Chapter 4
In a 2018 survey conducted by Edelman, the percentage of Americans who trust business had dropped to _____.
52%
An ethical system defining acceptable behavior as that which maximizes benefits for the individual is
egoism
____ ethics suggests that what is moral must come from what a mature person with good moral character would deem right.
virtue
Which of the following are fundamental sources of risk in modern society?
- excessive production of hazards - ecologically unsustainable consumption of natural resources
Why are companies incorporating environmental values into their competitive strategies and design of their products?
- to satisfy consumer demand - create a competitive adv. - react to a competitor's actions - comply w/ guidelines
What are some of the requirements of the Sarbanes-Oxley Act?
-Companies must adhere strictly to accounting rules. -Senior managers must personally sign off on financial results. -Companies must have more independent board directors.
Which of the following are danger signs that an organization may be allowing or encouraging unethical behavior?
-Failure to establish a written code of ethics -Treating ethics only as a legal issue or public relations tool. -Excessive emphasis on short-term revenues over longer-term considerations
Which of the following would create a climate conducive to unethical behavior?
-Responsiveness to shareholders at the expense of other stakeholders
An ethical leader:
-is personally moral -influences others to behave ethically -is a moral manager
Which of the following are ethical issues that managers encounter with the use of technology in the workplace?
-loss of productivity -disclosure of confidential information -computer users introducing viruses
What led to the creation of the Caux Principles?
International executives felt the need to establish global, universal ethical principles for business.
Which of the following best defines the ethical system known as utilitarianism?
It is an ethical system in which the goal is to create the greatest good for the greatest number.
Which one of the following is not part of the process for making ethical decisions?
Moral control
Behaving ethically requires which of the following?
Moral judgment Moral awareness Moral character
Someone who is both a moral person and a moral manager that influences others to behave ethically is called a(n) _____.
ethical leader
Businesses view environmental issues as no-win situations; either you help the environment and hurt your business or you help your business and hurt the environment.
false
Which of the following explain how a code of ethics influences the ethical climate of an organization?
- It helps promote a positive image - It helps create a strong ethical culture
Which of the following criteria would indicate an ethical action when evaluating your ethical duties?
- You would be proud to see the action widely reported in newspapers. - It doesn't harm the "least among us." - You would be willing to see others take the same action when you might be the victim.
The ethical principles established by international executives in Switzerland, along with business leaders from Japan, Europe, and the United States are called
Caux Principles
How are ethical responsibilities different from legal responsibilities?
Ethical responsibilities include meeting other societal expectations, not only the law.
What is the role of courage in taking action on ethical decisions?
It is necessary to take actions consistent with your ethical decisions.
_____ is an act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
Sarbanes-Oxley Act
What is the relationship between corporate environmental performance and profitability?
Some research has shown a positive relationship with improved profitability and corporate environmental performance.
How do companies today reconcile profit maximization with corporate social responsibility?
They complete cost-benefit analysis to identify actions that will maximize profits while satisfying the demand for corporate social responsibility.
When running a business, what is the economic responsibility of the organization?
To produce goods and services for society at a price so the business survives and meets investor obligations
A company is losing market share and realizes it must increase efficiency and cut costs in order to survive and succeed. It decides to shut down several underperforming facilities in the United States and open factories overseas where costs are much lower. This decision will allow the company to compete more effectively in the global market and result in more job opportunities and profits down the road. This is an example of which ethical system?
Utilitarianism
Which of the following is most consistent with the virtue ethics perspective?
What is considered to be moral must also come from what a mature person with food moral character would say is right.
Hummus International has an ethics program that includes establishing standards, overseeing compliance, and punishing wrongdoers. This is ______ ethics program.
a compliance-based
Companies, managers, and their communities all benefit over the long term when managers act with integrity and ______.
apply ethics
The practice of businesses paying bloggers to write positive comments about the business is called ______.
astroturfing
There are three requirements to ethical decision-making. The one defined as "realizing that the issue has ethical implications" is moral
awareness
The moral principles and standards that guide behavior in the business world are referred to as
business ethics
______ are the moral principles and standards that guide behavior in the business world.
business ethics
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations are called ______ ethics programs.
compliance based
The policies and practices that reflect business responsibility for some of the wider societal goods, and are a reflection of the social imperatives and social consequences of business success are called:
corporate social responsibility
What type of analysis is used by companies to identify actions that will maximize profits while satisfying the demand for corporate social responsibility?
