Business Ethics Final

_____ refers to the management action after taking a closure decision which buys time for employee and the community to adjust to the new situation and to solve some of their problems thereby significantly ameliorating the effects of a business shutdown.

Gradual phase-out

What is true regarding the 1978 amendment to Title VII of the Civil Rights Act of 1964?

It was amended to include the Pregnancy Discrimination Act which requires employers to treat pregnancy as any other medical disability.

Which federal agency responsible for overseeing the safety and health of America's workers?

OSHA

Which of the following is true of the Patriot Act? a. It set rigid controls on the right of the government to use information on citizens. b. It caused widespread concern that too much latitude was given to the government. c. It enables the government to disregard the privacy of any individual in an unrestricted manner. d. It was signed into law following World War II.

b. It caused widespread concern that too much latitude was given to the government.

Which of the following is true of strategic philanthropy? a. It considers the goal of profit to be irrelevant to the mission of giving. b. It is an approach by which corporate giving and other philanthropic activities of the firm are designed in a way that best fits with the firm's overall mission. c. It is the search for a sustainable competitive advantage by giving to the 'needy' charities. d. It is the search for purely altruistic company giving.

b. It is an approach by which corporate giving and other philanthropic activities of the firm are designed in a way that best fits with the firm's overall mission.

Regarding laws to protect people from discrimination based on sexual orientation, which of the following statements is true? a. All states have such laws. b. Many states and the District of Columbia have such laws. c. All states plus the federal government have such laws. d. None of these statements is correct

b. Many states and the District of Columbia have such laws.

Which of the following is the approach intended to reduce a particular pollutant over an entire region by treating all sources as if they were beneath one bubble? a. biodiversity b. cap and trade c. global compact d. watershed

b. cap and trade

Which of the following do employees of the present-day workforce value more in a job? a. guarantee of long-term employment b. competitive pay and benefits c. focus on one task for a long period of time d. reduced requirement to develop new skills

b. competitive pay and benefits

Which of the following refers to the process of genuinely mobilizing individual citizens who might be most directly affected by legislative activity to political action? a. astroturf lobbying b. grassroots lobbying c. greenmailing d. layering

b. grassroots lobbying

Which of the following concepts was derived from the California case in which a group of women with birth defects claimed that the defects had been caused by the drug DES, which their mothers had taken when they were pregnant years earlier? a. absolute liability b. market share liability c. partial liability d. retrograde liability

b. market share liability

To be a carbon-neutral company, you must:

balance the amount of carbon used and produced.

The Civil Rights Movement of 1950s and 1960s took place to protest the discrimination against:

blacks

Which of the following statements is true of deregulation? a. Deregulation has helped in reducing competition in most industries. b. Deregulation is the opposite of economic reform. c. Deregulation is used to remove certain industries from old-line regulations. d. The trend toward deregulation began in the 1950s.

c. Deregulation is used to remove certain industries from old-line regulations

Which of the following is true of Political Action Committees (PACs)? a. Business PACs came into being with the Federal Election Campaign Act. b. PACs are completely different from lobbying. c. PACs can donate money to candidates running for public office. d. Special interest groups cannot form a PAC.

c. PACs can donate money to candidates running for public office.

Which of the following is a major cause of the greenhouse effect? a. acid rain b. biodiversity c. deforestation d. rainwater harvesting

c. deforestation

Which of the following products does NOT fall under the purview of the Food and Drug Administration (FDA)? a. cosmetics b. drugs c. farm equipment d. vaccines

c. farm equipment

Which of the following is businesses' primary means of influencing government? a. advertising b. deregulation c. lobbying d. taxation

c. lobbying

Which of the following is a characteristic of the new social contract between employers and employees? a. employee sense of entitlement b. long-lasting employment relationships c. loyalty to self and profession d. paternalism

c. loyalty to self and profession

Which of the following is a major function of the Federal Trade Commission (FTC)? a. to compare advertising practices with international advertising bodies b. to ensure healthy competition among advertising firms c. to protect consumers from unfair trading practices d. to support advertising firms in legal issues against consumers

c. to protect consumers from unfair trading practices

Which of the following principles could be applied in environmental ethics to the greatest good for the greatest number of species and ecosystems? a. liberalism b. totalitarianism c. utilitarianism d. virtual ethics

c. utilitarianism

Citibank recently announced a program agreeing to contribute $1 for each $500 spent from its credit cards towards the Gordon and Betty Moore Foundation that works toward advancing environmental conservation and scientific research around the world. This act of Citibank can be categorized as:

cause-related marketing.

