BA 1301 Chapter 2

Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?

Abusive behavior

Which behavior is the most common ethical problem for employees?

Abusive behavior

______ 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

False and misleading advertising is an example of how _______ is an area in which ethical concerns may arise.

Communication

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

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.

Corporate citizenship

While unemployment is seen as an economic issue, it carries ______ implications when the gap between rich and poor is large.

Ethical

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

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

The Dodd-Frank Act was passed to reform the ______ industry.

Financial

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

Studies have shown that organizations that employ a diverse set of leaders tend to be _______ profitable. (more/less)

More

Whistleblowers can be helped by protecting them from ______.

Negative treatment on the job

Laws regulating safety in the workplace are enforced by ______.

OSHA

An individual's 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

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

Land Pollution?

Results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation

OSHA regulates the ______ of employees in the workplace.

Safety

Experience with the __________ in which a business operates is critical to understanding what is ethical or unethical.

Society

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.

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.

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 your text, ethical decisions in organizations are influenced by which three key factors?

The opportunity to engage in misconduct The influence of managers and co-workers Individual moral standards and values

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.

While unemployment is seen as an economic issue, it carries ethical implications when ______.

The unemployment gap between rich and poor is large

Studies have found that firms have a better chance of generating stronger profits when ______.

There are equal numbers of male and female managers

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

True or false: Perceptions of ethics can differ in different societies.

True

What has been identified as the most common way employees abuse company resources?

Using company computers for personal use

Air Pollution?

Usually the result of smoke and other pollutants emitted by manufacturing facilities

In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ______.

Whistleblowers to come forward with information

Select the questions to consider when determining whether an action is ethical.

Would this activity be accepted by your co-workers? Are there legal restrictions? How does this activity fit with your own beliefs and values? Is this action customary in your industry?

Which craft brewer is the first all-wind-powered brewery in the United States?

New Belgium Brewing Company

Regarding the misconduct of business firms, which of the following statements is TRUE?

Often, misconduct evolves from ethical conflicts into legal disputes

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

What three items represent a misuse of company resources?

Submitting personal expenses on a company expense report Using the company copier for personal use Using the company computer for sending personal e-mails

Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as ______.

Sustainable

True or false: As an area of workplace misconduct, theft of time includes engaging in activities that are not necessary for the job.

True

A key component of ethical communications from companies to consumers is that the communication be ______.

Truthful

What are the three most common factors that executives give for increases in employee turnover?

Unfair employee treatment A lack of transparency among company leaders Loss of trust in the company

What two criticisms are levied against businesses regarding unemployment?

Unwillingness to train employees Unfair hiring standards.

According to John F. Kennedy, which of the following represent the four basic rights of consumers?

The right to be heard The right to safety The right to be informed The right to choose

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: 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

Why is ethical decision making difficult?

Because there are always gray areas that create dilemmas

Select from the following the typical actions of consumerism.

Boycotting companies Writing letters to companies Making public service announcements Lobbying government agencies

Which two of the following represent a conflict of interest in the workplace?

Bribery Insider trading

Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.

Bribery and are unethical

Money given in exchange for a special favor is called a _______ and benefits an individual or a company at the expense of other stakeholders.

Bribes

A firm that is viewed negatively may have a hard time ______.

Building customer relationships Attracting investors Retaining employees

Although sexual harassment has legal recourse, workplace _______ has little legal recourse at this time.

Bullying

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

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

Which act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?

Dodd-Frank

True or false: Organizations that exhibit a high ethical culture discourage employees from acting with integrity and adhering to business values.

False

Select from the following the four stages of social responsibility.

Financial Legal compliance Philanthropy Ethics

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

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

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?

Manipulation Conflicts of Interest Dishonesty

A business's primary obligation to its owners and investors is to ______.

Maximize the owners' investments in the firm

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

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.

To truly create an ethical culture, managers must ______.

Show a strong commitment to ethics and compliance

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

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

Select the three items that would be considered ethical behavior in a business.

Avoiding conflicts of interest Keeping company secrets Meeting obligations and responsibilities

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

Businesses must first be responsible to their owners, who are primarily concerned with ______.

Earning a profit

What person is engaged in plagiarism?

Edmund, a manager, takes credit for his employee's ideas

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

To build trust among individuals, organizations should adhere to conduct that is _______ in order to validate and promote confidence in business relationships.

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

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

Which statement is TRUE of business ethics?

Ethical issues are not limited to for-profit organizations

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

Social responsibility is defined as ______.

A business's obligation to maximize its positive impact and minimize its negative impact on society

What type of behavior creates a hostile workplace environment but has little legal recourse?

Bullying

_______ refers to the rules and regulations that govern the conduct of business.

Business law

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

According to the consumer bill of rights _______, the right to ensures that consumers have access to a variety of goods and services at competitive prices.

Choose

The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.

Consumerism

Which three are outcomes of having effective business ethics programs and organizational ethics initiatives?

Greater employee satisfaction Increased customer loyalty Increased profitability for the firm

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

_______ is an example of a conflict of interest.

Insider trading

How does ethical conduct validate and promote confidence in business relationships?

It creates a sense of trust between partners

Employees expect businesses to ______.

Provide a safe workplace Keep them informed of what is happening in their company Pay them adequately for their work

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

All of the following are questions to consider in determining whether an action is ethical EXCEPT ______.

Will this activity further my career?