Business Ethics 10th Ed. Ferrell

economic, legal, ethical, and philanthropic

The four levels of social responsibility are

stakeholder framework

Utilizing a(n) _____ allows an organization to identify, monitor, and respond to the needs, values, and expectations of different stakeholder groups.

stakeholders

_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes.

criminal law

_____ impose(s) fines or imprisonment as punishment for breaking the law.

values

_____________ is the enduring beliefs and ideals that are socially enforced.

marketing fraud

_____________ is the process of dishonestly creating, distributing, promoting, and pricing products.

principles

_____________ is the specific and pervasive boundaries for behavior that should not be violated.

physical hacking

_____________ requires the agent to enter a facility personally and use an unsecured workstation with an employee's login name and password in order to gain access to the company's system.

password guessing

______________ is a social engineering technique where a person uses personal things about someone in order to guess a password.

dumpster diving

______________ is messy but successful for acquiring trade secrets.

fairness

______________ is the quality of being just, equitable, and impartial.

ethical 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.

shoulder surfing

_________________ is when someone simply looks over an employee's shoulder while he or she types in a password.

core practices

__________________ are documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations.

primary stakeholders

__________________ are those whose continued association is absolutely necessary for a firm's survival.

conflict of interest

A(n) _____ exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group.

sentiment

According to Adam Smith's version of capitalism, the values each individual must have to produce for the common good are propriety, prudence, reason, __________ and promoting the happiness of mankind.

make a profit

Before anything else, businesses must _____ to survive.

secondary stakeholders

Groups that influence and/or are affected by a company and that neither engage in economic exchanges with the firm nor are fundamental to its daily survival are collectively called

philanthropy

Most firms engage in ________________ - giving back to communities and causes.

descriptive approach

Stakeholder theory that focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships.

hostile work environment

A _____________ is when the conduct is unwelcome; the conduct was severe, pervasive, and regarded by the claimant as so hostile or offensive as to alter his or her conditions of employment; and the conduct was such that a reasonable person would find it hostile or offensive.

a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share.

A corporate culture can be defined as

Equal Employment Opportunity Commission

A federal agency that administers and enforces civil rights laws against workplace discrimination.

the media

According to researchers, normative values largely originate from all of the following EXCEPT:

norms

According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system.

government agency

All of the following generate discussion about the ethical nature of a decision EXCEPT:

customers

An organization that has a strong ethical environment usually has a core value of placing _____ interests first.

reputation

An organization's greatest intangible asset with tangible value is it's _______________.

The 1990s

Business ethics was institutionalized through the Federal Sentencing Guidelines for Organizations during which of the following periods?

formal systems of accountability, oversight, and control

Corporate governance is defined as

union affiliation

Discrimination on the basis of all but which of the following is defined as harassment?

awareness

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

Sarbanes-Oxley Act

In order to address the loss of confidence in financial reporting and corporate ethics, Congress passed the _____________________ in 2002.

An ethical culture and good business performance

Many studies have found a positive relationship between which of the following?

efficiency

Optimization is the tradeoff between equity and:

abusive or intimidating behavior

Physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness are all associated with ______________________.

freedom

The Consumers' Bill of Rights decreed by President John F. Kennedy specified all of the following EXCEPT the right to

corporate accounting practices

The Sarbanes-Oxley Act was passed to provide oversight of

Global Compact

The _____ is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption. This document seeks to create openness and alignment among business, government, society, labor, and the United Nations.

Defense Industry Initiative on Business Ethics and Conduct

The ________________ was developed to guide corporate support for ethical conduct and is comprised of six principles.

Federal Sentencing Guidelines for Organizations

The _________________ was approved by Congress in 1991 and sets the tone for organizational ethical compliance by providing incentives to reward voluntary action to prevent misconduct and mitigate penalties.

Dodd-Frank Wall Street Reform and Consumer Protection Act

The ______________________ addresses some of the issues related to the financial crisis and recession and was designed to make the financial services industry more ethical and responsible.

corporate intelligence

The collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends is called ________________.

interlocking directorate

The concept of board members being linked to more than one company is called ____________.

equality

The distribution of benefits and resources in business is called ____________.

corporate citizenship

The extent to which businesses strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by various stakeholders is called __________________.

stakeholder interaction model

The two-way relationship between a firm and its stakeholders is conceptualized by the:

Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs.

