Intro to Business Chapter 2 - Ethics and Responsibility

Which of the following statements is true of business ethics? All business actions deemed unethical by society are necessarily illegal. Business ethics and personal ethics are synonymous. The acceptability of behavior in business is determined by not only an organization but also its stakeholders. Business ethics is independent of an organizational culture. Profit in business is the only glue that holds relationships together.

The acceptability of behavior in business is determined by not only an organization but also its stakeholders.

When companies mislead consumers about the benefits of their products, they infringe on: owners' right to safety. suppliers' right to choose. competitors' right to sell. traders' rights to be heard. consumers' rights to be informed.

consumers' rights to be informed.

Business Ethics

principles and standards that determine acceptable conduct in business

Within the concept of abusive behavior, _____ should be a consideration. work quality job position hierarchy authority intent

Intent

Identify a true statement about ethics. All actions deemed unethical by society are illegal. The terms social responsibility and ethics mean the same thing. Most legal issues arise as choices that society deems unethical, irresponsible, or otherwise unacceptable. Organizations that exhibit a high ethical culture do not expect their employees to generate revenues for the business. Business ethics, social responsibility, and business laws work independent of each other and also contradict each other.

Most legal issues arise as choices that society deems unethical, irresponsible, or otherwise unacceptable.

One of the principal causes of unethical behavior in organizations is: overly aggressive business objectives. environmental marketing. a high rate of employee turnover. globalization and technological advancement. the presence of a code of ethics.

Overly aggressive business objectives

Which of the following is true of organizations that exhibit a high ethical culture? They encourage employees to act with integrity. They receive very low revenues and profits. They engage only in activities aimed at high profitability. They maintain weak employee relations. They have low returns on investments.

They encourage employees to act with integrity.

An organization that contributes to the community it operates in and toward the quality of life is fulfilling its: economic responsibility. legal responsibility. ethical responsibility. voluntary responsibility. political responsibility.

Voluntary responsibility

Ethical Issue

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

Social Responsibility

the obligation of a business to contribute to society

Which of the following statements is true of a code of ethics? A code of ethics describes what an employee expects of his or her company. A code of ethics should be detailed enough that it takes into account every situation. A code of ethics provides guidelines to help employees achieve organizational objectives. The development of a code of ethics includes only a firm's legal staff and excludes other employees. The enforcement of a code of ethics through rewards and punishments decreases the acceptance of ethical standards by employees

A code of ethics provides guidelines to help employees achieve organizational objectives.

How can ethical behavior be improved in business? By expecting employees to base decisions solely on how their peers and superiors behave By having established ethics policies and standards By having overly aggressive financial or business objectives By isolating top management from business ethics By restricting the participation of lower-level employees in the development of a code of ethics

By having established ethics policies and standards

Sheila, a general manager, takes a decision that leads to some personal financial gains, while the company's owners incur financial loses. Which of the following kinds of ethical issues is depicted in this scenario? Conflict of interest Social loafing Falsification of time reports Abusive behavior Discrimination

Conflict of interest