Intro to Business Chapter 2 Mcgraw Hill, Ch. 2 Business ethics and Social responsibility, Business Ethics CH 3, EXAM 1 BUS
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Select the questions to consider when determining whether an action is ethical
- Are there legal restrictions? - How does this activity fit with your own beliefs and values? -Is this action customary in your industry? Would this activity be accepted by your co-workers?
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
- The right to choose - The right to be heard - The right to be informed - The right to safety
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When it comes to fairness and honesty, which two actions are expected of businesses?
1. to avoid harming customers , employees, clients, or competitors 2. to follow applicable laws and regulations
The Global Business Ethics Survey found that nearly_______of employees surveyed observed examples of ethical misconduct.
50%
Social responsibility is defined as ________.
A business's obligation to maximize its positive impact and minimize its negative impact on society
maximize the owner's investments in the firm
A business's primary obligation to its owners and investors is to ____
corporate citizenship
A commitment to ____ by a firm indicates a strategic focus on fulfilling the legal, ethical, economic, and voluntary responsibilities expected of it by its stakeholders
facilitation
A payment made to obtain or retain business and is not considered a bride within the United States is defined as ___.
Which behavior is the most common ethical problem for employees?
Abusive behavior
choose
According to the consumer bill or rights, the right to ____ ensures that consumers have access to a variety of goods and services at competitive prices
False
Active bribery is an offense committed by the official who receives the bribe.
government agency
All of the following generate discussion about the ethical nature of a decision EXCEPT ___. government agency individuals in the business the mass media blogs and podcasts special interest groups
Dodd-Frank
An act that was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?
ethical issue
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical
personal ethics
An individual's values, principles, and standards of conduct
Which of the following is an area of environmental concern in society today?
Animal rights, waste disposal, business practices that harm endangered wildlife, and land pollution
Why is ethical decision making difficult?
Because there are always gray areas that create dilemmas
Money given in exchange for a special favor is called a _____ and benefits an individual or a company at the expense of other stakeholders.
Bribery
Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.
Bribery and are unethical
What type of behavior creates a hostile workplace environment but has little legal recourse?
Bullying
______ is/are principles and standards that determine acceptable conduct in business.
Business ethics
_______ refers to the rules and regulations that govern the conduct of business.
Business law
Which scenario exemplifies one of the most common ways employees abuse company resources?
Callie uses her company computer to shop online and check her Facebook page.
Which of the following is not one of the dimensions of social responsibility?
Citizenship
ethics
Codes of ____ are formalized rules and standards describing expected employee behavior
The warning on cigarette packages about the health implications of smoking is an example of which of the following ethical issues?
Communications
This exists when a person must choose whether to advance his or her own personal interests or those of others.
Conflict of interest
Which ethical issue is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?
Conflict of interest
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.
Consumerism
Which of the following have not been cited in your text as incidents of unethical business activity recently?
Corporate charitable giving
related to lying by commission
Creating a perception or belief by words that intentionally deceives someone is ___. related to lying by ommission lying by intent "noise" lying by commission what is defined as white lie
Read the items to determine if they apply to civil or criminal law
Criminal law: - enforced by the state or nation -imposed a fine or imprisonment - prohibits a specific kind of action like unfair competition Civil law: - enforced through the courts system by individuals or organizations - specifies the rights and duties of individuals and organizations - imposes a fine, but not imprisonment
Knowing the importance of employee relations, what is the likely result of a company that does NOT listen to employee grievances or treat employees fairly?
Difficulty in attaining company goals
union affiliation
Discrimination on the basis of all but which of the following is defined as harassment? age gender marital status union affiliation national origin
Congress passed the _______ - __________ Act, which includes a "whistleblower bounty program"
Dodd- Frank Act
Which act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?
Dodd-Frank
Being profitable relates to which social responsibility dimension?
Economic
What person is engaged in plagiarism?
Edmund, a manager, takes credit for his employee's ideas.
Water and soil pollution from oil and gas drilling is primarily what type of concern?
Environmental Issues
While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.
Ethical
individual moral standards and values, the influence of managers and co-workers, the opportunity to engage in misconduct
Ethical decisions in an organization are influenced by three key factors:
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.
Ethical issue
Which statement is TRUE of business ethics?
Ethical issues are not limited to for-profit organizations.
true
Ethical issues often emerge from conflict (t/f)
Codes of _______ are formalized rules and standards describing expected employee behavior.
Ethics
Fairness and honesty are at the heart of business _______ and relate to the general values of decision makers.
