BUS ETHICS 😂

A normative theory of ethics that emphasizes duties, principles, commitments, and obligations, while deemphasizing the role of consequences in making ethical judgments.

Deontological ethics

A process in which fertile land becomes unusable as a result of human exploitation, inappropriate use, poverty, and climate change.

Desertification

The act or process of discriminating between certain qualities.

Differentiation

Kant would __________ with the utilitarian focus on consequences. Rather this philosopher regarded duty as something we impose on ourselves.

Disagree

A clear, concise statement of the foundation of values and principles on which a business is built.

Corporate credo

In a general sense, a business stakeholder is one who has made substantial financial investments in the business. Select one: True False

False

In business, every decision can be covered by economic, legal, or company rules and regulations. Select one: True False

False

Managers have clear and unambiguous boundaries between responsibilities toward employers and their normal ethical responsibilities.

False

A person who possesses characteristics such as charisma; influence; and power to rule, guide, or inspire others as followers.

Leader

Societies that value individual freedom legally stipulate codes of personal integrity and common decency to safeguard this freedom. Select one: True False

True

A normative theory of ethics that states that a behavior can be evaluated as good or bad or right or wrong on the basis of its consequences.

Utilitarianism

A philosophical theory of ethics that states that a behavior can be evaluated as good or bad or right or wrong on the basis of its consequences.

Utilitarianism

Net or "take-home" income and benefits that, in compliance with all local laws and regulations, provide for essential needs for workers and their families.

Living wage

What is the correct term for net or "take-home" income and benefits that provide for essential needs for workers and their families?

Living wage

When Herb creates ads that show a man smoking a cigar surrounded by a crowd of smiling sexy women, he is appealing to the male consumer's need to feel attractive. Selling cigars in this way uses which marketing technique?

Manipulation

The following is a problem with the _______ approach to health and safety standards in the workplace: Employees are not bargaining with employers on an equal footing.

Market control

A situation in which the pursuit of profit does not result in increased consumer satisfaction or the greatest good.

Market failure

When Cassandra conducts surveys and interviews to learn about potential consumers, she is engaged in ________.

Market research

The commercial process of supply goods and services through promotion, sales, and distribution.

Marketing

The responsibilities involved in the promotion, sales, and distribution of goods and services to consumers.

Marketing ethics

The Environmental Protection Agency (EPA) was created in the year __________ by President Richard Nixon's administration.

1970

An economic market system grounded on the recognition of individual rights in which business activity occurs as part of a larger social system and includes the limiting forces of taxation and regulation.

Contemporary capitalism

An obligation that needs to be carried out only under certain circumstances and in certain situations.

Contingent duty

Also called outsourcing, this is the hiring of a foreign company to produce private-label goods carrying the domestic firm's name.

Contract manufacturing

The act of whistleblowing __________ the responsibility of corporate loyalty.

Contradicts

When she applied for the job, Jane was fully aware of her entitlements as legitimate claims in the workplace that may be based on laws, employment contracts, or moral rights such as due process, health, or privacy concerns.

Employee rights

A fiduciary relationship is one involving freedom from loyalty or commitment on the part of an agent.

False

Abiding by the law means that you are behaving ethically.

False

Basing your business decisions on the way things have always been done is likely to result in ethical behavior.

False

Due to the high incidence of corporate frauds today, the direct costs of unethical business practice are less visible now than they have ever been before. Select one: True False

False

Ethical business leadership is the skill to create a work environment that helps employees guiltlessly embrace their own good and bad facets. Select one: True False

False

Ethical decision making in business is limited to major corporate decisions with dramatic social consequences. Select one: True False

False

Ethical decision making won't help you avoid misconduct.

False

Ethical values are personal codes of ethics that ensure that a person meets his or her individual standards of well-being. Select one: True False

False

In civil law, there is no room for ambiguity in applying the law because much of the law is established by past precedent. Select one: True False

False

In judging the ethics of tax evasion, you would consider, from a utilitarian perspective, only the consequence in which the tax evaders maximize their happiness and well-being by reducing their tax payments.

False

Personal sacrifice is rarely an issue of ethical concern for managers in the agent-principle relationship.

False

Utilitarian ethics take into consideration the consequences of an action only as they pertain to the individual engaging in the act.

False

Utilitarianism helps shape business policy by considering only the most qualified applicants for job openings.

False

Utilitarianism is a theory in ethics that states that decision making is impossible to measure with regard to right or wrong.

False

Values are the only guidance individuals need to act in ways that are positive or ethical. Select one: True False

False

A historical record of discussions about the Torah among rabbi regarding Jewish law, ethics, customs, and history.

