Ethics Midterm

1. Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as ______. a. locus of control b. morality beliefs c. internal control d. external control e. moral intensity

a

1. Which approach to stakeholder theory focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships. a. Descriptive approach b. Normative approach c. Instrumental approach d. Control approach e. Strategic decision making approach

a

10. 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 _____. a. secondary stakeholders b. market constituents c. primary stakeholders d. significant others e. community organizations

a

10. What concept refers to a person's personal philosophy about what is right or wrong? a. morals b. philosophy c. business ethics d. values e. principles

a

12. The relevance or importance of an ethical issue in the eyes of the individual, work group, and or organization is known as ______. a. ethical issue intensity b. locus of control c. moral intensity d. opportunity e. obedience to authority

a

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

a

14. Congress passed the FSGO in 1991 to create an incentive for organizations to develop and implement programs designed to foster ethical and legal compliance. These guidelines, developed by the U.S. Sentencing Commission, apply to all felonies and class A misdemeanors committed by employees in association with their work. a. True b. False

a

14. The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management. a. True b. False

a

14. The shareholder model of corporate governance _____. a. is founded on the goal of maximizing wealth for investors and owners b. adopts a broader view of the purpose of business than the stakeholder model c. is the same as the stakeholder model d. is a less restrictive than the stakeholder orientation e. considers stakeholder welfare in tandem with corporate needs and interests

a

15. In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made. a. True b. False

a

3. 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. ethical issue b. indictment c. conflict of interest d. fraud e. crisis

a

3. Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions at work. Which of the following has determined the Elena's action? a. organization factors b. opportunity c. corporate culture d. individual factors e. control issues

a

3. Which of the following is true of the Sherman Antitrust Act? a. It prohibits organizations from holding monopolies in their industries. b. It inhibits fair competition. c. It prohibits the use of price maintenance agreements among manufacturers and in interstate commerce. d. It prohibits unfair and deceptive acts and practices, regardless of whether competition is impaired. e. It has refined copyright laws to protect digital versions of copy-righted materials, including music and movies.

a

5. _____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes. a. Stakeholders b. Customers c. Gatekeepers d. Employees e. Investors

a

8. The ethical component of a corporate culture relates to the values, beliefs, and established and enforced patterns of conduct that employees use to identify and respond to ethical issues. a. True b. False

a

11. Rawls used what he called the veil of ignorance which led him to develop ______. a. the difference principle which states that each person has basic rights that are compatible to the basic liberties of others b. the equality principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society c. the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society d. five main principles of justice e. the Constitution principle

c

1. Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions? a. dual relationships b. employment quotas c. affirmative action programs d. facilitation payments e. optimizations

c

10. 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. a. facilitation payment b. corporate intelligence c. conflict of interest d. discrimination situation e. ethical dilemma

c

10. Which of the following is NOT a factor in the ethical decision-making model? a. individual factors b. organizational factors c. employee benefits packages d. ethical issue intensity e. opportunity

c

11. Before anything else, businesses must _____ to survive. a. be popular b. compensate their employees well c. make a profit d. sell internationally e. have a great reputation

c

13. 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? a. The Public Accounting Oversight Board b. The Financial Stability Oversight Council c. The Office of Financial Research d. The Consumer Financial Protection Bureau e. The Office of Whistle-Blower Protection

c

4. _____ is exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely. a. Dishonesty b. Fraud c. Puffery d. Lying e. Implied Falsity

c

5. Which of the following is NOT one of the top types of observed misconduct? a. putting one's own interests ahead of the organization's b. abusive behavior c. working more hours than reported d. lying to employees e. Internet use abuse

c

7. Many studies have found a positive relationship between which of the following? a. high levels of government regulation and cultural values b. high cultural values and low industry competition c. an ethical culture and good business performance d. unmotivated employees and good business performance e. apathetic boards of directors and an ethical culture

c

8. According to researchers, normative values largely originate from all of the following EXCEPT ______. a. religion b. friends c. the media d. family e. government

c

9. Which dimension of social responsibility refers to business's contributions to society? a. international b. economic c. voluntary responsibilities d. ethical e. legal