Ethics
ethics
Fairness and honesty are at the heart of business ____ and relate to the general values of decision makers
T/F? All a business has to do to maintain ethical conduct is to follow the law.
False
T/F? Conflicts of interest are payments, gifts, or special favors intended to influence the outcome of a decision.
False
T/F? Corporate citizenship is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their owners.
False
T/F? It is almost always easy to recognize specific ethical issues.
False
T/F? Managers consider social responsibility on an annual basis.
False
T/F? Only corporations have to worry about ethics scandals and social responsibility issues.
False
communication
False and misleading advertising is an example of how ____ is in an area in which ethical concerns may arise
Of all the federal regulatory units, the_____ most influences business activities related to questionable practices that create disputes between businesses and their customers
Federal Trade Commission
Which organization allocates a large portion of its resources to curbing false advertising, misleading pricing, and deceptive packaging and labeling?
Federal Trade Commission
Select from the following the four stages of social responsibility.
Financial; Ethics; Legal compliance; Philanthropy
When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as
Global Warming
When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as _____ _____.
Global Warming
Which statement is accurate regarding the use of alternative energy?
Government subsidies will most likely be needed in order to make significant progress in the use of alternative energy.
______ refers to creating a positive association with environmental issues for an unsuitable product, service, or practice.
Greenwashing
Knowing the importance of employee relations, what is the likely result of a company that listens to employees' grievances and treats them fairly?
Higher morale among employees
Select the questions to consider when determining whether an action is ethical. (Select all that apply)
How does this activity fit with your own beliefs and values? Are there legal restrictions? Would this activity be accepted by your co-workers? Is this action customary in your industry?
whistleblowers to come forward with information
In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ____
True
In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made.
Which three are outcomes of having effective business ethics programs and organizational ethics initiatives?
Increased customer loyalty Increased profitability for the firm Greater employee satisfaction
______ is an example of conflict of interest.
Insider trading
_______ is an example of a conflict of interest.
Insider trading
stocks
Insider trading is the buying or selling of ____ by insiders who possess material that is still not public
Which of the following statements about business ethics is false?
It concerns the impact of a business's activities on society.
How does ethical conduct validate and promote confidence in business relationships?
It creates a sense of trust between partners.
Which person is engaged in a misuse of company time?
Joel spends an hour or more a day surfing the web and checking his social media sites.
Employees expect businesses to ______. (select all that apply)
Keep them informed of what is happening in their company; Pay them adequately for their work; Provide a safe workplace
Select from the following the typical actions of consumerism. (Select all that apply)
Making public service announcement;Boycotting companies; Writing letters to companies; Lobbying government agencies
Select from the following the typical actions of consumerism. (Select all that apply)
Making public service announcements Boycotting companies Writing letters to companies Lobbying government agencies
Identify the TRUE statement about legal issues in business.
Many problems in business could be avoided if managers and employees knew more about business law and the legal system.
Joe spends an hour or more each day at work checking his Facebook page, Twitter account, and watching YouTube videos, even though it is against company policy to do so. Joe is guilty of which form of misconduct?
Misuse of company time
true
Most legal issues arise as choices that society deems unethical, irresponsible, or unacceptable (t/f)
Which craft brewer is the first all-wind-powered brewery in the United States?
New Belgium Brewing Company
Which craft brewer is the first all0wind -powered brewery in the United States?
New Belgium Brewing Company
Laws regulating safety in the workplace are enforced by ______.
OSHA
safety
OSHA regulates the ____ of employees in the workplace
Laws regarding safety in the workplace are enforced by the _____?
Occupational Safety and Health Administration (OSHA)
Regarding the misconduct of business firms, which of the following statements is TRUE?
Often, misconduct evolves from ethical conflicts into legal disputes.
ethics should be a part of core organizational values
Organizations that adopt integrity-based ethical initiatives recognize that ____
false
Organizations that exhibit a high ethical culture discourage employees from acting with integrity and adhering to business values (t/f)
An individual's values, principles, and standards of conduct are referred to as ______.
Personal ethics
Which is not a dimension of social responsibility?
Philosophic
A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.
Profitability
OSHA regulates the ______ of employees in the workplace.
Safety
Thinking of the various categories for misconduct in the workplace, select from the following the person who is engaged in misconduct based on "fairness and honesty"
Sandra takes reams of copy paper from the office to use with her printer at home.
Thinking of the various categories for misconduct in the workplace, select the person who BEST fits misconduct based on "fairness and honesty."
Sandra takes reams of copy paper from the office to use with her printer at home.
