Chapter 4 Review

True

. Encouraging fraudulent accounting is illegal and unethical.

cause-related marketing

A beauty products nonprofit company raises awareness about breast cancer and collect funds for a cancer unit.

sustainable development

A cement company decided to modify its production methods to minimize the negative impact on the environment.

legal and unethical

A chocolate company promoted a high-calorie product without providing complete information about the risk.

benefit corperation

A corporation that does not have profits as a first priority is referred to as a B-Corp, which stands for _____.

sets of beliefs about right and wrong.

Ethics refer to

legal and ethical behavior

Rewarding integrity is an example of _____

pharmaceutical companies

The federal government is a key stakeholder in:

codes of conduct

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

False

The number-one goal of any business is to contribute to society.

True

When employees perceive more management commitment, they tend to be more fully engaged

legal system

A country's _____ provides a solid starting point for examining ethical standards.

carbon footprint

An American company is facing legal action because it discharges a higher level of gases than the level permitted.

False

Codes of conduct work best when people are given the freedom to choose whether they wish to follow them or not.

Social Responsibility

Companies that step in with on-site day care programs for employees facing challenges such as caring for elderly parents are fulfilling their:

True

Globalization has made ethics and social responsibility complicated for workers at every level.

a social audit

When firms monitor themselves, the process is referred to as ____.

citizenship

Rupert is an individual who believes in contributing to the community by using eco-friendly products.

Actions that are completely legal can still be unethical.

Which of the following statements is true of ethics?

illegal and unethical

An employee embezzles $250,000 from a fundraising activity and falsifies financial records.

False

Producing products that you know will break before their time is illegal and unethical.

respect

Rudolf is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures.

True

The personal needs, the culture, and the family of an individual influence his or her ethical choices

False

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

False

Stakeholders refer to groups of people who have a malicious intent toward an organization and who often resort to harmful actions.

False

Corporate etiquette is the obligation of a business to contribute to society.

an ethical dilemma

In the context of business ethics, _____ refers to a decision that involves a conflict of values.

True

Planned obsolescence represents a clear violation of social responsibility.

establishing goals

Which of the following is the starting point of a social audit?

they work best with monitoring

Which of the following statements is true of codes of conduct?

False

An ethical dilemma involves clear misconduct at the workplace.

True

Smart businesses view customer complaints as an opportunity to create better products and stronger relationships.

responsibility

Walt is known for his perseverance, his self-discipline, and taking accountability for his actions.

Communicating about the importance of ethics

Which is a step that is virtually always included when experts advocate a forceful, integrated approach to ethics?

social audit

Andrew is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals.

trustworthiness

Being honest, not deceiving, cheating, or stealing, and doing what you say you'll do represent the universal ethical standard of _____.

fairness

Being open-minded and not taking advantage of others exemplifies the core value of _____.

green marketing

Broche Technologies promotes these products as the most eco-friendly refrigerators in the market.

an ethical lapse

In the context of business ethics, _____ involves clear misconduct, unlike an ethical dilemma that involves a conflict of values.

overpromising financial rewards

In the context of codes of ethics, the Johnson & Johnson Credo refrains from:

give employees the information they need to make ethical decisions across a range of situations.

In the context of codes of ethics, the purpose of a written code is to:

The threat of government legislation keeps some industries motivated to self-regulate.

In the context of monitoring ethics and social responsibility, which of the following statements is true of a social audit?

corruption

One of the most challenging issues faced by companies and individuals that are involved in international business is _____.

carbon footprint

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.

Sarbanes-Oxley Act

The _____ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit.

social responsibility

The obligation of a business to contribute to society is referred to as _____.

Foreign Corrupt Practices Act

U.S. corporations are forbidden to offer bribes since 1977 under the _____.

account for social-responsibility indicators, such as community involvement.

When companies promoting corporate social responsibility measure their success by evaluating a double bottom line, they:

It should be ensured that the company's ethics code is both local and global in scope.

Which is true when experts try to advocate a forceful, integrated approach to ethics?

cause-related marketing

Which of the following is a way of contributing to nonprofits?

are the alternative solutions legal?

Which of the following is one of the key principles of most decision guides?

bribery

Which of the following is the most challenging issue faced by companies and individuals that are involved in international business?

They do not have profits as their first priority.

Which of the following statements is true of benefit corporations?

The vast majority of people are not willing to sacrifice convenience to buy green products.

Which of the following statements is true of green marketing?

stakeholders

_____ include employees and investors who have a personal interest in the performance and actions of an organization.

consumerism

_____ is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard.