question

The first step toward understanding business ethics is to

answer

develop ethical-issue awareness.

question

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

answer

Adam Smith.

question

Through _______________, it is possible to quantify the trade-offs to determine whether to accept or reject environmentally-related activities and programs.

answer

risk management

question

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

answer

McCarran-Ferguson Act of 1944

question

Fostering ethical decision making within an organization requires improving the firm's ethical standards and

answer

terminating the "bad apples" in the organization.

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

_____ allows for private ownership of property and features a large government equipped to offer such services as education and health care to its citizens

answer

Social democracy.

question

These leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

answer

Transactional

question

When we discuss _____ approaches, we are talking about how organizational decision makers should approach an issue.

answer

Normative

question

Retaliation against employees that report misconduct is a problem in _____ cultures.

answer

weak ethical

question

Which is not considered a white collar crime?

answer

Mugging someone

question

Critics of nuclear power are concerned about all of the following, except:

answer

Reduced emissions

question

The four categories of communication include all of the following except

answer

Reporting

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

Affirmative action programs

answer

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

question

The relationship between business ethics and age

answer

is complex, although experience helps older employees make ethical decisions

question

Following the ethical directives of a superior relates to

answer

obedience to authority

question

Ethics is a part of decision making

answer

at all levels of work and management.

question

The process of verifying the results of an audit should involve standard procedures that control the _____ of the information.

answer

reliability and validity

question

When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating are rationalizations business people sometimes offer for straying from their own ethical values when doing business abroad. This practice is called

answer

cultural relativism

question

_____ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree

answer

Groupthink

question

Which of the following statements about multinational corporations (MNCs) is false?

answer

MNCs are inherently unethical and always do harm in the countries in which they operate.

question

A _____-based culture encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts.

answer

Values

question

_____ involves tricking individuals into revealing their passwords or other valuable corporate information.

answer

Social engineering

question

All of the following are true regarding institutions except

answer

There is no clear link between institutional theory and the stakeholder orientation of management.

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

The _______________ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use.

answer

Pollution Prevention Act

question

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

answer

Improve employee compensation and retention

question

_____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.

answer

Rational economics

question

This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company.

answer

Leader-follower congruence

question

No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent

answer

informal expressions of an organization's culture.

question

Although limiting urban sprawl creates disadvantages for ____________, many businesses can benefit from urban renewal movements that reduce sprawl.

answer

car and oil companies

question

Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives?

answer

The relativist perspective

question

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

answer

Civil

question

Strong ethical leaders have a passion for all of the following except to

answer

satisfy shareholders before other stakeholder groups

question

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production?

answer

Socialism

question

Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights?

answer

Rule deontology

question

_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals.

answer

Core practices

question

Which of the following is a major ethical concern among corporate boards of directors?

answer

Compensation

question

Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?

answer

Compliance orientation

question

_____ are used to obtain or retain business and are not generally considered illegal in the U.S.

answer

Facilitation payments

question

_____ justice is based on the evaluation of outcomes or results of the business relationship.

answer

Distributive

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

Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead.

answer

board of directors

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

External and internal rewards relate to which part of the ethical decision-making framework?

answer

Opportunity

question

_____ occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources.

answer

Bimodal wealth distribution

question

A code of ethics that does not address specific high-risk activities within the scope of daily activities is

answer

inadequate

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

_____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.

answer

Corporate culture

question

Which of the following statements about codes of conduct is false?

answer

They guarantee an ethical business climate.

question

A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is

answer

to teach individuals intellectual skills that address the complexities of ethical issues in business.

question

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms

answer

ethical and legal conduct

question

The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative.

answer

pacesetting

question

Which two steps of the RADAR model occur when a firm is faced with an ethical conflict or dilemma.

answer

answer & recover

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

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

answer

stakeholders.

question

A _____ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes.

answer

compliance orientation

question

Which moral philosophy is based on the premise that equal respect must be given to all persons?

answer

Deontology

question

During the data-collection phase of the audit, the primary objective is to generate a variety of opinions about how the company is perceived and whether it is

answer

fulfilling stakeholders' expectations.