Talmud

Standards can be met through existing technology.

Technologically feasible

The main religious manuscript of Islam, comprised of the literal word of Allah, as revealed to Muhammad.

The Quran

One criticism of utilitarianism is the difficulty in measuring well-being when comparing the consequences of alternative actions.

True

Sexual harassment can be targeted toward men or women.

True

Sexual harassment can contribute to sex-segregated occupations.

True

The United States Federal Sentencing Guidelines relate to minimal requirements that companies must employ as evidence that an attempt was made to prevent crime and unethical behavior.

True

The role of manager holds a greater amount of discretion in the agent-principal relationship than non-managerial roles.

True

The well-being promoted by ethical values is not a personal and selfish well-being. Select one: True False

True

There are three pillars to sustainable development: economic growth, social progress, and environmental balance.

True

Which of the following versions of corporate social responsibility (CSR) suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment? Select one: a. Stakeholder b. Philanthropic c. Social entrepreneurship d. Sustainability

d. Sustainability

A principle that can be universally applied to all people at all times.

Universal moral standards

An admirable human character trait or habit reflective of meaningful human existence, addressing the choice of doing what is right and avoiding what is wrong; a characteristic striving for moral excellence.

Virtue

According to Judaism, all __________ derives from God and should be pursued and managed respectfully.

Wealth

Ethically, what steps are involoved in the assessment of safety?

All of the above

When discussion pollution, it is true to say that

All of the above

This minimum moral duty, __________, takes precedence over all others.

Cause no harm

Whistleblowing is

All of the above

The lowest price is not necessarily the most _____ price.

Ethical

The ethics implicit within the _____ approach assumes that when consumers adequately understand products well enough, they can reasonably be expected to protect themselves. Select one: a. contract b. caveat venditor c. tort d. caveat lector

a. contract

Philosophically, the right of _____ is the right to be protected against the arbitrary use of authority. Select one: a. continuance b. freedom of association c. due process d. self-determination

c. due process

The determination that the probability of harm resulting from a workplace activity is equal to or less than the probability of harm resulting from a non-work related activity.

Acceptable risk

The ____ approach to health and safety standards ignores worker participation in decision making.

Acceptable-risk

A determination of who is responsible and must take care of damages, with or without an assignment of liability or fault.

Accountability

Behavior enacted solely out of the desire to enhance the well-being of others without regard to personal gain or loss.

Altruism

From the psychological egoism perspective, there's no such thing as __________, or in other words selfless behavior.

Altruism

The need for moral heroes in society and corporations

Are indications of a defective society and defective corporations

Managers must develop patterns of thought and decision-making processes to create a __________ between a company's ethical boundaries and plans for economic success.

Balance

Connie really wants to buy a large screen plasma television, but she knows she would regret it when her credit card statement arrives. By stepping back and rationally thinking about the consequences, she is exercising consumer __________.

Autonomy

"Reckless negligence" can be defined as:

B. When the manufacturer doesn't inform the customer of a defect nor corrects it

Both businesses and consumers ultimately must strike a __________ between risk and the cost for protection from harm.

Balance

The type of relationship you have with your employer guides the determination of the appropriate privacy __________ .

Boundaries

Risk analysis involves placing a dollar value on life and safety; this is justified in that businesses operate on a __________.

Budget

A legal term indicating the responsibility of providing evidence that a disputed claim or allegation is truthful.

Burden of proof

As a manager, Jesse knew that __________ were not only important at the institutional level, but also as a reflection of his personal integrity.

Business ethics

The moral values and rules for determining right from wrong and appropriate behavior in activities that provide goods and services within financial, commercial, or industrial enterprises.

Business ethics

The core philosophical concept in the moral philosophy of Immanuel Kant, which sums up morality in one overriding commandment from which all obligations and duties derive.

Categorical imperative

A determination of what individuals, events, or conditions produced harm; distinct from the assignment of fault or accountability for awarding damages.

Cause

__________ is distinct from liability or accountability because it involves determining exactly what happened, as opposed to assigning fault or responsibility for damages.

Cause

A set of attributes that comprises precisely who a person is, including her moral and ethical behaviors and reactions.

Character

A selection from various options.

Choice

Using the __________ model of corporate social responsibility, Maximum Sound Music Corporation expects its business executives to be agents for the stockholders; as such, the pursuit of profit is often placed before the duty to cause no harm.

Classical

An ethical perspective that emphasizes the pursuit of profits within the law as the primary function of business in a free market economy.