The _______ Act criminalized securities fraud and toughened penalties for corporate fraud.
Sarbanes-Oxley
Which act criminalized securities fraud, strengthened penalties for corporate fraud, and created an accounting oversight board?
Sarbanes-Oxley Act
The_____ Antitrust Act, passed in 1890, was put in place to prevent businesses from restraining trade and monopolizing markets.
Sherman
To truly create an ethical culture, managers must ______.
Show a strong commitment to ethics and compliance
Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______.
Social responsibility
What do studies show about the relationship between social responsibility and profitability?
Social responsibility is associated with improved business performance.
a business's obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility it defined as
Match the terms to their descriptions.
Social responsibility- this relates to the impact of an entire businesses' activities on society Business ethics- this relates to an individual's or work group's decision that society evaluates as right or wrong
the misuse of company resources
Spending work hours looking at personal email, submitting personal expenses on company reports and using the company copier for personal use are all example of ____
Philanthropic activities
Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
Ethics, principles, and values
Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices.
Financial and economic viability
Starbucks offers investors a healthy return on investment, including paying dividends.
Compliance with legal and regulatory requirements
Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country.
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as _____.
Sustainability
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as ________.
Sustainability
Which scenario exemplifies one of the most common ways employees abuse company resources?
Taylor uses her company computer to shop online and check her Facebook page.
Consumerism
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
legally; cultural
The current trend is to move away from ____-based ethical initiatives in organizations to ____-based initiatives that make ethics a part of core organizational values
corporate citizenship
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ____
codes of ethics
The formalized rules and standards describing expected employee behavior are outlined in ____
What is not an area of environmental concern in society today?
The hard-core unemployed
What role does the media play when it comes to ethical conduct by business?
The media reports on unethical behavior by businesses far more often than businesses with good ethical behavior.
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
The right to choose The right to be heard The right to safety The right to be informed
Which scenario best represents a company with a strong ethical culture?
The top management at Tom's company clearly communicate to all employees the ethical behavior that is expected of them.
employee loss of trust in the company, a lack of transparency among company leaders, and unfair employee treatment
Three most common factors that executives give for why turnover increases are:
ethical
To build trust among individuals, organizations should adhere to conduct that is ____ in order to validate and promote confidence in business relationships
When it comes to fairness and honesty, what two things are expected of businesses?
To follow applicable laws and regulations; To avoid harming customers, employees, clients or competitors
T/F? A major social responsibility for business is providing equal opportunities for all employees.
True
T/F? Codes of ethics are formalized rules and standards that describe what the company expects of its employees.
True
T/F? Ethical decisions in an organization are influenced by three key factors.
True
T/F? Ethics is related to the culture in which a business operates.
True
T/F? Increasingly, companies are introducing eco-friendly and socially responsible products to satisfy consumer demand and improve their images.
True
T/F? Nearly all business decisions may be judged as right or wrong, ethical or unethical.
True
T/F? Sustainability involves conducting activities so as to provide for the long-term well-being of the natural environment, including all biological entities.
True
T/F? The most basic ethical concerns have been formalized through laws and regulations that encourage conformity to society's values and norms.
True
T/F? Theft of time is the leading area of misconduct observed in the workplace.
True
T/F? Voluntary responsibilities are optional activities that promote human welfare or goodwill
True
T/F? Workplace bullying is an increasing problem
True
True or false: Ethical issues often emerge from conflict.
True
True or false: Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.
True
True or false: Perceptions of ethics can differ in different societies.
True
True or false: When it comes to business ethics in the workplace, the "fairness and honesty" principle means, in part, not harming customers, employees, clients or competitors knowingly through deception.
True
Which of the following should help reduce the incidence of unethical behavior in an organization?
Understanding that individual moral standards, the influence of managers and coworkers, and opportunity influence ethical behavior
What two criticisms are levied against businesses regarding unemployment?
Unwillingness to train employees Unfair hiring standards
What has been identified as the most common way employees abuse company resources?
Using company computers for personal use
What three items represent a misuse of company resources?
Using the company copier for personal use Submitting personal expenses on a company expense report Using the company computer for sending personal e-mails
Philanthropic contributions made by a business to a charitable organization represent which dimension of social responsibility?
Voluntary
social responsibility is associated with improved business performance
What do studies show about the relationship between social responsibility and profitability?
abusive
What kind of behavior is the most common ethical problem for employees?
the media reports on unethical behavior by businesses far more than businesses with good ethical behavior
What role does the media play when it comes to ethical conduct by business?
affirmative action programs
Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions? facilitation payments employment quotas optimization dual relationships affirmative action programs
working more hours than reported
Which of the following is NOT one of the top types of observed misconduct? internet use abuse lying to employees abusive behavior putting one's own interests ahead of the org working more hours than reported
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
Whistleblower
Employees who report concerns about a unethical company practices to a government regulatory agency are called ______.
