Foundations of business CH. 4

The strong relationship between academic dishonesty and dishonesty at work is likely to Multiple choice question. make employers reluctant to hire those who have cheated affect hiring practices very little make students who know how to plagiarize well acceptable to employers matter very little to employers

A

Studies have found a _____ correlation between academic dishonesty and dishonesty at work. Multiple choice question. strong potential weak negative

A

The emergence of the green movement has affected businesses by Multiple choice question. offering consumers more product choices reducing most costs clarifying what green means reducing regulations about labeling

A

Select all that apply Unethical behavior in business, especially in the real estate and banking industries, has resulted in Multiple select question. most of those who caused the crisis going to jail few losses to investors lack of trust in the free market system severe financial crises

CD

Ethical problems such as influence peddling and bribery: Multiple choice question. are just part of doing business occur in only a few countries are limited to the United States occur in many countries

D

Many companies believe they have a role in promoting ______ ______ that goes way beyond simply "giving back." Multiple choice question. school districts profitable charities building parks social justice

D

Which type of advocacy group applies pressure by naming companies that do not abide by environmental standards? Multiple choice question. Securities and Exchange Commission Internal Revenue Service Whistleblowers Environmentalists

D

The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by ______________ .

greed

When it comes to ethics, sets the standards for moral behavior, that is behavior defined as right or wrong.

society

When implementing an ethics code, it is important to share it with all ____________ because pressure to act unethically often comes from the outside.

stakeholders

_______________ are the activists who apply pressure by publicly naming companies that pollute the air and water.

Environmentalists

An important factor in enforcing ethics codes is selecting a(n) ________ _________ .

Ethics Officer

True or false: Non-profit organizations are not affected by the behavior of their funding organizations as long as they continue to receive the money they need to continue their operations.

False

True or false: Social responsibility and ethical problems exist primarily in the U.S. because we have more laws about those problems.

False

Nike suffered criticism due to its _____________ _____________ violations in their overseas manufacturing facilities.

human rights

A communication tool many companies use to inform diverse groups of their social responsibility efforts at little cost is Multiple choice question. social media direct mail TV advertising local newspaper ads

A

According to some, the most recent financial crisis in the United States occurred as a result of the ______ business practices of greedy lenders and borrowers alike. Multiple choice question. unethical ethical honest transparent

A

Attracting and retaining better employees is an example of a corporate social responsibility: Multiple choice question. benefit prerequisite problem cost

A

Many businesses believe that they should have an influential and important role in: Multiple choice question. building communities building social inequities redistributing wealth religious practice for all employees

A

Responsible business behavior depends on the responsible behavior of each ______ in the business world. Multiple choice question. individual owner executive board member

A

Select all that apply Corporate social responsibility is when businesses are concerned Multiple select question. about being fair and honest with their stakeholders for the welfare of society as a whole only with their responsibility to their shareholders only to compete and make a profit

AB

Select all that apply Studies show that companies with good ethical reputations also enjoy which of the following outcomes as a result? Multiple select question. Attract and retain better employees Draw more customers Win fewer service awards Have decreases in product quality

AB

Select all that apply Companies that try to act in a socially responsible way are likely to focus on such activities as Multiple select question. providing safety equipment and training for their workers increasing the diversity of their workforce using recyclable packaging hiring only women and minorities

ABC

According to recent U.S. Census Bureau research volunteerism is at an all time high, but Multiple choice question. 3 out of 4 citizens think they should be paid for their volunteer work 3 out of 4 citizens do not give any time to the communities in which they live 4 out 5 citizens volunteer an hour each week 3 out of 4 citizens volunteer, but cheat on their taxes

B

Foundations, universities, and other nonprofit organizations own shares in publicly held companies, whose value is dependent directly upon the ______ of those companies. Multiple choice question. corporate social responsibility performance reputation ethics

B

Examples of how ethical standards differ among countries and cultures include Multiple choice question. A. Emerging economies with weak government regulations that allow foreign companies to control labor laws B International companies that have been able to negotiate a global wage agreement so that all their employees are paid the same no matter what country they are working in CU.S. executives who complain that their businesses are at a competitive disadvantage when bidding against non-U.S. companies, since foreign companies don't abide by bribery laws

C

_____________ - ____________ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. _____________ - _____________ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.

