Chapter 2 business study guide

true or false As a way to practice corporate philanthropy, organizations often require their employees to volunteer during off hours.

False

true or false Because investors are risk takers, there are no ethical requirements for managers to protect investor interests.

False

true or false Corporate philanthropy encompasses all efforts corporations take in order to give back to the communities in which they conduct business.

False

true or false Deciding what is right or wrong in business is generally a clear-cut choice.

False

true or false Discarded electronics are a major contributor to today's landfill waste.

False

true or false Education is becoming a smaller indicator of pay rates.

False

true or false Employees, customers, government, and the general public all have a stake in the performance of modern organizations.

False

true or false Programs that increase social responsibility and ethical practices in a firm may be good for public relations, but they generally cost more than they create in economic benefits.

False

true or false Quantitative economic measures such as employment levels, sales, and profits are irrelevant in evaluating a firm's social performance.

False

true or false Sexism, or discrimination based solely on a person's gender, has been completely eliminated in today's global business environment.

False

true or false The Office of Internet Enforcement protects the rights of businesses to promote their products online in any manner they choose.

False

true or false Top management plays a crucial role in developing an organizational culture that encourages ethical behavior.

False

true or false Under the Sarbanes-Oxley Act, all corporations are required to have a printed code of ethics.

False

true or false While managers may conduct internal audits on social responsibility, public opinion rarely has any real impact on business practices.

False

Employers with 50 or more employees must provide __________________________, an unpaid leave of up to 12 weeks to deal with new births, adoptions, or illness of workers or their relatives.

Family Leave

Ethical action

Helping employees recognize and reason through ethical problems and turning them into ethical actions

___________________________ is demonstrated by people who adhere to deeply felt ethical principles in business situations.

Integrity

Those who are aware of and respond to their duty to others have achieved the _____________________ stage of ethical development.

Postconventional

In the _____________________ stage of ethical development, individuals primarily consider their own needs, desires, and personal consequences in making ethical decisions.

Preconventional

The agency charged with ensuring the accuracy of financial statements provided by publicly traded companies is the?

SEC

Congress enacted the ___________________________ to further protect investors from unethical accounting practices. Among other things, this law requires a special oversight board to regulate public accounting firms that audit the financial records of corporations.

Sarbanes-Oxley Act of 2002

___________________________ is a type of discrimination in which people are treated differently in the workplace due to their gender.

Sexism

___________________________ can include unwelcomed sexual advances, requests for sexual favors as a condition of employment or promotion, and/or the creation of what feels like a "hostile" work environment due to unwelcomed flirting, lewd comments, or obscene jokes.

Sexual Harassment

In addition to making a profit, there are obligations businesses have to the wider society, known as __________________________.

Social Responibilty

Customers, employees, and investors are example of ___________________________.

Stakeholders

true or false A company's code of conduct is informal, but employees are still expected to adhere to them.

True

true or false A firm must be able to prove that any claim made about the quality or superiority of a good or service has been substantiated.

True

true or false A firm whose managers set unrealistic goals for employees invites unethical behavior.

True

true or false A new shift in the workforce shows that there will soon be more younger people working than those from the baby boomer generation.

True

true or false American firms have found a significant competitive advantage in developing a culturally diverse and highly skilled workforce.

True

true or false Business ethics deal with the right and wrong actions that arise in any business environment.

True

true or false Businesses are responsible for providing information to their consumers regarding any potentially dangerous products.

True

true or false Businesses have both a legal and an ethical requirement to eliminate sexual harassment in the workplace.

True

true or false Cigarettes and alcoholic beverages are examples of potentially harmful products about which corporations should inform their consumers.

True

true or false Codes of conduct and ethical standards are playing an increasingly important role in the operation of today's firms.

True

true or false Employers are legally responsible for protecting their employees from the sexual harassment of clients and customers.

True

true or false Employers with 50 or more employees must provide unpaid leave annually for any employee who wants time off for the birth or adoption of a child; to become a foster parent; or to care for a seriously ill relative, spouse, or self if he or she has a serious health condition or injury.

True

true or false In our current high-skill work environment, businesses need to encourage education and skill development among their employees.

True

true or false Investors who believe management has not dealt honestly with them have legal recourse.