Whistleblowers
________ is the act of an employee exposing an employer's wrongdoing to outsiders.
Whistleblowing
All of the following are questions to consider in determining whether an action is ethical EXCEPT ______.
Will this activity further my career?
All of the following are questions to consider in determining whether an action is ethical EXCEPT __________.
Will this activity further my career?
abusive behavior
____ is difficult to assess and manage because of diversity in culture and lifestyle
business ethics; social responsibility
____ relates to the principles and standards that determine acceptable conduct in business organizations, whereas ____ is a broader concept that concerns the impact of the entire business's activities on society
Social Responsibility
a business's obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility is defined as ______.
a business's obligation to maximize its positive impact and minimize its negative impact on society
social responsibility
a business's obligation to maximize its positive impact and minimize its negative impact on society
agency
a common business relationship created when one person acts on behalf of another and under that person's control
tort
a private or civil wrong other than breach of contract. For example, a tort can result if the driver of a Domino's Pizza delivery car loses control of the vehicle and damages property or injures a person.
ethical issue
a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical
Sustainability refers to____
a product's or company's ability to exist without causing harm to the environment
Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?
abusive behavior
When some chemical compounds emitted by manufacturing facilities react with air and rain, the resulting type of air pollution is called_______
acid rain
Ethical Issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
What is the dispute resolution method that involves submission of a dispute to one or more people, usually chosen by the disputing parties, whose decision usually is final and must be followed?
arbitration
Even though there are plenty of people unemployed, many companies have positions that go unfilled. A survey in Indiana revealed that 39% of companies surveyed say the reason positions go unfilled is because applicants ______.
are not qualified
If a business cannot meet its financial obligations its must sometimes file for______
bankruptcy
The right to ______ gives consumers the freedom to review complete information about the products they are buying.
be informed
Why is ethical decision making difficult?
because there are always gray areas that create dilemmas
What are two typical forms of consumerism?
boycotting companies and writing letters to companies
Money given in exchange for a special favor is called a _____ and it benefits an individual or a company at the expense of other stakeholders
bribe
money given in exchange for a special favor is called a ______ and it benefits an individual or a company at the expense of other stakeholders.
bribe
Money given in exchange for a special favor is called a _____ and benefits an individual or a company at the expense of other stakeholders.
bribery
Payments, gifts, or special favors intended to influence the outcome of a decision
bribery and are unethical
Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.
bribery and are unethical
Although sexual harassment has legal recourse, _______had little recourse at this time
bullying
Although sexual harassment has legal recourse, workplace _______ has little legal recourse at this time.
bullying
During the 2020 pandemic shutdown, many companies were forced to move to a remote working situation. In terms of unethical behavior, the likely reduced incidents of
bullying
What type of behavior creates a hostile workplace environment but has little legal recourse?
bullying
____is/are principles and standards that determine acceptable conduct in business
business ethics
The legal rules and regulations that govern the conduct of business is referred to as ______.
business law
_______________ refers to the rules and regulations that govern the conduct of business
business law
If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical, such as engaging in accounting fraud or stealing a competitor's secrets, there exists an ethical issue related to _______.
business relationships
product liability
businesses' legal responsibility for any negligence in the design, production, sale, and consumption of products
Global Warming
carbon dioxide in the earths atmosphere prevents the earth's surface from cooling
Natalia notices that one of her coworkers takes extended lunch hours and often leaves the office early. In deciding whether or not to report this behavior, what should Natalia do first?
check her company's policies and codes of ethics regarding this behavior
COPPA was enacted in 2000 to protect which aspect of Internet activity ?
children's online activities
According the the consumer bill of rights, the right to _____ ensures that consumers have access to a variety of goods and services at competitive prices.
choose
______ law specifies the rights and duties of individuals and organizations and violations may result in fines but not imprisonment
civil
The formalized rules and standards describing expected employee behavior are outlined in ______.
codes of ethics
False and misleading advertising is an example of how _______ is an area in which ethical concerns may arise.
communication
Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to ________.
communications
sustainability
conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities. Sustainability involves the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment
Sustainability can be defined as _____.
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as ______
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as ______.