Compliance- based, Integrity- based

____________ ____________ ______________is a business's concern for the welfare of society.

Corporate social responsibility

A company that has socially responsible human resources management is Multiple choice question. likely to perform worse financially going to save money by not hiring those who are disabled going to lose money by providing pay raises likely to perform better financially

D

A corporate donation to Foodlink would be considered Multiple choice question. a corporate social initiative a private business initiative corporate policy corporate philanthropy

D

McDonald's wrote a _____________on the practice of grazing cattle on cleared rain-forest land.

ban

Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and ________ charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets.

bribery

The dimension of social responsibility known as ________ responsibility includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.

corporate

The most effective ethics officers are equally comfortable as ________ and investigators.

counselors

Corporate social responsibility is a business's concern for: Multiple choice question. profit only corporate wealth the welfare of the company the welfare of society

d

When auto companies like General Motors and Toyota failed to recall cars with dangerous malfunctions, it is an example of failed cultures that damage the companies' reputations.

ethical

________ behavior can add to the bottom line while _________ behavior can ruin companies financially.

ethical, unethical

If the free-market system is to prevail, it must retain the _________ of its participants despite the unethical behavior of a few. (Enter one word in the blank.)

ethics

The SEC rule that requires companies to share information with everybody at the same time, instead of a select few, is known as Regulation FD which stands for __________ ___________ .

fair disclosure

Many investors believe it makes _________ as well as __________ sense to invest in companies that plan to create a better environment

financial, moral

Executives at Enron and Tyco were found guilty of ______________ behavior that damaged their companies' reputations.

illegal

_______________ trading is using knowledge or information that individuals gain through their position that allows them to benefit unfairly from fluctuations in security prices.

insider

The SEC Regulations on Fair Disclosure are designed to prevent ______ ________ .

insider trading

U.S. standards for ethics and social responsibility tend to be stricter than many of those in _____________ developed countries.

less

Defenders of CSR argue that it makes more _________ for investors in the long run.

money

Economist Milton Friedman believed that a business's only social responsibility was to make ______ for its owners and that anything else was socialism.

money

Corporate __________ includes charitable donations by corporations to nonprofit groups of all kinds.

philanthropy

Corporate policy refers to the position a firm takes on __________and _______ issues.

social and political

A systematic evaluation of a company's progress toward implementing socially responsible programs is known as a(n) ______ _________ .

social audit

The _________ ___________ is a systemic evaluation of an organization's progress toward implementing socially responsible and responsive programs.

social audit

A low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is _______ _________ .

social media

In the United States, many employees report that they are unethical at work because they: Multiple select question. goof off work overtime violate safety standards come in early

AC

Select all that apply Identify which of the following would classify as Internet plagiarism. Multiple select question. Cutting and pasting information from a website without giving proper credit Copying research information from a set of encyclopedias in the library Copying full article content from Internet sites and presenting it as your own Buying research papers online and submitting them as your own

ACD

Select all that apply Research has shown that companies engaged in corporate social responsibility (CSR): Multiple select question. enjoy greater employee loyalty lose sales revenues retain better employees draw more customers

ACD

The concern businesses have for the welfare of society, not just for their owners is: Multiple select question. based on a commitment to integrity and respect called stakeholder interest unethical corporate social responsibility

AD

Studies have shown that what most influences a company's effectiveness and financial performance is: Multiple choice question. social initiatives responsible management of human resources information technology human resource support staff

B

The statement by Patagonia that "A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of: Multiple choice question. technical policy corporate policy global policy managerial policy

B

People learn their organizational _____________ from observing the standards, values, and behaviors of leaders and other employees.

ethics

Socially conscious investors insist that a company extend its own high standards to its ____________ .

suppliers

Companies often conduct __________ to understand customers' attitudes on their environmental or social policies.

surveys

Using knowledge or information about a company for personal gain which is not available to the public is called ______. Multiple choice question. insider trading investment banking outsourcing securities trading

A

Select all that apply Elements of an integrity-based ethics code include Multiple select question. a focus on penalizing wrong-doers trust and shared accountability clear guiding values high levels of control

BC

As a result of the green movement, emerging ___________ energy industries account for 9 million jobs in the United States.

green

Increasing public concern for the environment created by the __________ movement has more businesses looking for environmentally friendly ways to do business.

green

True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.

true

True or false: Many investors believe that by choosing to put their money into companies whose goods and services benefit society, they can improve society's financial health as well as their own.

