Business Ethics

Which of the following is true about a compliance orientation?

A compliance orientation can aid in organizational ethical decision-making.

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

Air pollution

_____ assumes that economic decisions are influenced by human behavior.

Behavioral economics

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

Codes of ethics

Leaders with a(n) _____ conflict management style desire to meet the needs of stakeholders and strongly adhere to organizational values and principles.

Collaborating

_____ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization's success.

Customers

Which type of leader relies on participation and teamwork to reach collaborative decisions?

Democratic

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

Developing materials that are not understandable by the average employee

Which of the following is an advantage of a values-based ethics program over a compliance-based one?

Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.

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

Global business

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.

Great Plains

All of these are ways of reducing pollution, except:

Greenwashing

____ 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.

Hotlines

Which of the following statements about training is false?

It can dictate personal ethics on the job so employees no longer have differences in beliefs.

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

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

_____ assume(s) that the market, through its own inherent mechanisms, will keep commerce in equilibrium.

Laissez-faire economics

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

Leader-follower congruence

_____ products encourage consumers to return and buy more. This approach is also known as planned obsolescence.

Made-to-break

All of the following are goals of the Environmental Protection Agency, except:

Making sure that all Fortune 500 firms have a chief sustainability officer

What is one of the responsibilities of an ethics officer?

Monitoring and auditing ethical conduct

Which of the following compares standards with actual behavior

Output controls

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

Pollution Prevention Act

_________ include management's commitment to the ethics program and the methods or system for ethics evaluation.

Process controls

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

Rational economics

The acronym RADAR stands for

Recognize, Avoid, Discover, Answer, & Recover

What should be the final step in the ethics auditing process?

Report the findings

Which of the following is not a step in the ethics auditing process?

Report the results to the U.S. Sentencing Commission.

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?

Saudi Arabia

What should be the first step in the auditing process?

Secure the commitment of top executives and directors

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?

Socialism

What is a living wage?

The minimum wage that a worker requires to meet basic needs.

Which of the following has a significant impact on the success of an ethics program?

The quality of communication

Which of the following statements about ethics audits is false?

The terms ethics audits and social audits can be used interchangeably.

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?

Transformational leaders

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

Values

In the long run, a(n) ______ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work.

Values

A strong ethics program includes all of the following elements except

a clause promising good stock market performance.

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

a constant source of heat

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

car and oil companies

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

coercive

A coaching leader builds a positive climate by

developing skills for success, delegating responsibility, and issuing challenging assignments.

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

economic performance

Ethical leadership should be based on

holistic thinking that embraces the complex issues facing firms every day.

The word _____ implies a balanced organization that makes ethical financial decisions and also is ethical in more subjective matters of corporate culture.

integrity

To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except

lengthy legal documents.

Sustainability is the long-term well-being of the natural environment and the mutually beneficial interactions among _____.

nature, individuals, organizations, and business strategies

The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a ___________.

permit

Because a corporation can be considered a moral agent, it is therefore

responsible to society for its actions.

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

social responsibility

Risk compartmentalization occurs when

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