cost benefit analysis
If your company were following the principles of ecocentric management, your primary goal would be to ______.
create sustainable economic development
Social commitments to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors are called a business' _______ responsibilities.
economic
If you were a manager of an organization, what type of responsibilities would be involved in order to meet other social expectations that are not written as law?
ethical
Ethical behavior according to how others behave is the ethical system of ______.
ethical climate
The term that refers to how decisions are evaluated and made in an organization on the basis of right and wrong is ______.
ethical climate
A(n) _____ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.
ethical issue
Jeremy is facing a situation in which he must choose among several actions that he will need to evaluate as morally right or wrong. Jeremy's situation is an example of ______.
ethical issue
The system of rules that governs the ordering of values is called ______.
ethics
According to the Sarbanes-Oxley Act, companies must have more ______ on the board of directors.
independents
Egoism is an ethical system that defines acceptable behavior as that which maximizes benefits for the ______.
individual
In order to create a culture that encourages ethical behavior a manager needs to ______.
lead others to behave ethically
A process of analyzing all inputs and outputs through the entire life of a product to determine the total environmental impact is called ______.
life-cycle analysis
For a company's ethics code to be effective it must be written by ______.
people from all levels of the company
Which type of environmental impact are some organizations striving for today?
positive
Which of the following is the final step of ethical decision making?
propose a convincing moral solution
When making an ethical decision, in order to define the complete moral problem you must understand all the moral standards and ______.
recognize all moral impacts
An obligation toward society assumed by business is called corporate _____ responsibility.
social
Executives say they pay most attention to their company's code of ethics when ______.
stakeholders influence them to do so
The economic growth and development that meets present needs without harming the needs of future generations is called _____ growth.
sustainable
The economic growth and development that meets present needs without harming the needs of future generations is called ______.
sustainable growth
What did Milton Friedman view as the social responsibility of business?
to increase profits
By demonstrating ethical leadership, managers can boost employee retention.
true
Organizations see ethics as an important issue for all of the following reasons EXCEPT that
unethical organizations always lose money when compared to ethical organizations.
The ethical system that states that all people should uphold certain values that society needs to function is called:
universalism
Which of the following are subjects commonly addressed in ethics codes?
- Employee conduct - Community and environment - Suppliers and contractors - Political activity - Technology
There are many ethical challenges facing U.S. managers today. Identify in the list below some of the ethical dilemmas managers are currently facing.
- Executive compensation - Commercialism in schools - Sweatshops - Branding
Which of the following illustrates how organizations are reacting to the environmental concerns that are both environmentally positive and profitable?
- Google developing renewable sources of energy - Industries that partner with each other so that waste materials created by one can be used by another. - Coca-Cola pledging to cut its carbon footprint by 25 percent
Which of the following factors make an ethics code effective?
- It focuses on real-life situations that employees can relate to. - It is concise and easy to understand. - Those affected by it are involved in writing the statement.
Which of the following are characteristics of ecocentric management?
- creation of sustainable economic development - improvement of quality of life worldwide for all organizational stakeholders
An ethics code, an ethics officer, ethics training, and an ethics communication system are all part of a ______.
ethics program
Most Americans believe CEO pay is
excessive
Sustainable analysis is the process of analyzing all inputs and outputs through the entire life of a product to determine the total environmental impact.
false
Corporate ethics programs commonly include ______.
formal ethics codes that detail the company's expectations
If you are running a company, and you fail to follow the worker pay and safety standards, you are not meeting your ______ responsibilities. Multiple choice question.
legal
The need to obey local, state, federal, and relevant international laws is called _______ responsibilities.
legal
A philosophy that bases ethical behavior on the opinions of relevant other people is called
relativism
We live in a society where the creation and distribution of wealth generates byproducts that can cause injury, loss, or danger to people and the environment. This is known as a(n) ______ society.
risk
The ______ model of corporate responsibility holds that managers act as agents for shareholders and, as such, are obligated to maximize the present value of the firm.
shareholders
Some research has shown a positive relationship between corporate environmental performance and profitability.
true
Which of the following are parts of the process for ethical decision making?
using judgment to recognize what actions are morally defensible having awareness to realize the issue has ethical implications having moral character to act in accordance with your ethics