Previously, liability of manufacturers for products was almost non-existent, due to the doctrine of:

caveat emptor

If the world continues on a path of unrestrained growth, environmental problems will:

change in degree from significant to severe.

Which political approach results when distinct groups or parties realize they have something in common that might warrant their joining forces, at least temporarily, for joint action?

coalitions

SLP Ltd, a healthcare equipment manufacturer, engages and collaborates with external stakeholders to advance its community involvement strategy on a regular basis. Which standard of excellence in corporate community involvement does SLP adhere to when it does this?

community relationship

The Global Compact brings together many _____ to support universal environmental and social principles.

companies

What is the underlying rationale for affirmative action?

compensatory justice

After a decision to close the business or plant is made, the business should first:

conduct a community-impact analysis.

Firms have a responsibility to comply with the terms of the sale, inform the customer about the nature of the product, avoid misrepresentation of any kind, and not coerce the customer in any way. The scope of which ethical theory is described here?

contractual theory

The National Advertising Division (NAD) sustains truth and accuracy in national advertising by: a. initiating investigations into potential misconduct in campaigns. b. making decisions as to whether an advertiser's claims are substantiated. c. providing a low-cost alternative to litigation. d. All of these.

d. All of these.

Which of the following statements is true of lobbying? a. It is not related to passing of legislation by public officials. b. It occurs only at the federal level. c. It is not used to influence the election of candidates to public offices. d. It is motivated purely by self-interest on the part of lobbyists.

d. It is motivated purely by self-interest on the part of lobbyists.

Which of the following is an outcome of social regulation? a. Federal Communications Commission b. Federal Deposit Insurance Corporation c. Interstate Commerce Commission d. Occupational Safety & Health Administration

d. Occupational Safety & Health Administration

Which of the following categories is likely the recipient of the largest share of corporate giving? a. civic and community services b. culture and the arts c. education d. health and human services

d. health and human services

Which of the following is a common form of corporate retaliation to whistle-blowing? a. choice of work assignments given b. little or no supervision of work c. lighter workloads d. not given promotion or raise

d. not given promotion or raise

Which has been a challenge associated with the Family and Medical Leave Act?

defining a serious medical condition

Which ethical theory focuses on the relative vulnerability of the customer, who has less information and expertise than the firm, and the ethical responsibility that places on the firm?

due care theory

An employee's right to receive impartial review and fair treatment of his or her case is called:

due process

What source of employee rights stems from employer grants or promises?

enterprise rights

In Six Sigma, a higher value of sigma means:

fewer defects.

Only 20 states recognize the _______, which would give employees every opportunity to improve their performance before termination.

good faith principle

Actual or potential customers of retail firms in industrialized countries who show a preference for environment-friendly products are called _____.

green consumers.

An unspoken promise that there is nothing significantly wrong with the product and that it can be used for the purposes intended is called a(n):

implied warranty.

A "connected" PAC is one that:

is associated with a specific group or organization.

The ADA requires an employer to make reasonable accommodations for a qualified but disabled employee unless:

it is an undue hardship.

One reason critics think advertising is wasteful is that:

large sums of money are spent on advertising that produces no consumer benefit.

The dual objectives of business mean that:

making profits and addressing social concerns are not mutually exclusive endeavors.

Disparate treatment means:

means that different groups are treated unequally.

A(n) ____ exists in a market where the economies of scale are so great that the largest firm has the lowest cost and is thus able to drive out competition.

natural monopoly

In order to reduce costs, a plastic manufacturer disposes of toxic waste by dumping it into a river adjacent to its factory without proper treatment. This gives rise to a situation known as a(n):

negative externality

The relocation of business processes to a different country is termed as _____.

offshoring.

What is moral suasion?

persuading business to act in the public interest

The ____, recognized by 43 states, protects employees from being fired because they refuse to commit crimes, or because they utilize legal rights.

public policy exception

What are environmental impact statements?

reports of studies explaining the impact of practices on the environment and suggested alternatives

Affirmative action has been controversial, and has led to charges of:

reverse discrimination.