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as________
conducting activities in such a way as to provide for the long-term well-being of the natural environment
This exists when a person must choose whether to advance his or her own personal interests or those of others.
conflict of interest
Which ethical issue is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?
conflict of interest
The activities that independent individuals , groups, and organizations undertake to protect their rights as consumers is called______
consumer
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.
consumerism
A_________is a mutual agreement between two or more parties that van be enforced in a court if one party chooses not to comply
contract
The most common way that businesses exercise community responsibility is through ______.
contributions to charitable organizations
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ______.
corporate citizenship
_____law not only prohibits a specific kind of action, such as unfair competition or mail fraud, but also imposed a fine or imprisonment for violating the law.
criminal
When a business is accused of mail fraud and members of the staff face possible imprisonment, it is an example of
criminal law
What is considered ethical may differ depending on the ______ in which a business operates.
culture
Experience with the _____ in which a business operates is critical to understanding what is ethical or unethical.
culture, cultural, or society
What are stakeholders?
customers, competitors, government regulators, interest groups, the public
Unethical behavior in business can be reduced if management does all of the following except _______.
depends totally on employees' personal ethics.
Business Ethics
determine acceptable conduct in business organizations
Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which three of the following? (Select all that apply)
dishonesty conflicts of interest manipulation
Businesses must first be responsible to their owners, who are primarily concerned with ______.
earning a profit
Businesses must first be responsible to their owners, who are primarily concerned with______
earning a profit
Wind power, solar power, and nuclear power are all forms of alternative _____ sources that businesses are turning to in order to reduct carbon emissions.
energy, power, or fuel
To build trust among individuals, organizations should adhere to conduct that is _____ in order to validate and promote confidence in business relationships.
ethical
While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.
ethical
What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?
ethical conflict
An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
ethical issue
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.
ethical issue
Jarek is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. His only other choice is to accept he hasn't met the goal and will lose some of his commission. The exemplifies a(n)______
ethical issue
Trevor is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. This exemplifies a(n) ______.
ethical issue
Codes of _______ are formalized rules and standards describing expected employee behavior.
ethics
Fairness and honesty are at the heart of business _____ and relate to the general values of decision makers.
ethics
Organizational _____ initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty.
ethics
Organizations that adopt integrity-based ethical initiatives recognize that ______.
ethics should be a part of core organizational values
What are the 4 categories of social responsibility?
ethics, legal, economic, philanthropy
puffery
exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely
If Sony was investigated for allegedly raising prices of its PlayStation excessively during the Christmas buying season and thereby manipulating the supply of games available at that time, this would be an ethical issue concerned primarily with _____.
fairness and honesty
That businesspeople are expected not to harm customers, clients, and competitors knowingly through deception, misrepresentation, coercion, or discrimination is part of ______.
fairness and honesty
What is at the heart of business ethics?
fairness and honesty
The Dodd-Frank Act was passed to reform the ______ industry.
financial
What is industry is least trusted in business?
financial services
A code of ethics represents ______ rules and standards of what a company expects of its employees.
formalized
codes of ethics
formalized rules and standards that describe what a company expects of its employees
One role of the FTC's Bureau of Consumer Protection is to protect consumers from _____.
fraud
What is a purposefully unlawful act to deceive or manipulate in order to damage others?
fraud
Knowing the importance of employee relations, what is likely result of a company that listens to employees' grievances and treats them fairly?
higher morale among employees
A manufacturer made the decision to buy less expensive materials from another supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ______.
how negative impressions of a business can affect its ability to achieve its goals
A manufacturer made the decision to buy less expensive component parts from a supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ________
how negative judgements can affect an organization's ability to achieve its goals
implied warranty
imposed on the producer or seller by law, although it may not be a written document provided at the time of sale
What is 'Trust in Business' ?
in business, trust is the glue that holds relationships together.
Ethical decisions in organizations are influenced by what 3 key factors?
individual moral standards, the opportunity to engage in misconduct, the influence of managers and co-workers
3 factors that influence Business Ethics
individual standards and values, influence of managers and co-workers, opportunity: codes and compliance requirements
Arbitration
involves submission of a dispute to one or more third-party arbitrators, usually chosen by the disputing parties, whose decision usually is final
integrity
is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition. fairness integrity values reciprocity honesty
The fact that environmental responsibility requires trade-offs means that _____.
it imposes costs on both business and the public
The legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case is referred to as _______
jurisdiction
Employees except businesses to__________
keep them informed of what is happening in their economy, pay them adequately for their work, provide a safe workplace
The following behavior is an example of ethical consideration within business relationships:
keeping company secrets
When one individual or organization takes another to court using civil laws, that individual is attempting to resolve a conflict through a
lawsuit
The primary method of resolving conflicts and business disputes using civil law is through_____
lawsuits
Bankruptcy is sometimes called ______ insolvency.
