ATG 268 Business Ethics Final Exam

Marketing professionals abide by a code of ethics adopted by the

American Marketing Association

The _____ of an organization is staffed by members of the board of directors plus independent or outside directors.

Audit Committee

Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as ________.

Bribes

is the implication of standards of moral behavior to business situations.

Business Ethics

Which of the following is true of business ethics?

Business ethics should not be applied as a separate set of moral standards or ethical concepts from general ethics.

______ is defined as a situation where one relationship or obligation places and individual or firm in direct dispute with an existing relationship or obligation.

Conflict of Interest

_____ is about the way in which boards oversee the running of a company by its managers and how board members are, in turn, accountable to shareholders and the company

Corporate Governance

Which of the following is true of corporate social whistle-blowing?

Corporate whistle-blowing has considerable potential for financial gain in some areas.

A situation in which there is no obvious right or wrong decision, but rather a right or right answer, is termed _______.

Ethical Dilemma

_______ refers to a gray area in which a person's ethical principles are defined by the traditions of his or her society, personal opinions, and the circumstances of the present moment

Ethical Relativism

A general standard of business practice that can be applies equally to all countries over and above their local customs and social norms is called a _________.

Global code of conduct

"Do unto others as you would have them do unto you" explains the

Golden Rule

ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in charge of the hiring process and is responsible for the orientation of newly hired employees. Which of the following areas does this department represent?

Human Resources

Which of the following functions does a code of ethics perform?

It clarifies an organizations cornerstones to its employees, managers, and stakeholders.

Which of the following is a characteristics of the UN Global Compact

It is a voluntary corporate initiative that promotes good corporate citizenship

Which of the following statements is true of the Sarbanes-Oxley Act?

Its prohibits retaliation against whistleblowers and encourages the act of whistle-blowing itself.

Which of the following statements is true of marketing?

Marketers see themselves as providing products (or services) to customers who have already expressed a need for and a desire to purchase those products

Which of the following is true of stakeholders?

Not every stakeholder is relevant in every business situation.

Which of the following statements is true of altruistic corporate social responsibility (CSR)?

Organizing use stakeholders' funds for initiatives to give back to the company's local community

The _________ is a legislative response to the corporate accounting scandals of the early 2000s that cover the financial management of businesses.

Sarbanes-Oxley Act

Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act(FCPA)?

The FCPA finds them acceptable if they expedite a routine governmental action.

Which of the following government agencies jointly enforce the Foreign Corrupt Practices Act?

The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC)

Which of the following statements is true of corporate social responsibility (CSR)?

The awakening to CSR for most companies happened only after being surprised by public responses to issues that had not previously been a part of their business responsibilities

Which of the following statements is true of the code of ethics?

The codes are structed to empower employees to make effective decisions confidently.

Which of the following statements is true of ethical relativism?

The idea of relativism implies some degree of flexibility as opposed to strict black-and-white rules.

Which of the following companies implements Milton's Friedman's view of the corporate world

a company that makes as much profit as possible to ensure that the investments made by the company are successful

A company is of the view that what is best for its shareholders may not be the best for its employees and the community. It also believes that the most efficient means to achieve increased profits is to close its factory and move production overseas, which is not agreed upon by its shareholders. This is an example of __________.

a conflict of interest

Which of the following will most likely influence the moral standards of an individual?

a strict family upbringing

In ______ corporate social responsibility (CSR), organizations take a philanthropic approach by underwriting specific initiatives to give back to the companies local community or to designated national or international programs.

altruistic

Catherine, a board member of Clayton Inc., is also part of an operating committee that is responsible for overseeing the accounting policies of the company. The committee is know as the _______.

audit committee

The practices of making a company's operations ____ to offset damage to the environment through their greenhouse gas emissions was initially developed as a solution for those industries that face significant challenges in reducing their emissions.

carbon neutral

A(n) is defined as a central guide that supports day-to-day decision making at work.

code of ethics

The ______ of a company is an operating committee responsible for determining the salaries, bonuses, and perks for the CEO and other senior executives.