c

12. The term ethical culture is associated with all of the following except _____. a. the component of corporate culture that captures the values and norms an organization defines and is compared to by its industry as appropriate conduct b. acceptable behavior as defined by the company and industry c. culture that creates shared values and support for ethical decisions and is driven by the ethical leadership of top management d. maximizing profits and placing shareholder's first e. positively related to workplace confrontation over ethics issues, reports to management of observed misconduct, and the presence of ethics hotlines

d

13. 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. a. NAFTA b. MERCOSUR c. CERES Principals d. Global Compact e. The Sullivan Principals

d

15. The concept of board members being linked to more than one company is known as _____. a. the stakeholder concept b. a board member compensation problem c. the shareholder concept d. an interlocking directorate e. the stakeholder model of corporate governance

d

2. An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its _____. a. consumerism b. moral justice c. ethical dilemma d. social responsibility e. regulation mandate

d

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

d

2. The three fundamental elements that motivate people to be fair are _____. a. honesty, integrity, and morality. b. equality, reciprocity, and harmony. c. truthfulness, fidelity, and harmony. d. equality, reciprocity, and optimization. e. charity, fidelity, and harmony.

d

3. The concept that centers around enduring beliefs and ideals that are socially enforced, such as teamwork, trust, and integrity is called _____. a. philosophy b. business ethics c. principles d. values e. Morals

d

4. The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business is defined as _____. a. morals b. principles c. philosophy d. business ethics e. Values

d

5. Which of the following statements best describes an opportunity? a. a reflection of whether the firm has an ethical conscience b. how easy it is to pilfer office supplies from one's workplace c. organizational factors d. the conditions in an organization that limit or permit ethical or unethical behavior e. a corporate culture

d

6. All of the following generate discussion about the ethical nature of a decision EXCEPT _____. a. the mass media b. special interest groups c. individuals in the business d. government agency e. blogs and podcasts

d

6. Corporate governance is defined as _____. a. classic economic precepts, including the goal of maximizing wealth b. the management style of the firm's CEO c. the memos sent out by upper management on appropriate conduct d. formal systems of accountability, oversight, and control e. the members of the Board of Directors

d

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

e

4. Which of the following is NOT a secondary stakeholder group? a. trade associations b. magazines c. television news reporters d. special interest groups e. employees

e

4. Which statement best describes ethical issue intensity? a. The perceived importance of an ethical issue to the government. b. The perceived relevance or importance of an ethical issue to the local community. c. A set of values, beliefs, goals, norms, and ways to solve problems that members of an organization share. d. The perceived value of an ethical issue to the society. e. The perceived relevance or importance of an ethical issue to the individual, work group, and or organization

e

4. _____ impose(s) fines or imprisonment as punishment for breaking the law. a. The honor system b. Voluntary compliance c. Civil law d. International guidelines e. Criminal law

e

1. Some examples of what concept can include human rights, freedom of speech, and the fundamentals of justice? a. philosophy b. principles c. values d. business ethics e. Morals

b

1. The Act or Agency that makes regular surprise inspections to ensure businesses maintain safe working environments is called the _____. a. ICE Agency b. The Occupational Safety and Health Administration c. Immigration Reform and Control Office d. Equal Safety Act e. Civil Rights for Employees Act

b

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

b

11. _______ is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition. a. Reciprocity b. Integrity c. Fairness d. Honesty e. Values

b

12. Discrimination on the basis of all but which of the following is defined as harassment? a. age b. union affiliation c. gender d. marital status e. national origin

b

12. Which of the following is NOT a primary stakeholder group? a. investors b. the Media c. customers d. employees e. shareholders

b

13. Fortunately, social responsibility and ethics are completely interchangeable terms. a. True b. False

b

13. _____ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior. a. Punishment b. Opportunity c. Regulation d. Locus of Control e. Governance

b

14. An organization that has a strong ethical environment usually has a core value of placing _____ interests first. a. stockholders' b. customers' c. competitors' d. government's e. management's

b

15. Applying a personal moral philosophy is the first step in the ethical decision-making process. a. True b. False

b

15. The Sarbanes-Oxley Act made it illegal for U.S. businesses to issue bribes to foreign government officials. a. True b. False

b

15. The focus of core practices is on developing an individual's morals, rather than on structurally sound organizational practices and integrity for financial and nonfinancial performance measures. a. True b. False

b

2. The four levels of social responsibility are _____. a. ethical, philanthropic, social, and religious b. economic, legal, ethical, and philanthropic c. economic, legal, political, and social d. political, economic, legal, and ethical e. economic, legal, philanthropic, and social