legal
Select from the following the four stages of social responsibility.
legal compliance ethics financial philanthropy
The current trend is to move away from _______ -based ethical initiatives in organizations to _______ -based initiatives that make ethics a part of core organizational values.
legally; cultural
Codes of ethics foster ethical behavior by _______.
limiting the opportunity to behave unethically by providing punishments for violations of the rules and standards
Social responsibility defined
maximize positive and negative impact
3 major factors associated with corporate social responsibility
maximize positive societal impact, minimizing negative societal impact, and acting in the organization's best interest in returning a profit
A business's primary obligation to its owners and investors is to_____
maximize the owner's investments in the firm
A business's primary obligation to its owners and investors is to ______.
maximize the owners' investments in the firm
Select the three items that would be considered ethical behavior in a business.
meeting obligations and responsibilities avoiding conflicts of interest keeping company secrets
Rachel spends an hour or more each day at work checking her Facebook feed, Instagram account, and watching Youtube videos. Rachel is guilty of which form of misconduct?
misuse of company time
consideration
money or something of value must be given in return for fulfilling a contract
Studies have shown that organizations that employ a diverse set of leaders tend to be _____ profitable. (more/less)
more
Studies have shown that organizations that employ a diverse set of leaders tend to be ______ profitable.
more
Laws and Regulations
most basic ethical and social responsibility concerns have been codified by laws and regulations; encourage businesses to confirm to society's standards, values, attitudes
Federal Trade Commission (FTC)
most influences business activities related to questionable practices that create disputes between businesses and their customers
Whistleblowers can be helped by protecting them from ______.
negative treatment on the job
According to the text, ethical decisions in an organization are influenced by (1) individual moral standards, (2) the influence of managers and co-workers, and (3) ______.
opportunity to engage in misconduct.
Acceptability of behavior determine by
organization
Sherman Antitrust Act
passed in 1890 to prevent businesses from restraining trade and monopolizing markets, condemns "every contract, combination, or conspiracy in restraint of trade."
Bribes
payments, gifts, or special favors intended to influence the outcome of a decision
bribes
payments, gifts, or special favors intended to influence the outcome of a decision
An individual's values, principles, and standards of conduct are referred to as ______.
personal ethics
An individual's values, principles, and standards of conduct are referred to as _______
personal ethics
What is the focus for future legislative efforts regarding business conducted on the internet?
personal private protection
If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in ______.
plagiarism
When employees copy the work or ideas of others and present it as his or her own this is called _______.
plagiarism
When companies follow the key factors of Corporate Social Responsibility, a _____ usually results, thus_____
positive public image, attracting more customers
An agency relationship, the ______ is the one who wishes to have a specific task accomplished
principal
A number of studies have found a direct relationship between social responsibility and_________as well as a link that exists between employee commitment and customer loyalty
profitability
Studies have found a direct link between social responsibility and _______ in business.
profitability
Employees expect businesses to ______. (select all that apply)
provide a safe workplace keep them informed of what is happening in their company pay them adequately for their work
Which type of property consists of real estate and anything permanently attached to it ?
real property
business law
refers to the rules and regulations that govern the conduct of business
society
regardless of what an individual believes about a particular action, if ____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals
The Sarbanes-Oxley Act was passed to help ______.
restore confidence in Corporate America
Land pollution
results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
Acid rain
results when certain chemical compounds emitted by manufacturing facilities react with air and rain
Water Pollution
results when the burial of industrial waste leeches into underground water supplies
A firm that is viewed negatively may have a hard time ______. (select all that apply)
retaining employees attracting investors building customer relationships
OSHA regulates the ______ of employees in the workplace.
safety
OSHA regulates the _______ of employees in the workplace.
safety
Customer
safety; the right to safety, the right to be informed, the right to choose, and the right to be heard
To truly create an ethical culture, managers must ______.
show a strong commitment to ethics and compliance
To truly create an ethical culture, manager must _________.
show a strong commitment to ethics and compliance.
Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______.
social responsibility
What do studies show about the relationship between social responsibility and profitability?
social responsibility is associated with improved business performance.
