Business Ethics Final

Operation Web Snare was an initiative by the Federal Bureau of Investigation to help target and convict cybercriminals. In 150 investigations the value of money lost by the victims was ______.

$210m

Cereals with high sugar and low nutritional values comprised ____% of the food advertising viewed by children in 2007

17%

In the Milgram study of 1963, what proportion of volunteers would have obeyed the instruction to "kill" the subject?

65%

In the opening case, HSBC held more than _______ accounts with connections to the United States.

4,000

The trolley problem is an example of

An ethical dilemma

The roots of the tragedy of the commons concepts go back to ____________, who stated that what is common to most people will receive the least amount of care.

Aristotle

Which of the following is not a form of employee monitoring?

Bullying

Traditional stakeholders for a firm include all of the following except

Competitors

______________ occurs when a relatively small number of people with a large stake in the action of the firm are impacted by the decision.

Concentration of effect

One of the most common ways of monitoring customers and potential customers is by using ____________.

Cookies

Transparency International has developed an annual ranking of the level of _____________ in countries around the world

Corruption

____________ can be defined as the deviation from the traditional methods used to interpret an accounting rule or standard.

Creative accounting

During which of the following stages of the ethical life cycle does the evaluation of different options take place?

Ethical judgment

An amoral manager is one who not only does not care how his or her decisions impact the stakeholders, but the actions are actively counter intuitive to what is the right and ethical thing to do.

False

An inconsistent leader has strong ethical traits and behavior and can translate those traits to others.

False

Examples of why not? Products include nondisposable diapers.

False

In the unfreezing stages of Kurt Lewin's three-stage model, the new perceptions and ideals are "locked in."

False

Regulatory risk is based on the assumption that as climate change continues to impact the world, the vulnerability of suppliers and the raw materials needed for manufacturing will decrease.

False

The values that an individual uses to interpret whether any particular action or behavior is considered legal or illegal are called ethics.

False

________________ is one of the costs of using e-mail.

Frivolous use

A(n) ______________ leader is a manager who has strong ethical traits, behaviors, and decision making of a moral person but is not able to transfer those values to other employees within the firm.

Inconsistent

The _______________ was created in December 1997 with the aim of having every industrialized nation in the world voluntarily reduce the level of greenhouse gas (GHG) emissions into the atmosphere by 5.2% as compared with 1990 GHG emissions levels.

Kyoto Treaty

Which of the following types of risk is based on the premise that firms with high GHG emission levels will be threatened more frequently with lawsuits similar to those established in the tobacco, pharmaceutical, and asbestos industries?

Litigation risk

______________ refers to the individual's perception of how much control he or she has over an activity of event.

Locus of control

A traceability system for the product is part of the ____________________step of a recall.

Logistics and information systems

_____________ is a prescribed course of action that attempts to ensure that ethical behavior will be followed in the future.

Normative ethics

An initiative by the Federal Bureau of Investigation, in conjunction with other government agencies, called ______________ was developed to help target and convict cybercriminals.

Operation Web Snare

There are three levels of scope both for the organizational and product carbon footprint. Which of the actions below is not one of them?

Personal emission generation by employees of the firm

One of these terms is not a form of insider trading, that is, using nonpublic information to make decisions based on an individual's self-interests rather than those of the firm.

Ponzi schemes

Strebel suggests that there are 4 major roles for the board of directors. Which one is not a role he indicates?

Public relations

The _____________ test is also known as the Golden Rule.

Reciprocity

Refusing to perform any act that would be considered unjust is an example of which of the following specific behaviors of high integrity?

Reproaching unjust acts

Criminal penalties for violation of the Foreign Corrupt Practices Act can be up to $2 million for a firm and $100,000 and 5 years in prison for an individual.

True

In which of the following stages of moral development is the belief that since individuals have a different set of values, it is important to view rules relative to the group, which must accept them?

Social contract and individual rights

Schein developed a set of enabling mechanisms to change culture. Which of the following is not a secondary articulation and reinforcement mechanism?

The leader's criteria for allocation of rewards

"Maintaining the ability to be concerned about the greater good" is a specific behavior that can help identify the level of integrity in individual actions.

True

Corporate social responsibility can be defined as the obligation companies have to develop and implement courses of action that aid in social issues that impact society.

True

Earnings management is the purposeful intervention in the process of reporting income numbers with the objective of dampening the fluctuations of those numbers around their trend.

True

Ethical egoism is represented in self-improvement, and utilitarianism is represented in beneficence and noninjury.

True

In June 2012, The Walt Disney Company announced that all products that will be advertised on the children-based television channels, radio stations, and websites owned by the company must comply with strict nutritional standards.

True

In general, most employees can assume that their e-mail messages are not private.

True

Placing the firm's support toward a single philanthropic cause via public relations or advertising is not strategic philanthropy. In fact, this "cause-related" marketing can backfire and lead to mistrust and suspicion about the true motives of the firm.

True

The collective values of a business organization that can be used to evaluate whether the behaviors of the organization's collective members are considered acceptable and appropriate are called business ethics.

True

The customer-firm relationship is based on ethical principles as well as commercial criteria.

True

The illusion of objectivity occurs when a decision maker believes that his or her decisions are free of biases.

True

The passive board is also called the rubber stamp board.

True

The principles of ethical power are purpose, perspective, patience, and persistence.

True

Under the cookie jar system, management will build up financial reserves in profitable years and release the financial reserves into the financial statements during unprofitable years.

True

Integrity is derived from the Latin word integrity, which means ______________.

Wholeness

______________ purchases are those products in which the consumer must accept a high level of compromise but has little confidence that their purchase will have material environmental impact.

Why bother?