compensation committee

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association survey, which of the following responsibilities ranks lowest in the category of the main responsibilities of an ethics officer?

conducting investigations of wrongdoing

The system that directs and controls business organizations is termed

corporate governance

One of the primary responsibilities of an organization's _____ is to ensure compliance with the companies internal code of ethics.

corporate governance committee

The _____ represents a public demonstration of an organization's commitment to ethical business practices.

corporate governance committee

A true statement about corporates social responsibility (CSR) initiatives is that they _________.

do not always generate immediate financial gains to the organization

Which of the following is a human resources function within an organization?

documentation of periodic performance reviews

The ______ approach to corporate management refers to the perspective that a corporation has an obligation to society over and above the expectation of its shareholders.

social contract

The problem with virtue ethics is that

societies can place different emphasis on different virtues.

Society refers to a(n)

structured community of people bound together by similar traditions and customs

Which of the following did the government formulate to penalize corporate wrongdoing?

the Sarbanes-Oxley Act

By introducing _____, Congress took an integrated approach to the matter of whistle-blowing by both the prohibiting retaliation against whistleblowers and encouraging the act of whistle-blowing itself.

the Sarbanes-Oxley Act of 2002

Ideally, the human resources function within an organization should be directly involved in

the documentation of disciplinary behavior and remedial training, if needed.

A multinational company working in a less-developed nation will face ethical relativism when

the local customs of the less-developed nation come into conflict with the companies policies

The instrumental approach to corporate social responsibility (CSR) states that

the only obligation of a corporation is to maximize profits for its shareholders

In an organization, conflict of interest is most likely to occur when

the organization's product has the potential to be harmful to the organizations customers.

The term "business ethics" is sometimes considered an oxymoron because

the recent spate of financial scandals portrays organizations as fundamentally unethical.

The UN Global Compact focuses on

the welfare of workers around the world

Multinational companies are also known as

transnational corporations

The approach that considers a company's social, financial, and environmental impact rather than focusing solely on its financial impact is the ______ approach.

triple-bottom-line

What is the difference between the old social contact approach and the modern social contract approach to corporate social management?

The modern social contract approach aims to meet the demands of all stakeholders and the stakeholders, whereas the old social contract approach was based only on economic growth.

Which of the following statements describes the terms "morals" and "values"

They are a set of principles by which one aims to live ones life

Which of the following statements is true of whistle-blowers

They are often criticized and considered troublemakers

Which of the following statements is true of ethics officers?

They monitor the ethical performance of the organization both internally and externally.

Edmund has been recently appointed as executive in-charge of the code of conduct for Elmer Enterprises. He administers the code of conduct among the organization's employees and oversees the investigations of wrongdoings in the organization. He also provides additional guidance and support to the employees. Edmund is most likely to be the ________ of the organization.

ethics officer

Under the Foreign Corrupt Practices Act, payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called ________.

facilitation payments

The main function of a code of ethics to

guide managers and employees in making sound decisions and choices everyday

Over the last five decades, code of ethics

have been adopted by an increasing number of organizations who share them with all their stakeholders.

Altra Partners (AP) believes in maintaining sustainable ethics. It has recently established a code of ethics and organized comprehensive training sessions for all its members. Which of the following steps is most likely to be undertaken next by AP?

hiring an ethics officer

The effective management of providing payroll and benefits for happy and productive employees is looked after by the ____ department of an organization.

human resources

As an internal document, a code of ethics should represent a clear guide to _______ for making good decisions and choices.

managers and employees

One of the responsibilities of the audit committee of a company is to

monitor the companies choice of accounting policies and procedures

The board of directors of a company

oversees the governance of the organization

Marketing professionals are responsible for

providing products to customers.

The _______ is responsible for creating product designs.

research and development team

The Greek philosopher Aristotle's belief in individual character and integrity established the concept of

virtue ethics

An employee who discovers corporate misconduct and chooses to bring it to the attention of others is referred to as a(a)

whistle-blower

A(n) ________ is a telephone line where employees can leave messages to alert a company of suspected corporate misconduct without revealing their identity.

whistle-blower hotline