Classical model of corporate social responsibility

The ________ approach uses economic criteria to determine the standards for health and safety issues in the workplace.

Cost-benefit analysis

A perspective in which ethical values and beliefs are seen as differing among cultures; this is different from the ethical perspective of rejecting any universal standards for evaluating the moral rightness of distinct values and beliefs.

Cultural relativism

By selectively presenting statistics that emphasize only the positive effects of consuming alcohol, the company Drink-Up, Inc., is engaging in which of the following types of unethical marketing tactics?

Deception

When groupthink occurs, typically the leader will be highly __________, promoting an unethical solution.

Directive

Ethical use of private information also includes full __________ of how this data will be used.

Disclosure

The cognitive ability to distinguish differences; in a moral sense, this refers to unfair treatment on the basis of classifications prohibited by law, such as race, sex, or religion.

Discrimination

Vanessa and Paul were both interviewed for a position as project manager. Paul got the job even though he had much less experience and negative recommendations—the interviewer simply didn't like women.

Discrimination

Companies that endorse __________, such as bluffing and deceitful practices, as a matter of policy compromise their reputation and standing in the community.

Dishonesty

Variation in characteristics of workplace employees such as in culture, age, social class, ethnicity, race, religion, and ability; also relates to the tolerance for such differences within an organization.

Diversity

__________ and smoking result in higher costs for businesses and lowered productivity.

Drug abuse

A legal term referring to the right of an employee to be protected from being fired or disciplined without sufficient cause or justification.

Due process

When Samal was let go from his job without sufficient cause or justification, he knew he was denied this.

Due process

An obligation or responsibility to do the right thing.

Duty

Deontology focuses on the notion of __________ and commitment rather than consequences or feelings.

Duty

An approach in environmental ethics that emphasizes the intrinsic value and necessity of protecting endangered plants and animals as well as biodiversity.

Ecocentric

Commercial use of resources should preserve biological diversity.

Ecocentric ethics

Standards can be met without terminal harm to an industry.

Economically feasible

A collection of living things together with their physical environment, viewed as a coordinated arrangement of interacting and interdependent relationships.

Ecosystem

A concern in business relating to competency in doing one's job without delay or omission.

Efficiency

Although it preserves your freedom to quit a job whenever, for whatever reason, this legal doctrine also chips away at your employee rights.

Employment at will

The __________ has the role of regulating deceptive marketing practices.

Federal Trade Commission

A type of duty relating to the agent-principal relationship involving the employee's or agent's loyalty, commitment, and acceptance regarding the primacy of the principal's interests.

Fiduciary

Artificial barriers based on biases in attitude or within the structure of an organization that prevent qualified individuals from advancing upward in their organization into management-level positions.

Glass ceiling

Social responsibility includes developing ways of reducing this increase in the average temperature of the Earth's near-surface air and oceans.

Global warming

One of the major frameworks for deontological ethics is based on the work of philosopher __________

Immanuel Kant

Diversity policies can be effective only if implemented at both __________ and structural levels in corporations

Individual

Businesses should act with respect to standard ethical concepts, such as rights and duties, negligence and liability, fairness, justice, and property rights.

Individualistic ethics

Overall, in light of the increasingly diverse workforce and changing business demands, diversity policies have been __________ at promoting positive change

Ineffective

In ethics, the degree to which participants are fully informed and fully comprehend the conditions of a situation to which they are agreeing.

Informed consent

Advertising and marketing tactics can __________ the development of autonomous decision making in consumers

Inhibit

If Bob, a manager at TelCom, knew that the company's stock was about to plummet in price, he would be guilty of __________ if he acted on this information for personal gain, by selling his shares of the stock before that information was made public.

Insider trading

There are two different approaches to regulating deception in marketing: focusing on __________ to deceive consumers and focusing on practices that actually deceive consumers.

Intention

An organization that promotes multinational trade by eliminating trade barriers and fostering financial cooperation among member nations.

International Monetary Fund (IMF)

The religion of Muslims based on the teachings of Muhammad as written in the Quran.

Islam

From an Islamic perspective, there are two basic principles that should guide business: freedom and __________.

Justice

Living and working together to bring common good through learning to respect cultural diversity and accepting differences in an atmosphere of cooperation.

Kyosei

An amendment to the International Treaty on Climate Change in 1997 that strives to stabilize greenhouse gases in the atmosphere at a less harmful level to prevent dangerous interference with the climate.

Kyoto protocol

A standard for eligibility when being hired to do a job, based on qualities of competency at the task.