b

3. Directors share a ______, which means all their decisions should be in the best interests of the corporation and its stakeholders. a. duty of control b. duty of loyalty c. duty of conflict d. duty of oversight e. duty of accountability

b

5. According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system. a. directions b. norms c. laws d. meanings e. Morals

b

7. Active bribery is an offense committed by the official who receives the bribe. a. True b. False

b

7. Ethical ______ is the ability to perceive whether a situation or decision has an ethical dimension. a. intensity b. awareness c. morality d. education e. personality

b

8. Which of the following is derived from precedents established by judges? a. Constitutional Law b. Common Law c. Administrative Law d. Statutory Law e. Civil Law

b

9. The concept in the chapter that is defined as a situation where the person is faced with multiple choices, all of which are undesirable as defined by the person is called a _____. a. philosophical analysis b. moral dilemma c. value crisis d. principle decision e. value turpitude

b

14. A payment made to obtain or retain business and is not considered a bribe within the United States is defined as _____. a. illegal under the Dodd-Frank Act b. active bribery c. passive bribery d. illegal under the Foreign Corrupt Practices Act e. facilitation

e

6. Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as significant others. Which of the following is supported by research concerning significant others? a. Significant others within an organization have no impact on a worker's decisions. b. Significant others within an organization have more impact on a worker's decisions on a daily basis than any other factor. c. Significant others within an organization may have less of an impact on a worker's decisions than gender. d. Significant others within an organization may have more impact on a worker's decisions on a daily basis than any other factor. e. Significant others within an organization have little impact on a worker's decisions.

d

7. The Dodd-Frank Wall Street Reform Act _____. a. created only one financial agency (The Financial Consumer Protection Agency) b. 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 c. 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 d. 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 e. created only one financial agency (The Financial Stability Oversight Council).

d

8. The concept that refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations is defined as _____. a. oversight b. a duty of loyalty c. a duty of oversight d. accountability e. control

d

9. Creating a perception or belief by words that intentionally deceives someone is _____. a. related to lying by omission b. related to what is defined as a "white" lie c. related to "noise" d. related to lying by commission e. related to context and intent

d

9. Which of the following statements is correct? a. Ethical issues are usually easy to detect and simple to fix. b. Social responsibility is associated with decreased profits. c. Secondary stakeholders are essential for a company's survival. d. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation. e. Primary stakeholders do not typically engage in transactions with a company.

d

11. In the stakeholder interaction model, _____. a. it recognizes other stakeholders, does not explicitly acknowledge that dialogue must exist, but can exist between the firm's employees and customers b. there are no reciprocal relationships between the firm and its stakeholders c. it recognizes other stakeholders and does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments d. it recognizes other stakeholders and but does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments e. there are reciprocal relationships between the firm and its stakeholders

e

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

e

13. Abusive or intimidating behavior _____. a. is a problem but is clearly defined by the legal system b. does not relate to ignoring someone c. does not need "intent" as a consideration d. relates only to profanity e. can differ from person to person

e

5. The Sarbanes-Oxley Act (SOX) _____. a. does not impose additional requirements on executives b. is the same as the Public Company Accounting Oversight Board c. 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 d. does not provide protection for "whistle-blowing" employees e. 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

e

6. The Consumers' Bill of Rights decreed by President John F. Kennedy specified all of the following EXCEPT the right to _____. a. safety b. to choose c. be informed d. be heard e. Freedom

e

6. ________________ ties an organization's products directly to a social concern through a marketing program. a. Strategic philanthropy b. Business ethics c. Strategic marketing d. Social marketing e. Cause-related marketing

e

7. The two-way relationship between a firm and its stakeholders is conceptualized by the _____. a. stakeholder orientation model b. corporate governance model c. measures of corporate impacts table d. stockholder-focus approach e. stakeholder interaction model

e

8. The practice of offering something in order to gain an illicit advantage is _____. a. omission lying b. intimidating behavior c. a conflict of interest d. collusion e. bribery

e

9. A corporate culture can be defined as ______. a. the perceived importance of an ethical issue to the government b. the interpersonal relationships in the organization c. a set of rules that some employees agree to obey d. the working environment in the executive suite e. a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share

e