BUS 3150 Midterm

Which of the following best describes ethics?

Choices and judgements about acceptable standards of conduct that guide the behavior of individuals and groups

Which of the following statements is true about code of conducts?

Codes are formal statements describing organizational expectations

The definition of bribery depends upon whether the illicit favor payment is used to

Gain an advantage in a relationship

Which of the following is a definition of accountability?

How well the content of workplace decisions is aligned with a firm's stated strategic direction

Which stakeholder is the primary focus of the shareholder model of corporate governance?

Investors

An effective code of ethics must

Reflect top managerial support for ethics

In order for any social responsibility initiative to have strategic significance in a company, it must be fully supported and valued by

top management

Which of the following best describes the stakeholder model of corporate governance?

A company has responsibility to many stakeholders including investors, employees, suppliers, government agents, and the community

Which of the following best describes social responsibility?

Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders

Conflicts of interest exist when employees must choose whether to

Advance their own interests, those of the organization or those of some other group

Which of the following describes social capital?

An asset that resides in relationship and is characterized by mutual goals and trust.

Which of the following is a typical activity for an ethics officer?

Assessing needs and risks of the ethics program

Corporate governance requires a system of *Blank* similar to the distribution of power between the executive, legislative, and judiciary branches of the U.S government

Checks and balances

Transactional Leadership

Creates employee satisfaction by negotiating for levels of performance or "bartering" for desired behaviors

Which of the following describes how risk plays a role in organizations?

Dealing with uncertainty through quantitative models

Which of the following is a benefit from an ethics training program?

Demonstrating the importance the organization places on ethics

To generate a measurement of the costs of regulation, economists generally classify regulations as

Economic or Social

Which of the following is the best way for a stakeholder to gain legitimacy?

Exploring the issue from a variety of perspectives and then communicating your desires for change in a respectful manner

The most basic principles have been codified into *Blank* to require companies to conduct themselves according to society's expectations?

Laws and Regulations

The process of working to persuade public and/or government officials to favor a particular position in decision making is known as

Lobbying

In the long run, the success of a company is built on

Long-term relationships with customers built on a mutual respect and cooperation that leads to repeat purchasing

When just one business provides a good or service in a particular market, what results?

Monopoly

Which of the following is least likely to be considered destructive or unfair competition?

Obtaining information through careful monitoring of the competitive environment

What are the three primary factors that together influence the ethical decision-making process?

Opportunity, individual factors, and organizational relationships

Who are the principles and agents of a corporation?

Owners and executives, respectively

Which of the following is one of the four types of corporate social responsibility?

Philanthropic

What is a major reason why an organization might foster misconduct?

Pressures to succeed create opportunities for rewarding unethical conduct

Groups that are fundamental to a company's operations and survival are collectively called

Primary stakeholders

Business Ethics refers to

Principles and standards that guide behavior in the business world

What is the definition of moral philosophy?

Principles, or rules, which individuals apply in deciding what is right or wrong

According to the historical assumption of business, what is the foremost objective of business?

Profit Maximization

What is the purpose of the Federal Trade Commission?

Protect consumers and businesses from unfair competition

The Sarbanes-Oxley Act was enacted to

Restore stakeholder confidence and provide a new standard of ethical behavior

Five bases of power, including *Blank*, coercive, legitimate, referent, and expert power, can be used to motivate individuals either ethically or unethically in the workplace.

Reward

Which of the following is a benefit of regulation?

Safer Products

Which of the following stakeholders did Milton Friedman believe was the most important?

Shareholders

An ethical issue is a problem, situation, or opportunity

That requires an individual or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

Which of the following best describes the Better Business Bureau (BBB)?

The BBB is a self-regulatory association that helps resolve problems between businesses and consumers

How is corporate governance best defined?

The formal system of oversight, accountability, and control for organizational decisions and resources

Companies that have a stakeholder orientation refer to which of the following?

They are focused on stakeholder concerns.

How should a company communicate after a crisis?

They should communicate how it plans to resolve the crisis.

Which of the following describes secondary stakeholders?

Those that do not typically engage in direct transactions with the company are thus not essential for its survival

On what two factors is a stakeholder's urgency based?

Time sensitivity and the importance of the claim to the stakeholder

*Blank* Prohibit(s) employment discrimination on the basis of race, national origin, color, religion and gender

Title VII of the Civil Rights Act of 1964

What is the purpose of the Organization of Economic Co-operation and Development's (OECD) Corporate Governance Principles?

To formulate minimum standards of fairness, accountability, transparency, and responsibility in business practice

Communication is important in keeping a firm on its ethical course because

Top executives must enforce overall ethical standards within the organization

*Blank* Leadership is best suited for higher levels of ethical commitment among employees and strong stakeholder support for an ethical climate

Transformational

What is a common way that employees engage in time theft?

Using company computer equipment for personal use

*Blank* Expose an employer's wrongdoing to outsiders, such as the media or government regulatory agencies

Whistleblowers

Minimal responsibility primarily involves

considerations that focus solely on shareholders.