Merit

An aspect of groupthink in which one or more self-appointed members take on the role of shielding the group from dissenting opinions.

Mindguard

Fair pricing is an ethical issue because it involves the values of respect for individual autonomy and ____.

Mutual benefit

A means for assigning fault in product liability law referring to the failure to fulfill an ethical or legal obligation or duty by performing or failing to perform an action that creates an unreasonable risk of harm for others.

Negligence

__________ can be due to actions taken by a manufacture as well as the failure to act that results in harm.

Negligence

Quick and Clean dry cleaning company uses the __________ model of corporate social responsibility—its managers recognize there are restrictions on the pursuit of profit, beyond legal restraints.

Neoclassical

Legislation concerning a right to work without being required to join a local workers' union.

Right-to-work law

The two most moral issues in pricing are

Over pricing and mark up and mark down

The third of three levels in Lawrence Kohlberg's theory of moral development, relating to society's needs and inner conscience.

Post-conventional

The first of three levels in Lawrence Kohlberg's theory of moral development, relating to obedience and self-interest.

Pre-conventional

Virtue ethics are __________, indicating how one should act relative to that person's character.

Prescriptive

You decide to tape your windows in preparation for a hurricane but you've run out of tape. The only hardware store in town is charging $50 per roll because they know the demand is high and the need is great. This is an example of _____.

Price gouging

When the owners of three lawn services in Nomeville agree to all charge the same prices to customers, they are engaged in the unethical practice of _________.

Price-fixing

A legal term referring to how something seems at first glance; used typically to determine responsibility for burden of proof.

Prima facie

An employer or owner of a company.

Principal

Hiring people for reasons other than job __________ raises ethical concerns

Qualifications

The __________ is the primary religious text of Islam.

Quran

For Kant, when it comes to categorical duties, human freedom and __________ are extremely important. Any actions that further the ability of humans to be free and reasoning beings are ethically right.

Rationality

According to Judaism, human life is __________ and is deserving of protection and preservation.

Sacred

A law passed in 2002 in the United States establishing standards for all U.S. public companies to prevent corporate and accounting scandals.

Sarbanes-Oxley Act

What is the difference between virtue ethics and principle-based ethics? Select one: a. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules. b. Virtue ethics is based on the consequences of actions, whereas principle-based ethics is based on character traits. c. Virtue ethics is based on set of rules, whereas principle-based ethics is based on consequences of actions. d. Virtue ethics is based on producing the greater good, whereas principle-based ethics is based on self-interest.

Select one: a. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules.

From the psychological egoism perspective, charitable behavior is still a form of __________, because the giver derives psychological comfort from the act.

Self-interest

Three basic conditions for whistleblowing to be ethically permissible include a potential for __________, the pursuit of less harmful means of addressing a problem, and efforts to resolve the issue in-house.

Serious harm

Disparate treatment on the basis of whether one is a woman or a man.

Sex discrimination

Ethics refers to how human beings should properly live their lives. Select one: True False

True

Ethos and ethics are not the same.

True

Federal sentencing guidelines establish ethical compliance standards and procedures for companies.

True

Loyalty must be sorted out as a balance between personal and corporate interests.

True

Groupthink is a __________ in which members of a group interact so as to minimize conflict and reach agreement.

Thought process

According to Islam, business leaders should strive to control their use of __________, using every moment productively.

Time

Legislation that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Title VII of the Civil Rights act of 1964

Judaism's most important spiritual document containing what Jews believe to be the inspired word of God, revealed to Moses.

Torah

The __________ is the primary religious text of Judaism.

Torah

A firm's ethical reputation can provide a competitive advantage in the marketplace with customers, suppliers, and employees. Select one: True False

True

An economic model for sustainable development must account for the rate at which the ecosystem can produce resources and absorb waste.

True

Children exhibit consumer vulnerability because they lack the capacity to engage in fully autonomous decision making.

True

Defining vulnerability is key to determining who is indeed vulnerable.

True

Ethical decision making involves questioning whether the action you take will promote well-being.

True

Ethical theories are patterns of thinking, or methodologies, to help us decide what to do. Select one: True False

True

An informant from within an organization who exposes illegal or unethical activity or wrongdoing to the public, the media, or a government agency.

Whistleblower

A group of nations that manage the world trade agreement and resolve international trade disputes.

