Business Ethics - Exam #2 Study Guide

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) _______. a. indictment b. fraud c. personal crisis d. conflict of interest e. ethical issue

ethical issue

A payment made to obtain or retain business that is not considered a bribe within the United States is defined as _______. a. active bribery b. facilitation c. duplicity d. insider trading e. passive bribery

facilitation

Accountants, lawyers, financial rating agencies, financial reporting services, and risk assessors of financial products—who must trust and be trusted by stakeholders to make business work—are all examples of _______. a. secondary stakeholders b. core practices c. financial gurus d. lawmakers e. gatekeepers

gatekeepers

The Consumer Financial Protection Bureau (CFPB) _______. a. has supervisory power over credit markets as well as the authority to monitor lenders b. has no responsibility to curtail unfair lending and credit card practices c. has no authority to monitor lenders d. has no responsibility to check the safety of financial products before their launch into the market e. has no supervisory power over credit markets

has supervisory power over credit markets as well as the authority to monitor lenders

One of the most important and oft-cited elements of virtue, which refers to being whole, sound, and in an unimpaired condition, is known as _______. a. integrity b. fairness c. honesty d. reciprocity e. value

integrity

Individuals who believe they control the events in their lives by their own effort and skill,view themselves as masters of their destinies, and trust in their capacity to influence their environment have what is known as _______. a. a significant other b. corporate culture c. ethical issue intensity d. internal control e. external control

internal control

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is defined as _______. a. ethical issue intensity b. internal control c. external control d. locus of control e. moral intensity

locus of control

Creating a perception or belief by words that intentionally deceive someone is defined as _______. a. lying by omission b. context and intent c. active bribery d. "white lies" e. lying by commission

lying by commission

Externally imposed levels of appropriate conduct, such as laws, rules, and regulations, are known as _______. a. voluntary boundaries b. individual boundaries c. mandated boundaries d. core practices e. philanthropy boundaries

mandated boundaries

The U.S. Sentencing Commission continued to emphasize that there should be standards and procedures in place to prevent and detect misconduct along with the importance of _______. a. organizational culture b. hiring an external CEO c. eliminating federal prosecutions of organizations d. the honor system e. the firm's board

organizational culture

Our organizational ethical decision-making framework demonstrates _______. a. that decisions cannot be judged as ethical or unethical b. the many factors that influence decisions as ethical or unethical c. that very few factors influence decisions d. that companies with a strong reputation for ethical conduct never fail to maintain an ethical culture e. that ethical failure is inevitable

the many factors that influence decisions as ethical or unethical

Which of the following can be broadly defined as a lack or absence of integrity, incomplete disclosure, and an unwillingness to tell the truth? a. Value b. Reciprocity c. Conflict of interest d. Lying e. Dishonesty

Dishonesty

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on? a. Schemes by top management to hide losses and other performance problems b. Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs c. Penalties for companies convicted of restraint of trade charges d. Improving the quality of life for employees and communities e. Background checks on employees and other agents

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

Which of the following statements describes the Sherman Antitrust Act? a. It prohibits unfair and deceptive acts and practices, regardless of whether competition is impaired. b. It prohibits organizations from holding monopolies in their industries. c. It bans price discrimination between retailers and wholesalers. d. It prohibits the use of price maintenance agreements among manufacturers and in interstate commerce. e. It refines copyright laws to protect digital versions of copyrighted materials, including music and movies.

It prohibits organizations from holding monopolies in their industries.

Ethical issue intensity is best defined by which of the following? a. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization b. The perceived importance of an ethical issue to the government c. The perceived value of an ethical issue to society d. A set of values, beliefs, goals, norms, and ways to solve problems that members of an organization share e. The perceived relevance or importance of an ethical issue to the local community

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

Harassment is defined as discrimination on the basis of which of the following? a. Age b. Gender c. Union affiliation d. Marital status e. National origin

Union affiliation

The ability to perceive whether a situation or decision has an ethical dimension is defined as _______. a. moral issue intensity b. moral awareness c. ethical awareness d. business issue awareness e. ethical issue intensity

ethical awareness

Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely is known as _______. a. dishonesty b. fraud c. implied falsity d. puffery e. lying

puffery

Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as _______. a. significant others b. normative approaches c. immediate job context d. instrumental concerns e. opportunities

significant others

Most ethical issues concerning a business will become visible through _______. a. civil litigation b. stakeholder concerns c. stock market performance d. congressional legislation e. criminal prosecution

stakeholder concerns

Opportunity can best be described as _______. a. a reflection of whether the firm has an ethical conscience b. where individuals work, whom they work with, and the nature of the work c. the conditions in an organization that limit or permit ethical or unethical behavior d. a corporate culture e. organizational factors

the conditions in an organization that limit or permit ethical or unethical behavior

Institutional theory can be defined as _______. a. the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization b. the ability to perceive whether a situation or decision has an ethical dimension c. the theory that organizations operate according to taken-for-granted institutional norms and rules d. a thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be e. the principle that states that each person has basic rights that are compatible to the basic liberties of others

the theory that organizations operate according to taken-for-granted institutional norms and rules

