Exam 1 (Ch. 1 &2)

John F. Kennedy's - Consumer's Bill of Rights

- Right to safety - Right to be informed - Right to choose - Right to be heard

Consumers' Bill of Rights - Era (year)

1960's

Corporate Social Responsibility - Era (Year)

1970's

Defense Industry Initiative on Business Ethics and Conduct - Era (Year)

1980's

Federal Sentencing Guidelines for Organizations - Era (Year)

1990's

Sarbanes-Oxley Act - Era (Year)

2000's

Morals

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

Ethical Culture

Acceptable behavior as defined by the company and industry that captures the values and norms of the company

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

Corporate social responsibility

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

Federal Sentencing Guidelines for Organizations

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

Benefits of BE - Customer Satisfaction

Companies viewed as socially responsible gain a high amount of customer trust and satisfaction

Defense Industry Initiative on Business Ethics and Conduct

Developed to guide corporate support for ethical conduct

Values

Enduring beliefs and ideals that are socially enforced

Benefits of BE - Profits

Ethical culture helps a company stay ahead of its competitors thereby gaining more profits

Benefits of BE - Investor loyalty

Investors are aware of the contributions of ethical conduct in providing a foundation for efficiency, productivity, and profits in a firm

Principles

Specific and pervasive boundaries for behavior that should not be violated

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

a. Global Compact

The ethical component of a corporate culture relates to the values, beliefs and established and enforced patters of conduct that employees use to identify and respond to ethical issues. a. True b. False

a. True

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

a. customers

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 culture values and low industry competition

b. An ethical culture and good business performance

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

b. False

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

b. customer satisfaction

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

b. freedom

Before anything else, businesses must ? to survive. a. be popular b. make a profit c. sell internationally d. have a great reputation e. compensate their employees well

b. make a profit

According to the text, business ethics compromise 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

b. norms

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

c. Granite Construction

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

c. banking

Which of these argued that it is impossible to eradicate all wrongdoings 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

d. Warren Buffet

Because of the recent global and 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

d. capitalism

Benefits of BE - Employee commitment

development of an ethical culture leads to employee retention and loyalty, which increases employee performance