Business Ethics | Chapter 1, BUSI472 CH1

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

True

ethical culture

acceptable behavior as defined by the company and industry

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

norms

Which of these argued that it is impossible to eradicate all wrongdoing in a large corporation, and that the best one can hope is that the wrongdoing is minor and caught in time? a. Angelo Mozilo b. David Cameron c. Hilary Clinton d. Warren Buffet e. John Maynard Keynes

Warren Buffet

Dodd-Frank wall street reform and consumer protection act

addressed some of the issues related to the financial crisis and recession and designed to make the financial services industry more ethical and responsible

Because of the recent global financial meltdown, many stakeholders began to question the basic assumptions of _____, as well as how government institutions provide oversight and regulation. a. business ethics b. democracy c. multinational corporations d. capitalism e. social services

capitalism

It is generally accepted that _____ and maintaining long-term relationships are some of the most important factors in a successful business strategy. a. well-compensated executives b. customer satisfaction c. large dividends d. sale frequency e. employee healthcare

customer satisfaction

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

customers'

Before anything else, businesses must _____ to survive. a. be popular b. make a profit c. sell internationally d. have a great reputation

make a profit

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

social responsibility

Business ethics was institutionalized through the Federal Sentencing Guidelines for Organizations during which of the following periods? a. The 1960s b. The 1970s c. The 1980s d. The 1990s e. The 2000s

the 1990s

Which of the following is a highly admired company for its high ethical standards? a. Chesapeake Energy b. JP Morgan c. Granite Construction d. BP e. Zale Corp

Granite Construction

Business ethics comprises a. principles and standards that guide behavior in the world of business. b. mores, values, and customs that guide behavior in general. c. the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders. d. the mores, values, and customs that parents teach their children. e. laws and regulations that guide behavior in the world of business.

A

Ethics auditing is similar to __________ auditing because they both employ the same procedures and processes to create a system of integrity that includes objective reporting. a. financial b. legal c. regular d. citizenship e. social

A

The perceived relevance or importance of an ethical issue to the individual, work group, or organization is a. ethical issue intensity. b. ethical issue morality. c. immediate job context. d. ethical issue cognitive state. e. organizational culture.

A

________ law not only prohibits specific actions such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law. a. Criminal b. Civil c. Administrative d. Regulatory e. Competitive

A

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

An ethical culture and good business performance.

A stakeholder orientation isn't complete unless it includes a. finance. b. activities that actually address stakeholder issues. c. accounting. d. marketing. e. special interest groups.

B

Which of the following statements about power is true? a. The use of power is unethical. b. The use of power may raise ethical issues. c. People generally use only one base of power to effect change in others. d. The five bases of power are mutually exclusive. e. Expert power exists when one person takes actions that will lead that person and others to achieve their mutual objectives.

B

Less than half of the respondents of a recent survey reported having an overall trust in business. Which of the following industries has the lowest rating after the most recent financial meltdown? a. High Tech b. Pharmaceutical c. Banking d. Automotive e. Gold mining

Banking

Congress passed the ____________ to give the EPA the ability to track the 75,000 industrial chemicals currently produced or imported into the United States. a. Food Quality Protection Act b. Federal Insecticide, Fungicide, and Rodenticide Act c. Toxic Substances Control Act d. Safe Drinking Water Act e. Federal Water Pollution Control Act

C

The misuse and misallocation of scarce resources is an ethical issue related to a. racial differences. b. cultural differences. c. multinational corporations. d. legal differences. e. international negotiations.

C

An ethical issue is a problem, situation, or opportunity a. requiring an individual, group, or organization to choose between harming consumers or the environment and earning more profits. b. that harms consumers. c. requiring society to choose among several actions that must be evaluated as right or wrong. d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. e. that harms the environment.

D

Morals

Definition: A person's personal philosophies about what is right or wrong

corporate social responsibility

Definition: An organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact

federal sentencing guidelines for organizations

Definition: Approved by Congress in November 1991, set the tone for organizational ethical compliance programs in the 1990s

Business Ethics

Definition: 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

Values

Definition: Enduring beliefs and ideals that are socially enforced

Consumers' Bill of Rights

Definition: From President John F. Kennedy's 1962 "Special Message on Protecting the Consumer Interest" that outlined four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard

Principles

Definition: Specific and pervasive boundaries for behavior that should not be violated

Fostering ethical decision making within an organization requires improving the firm's ethical standards and a. conducting simulation exercises. b. terminating ethical persons. c. securing ethical suppliers. d. improving unethical persons. e. terminating unethical persons.

E

Moral philosophy refers to a. the morality of business activities. b. the system of values by which a person lives. c. the legality of business activities. d. the principles or rules that all businesspeople use in making business decisions. e. the principles or rules that people use to decide what is right and wrong.

E

Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking? a. Pacesetting leadership b. Authoritative leadership c. Coercive leadership d. Coaching leadership e. Affiliative leadership

E

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

False

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

Freedom

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

Global Compact

Defense Industry Initiativr on business ethics and conduct

developed to guide corporate support for ethical conduct