True

true or false It makes good sense to have all employees aware of the firm's stance on social and ethical issues.

True

true or false Most companies today don't bother with a code of conduct.

True

true or false Numerous state and federal laws related to consumerism have been established since President John F. Kennedy addressed the concept in 1962.

True

true or false Social responsibility and ethical conduct generally cost more than they create in business value.

True

true or false Social responsibility refers to management's consideration of the social as well as the economic effects of its decisions.

True

true or false Subway representative Jared Fogle exemplifies how public health issues are part of corporation's growing concern for social responsibilities.

True

true or false The EEOC was created to increase job opportunities for all members of society and to help end discriminatory practices in employment.

True

true or false The Sarbanes-Oxley Act of 2002 established new rules and regulations for securities trading and accounting practices.

True

true or false The Securities and Exchange Commission is the federal agency responsible for investigating alleged unethical or illegal financial behavior of publicly traded firms.

True

true or false Today we find no significant differences between the average pay of men and women

True

___________________________ has occurred when an employee discloses to the media or government authorities any suspected illegal, immoral, or unethical practices of the organization.

Whistle-blowing

A firm's ability to behave ethically depends on?

a climate within the organization that promotes ethical conduct.

Managers who behave unethically?

are more likely to be promoted.

Unrealistic goals set by managers?

can promote unethical behavior.

In the highest level ethical and moral behavior, the individual is able to move beyond mere self-interest and duty and take the larger needs of society into account as well. This stage of ethical development is the?

conventional stage.

__________________________ deals with standards of conduct and moral values that arise in any work environment.

Business ethics

Ethical education

Business must provide employees the tools and training they need to evaluate the options and arrive at suitable decisions

A __________________________ is a formal statement that defines how the organization expects and requires employees to resolve ethical questions.

Code Of Conduct

Employees should be careful to avoid the appearance of any ___________________ ___________________ that is, any situation where a business decision benefiting one person has the potential to harm another person.

Conflict Of Interest

__________________________ is the demand that businesses give proper consideration to consumer wants and needs when making decisions, and is based on the belief that consumers have certain rights.

Consumerism

An individual who can move beyond self-interest and duty, who considers the needs of the wider society, and who can employ ethical principles in a variety of situations, has attained the _____________________ stage of ethical development.

Conventional

Many argue that social responsibility to the general public means businesses should give back to the communities in which they earn profits through __________ _______________________________.

Corporate Philanthropy

Business responsibilities to the general public include?

Dealing with public health issues. Protecting the environment. Developing a quality workforce.

The biased treatment of a job candidate or employee in the workplace is known as ___________________________

Discrimination

The federal agency charged with ensuring universal access to jobs and ending discrimination in the workplace is the?

EEOC

Ethical awareness

Employees need help identifying ethical problems when they occur and knowing how the firm expects them to respond

The __________________________ is the federal commission created to aid in the elimination of job discrimination while increasing job opportunities for women and minorities.

Equal Employment Opportunity Commission (EEOC)

In order to promote ethical behavior in an organization?

Ethical guidelines should be clearly stated and communicated to employees. The organization may design training programs to help employees develop ethical reasoning skills. The organization's structure and business practices should reflect and reinforce ethical values. Managers must show a personal commitment to ethical values and a willingness to enforce them.

Ethical leadership

Executives must demonstrate ethical behavior in actions

Discrimination based on gender?

is known as sexual harassment.

In the U.S. economy, the social responsibility of a firm is evaluated?

on the basis of the firm's contribution to economic growth and employment opportunities.

The responsibility that manufacturers face for injuries or damages caused by their products is called ___________________________.

product Liability

After graduating from trade school, Ann accepted a position as a mechanic in a shop where she is the only woman. After a few months she complained to her supervisor about lewd jokes and sexually explicit posters in the workplace. Her supervisor should?

realize that these occurrences can be construed as sexual harassment and need to be addressed.

__________________________is reprocessing of reusable materials.

recyling

The Family and Medical Leave Act of 1993?

requires firms with 50 or more employees to provide up to 12 weeks of unpaid leave for workers who need to attend to family matters.

Individual ethics in the workplace are influenced by?

the organization's culture.