Business Chapter 4

Antonsen Inc., an accounting firm in Texas, follows certain guidelines while providing consulting services to a firm. One such guideline is to limit the services it provides to the firms it audits. The CEO of Antonsen Inc. is also required to certify the validity of the company's financial statements. In this scenario, Antonsen Inc. most likely abides by the requirements of the _____. a. Sarbanes-Oxley Act b. Blaine Act c. Landrum-Griffin Act d. Dawes Act

a

The nonprofit, nonpartisan Character Counts organization has worked with various group of educators and community leaders to establish a set of: a. core ethical values that transcend political, religious, class, and ethnic divisions. b. standard character types to classify employees and rate their behavior. c. authorization limits that can be used to grant an employee the right to decision making. d. ethical benchmarks that can be used to rate companies during a social audit.

a

In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a B-Corp, which stands for _____. a. basic corporation b. benefit corporation c. bench corporation d. blanket corporation

b

In the context of the frameworks developed by experts for reaching ethical decisions, which of the following is one of the key principles of most decision guides? a. Are you offering better services than your competitors? b. Are the alternative solutions legal? c. Do you practice corporate philanthropy? d. Do you reward your employees for good performance?

b

The Canadian government issues a legal notice to one of its coal manufacturing companies after the government learns that the heating equipment purchased by the company emits a higher level of gases than the level permitted by the Environmental Protection Agency. In this scenario, the coal manufacturing company is in violation of exceeding the level of its _____ emissions. a. Scope 1 b. Scope 2 c. Scope 3 d. Scope 4

b

The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____. a. illegal but ethical b. illegal and unethical c. legal but unethical d. legal and ethical

b

The employees of a multinational company follow a standardized and formal set of written guidelines that help them make right decisions in various situations. These guidelines have been translated into 20 languages and are followed by employees across all branches of the company. One of the guidelines is to include all supervisors in discussions regarding instances of violation of rules. In this scenario, the multinational company has: a. created a document of compliance for its members. b. created a code of ethics for its members. c. set a vision that encourages opportunism. d. set a greenwashing strategy for its members.

b

Transparency International, a leading anti corruption organization, published its yearly index of "perceived corruption" across 168 countries in 2015. Its findings showed that: a. countries such as India and China had a higher score in the index of perceived corruption than the United States. b. the United States scored lesser than most of the European countries in the index of perceived corruption. c. the corruption level in the world's poorest countries was very low as most businesses were owned by the government. d. there was greater corruption in the business cultures of richer countries than poorer countries.

b

Universal ethical standards can solve the problem of too many people viewing ethics as _____. a. evasive b. relative c. inexplicit d. ambiguous

b

In the context of codes of ethics, the purpose of a written code is to: a. help employees who view ethics as relative to justify their unethical actions. b. guide employers in decision making related to green washing. c. give employees the information they need to make ethical decisions across a range of situations. d. provide employers with strategic plans when they wish to contribute to society in a proactive manner.

c

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of _____. a. illegal and unethical behavior b. legal but unethical behavior c. legal and ethical behavior d. illegal but ethical behavior

c

Jessica Marshall, the CEO of ABD Oil Drilling Inc., decides to set aside an amount of $10,000 from the company's annual profits to donate to local nonprofit organizations although the company already meets the mandated government requirement of contributing 4 percent of the company's revenue for social benefits. This donation by ABD Oil Drilling Inc. is an example of: a. economic opportunism. b. stakeholder remuneration. c. corporate philanthropy. d. planned obsolescence.

c

In the context of social responsibility, _____ include employees and investors who have a personal interest in the performance and actions of an organization. a. focus groups b. philanthropists c. prosumers d. stakeholders

d

Krempe Foods, a fast-food chain in Dallas, gives paramount importance to consumer feedback and has a well-established consumer feedback system. Given this information, it can be said that Krempe Foods supports _____. a. integralism b. protectionism c. neorealism d. consumerism

d

Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____. a. subservience b. foresight c. accountability d. respect

d

A social audit is a systematic evaluation of the positive and negative views of the public about a business firm. a. True b. False

false

An ethical dilemma involves clear misconduct at the workplace. a. True b. False

false

In the context of business behavior, producing products that you know will break before their time is illegal and unethical. a. True b. False

false

In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a D-Corp. a. True b. False

false

In the context of the legal and ethical dimensions of business conduct, practicing collusion with competitors is legal but unethical. a. True b. False

false

The number-one goal of any business is to contribute to society. a. True b. False

false

In the context of creating and maintaining an ethical organization, when employees perceive more management commitment, they tend to be more fully engaged. a. True b. False

true

In the context of the three types of emissions tracked by corporations, Scope 1 emissions refer to direct emissions produced by corporate operations. a. True b. False

true

Sustainable development means weaving environmentalism throughout the business decision-making process. a. True b. False

true

The personal needs, the culture, and the family of an individual influence his or her ethical choices. a. True b. False

true