Intro to Global Ch. 5

Q05 Which of the following statements about ethics for small business is true? A small business that alienates its customers can always find new customers. Because small businesses are local, any unethical behaviors on their part are never publicized. Customers care more about low prices than they do the ethical behavior of a small business. Ethics is important to a small business, because it must establish a positive reputation locally.

Ethics is important to a small business, because it must establish a positive reputation locally.

Q02 Ethics is easily defined, because everyone has the same concept of what is right and wrong. True False

False

Q30 Stockholder interests always should be considered more important than the interests of other stakeholders in an organization. True False

False

Q31 Firms are not liable for the unethical actions of their employees in the workplace. True False

False

Q19 The three questions that are usually asked when addressing ethical scenarios are Is it legal? Would I want to be treated that way? Would I want to hide this from others? Is it legal? Would I want to be treated that way? Is it culturally acceptable? Is it a dilemma? Would I want to be treated that way? Is it culturally acceptable? Is it legal? Would my government consider the action appropriate? Would I want to hide this from others?

Is it legal? Would I want to be treated that way? Would I want to hide this from others?

Q09 Which if the following statements about a firm's code of ethics is true? It does not apply to everyone in the organization. It should be modified frequently, because what is considered ethical is always changing. It may be different from the code of ethics of another firm in the same industry. It should not be communicated to people outside of the company, because that creates unreasonable expectations on the part of customers.

It may be different from the code of ethics of another firm in the same industry.

Q04 Which of the following statements about ethical dilemmas is true? Ethical dilemmas do not really exist, because there is always an obvious difference between what is right and what is wrong. Only people who act unethically face ethical dilemmas. People face ethical dilemmas, because the proper course of action is not always clearly defined. Employees whose companies have ethical codes do not face ethical dilemmas.

People face ethical dilemmas, because the proper course of action is not always clearly defined.

Q13 When evaluating the ethics of the tobacco industry, which of the following statements is true? People will evaluate the ethics of tobacco manufacturers from different perspectives. One must conclude that tobacco manufacturers are ethical, because their product is legal. Tobacco manufacturers are unethical, because they have hidden the danger of their products. Tobacco manufacturers operate illegally, so they are unethical.

People will evaluate the ethics of tobacco manufacturers from different perspectives.

Q01 Which of the following statements about establishing an ethical reputation in business is not true? Customers want to purchase from businesses with ethical reputations. Companies are more likely to do business with firms that have ethical reputations. The cost of establishing an ethical reputation is not worthwhile. Employees are more likely to be satisfied when they work for a company with high ethical standards.

The cost of establishing an ethical reputation is not worthwhile.

Q08 Suppose a company attempts to improve its financial performance by downsizing its operations. As a result of this downsizing, some of the company's employees lose their jobs. However, the company does become more profitable. Which of the following statements is true? The employees who lost their jobs were harmed by the company's actions, and it is possible that other stakeholders were as well. All of its stakeholders benefited from the company's actions. The employees who lost their jobs were the only stakeholders who were harmed by the company's actions. None of the company's stakeholders benefited from its actions.

The employees who lost their jobs were harmed by the company's actions, and it is possible that other stakeholders were as well.

Q12 The action taken in response to an ethical scenario may be legal, but unethical. True False

True

Q26 Employees can be held accountable to both a company's written and unwritten rules of corporate conduct. True False

True

Q27 All employees in firms should be held equally accountable to following the company's ethical code. True False

True

Q28 The action taken in response to an ethical scenario may be acceptable to one culture but not to another culture. True False

True

Q29 Ethical dilemmas can be viewed as trade-offs between opportunities for short-term gains versus long-term benefits. True False

True

Q32 A firm's stakeholders can be harmed by the negative actions taken by the firm. True False

True

Q10 When faced with an ethical challenge, a person in an organization must respond to the challenge in a way that is consistent with all of the following, except Her organization's ethical code. What the competition is doing. The legal environment in which the organization operates. Her own ethical values.

What the competition is doing.

Q03 A firm's ________ is an important means of minimizing the uncertainty regarding the decisions that employees may encounter when faced with ethical dilemmas in the workplace. annual report advertising employment contract code of ethics

code of ethics

Q21 To derive an ethics quotient for companies, Ethisphere considers factors that include geographic location. company reputation and leadership. the external community. company reputation and the country's governmental legislation.

company reputation and leadership.

Q11 Corporate social responsibility refers to the extent to which a company conforms to regulations when reviewing job applicants. the legality of the business a company engages in. the recreational opportunities that a company provides for its employees. how a company makes its profits and what its does with those profits.

how a company makes its profits and what its does with those profits.

Q14 When faced with an ethical dilemma, people should consider all of the following, except if they will be able to get away with their actions. if they would like to have someone treat them that way. if the action is legal. if they would want to hide their actions.

if they will be able to get away with their actions.

Q20 Economic exchanges between two parties should be illegal and ethical. beneficial to the strongest party in the exchange and detrimental to the other. maliciously intended. mutually beneficial to both parties.

mutually beneficial to both parties.

Q24 The triple bottom line refers to owners, employees, and customers. the three-question test. people, profits, and planet. research suggesting that a company's profits triple when it focuses on ethics.

people, profits, and planet.

Q06 According to the text, the term "corporate social responsibility" is used interchangeably with each of the following terms except: sustainability. corporate ethics. political correctness. corporate citizenship.

political correctness.

Q18 When people in some societies consider corruption acceptable due to the norms within their societies, they are applying ethical ________. universalism utilitarianism rationalization relativism

relativism

Q23 Corporate social responsibility considers social, environmental, and ethical issues. political, legal, and economic issues. social, legal, and political issues. environmental, economic, and legal issues.

social, environmental, and ethical issues.

Q15 According to Milton Friedman, corporate social responsibility is the equivalent of ________. socialism charity capitalism communism

socialism

Q22 Enron presents an example of a company in which: the internal firm culture matched the company's code of ethics. the internal firm culture differed from the company's code of ethics. external perceptions of the company matched internal perceptions. stakeholders benefitted in the long-term for its actions.

the internal firm culture differed from the company's code of ethics.

Q25 According to Milton Friedman: the short-term performance of a business is the most important issue. as long as customers are happy, nothing else matters. capitalism is an inferior economic system, because it leads managers to make decisions that harm some stakeholders. the only social responsibility of a business is to increase its profits so long as it stays within the rules of the game.

the only social responsibility of a business is to increase its profits so long as it stays within the rules of the game.

Q07 An ethical dilemma occurs when: an action taken in response to an ethical scenario is illegal. there is some ambiguity in determining which action to take when presented with an ethical scenario. there is a clear response to an ethical issue. an action taken in response to an ethical scenario is culturally unacceptable.

there is some ambiguity in determining which action to take when presented with an ethical scenario.

Q16 All people of sound minds consider murder and rape morally wrong. This is an example ethical ________. relativism universalism utilitarianism rationalization

universalism

Q17 If a person responds to an ethical dilemma by choosing the answer that results in the greatest good for the greatest number of people, the person is endorsing ethical ________. relativism universalism utilitarianism rationalization

utilitarianism