question

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

answer

Integrity

question

The concept of ethics auditing emerged from the movement to audit and report on companies' broader _____ initiatives.

answer

social responsibility

question

_____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.

answer

Obedience to authority

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 attribute of ethical leaders will not be effective unless the leader is personally involved in the organization's key ethical decisions?

answer

Transparency

question

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as

answer

dumping.

question

Stakeholders' power over businesses stems from their

answer

ability to withdraw or withhold resources

question

_____ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree.

answer

Groupthink

question

Top managers tend to focus on _____ because their jobs and personal identity are often connected to quarterly returns.

answer

financial performance

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 workplace

question

The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is

answer

whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the company's internal compliance program.

question

Which of the following statements about corporate culture is false?

answer

The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture.

question

People who believe in _____, go with the flow because they feel the events in their lives are uncontrollable.

answer

external locus of control

question

For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?

answer

This is in keeping with my personal morals and the code of conduct, so it is okay.

question

Research concerning nationality and the ability to make ethical decisions

answer

is hard to interpret in a business context because of cultural differences.

question

Because researchers have defined culture so many different ways, _____ and _____ are often used interchangeably.

answer

cultural values; culture

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

_____ are satisfied by social and interpersonal relationships, and _____ are satisfied by creative or productive activities.

answer

Relatedness needs; growth needs

question

Major corporate governance issues normally involve _____ decisions. (Choose the response that is most correct)

answer

strategic-level

question

Optimization is defined as

answer

a trade-off between equity and efficiency.

question

While ideally the board of directors financial audit committee conducts ethics audits, in most firms they are conducted by

answer

managers or ethics officers

question

When a group is more likely to move toward a more extreme position than the group members might have done individually, this is referred to as

answer

Group polarization

question

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

answer

Imposing export taxes to force MNCs to share more of their profits

question

The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control.

answer

coercive

question

Motivation is defined as

answer

a force within the individual that focuses his or her behavior on achieving a goal

question

Which of the following statements is most correct?

answer

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

question

Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as

answer

differential association

question

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

answer

Community

question

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

answer

economic, legal, ethical, philanthropic.

question

stakeholder orientation is not complete unless it includes

answer

activities that actually address stakeholder issues.

question

Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.

answer

Sarbanes-Oxley Act

question

_____ provide(s) important guidelines for employees on how to act in different situations.

answer

Codes of ethics

question

Companies that _____ will most likely be found in violation of procompetitive legislation.

answer

establish monopolies

question

_____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.

answer

Relativists

question

Which is the last of Kohlberg's stages of cognitive moral development?

answer

Universal ethical principles

question

The Kyoto Protocol created in 1997 is an international treaty meant to curb global _____.

answer

greenhouse gas emissions

question

Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint?

answer

Utilitarianism

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

Principles are

answer

specific and pervasive boundaries for behavior that are universal and absolute.

question

Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent.

answer

organizational or social forces

question

_____ culture involves values and norms that prescribe a wide range of behavior for organizational members, while _____ culture reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior.

answer

Corporate, ethical

question

Geothermal energy provides _______________ and is a more dependable energy source than some other forms of alternative energy.

answer

a constant source of heat

question

Power distance dimension refers to the "power inequality" between superiors and subordinates. Which of the following countries probably ranks high on the power distance scale?

answer

Saudi Arabia

question

What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework?

answer

Economic, social, and environmental indicators

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 Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.

answer

Public Company Accounting Oversight Board

question

Which of the following is not a key area of global ethical risk, as outlined by the Eurasia Group?

answer

Unequal levels of child labor laws

question

A company can be sued for discrimination if it

answer

uses age as a hiring or firing criterion.

question

For an ethical compliance program to properly function,

answer

consistent enforcement and disciplinary action are essential.

question

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

answer

Duplicity

question

Which of the following is not a form of retaliation commonly experienced by whistle-blowers?

answer

Praise by supervisors for their honesty

question

Two useful indicators for assessing employee issues are

answer

staff turnover and employee satisfaction.