Regardless of what an individual believes about a particular action, if _____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals.
society
Regardless of what an individual believes about a particular action, if ______ judges it to be unethical or wrong, whether correctly or not, that judgement directly affects the organization's ability to achieve its business goals
society or the public
The Uniform Commercial Code is a set of ______
statutory laws covering several business laws topics
Insider trading is the buying or selling of _____ by insiders who possess material that is still not public.
stock
Conducting activities in such a way to provide for the long-term well-being of the natural environment is referred to as______
sustainability
What are the two subsets of personal property?
tangible and intangible
What industry is globally trusted in business?
technology
Studying business ethics will not necessarily _______.
tell you what you ought to do
financial
the Dodd-Frank Act was passed to reform the ____ industry
whistleblowing
the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies
Plagiarism
the act of taking someone else's work and presenting it as your own without mentioning the source
plagiarism
the act of taking someone else's work and presenting it as your own without mentioning the source
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What key factor would keep Jacinta from behaving unethically?
the ethical behavior of her managers and co-workers
breach of contract
the failure or refusal of a party to a contract to live up to his or her promises
According to your text, ethical decisions in organizations are influenced by which three key factors?
the influence of managers and co-workers the opportunity to engage in misconduct individual moral standards and values
According to your text, ethical decisions in organizations are influenced by which three key factors?
the influence of managers and co-workers; the opportunity to engage in misconduct; individual moral standards and values
Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of ______.
the misuse of company resources
According to your text, ethical decisions in organizations are influenced by what three key factors?
the opportunity to engage in misconduct, individual moral standards and values, the influence of managers and co-workers
ROI
the right to a return on investment
Environment
the right to a sage environment and just compensation
Society
the right to contributions for the betterment of society
equality, reciprocity, and optimization
the three fundamental elements that motivated people to be fair are ___.
While unemployment is seen as an economic issue, it carries ethical implications when ______.
the unemployment gap between rich and poor is large
While unemployment is seen as an economic issue, it carries ethical implications when________
the unemployment gap between rich and poor is large
_____is a common area of misconduct observed in the workplace
theft of time
Studies have found that firms have a better chance of generating stronger profits when ______.
there are equal numbers of male and female managers
Which of the following statements about ethical issues is false?
they are are limited to for-profit organizations.
When it comes to fairness and honesty, what two things are expected of businesses?
to follow applicable laws and regulations to avoid harming customers, employees, clients or competitors
show a strong commitment to ethics and compliance
to truly create and ethical culture, managers must ____
If the driver of Quick Eats, a grocery delivery service, loses control of the car and damages property or injures a person when making a delivery, a resulting lawsuit would be an example of a
tort
True or False: Ethical issues often emerge from conflict?
true
One of the most difficult things for a business to restore after an ethics scandal is _____.
trust
A key component of ethical communications from companies to consumers is that the communication be ______.
truthful
Which issue resulting from factory closures can be considered an ethical issue because of the repercussions it has on other businesses—mainly in the loss of sales?
unemployment
Air pollution
usually the result of smoke and other pollutants emitted by manufacturing facilities
lawsuits
where one individual or organization takes another to court using civil laws
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a _____________.
whistelower
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
whistleblower
Employees who report concerns about a unethical company practices to a government regulatory agency are called ______.
whistleblowers
In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ______.
whistleblowers to come forward with information
Select from the following those items that represent a misuse of company resources.
- Using the company computer for sending personal e-mails - submitting personal expenses on a company expense report - Using the company copier for personal use
Which of the following are the three most common factors that executives give for increase in employee turnover?
- loss of trust in the company -unfair employee treatment - a lack of transparency among company leaders
According to your text, ethical decisions in organizations are influenced by which of the following key factors?
- the opportunity to engage in misconduct - individual moral standards and values - the influence of managers and co-workers
A code of ethics serves to ______.
-help to establish uniform ethical conduct -alert employees about important issues and risks -provide the foundation for evaluating ethical decision making
Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which of the following?
=manipulation -dishonesty -conflicts of interest
Match the stages of social responsibility with the appropriate example. -Financial viability -Compliance with legal and regulatory requirements -Ethics, principles, and values -Philanthropic activities
Financial viability- Starbucks offers investors a healthy return on investment, including paying dividends. Compliance with legal and regulatory requirements- Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country. Ethics, principles, and values- Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices. Philanthropic activities- Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
fraud
a purposeful unlawful act to deceive or manipulate in order to damage others
Uniform Commercial Code (UCC)
a set of statutory laws covering several business law topics -- Article II of the Uniform Commercial Code covers sales agreements for goods and services
Which behavior is the most common ethical problem for employees?