true

Select all that apply Which of the following are examples of outside stakeholders that must be told about a company's ethics program? Multiple select question. Customers Distributors Suppliers Internal auditors

ABC

Select all that apply From the list below, identify the five groups considered to be a type of watchdog group. Multiple select question. socially conscious investors socially conscious research organizations customers environmentalists union officials suppliers wholesalers in the supply chain

ABCDE

Select all that apply The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included: Multiple select question. A. providing homes only to those who could afford them B. assuring buyers and sellers of financially sound investments C. the wish to inflate their own earnings D. greed

AD

Select all that apply Which of the following are methods that companies use to implement ethical standards? (Check all that apply.) Multiple select question. The education and training of employees using variable standards for ethics enforcement Allowing more employee discretion The enforcement of controls

AD

Select all that apply Which of the following represent examples of how corporations set positive standards of ethical behavior? Multiple select question. Reevaluating its ethics codes based on the input of its customers. Paying employees on specified pay dates most of the time. Ignoring hazardous job conditions that exist in the company's facilities Periodically asking every employee to evaluate the company's ethics performance.

AD

If the statement "ethics is caught more than it is taught" is true, then management facilitates this by: Multiple choice question. ignoring both ethical and unethical behavior setting a good example leaving unethical behavior unpunished punishing unethical behavior and rewarding ethical behavior privately

B

To truly create an ethical culture, managers must: Multiple choice question. focus on troublemakers and ignore ethical employees show strong commitment to ethics and compliance monitor employees continuously distribute appropriate behavior pamphlets to employees

B

Studies show that companies with reputations for good corporate social responsibility Multiple choice question. have fewer loyal customers but attract more of them make more money for investors in the short run attract and retain better employees have higher turnover

C

The most forceful way to communicate the importance of an ethics code is to: Multiple choice question. make it available to everybody train employees enforce it train top management

C

Using information from the internet or other sources without giving credit to the author is: Multiple choice question. cutting and pasting editing plagiarism fair use

C

What do strong managers help instill into the corporation when setting examples of ethical behavior? Multiple choice question. Rules Laws Values Policy

C

What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008? Multiple choice question. The money supply The economy Greed Empathy for homeowners

C

When implementing a new ethics program, businesses must also communicate the changes to outside parties such as: whistleblowers the federal government customers tax officials

C

Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability? Multiple choice question. Morality codes Compliance-driven ethics standards Integrity-based ethics codes Compliance-based ethics codes

C

Select all that apply An important factor in enforcing an ethics code is: Multiple select question. making the charges public before the investigation conducting objective investigations having an ethics officer who is fair allowing management to decide the outcomes of investigations

CB

Select all that apply By making socially conscious decisions about whether or not to buy a company's products, customers are: Multiple select question. violating basic principles not affecting social issues acting as watchdogs affecting a company's sales

CD

U.S. economist Milton Friedman believed that the only social responsibility of the corporation was to its stockholders. He also believed anything other than that would be considered: Multiple choice question. socialism capitalism communism fascism

A

______ of the ethics code in a timely manner is the most forceful way to communicate its importance. Multiple choice question. Enforcement Customization Publication Internationalization

A

Which SEC regulation regarding insider trading stipulates "if companies tell anyone, they must tell everyone"? Multiple choice question. Whistleblower Protection Act Regulation FD Foreign Corrupt Practices Act Fair Credit Reporting Act

B

Which of the following facts best exemplifies the statement that "ethical problems are not unique to the United States"? China is a communist country. Top leaders from other countries have been charged with bribery. Other countries also follow capitalist principles. Ethical standards are different from country to country.

B

Which watchdog group would be most likely to directly engage companies who do not make efforts to be environmentally responsible? Union officials Environmentalists Investors Customers

B

Select all that apply Effective ethics officers: Multiple select question. favor management in their investigations relate well to employees at all levels share all information with managers when requested can be trusted to maintain confidentiality

BD

Select all that apply Unethical behavior in business, especially in the real estate and banking industries, has resulted in Multiple select question. most of those who caused the crisis going to jail severe financial crises lack of trust in the free market system few losses to investors

BD

True or False In the long run, some unethical investors have successfully added to the bottom line of their companies.

False

True or false: Bribery is a business practice unanimously held as an ethical violation across the globe.

False