Which of the following are among the top types of observed misconduct? (Select three) a. Abusive behavior b. Working more hours than reported c. Internet abuse d. Puffery e. Conflicts of interest

Abusive behavior, Internet Abuse, Conflict of Interest

Efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against are involved in which of the following? a. Dual relationships b. Employment quotas c. Optimizations d. Facilitation payments e. Affirmative action programs

Affirmative action programs

What ties an organization's products directly to a social concern through a marketing program? a. Cause-related marketing b. Strategic philanthropy c. Social entrepreneurship d. Strategic marketing e. Gatekeepers

Cause-related marketing

Which of the following refers to precedents established by judges? a. Common Law b. Statutory Law c. Administrative Law d. Constitutional Law e. Civil Law

Common Law

When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group, which of the following exists? a. Ethical dilemma b. Corporate intelligence c. Discrimination situation d. Conflict of interest e. Facilitation payment

Conflict of interest

A set of values, norms, and artifacts—including ways of solving problems that members (employees) of an organization share—describes which of the following? a. Individual factors b. Conflicts of interest c. Immediate job context d. Corporate culture e. Opportunity

Corporate culture

Which of the following are the three fundamental elements that motivate people to be fair? a. Equality, reciprocity, and harmony b. Equality, reciprocity, and optimization c. Honesty, integrity, and morality d. Charity, fidelity, and harmony e. Truthfulness, fidelity, and harmony

Equality, reciprocity, and optimization

According to researchers, normative values largely originate from which of the following? (Select three) a. government b. the media c. family d. religion e. entertainment

Government, Family, Religion

Which of the following are factors in the ethical decision-making model? (Select three) a. Individual factors b. Employee benefits packages c. Ethical issue intensity d. Organizational factors e. Internal control

Individual Factors, Ethical Issue Intensity, Organizational Factors

Which of the following statements is true of the Dodd-Frank Wall Street Reform Act? a. It contains 10 provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives. b. It seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis. c. It contains five provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives. d. It created only one financial agency (The Financial Stability Oversight Council). e. It created only one financial agency (The Financial Consumer Protection Agency).

It seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis.

The act/agency that enforces regular surprise inspections to ensure businesses maintain safe working environments is called the _______. a. Title VII of the Civil Rights Act b. Equal Safety Act c. Immigration Reform and Control Office d. Occupational Safety and Health Administration e. ICE Agency

Occupational Safety and Health Administration (OSHA)

Which of the following is the result of conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior? a. Opportunity b. Punishment c. Regulation d. Locus of Control e. Governance

Opportunity

Which of the following statements is true? a. Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate. b. Employees will never engage in questionable behaviors because they are trying to achieve firm objectives related to sales or earnings. c. In a dilemma, none of the alternatives have negative consequences. d. The work environment makes it easy to define and reduce ethical issues. e. Failure to acknowledge or be aware of ethical issues is the best thing for an organization.

Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate.

John Rawls used what he called the veil of ignorance, which led him to develop which of the following? (Select two) a. The difference principle b. The precautionary principle c. The equality principle d. The first principle e. The Peter principle

The Difference Principle and The Equality Principle

Which of the following is an office created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and is charged with creating a better system for analyzing the financial industry? a. The Financial Stability Oversight Council b. The Public Company Accounting Oversight Board c. The Consumer Financial Protection Bureau d. The Office of Financial Research e. The Office of Whistle-Blower Protection

The Office of Financial Research

Businesses may improve their communities, reduce government involvement by providing assistance to stakeholders, develop employee leadership skills, and foster an ethical culture and values that deter organizational misconduct by addressing which one of the following? a. Cause-related marketing b. Voluntary responsibilities c. International responsibilities d. Economic responsibilities e. Goodwill responsibilities

Voluntary responsibilities

The Sarbanes-Oxley (SOX) Act _______. a. did not modify the attorney-client relationship in that it does not require lawyers to report wrongdoing to top managers and/or the board of directors b. does not provide protection for "whistle-blowing" employees c. attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee d. is the same as the Public Company Accounting Oversight Board (PCAOB) e. does not impose additional requirements on executives

attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee

The ability to perceive whether a situation or decision has an ethical dimension is known as ethical _______. a. personality b. intensity c. morality d. awareness e. education

awareness

The practice of offering something in order to gain an illicit advantage is known as _______. a. bribery b. commission lying c. collusion d. a conflict of interest e. intimidating behavior

bribery

The Sarbanes-Oxley (SOX) Act was passed to provide federal oversight of _______. a. corporate environmental practices b. corporate accounting practices c. nonprofit organizations' governance practices d. federal sentencing guidelines' compliance requirements e. price discrimination practices

corporate accounting practices

Fines or imprisonment may be imposed as punishment for breaking the law under _______. a. civil law b. voluntary compliance c. criminal law d. the honor system e. international guidelines

criminal law