question

Which industry invests the most in alternative clean energy sources?

answer

The automobile industry

question

Which of the following is not something a firm might do to encourage organizational ethics and compliance?

answer

Ignoring potential ethical issues

question

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.

answer

The Global Sullivan Principles

question

The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization

answer

corporate culture

question

_____ relates to individuals' perceptions of social pressure and the harm they believe their decisions will have on others.

answer

Moral intensity

question

Which of the following statements about training is false?

answer

It can dictate personal ethics on the job.

question

Which of the following is the first step in the ethical decision making process?

answer

Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong

question

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

answer

Geert Hofstede

question

Which option includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment?

answer

Sustainability

question

Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result?

answer

Teleology

question

Board members being linked to more than one company is an example of

answer

interlocking directorate.

question

Which of the following is not a way to avoid groupthink in small-group decision making?

answer

Discourage team members from discussing the group's ideas with people outside the group.

question

Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?

answer

Comply with ISO 14000 guidelines

question

in the United States, ____________ provides only 7% of total output but provides 19% of total electricity production worldwide, making it the largest form of renewable energy.

answer

hydroelectric power

question

Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level

answer

define right as that which conforms to the expectations of good behavior of the larger society.

question

Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?

answer

Intellectual property rights

question

From an ethical standpoint, leaders should take time during this step of the RADAR model to fix any weaknesses in the ethics program and develop improved ways of detecting misconduct.

answer

Recovery

question

Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements:

answer

Culture is shared, relatively stable, and is formed over a long period of time

question

Title VII of the Civil Rights Act of 1964

answer

prohibits discrimination on the basis of race, color, sex, religion, or national origin

question

_____ refers to how members of a society respond to ambiguity. A high score means that a culture tends to minimize risk-taking.

answer

Uncertainty avoidance

question

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

answer

Familial responsibilities

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

An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)

answer

relativist.

question

An advantage of the decentralized organization is that

answer

it is adaptable and can quickly respond to external change.

question

Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?

answer

World Trade Organization

question

_____ leaders communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences.

answer

Transformational

question

_____ argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate.

answer

Virtue ethics

question

Risk compartmentalization occurs when

answer

various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.

question

Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?

answer

Affiliative leadership

question

Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the action, with rules serving as guidelines in the decision-making process?

answer

Act deontology

question

A(n) _____ is a financial accounting firm that offers social auditing services or a nonprofit special interest group with auditing experience that verifies the results of ethics auditing data analysis

answer

ethics audit consultant

question

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

answer

Pro-bono bookkeeping

question

What is the AACSB?

answer

An international organization that promotes a set of principles promoting the teaching of responsible management in business schools

question

According to Kohlberg's model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she

answer

may change his/her values and ethical behavior.

question

A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a(n) _____ because he believes in the rights of all individuals.

answer

deontologist

question

The _____ includes the motivational "carrots and sticks" superiors use to influence employee behavior.

answer

Immediate job context

question

This step of the RADAR model involves responding to the discovery of an ethical dilemma through communication both internally and externally.

answer

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

_____ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

answer

Authentic

question

Both individual ethics and organizational ethics have an impact on an employee's

answer

ethical intention

question

In the absence of ethics programs, employees are likely to make decisions based on

answer

their observations of how their coworkers and superiors behave.

question

Enlightened egoism

answer

centers on one's long-term self-interest but takes others' well-being into account

question

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

answer

lower stock value and prices.

question

_____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.

answer

Bullying

question

Which of the following industries tends to generate a high level of trust from consumers and stakeholders?

answer

Technology

question

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

answer

shoulder surfing

question

What is not a common mistake when designing and implementing an ethics program?

answer

Having top management take ownership of the ethics program

question

According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.

answer

opportunity

question

Among retail stores, _____ is a larger problem than customer shoplifting.

answer

internal employee theft

question

Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word.

answer

auditing

question

Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually?

answer

Rule utilitarianism

question

_____ and reporting are two major dimensions of ethical communication.

answer

Transparency

question

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

answer

Civil

question

Congress passed the ____________ to empower the EPA with the ability to track the 75,000 industrial chemicals currently produced or imported into the United States.

