Unit 1 Test: Chapters 1-3
uses age as a hiring or firing criterion
A company can be sued for discrimination if it
continuum
A stakeholder orientation can be viewed as a(n)
Performance probation
Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
their clients and the public interest
Accountants must abide by a strict code of ethics that defines their responsibilities to
Is approved of by most individuals in the organization and is customary in the industry
An activity is probably ethical if it
corporate intelligence
An employee sorts through a competing business's trash to see if there are any documents that could reveal secret information. This is a misuse of
Reciprocity
An interchange of giving and receiving in social relationships is known as
Interlocking directorate
Board members being linked to more than one company is an example of
At all levels of work and management
Business ethics is a part of decision making
Federal Sentencing Guidelines for Organizations
During the 1990s, the institutionalization of business ethics was largely driven by which piece of legislation?
make personal sacrifices for the organization
Employees who view their organizational culture as ethical are more likely to
Enhanced outcomes
Employees' perceptions of their firm as having an ethical climate leads to
The core values and culture if of the organizations where they work
Ethical issues in business typically arise because of conflicts among individuals' morals and
Control
In corporate governance, ________ is the process of auditing and improving organizational decisions and actions.
lower stock value and prices
Investors are concerned about business ethics because they know that misconduct can
Customers'
Most organizations with strong ethical climates usually focus on the core value of placing _______ interests first.
a trade-off between equity and efficiency
Optimizations is defined as
Community
Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
Material resources and/or intangible knowledge
Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?
ability to withdraw or withhold resources
Stakeholders' power over businesses stems from their
was designed to make the financial services industry more responsible
The Dodd-Frank Wall Street Reform and Consumer Protection Act
Sarbanes-Oxley Act
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000's.
identifies guidelines that dictate how firms should treat stakeholders
The normative approach
Adam Smith
The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism was
corporate citizenship
The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is
It may foster the idea that honesty is unnecessary in business
War metaphors are common in business. This kind of miindset can be dangerous for business leaders because
Living wage
What business ethics issue was a major concern during the 1920s?
Legislation usually follows
What happens when society deems a particular business action as wrong or unethical?
puffery
When a restaurant claims that it sells the world's best cup of coffee, it could be accused of
Customers
Which of the following are not typically secondary stakeholders?
economic, legal, ethical, and philanthropic
Which of the following describes the four levels of social responsibility?
Technology
Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
Compensation
Which of the following is a major ethical concern among corporate boards of directors?
Reputation
Which of the following is one of an organization's greatest intangible assets with tangible values?
They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties
Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?
It outlawed bribery of officials in other countries
Which of the following was not a provision of the Sarbanes-Oxley Act?
There are big differences in wealth and success between businesses and consumers
Why is the public more tolerant of consumer misconduct than business misconduct?
Fraud
______ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Bribery
______ is the offering of something of value in order to gain an illicit advantage.
Bullying
_________ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.