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on?

guilt or uneasiness

What is the first sign that you may have made an unethical decision?

phone eavesdropping

When someone with a digital recording device can monitor and record a fax line, it is called __________________.

whacking

Wireless hacking is known as _________________.

opportunity

_____ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior.

puffery

_____ is exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely.

integrity

_______ is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition.

honesty

____________ refers to truthfulness or trustworthiness.

remote hacking

_____________ involves attempting to remotely penetrate a system across the Internet.

reciprocity

_____________ is an interchange of giving and receiving in social relationships.

social engineering

_______________ is the tricking of individuals into revealing their passwords or other valuable corporate information.

implied falsity

________________ means the message has a tendency to mislead, confuse, or deceive the public.

ethical issue

A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n):

ethical dilemma

A problem, situation, or opportunity that requires an individual, group, or organization to choose among several action that have negative outcomes is called a(n) ____________________.

social responsibility

An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its

seniors

The most vulnerable segment of demography when it comes to financial scams are:

passive bribery

The official who receives the bribe commits this offense:

active bribery

The person who promises or gives the bribe commits this offense:

bribery

The practice of offering something in order to gain an illicit advantage is

ethical issue intensity

The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as:

affirmative action programs

Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions?

fair healthcare packages for employees

Which of the following is NOT a common ethical issue in organizations?

bribes

Which of the following is NOT a component of immediate job context that may relate to opportunity for misconduct in the workplace?

employee benefits packages

Which of the following is NOT a factor in the ethical decision-making model?

the media

Which of the following is NOT a primary stakeholder group?

Business relationships require the highest level of transparency and open communication.

Which of the following is NOT a problematic line of reasoning people use in business that can lead to problems with honesty?

employees

Which of the following is NOT a secondary stakeholder group?

working more hours than reported

Which of the following is NOT one of the top types of observed misconduct?

The Office of Financial Research

Which of the following is an office, created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is charged with creating a better system for analyzing the financial industry?

The conditions in an organization that limit or permit ethical or unethical behavior.

Which of the following statements best describes an opportunity?

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

Which of the following statements is correct?

it mandates that employees provide safe and healthy working conditions

Which of the following statements is true of the Occupational Safety and Health Act?

insider trading can be legal or illegal

Which of the following statements is true?

Warren Buffet

Which of these argued that it is impossible to eradicate all wrongdoing in a large corporation, and that the best one can hope is that the wrongdoing is minor and caught in time?

identifying stakeholder groups

Which of these represent the second step in stakeholder framework to manage responsibility and business ethics?

The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization.

Which statement best describes ethical issue intensity?

lying

_________ is defined as untruthful statements that result in damage or harm.

discrimination

_________ on the basis of race, color, religion, sex, marital status, sexual orientation, public assistance status, disability, age, national origin, or veteran status is illegal in the United States.

system hacking

___________ assumes the attacker already has access to a low-level, privileged-user account.

morals

___________ is a person's personal philosophies about what is right or wrong.

hacking

___________ is considered one of the top three methods for obtaining trade secrets.

strategic philanthropy

___________ 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.

oversight

___________ provides a system of checks and balances that limit employees' and mangers' opportunities to deviate from policies and strategies aimed at preventing unethical and illegal activities.

dual relationship

____________ is defined as a personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities.

consumer fraud

____________ occurs when consumers attempt to deceive businesses for their own gain.

voluntary practices

_____________ includes the beliefs, values, and voluntary contractual obligations of a business.

fraud

_____________ is any purposeful communication that deceives, manipulates, or conceals facts in order to harm others.

unethical dual relationship

______________ are those where the relationship could potentially cause a direct or indirect conflict of interest or a risk of impairment to professional judgment.

civil law

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

Age Discrimination in Employment Act

______________ specifically outlaws hiring practices that discriminate against people 40 years of age or older, as well as those that requires employees to retire before the age of 70.

insider trading

_______________ is the buying or selling of stocks by insiders who possess information that is not yet public.

intellectual property rights

________________ involves the legal protection of intellectual property such as music, books, and movies.

accounting fraud

_________________ usually involves a corporation's financial reports, in which companies provide important information on which investors and others base decisions involving millions of dollars.

sexual harassment

___________________ is defined as any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another.

facilitation payment

_____________________ are made to obtain or retain business or other improper advantages.

executive compensation

_____________________ is the biggest issue corporate boards of director's face, sometimes spending more time deciding on this than ensuring the integrity of the company's financial reporting systems.

stakeholder model of corporate governance

_____________________ states that it has a responsibility for economic success and viability to satisfy its stockholders but it must also answer to other stakeholders.

shareholder model of corporate governance

________________________ includes the goal of maximizing wealth for investors and owners.