answer

Toxic Substances Control Act

question

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

answer

Because the large size creates economies of scale and they can charge lower prices

question

Which of the following is a possible unintended consequence of an organization's focusing more on ethics planning than on implementation?

answer

Unethical conduct is viewed as acceptable behavior.

question

Employees that see themselves as going with the flow because that's all they can do have a(n)

answer

external locus of control

question

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

answer

Sarbanes-Oxley Act.

question

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to

answer

multinational corporations.

question

All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except

answer

firing

question

A ___________ business attempts to avoid dealing with environmental issues and hopes nothing bad happens or no one ever finds out about an environmental accident or abuse.

answer

low-commitment

question

Which of the following is not an advantage of having a comprehensive code of conduct?

answer

To help employees fight for satisfactory levels of compensation and benefits

question

Trying to pinpoint who is responsible for environmental degradation is not always easy, especially when it involves __________ .

answer

different countries

question

All of these are examples of social responsibility concerns, except:

answer

Product price

question

The _____ states that economic and social equalities should be arranged to provide the most benefit to the least-advantaged members of society.

answer

Difference principle

question

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

answer

Trust

question

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

answer

Increased productivity

question

During which of the following steps of the ethics auditing process does an organization identify the tools or methods for measuring progress in improving employees' ethical decisions and conduct?

answer

Collect and analyze relevant information

question

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

answer

control

question

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?

answer

Performance probation

question

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

answer

health care and consumer protection

question

_____ is considered the father of free market capitalism. He believed that business was and should be guided by the morals of good men.

answer

Adam Smith

question

A stakeholder orientation is not complete unless it includes

answer

activities that actually address stakeholder issues.

question

According to the World Trade Organization, which of the following products and services are most vulnerable to protectionism?

answer

Shoes, cars, and steel

question

What is a major role of the International Monetary Fund (IMF)?

answer

It makes short-term loans to member countries that have deficits and provides foreign currencies for its members

question

In marketing communications, lying causes predicaments for companies because it destroys

answer

trust

question

_____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior.

answer

Codes of conduct

question

The establishment of an ethics committee within an organization

answer

might raise ethical concerns or resolve ethical dilemmas

question

The first Earth Day, increasing stakeholder awareness of environmental concerns and the creation of the Environmental Protection Agency brought ________ to the forefront.

answer

sustainability

question

The benefit of healthcare is being debated as to whether it is a right or privilege. Which of the following countries does not consider health care to be a right?

answer

The United States

question

_____ is the ability to perceive whether a situation or decision has an ethical dimension.

answer

Ethical awareness

question

Which of the following is generally not considered a business ethics issue?

answer

Corporate hierarchy

question

Those who have influence in a work group are referred to as significant others and include

answer

peers, managers, coworkers, and subordinates

question

Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations?

answer

Unqualified opinion

question

Social responsibility is

answer

an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.

question

_____ culture involves values and norms that prescribe a wide range of behavior for organizational members, while _____ culture reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior.

answer

Corporate, ethical

question

The acronym RADAR stands for

answer

Recognize, Avoid, Detect, Answer, & Recover

question

Many businesses responded to sustainability by adopting a triple-bottom line approach; taking into consideration social and environmental performance variables in addition to _______________.

answer

economic performance

question

Which two developing countries are expected to generate some of the largest increases in consumption in the future?

answer

China and India

question

Which of the following are not typically secondary stakeholders?

answer

Customers

question

Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.

answer

Federal Sentencing Guidelines for Organizations

question

Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extra-national body?

answer

International Monetary Fund

question

By incorporating _____ objectives into corporate core values, companies begin to view _____ as significant.

answer

shareholder, stakeholders

question

_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.

answer

Fraud

question

A cultural audit may be used to identify

answer

an organization's culture

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

_____ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.

answer

Criminal

question

An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is

answer

decentralized

question

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

answer

there was knowing cooperation or complicity from within the company

question

Which of the following is not considered a significant other group in the workplace?