abusive behavior
_____ is difficult to assess and manage because of diversity in culture and lifestyle.
abusive behavior
physical threats, false accusations, use of profanity's and yelling at others all fall under which category of organizational misconduct?
abusive behavior
can differ from person to person
abusive or intimidating behavior ___. can differ from person to person relates only to profanity does not relate to ignoring someone does not need intent as a consideration is a problem but is clearly defied by the legal sysem
consumerism
activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
ethical issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
The legal ability to enter into a contract is called contractual _________ and my be restricted by age or mental capacity.
capacity
According to the consumer bill of rights, the right to ________ ensures that consumer have access to a variety of goods and services at competitive prices.
choose
voluntary agreement
comes about when one party makes an offer and the other accepts. If both the offer and the acceptance are freely, voluntarily, and knowingly made, the acceptance forms the basis for the contract
Criminal and civil laws are derived from four sources. Which source refers to precedents established by judges?
common law
sustainability can be defined as.
conducting activities in such a ways as to provide for the long-term well-being of the natural environment.
This exists when a person must choose whether to advance his or her own personal interests or those of others
conflict of interest
real property
consists of real estate and everything permanently attached to it
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called _________.
consumerism
A ________ is a mutual agreement between two or more parties that can be enforced in a court if one part chooses not to comply.
contract
According to most states, all of the following contract should be in writing EXCEPT ___________.
contracts for the sale of goods under $500
_______ protect the ownership rights on material (often intellectual property) such as books, music, videos, photos, and computer software.
copyrights
The extent to which businesses meet the four dimensions of social responsibility placed on them by stakeholder is referred to as _______ citizenship.
corporate
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholder is referred to as ________.
corporate citizenship
Laws are classified as either criminal or civil. _______ law not only prohibits a specific kind of action, such as unfair competition or mail fraud, but also imposes a fine or imprisonment for violation the law. ________ law specifies the rights and duties of individuals and organizations and violations may result in fines but not imprisonment.
criminal civil
Sarbanes-Oxley Act
criminalized securities fraud and strengthened penalties for corporate fraud
appellate court
deals solely with appeals relating to the interpretation of law. Thus, when you hear about a case being appealed, it is not retried, but rather reevaluated
Businesses must first be responsible to their owners, who are primarily concerned with _______.
earning a profit
Wind power, solar power, and nuclear power are all forms of alternative ________ sources that businesses are turning to in order to reduce carbon emissions.
energy
Codes of _______ are formalized rules and standards that describe what the company expects of it s employees.
ethics
Fairness and honesty are at the heart of business ______ and relate to the general values of decision makers.
ethics
Organizations that adopt integrity-based ethical initiatives recognize that _______.
ethics should be a part of core organizational values
conflict of interest
exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group
Bankruptcy is sometimes called ________ insolvency.
legal
In business law, the state or condition of being lawful is referred to as ________.
legality
Abusive behavior is difficult to assess and manage because ________.
people have very diverse cultures and lifestyles
An individuals values, principles, and standards of conduct are referred to as _________.
personal ethics
When employees copy the work or ideas of others and present it as his or her own this is called __________.
plagiarism
business ethics
principles and standards that determine acceptable conduct in business
A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.
profitability
Clayton Act
prohibits price discrimination, tying and exclusive agreements, and the acquisition of stock in another corporation where the effect may be to substantially lessen competition or tend to create a monopoly
Real, personal, and intellectual property are all covered under ______ law when it comes to disputes about ownership and transfer.
property
express warranty
stipulates the specific terms the seller will honor
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. Which of the following is a key factor in keeping Jacinta from behaving unethically?
the behavior of her manager's and co-workers.
trial court
the court (acting through the judge or a jury) must determine the facts of the case (if there is conflicting evidence, the judge or jury must decide who to believe) Second, the judge must decide which law or set of laws is pertinent to the case and must then apply those laws to resolve the dispute.
Corporate citizenship
the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders
contractual capacity
the legal ability to enter into a contract.
Jurisdiction
the legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case
Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of _______.
the misuse of company resources
bribery
the practice of offering something (usually money) in order to gain an illicit advantage
What is the most common way businesses exercise their community responsibility?
through donations to charitable organizations?
Match the description to the pollution term it represents. Water pollution Air pollution Acid rain Global warming Land pollution
water pollution- the burial of industrial waste that may leech into undergrounds water supplies Air pollution- usually the result of smoke and other pollutants emitted by manufacturing facilities Acid rain- Chemical compounds that react with air and rain Global warming- carbon dioxide in the earths atmosphere prevents the earth's surface from cooling Land pollution- results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
