery of officials in other countries

question

A stakeholder group that is absolutely necessary for a firm's survival is defined as

answer

primary

question

The corporate governance, ___ is the process of auditing and and improving organizational decisions and actions.

answer

control

question

Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?

answer

Material resources and/or intangible knowledge

question

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

answer

Community

question

The degree to which a firm understand and addresses stakeholder demands can be referred to as

answer

a stakeholder orientation

question

Optimization is defined as

answer

a trade-off between equity and efficiency

question

___ involves tricking individuals intro revealing their passwords or other valuable corporate information.

answer

social engineering

question

Ethical issues in business typically arise because of conflicts between individual's personal moral philosophies and values and the

answer

values and attitudes of the organization in which they work and the society in which they live

question

Issues related to fairness and honesty may arise because business is sometimes regarded as a

answer

game governed by its own rules rather than those of society

question

Which of the following statements in most correct?

answer

Affirmative action programs involve efforts to recruit, hire, train and promote qualified individuals from groups that have traditional been discriminated against on the basis or race, gender, or other characteristics

question

Which of the following is not a reason why the institutionalization of business ethics has progresses in recent decades?

answer

Institutionalization of business ethics is now mandated for all organizations by governments around the world

question

Which of the following is not an aspect of the institutionalization of social responsibility?

answer

familial responsibilities

question

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?

answer

Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act

question

The 1960s saw a rise of consumerism. What is consumerism?

answer

Activities undertaken by independent individuals, and groups to protect their rights as consumers

question

The Foreign Corrupt Practices Act outlawed

answer

Bribery of officials in other countries

question

Ethics is a part of decision making

answer

At all levels of work and management

question

Ethical culture is defined as

answer

Acceptable behavior as defined by the company and industry

question

Business ethics, as a field, has passed through which of the following states?

answer

Theological discussion to recognition of social issues to a field of study

question

The degree to which a firm understands and addresses stakeholder demands can be referred to as:

answer

A stakeholder orientation.

question

Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief?

answer

Milton Friedman.

question

When unethical acts are discovered in a firm, in most instances

answer

There was knowing cooperation or complicity from within the company

question

Those who have a claim in some aspect of a firm's products operations, markets, industry and outcomes are known as

answer

Stakeholders

question

The first step toward understanding business ethics is to

answer

Develop ethical-issue awareness.

question

________is the offering of something of value in order to gain an illicit advantage

answer

Bribery

question

Which of the following is not a consequence of ethical misconduct?

answer

Increased sales

question

When a commercial states that a product is superior to any other on the market, the marketer risks accusations of

answer

Deceptive advertising

question

Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of

answer

noise

question

______ responsibilities relate to a business's contributions to stakeholders.

answer

Voluntary

question

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?

answer

The competitive dimension

question

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except :

answer

Free samples.

question

The _______ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."

answer

Consumer Finanacual Protection Bureau

question

In the Reagan/Bush eras, the major focus of the business world was on

answer

self-regulation rather than regulation by government

question

Most organizations with strong ethical climates usually focus on the core value of placing _____ interests first.

answer

customers'

question

More than a compliance program, business ethics is becoming

answer

a management issue to achieve competitive advantage

question

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

answer

Federal Sentencing Guidelines for Organizations

question

In ascending order, Carroll's four levels of social responsibility are

answer

economic, legal, ethical, philanthropic

question

The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with

answer

Milton Friedman

question

Which of the following is not associated with the stakeholder interaction model?

answer

Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders

question

Which of the following is not a benefit that primary stakeholders tend to provide to organizations?

answer

Pro-bono bookkeeping

question

Accountants must abide by a strict code of ethics that defines their responsibilities to

answer

their clients and the public interest.

question

Affirmative action programs

answer

involve the recruitment, hiring, promotion, and training of qualified individuals

question

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people

answer

who are between 39-69.

question

Which of the following is not an aspect of the institutionalization of social responsibility?

answer

Familial responsibilities

question

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except :

answer

free samples

question

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as

answer

any practice is permitted that does not substantially reduce competition and harm consumers or society.

question

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates

answer

a conflict of interest.

question

The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for

answer

he Federal Sentencing Guidelines for Organizations

question

Which of the following was not a provision of the Sarbanes-Oxley Act?

answer

It outlawed bribery of officials in other countries

question

Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?

answer

Sarbanes-Oxley Act.

question

A stakeholder orientation can be viewed as a(n):

answer

continum

question

Accountability, oversight, and control all fall under the definition and implementation of corporate

answer

governance.

question

In corporate governance, ___ is the process of auditing and improving organizational decisions and actions.

answer

control

question

Which of the following is not a side-effect of being the victim of workplace bullying?

answer

increased productivity

question

When a commercial states that a product is superior to any other on the market, the marketer risks accusations of

answer

puffery.

question

A company can be sued for discrimination if it

answer

uses age as a hiring for firing criterion

question

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

answer

Creates an organization to pay the bills of low-income consumers

question

____ responsibilities relate to a business's contributions to stakeholders.

answer

voluntary

question

_______ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

answer

Strategic philanthropy

question

The __________ of ethics involves embedding values, norms, and artifiacts in organizations, industries, and society.

answer

institutionalization

question

The __________ of ethics involves embedding values, norms, and artifiacts in organizations, industries, and society.

answer

institutionalization

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