answer

Spouses

question

The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.

answer

institutionalization

question

Normative business ethics takes into account the _____ realities outside the legal realm in the form of industry standards.

answer

Political

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 one of the benefits of being ethical and socially responsible in business?

answer

A high degree of employee dissent

question

An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg's stages of development?

answer

Mutual interpersonal expectations, relationships, and conformity (3rd stage

question

Which moral philosophy evaluates the morality of an action on the basis of its consequences for everyone affected (seeks the greatest good for the greatest number)?

answer

Utilitarianism

question

The _____ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics.

answer

leadership style

question

The _____ model is founded in classic economic precepts.

answer

shareholder

question

_____ can cause markedly shorter life spans, along with chronic respiratory problems in humans and animals.

answer

Air pollution

question

A(n) _____ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) _____ orientation strives to develop shared standards.

answer

compliance; values

question

Which of the following is not one of the top challenges facing CEOs today?

answer

Gaining adequate compensation

question

____ is the offering of something of value in order to gain an illicit advantage.

answer

Bribery

question

The term business ethics is best described by the following statement:

answer

It comprises the principles, values, and standards that guide behavior in the world of business.

question

Marcus is the top-performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development department staff.

answer

expert power

question

When developing an ethical culture, there has to be a(n) _____ element because every organization has employees that will try to take advantage if there is an opportunity for misconduct.

answer

compliance

question

During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility?

answer

Review organizational mission, goals, values, and policies

question

Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue?

answer

Educational attainment

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

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

answer

It outlawed bribery of officials in other countries

question

Studies have shown that _____ within the organization have more impact on a worker's decisions on a daily basis than any other factor.

answer

significant others

question

A strong ethics program includes all of the following elements except

answer

a clause promising good stock market performance.

question

Which option includes the assessment and improvement of business strategies, economic ectors, work practices, technologies, and lifestyles while maintaining the natural environment?

answer

Sustainability

question

What is not a necessity for strong ethical leaders to make good decisions?

answer

The ability to coerce subordinates

question

The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes

answer

Consumer Financial Protection Bureau

question

A(n) _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders

answer

ethics audit

question

The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually

answer

tolerate misconduct.

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

Which of the following leadership types has a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation?

answer

Transformational leaders

question

Which of the following is not a technique for collecting evidence during the ethics audit?

answer

Publishing the results of the audit

question

Leaders having an accommodating conflict management style are

answer

Highly cooperative but non-assertive.

question

_____ is an independent assessment of the quality, accuracy, and completeness of a company's social or ethics report.

answer

Verification

question

____ serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case.

answer

Hotlines

question

Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?

answer

Misuse of company resources

question

Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?

answer

Sarbanes-Oxley Act

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

Melinda is a very popular executive. She inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Melinda has helped to create a(n) _____ culture.

answer

integrative

question

Expert power usually stems from

answer

a superior's credibility with his or her subordinates.

question

When a person defines right and wrong on the basis of legal contracts, he or she is using which of Kohlberg's stages of development?

answer

Prior rights, social contract, or utility (5th stage)

question

All of these are true about feedback except

answer

Most companies recognize the need for organizational leaders to get feedback from their employees.

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

Which of the following is not an individual factor that affects business ethics?

answer

Significant others

question

_____ involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards.

answer

Global business

question

Wind power holds great promise for the United States because of the _____________, and experts believe wind energy could meet as much as 20 percent of the nation's energy needs

answer

Rocky Mountains

question

A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)

answer

utilitarian.

question

Which of the following is a common mistake made in implementing an ethics program?

answer

Developing materials that do not address the needs of the average employee

question

All of the following are true with regards to organizational factors except

answer

Ethical choices in organizations are most often made individually.

question

The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent.

answer

10-40-40-10

question

A court found an oil company guilty of placing profits over the safety and well-being of its employees. This situation can be classified as

answer

an ethical issue

question

The world's forests are being destroyed at a rate of nearly 50,000 square miles annually. The reasons for this wide-scale destruction are varied and include all except:

answer

The soil is great for farming

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

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