Identify the third step involved in developing a community action program.

selecting projects to support

Because of the (lack of) economics of scale, these entities may be most affected by regulation.

small businesses

The employment-at-will doctrine states that:

the employment relationship can be terminated at any time.

The term "community partnership" refers to:

the event when a for-profit business enters into a cooperative arrangement with a nonprofit organization.

Belief in this stands in direct opposition to the employment-at-will doctrine?

the good cause norm

The Occupational Safety and Health Act (OSHA) can apply the 'general duty clause' to hold a company liable for a workplace violence issue if:

the hazard was likely to cause serious harm.

The phrase "Not in My Back Yard" (NIMBY) refers to:

the refusal by those who have created them to solve environmental problems.

Which of the four rights under the "Consumer's Magna Carta" is intimately related to marketing and advertising?

the right to be informed

Comparative advertising:

threatens to affect advertising negatively.

Regarding corporate political spending, the controversial U.S. Supreme Court decision Citizens United v. Federal Election Commission has:

tipped the balance heavily in favor of business.

participation in the formulation and execution of public policy at various levels of government.

Political involvement

Which legislation is the only federal level of privacy protection for employees in the workplace?

The Electronic Communication and Privacy Act

Which act prohibits discrimination in the extension of consumer credit?

The Equal Credit Opportunity Act

What is true about employers with regard to the Family and Medical Leave Act of 1993?

The employer is exempt from the FMLA if the firm has fewer than 50 employees.

What is often cited as a criticism of integrity tests?

They are used as the sole measure to judge the fitness of the applicant.

This means that all of the functions of the business are blended into a holistic, integrated philosophy built around the concepts of quality, teamwork, productivity, customer understanding, and satisfaction.

Total Quality Management

_____ represent(s) the collective business interests of the United States.

Umbrella trade organizations

The Six Sigma level of operation is ____ defects per million.

3.4

The Age Discrimination in Employment Act protects workers who are:

40 years old or older.

Why have some businesses pushed for greater governmental regulations?

Certain regulations control excessive competition.

_____ is the extent to which a product or service meets established standards.

Conformance

What is an example of quid pro quo harassment?

a boss asking for sexual favors in return for a promotion or raise

Business supports which of the following elements of tort reform?

a uniform federal code

Which of the following is an argument used against industrial policy? a. Government interference via industrial policy making reduces market efficiency. b. The declining competitiveness of the United States in all major global markets is proof of poor industrial policy. c. The successful use of industrial policy by foreign governments cannot be emulated in the U.S. d. There has to be a constant change in industrial policy with every successive government.

a. Government interference via industrial policy making reduces market efficiency.

Which of the following is true about peer-review methods of due process for employees? a. Involving respected members of the organization is the key to a successful peer review. b. Managers should select the team of peer reviewers on behalf of all employees. c. The success of peer-review systems depends on the expertise of the ombudsman. d. The use of peer review as a due process mechanism has heavily declined in recent years.

a. Involving respected members of the organization is the key to a successful peer review.

Advertising that is located in nontraditional places is known as:

ambient advertising

A type 1 error occurs when:

an innocent person is found to be guilty.

Political accountability means:

assuming responsibility for political actions and being answerable for them.

What appears to be the result of genuine public groundswell but is actually orchestrated and funded by professional organizations?

astroturf lobbying

Ralph Nader changed the face of consumerism with his exposé on the _____.

automotive industry

Which of the following observations is true? a. Businesses follow a collectivistic ethic. b. Ethical systems are different for governments and businesses. c. Governments follow an individualistic ethic. d. The relationship between business and government is not adversarial in nature.

b. Ethical systems are different for governments and businesses.

What was the primary objective of the Civil Rights Act of 1991?

to provide increased financial damages to victims in cases of intentional discrimination

Because the use of polygraph tests has been widely criticized, many firms have started:

to use question-and-answer "integrity tests."

Using 'weasel words' implies the use of which type of advertising abuse?

using ambiguous advertising

"Reduce, Reuse, Recycle" is the goal of which of the following issues?

waste management

What is defined as a state of equilibrium where the demands of a person's personal and professional life are equal?

work-life balance