World Trade Organization (WTO)

The _____ directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of profit. Select one: a. economic model of corporate social responsibility (CSR) b. stakeholder theory of corporate social responsibility (CSR) c. integrative model of corporate social responsibility (CSR) d. sustainability theory of corporate social responsibility (CSR)

a. economic model of corporate social responsibility (CSR)

According to the _____ law of thermodynamics (the conservation of matter/energy), neither matter nor energy can truly be "created," but can only be transferred from one form to another. Select one: a. first b. second c. third d. fourth

a. first

The promoting of goods and services to the public to garner attention for the purpose of selling an idea or product.

advertising

Identify the gatekeepers who guarantee that executives act on behalf of the stockholders' interests. Select one: a. Underwriters b. Board of directors c. Auditors d. District attorneys

b. Board of directors

Which of the following is a true statement about norms? Select one: a. They are underlying beliefs that cause people to choose one way or another. b. They are standards of appropriate and proper behavior. c. They provide benchmarks of desirable societal conditions. d. They consist of guidelines for bringing about positive behavioral change.

b. They are standards of appropriate and proper behavior.

Utilitarianism determines ethical and unethical acts by their _____. Select one: a. legality b. consequences c. fairness d. nuances

b. consequences

The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by: Select one: a. utilizing a small percentage of profit on social causes. b. doing charitable work to build a good reputation within the community. c. pursuing social ends as the very core of an organization's mission. d. emphasizing the importance of achieving the desired economic goals.

c. pursuing social ends as the very core of an organization's mission.

Theoretical reasoning is reasoning about: Select one: a. what we actually do. b. what we should do. c. what we should believe. d. what we should implement.

c. what we should believe.

An advertisement sponsored by businesses and organizations that airs on television and radio and offers goods, services, ideas, and information.

commercial

The concept of human rights is central to which of the following ethical traditions? Select one: a. Virtue-based ethical tradition b. Consequence-based ethical tradition c. Role-based ethical tradition d. Principle-based ethical tradition

d. Principle-based ethical tradition

Potential customers who exhibit an impaired ability to grant an informed consent to a marketplace transaction.

consumer vulnerability

Which of the following is involved in environmental problems according to the market-based approach to resolving environmental challenges? Select one: a. Lack of knowledge of producing renewable resources b. Inability of businesses to produce and sell limited resources c. Limited use of appropriate substitutes for limited resources d. Allocation and distribution of limited resources

d. Allocation and distribution of limited resources

Which of the following is a traditional approach to corporate culture? Select one: a. Values-based b. Integrity-based c. Customer-based d. Compliance-based

d. Compliance-based

Which of the following acts stipulates that employers cannot use "protected health information" in making employment decisions without prior consent? Select one: a. The Personal Information Protection and Electronic Documents Act b. The Federal Information Security Management Act c. The Personal Information and Health Documents Act d. The Health Insurance Portability and Accountability Act

d. The Health Insurance Portability and Accountability Act

Potential customers who possess certain traits that leave them vulnerable to risk of harm.

general vulnerability

The most plausible, and commonly stated, rationale for not blowing the whistle is

loyalty

To guide or influence behavior toward a particular direction without the explicit consent of the target individual or audience.

manipulation

.The gathering and analyzing of information regarding the potential transaction of goods and services from producer to consumer

market research

A type of advertising in which goods with brand names are placed in a particular context or framework so as to maximize the influential impact of the message, especially in contexts that do not typically include traditional forms of advertisement, such as motion pictures.

product placement

The communication of a message regarding a particular product, service, idea, or person aimed at persuading the audience in a particular way.

promotion

Those members of a particular group whom you intend to persuade.

target audience

The commercial process of supplying goods and services through promotion, sales, and distribution aimed at a specifically defined audience.

target marketing

A set of beliefs or standards for guiding thought and behavior.

Values

Matters of entitlement with legitimate claim in the workplace that may be based on laws, employment contracts, or moral rights such as due process, health, or privacy concerns.

Employee rights

A legal doctrine in the United States indicating a mutual relationship in which employees may quit and employers may terminate a worker for any reason, at any time.

Employment at will (EAW)

A U.S. government regulatory body devoted to protecting human health and the environment.

Environmental Protection Agency (EPA)

The U.S. __________ is a government regulatory agency that was created to develop and enforce public policies relating to the preservation of the ecosystem

Environmental Protection Agency (EPA)

A perspective from which policies can be designed to encourage businesses to be more responsible, even if they bring different perspectives on environmental values.

Environmental pragmatism

An approach to ethics in which public policy is used as a point of agreement for protecting the natural world instead of trying to unify the vast array of diverse values.

Environmental pragmatism

A perspective of nondiscrimination in employment practices to ensure fairness.

Equal opportunity

Jose built his business and hiring practices around the requirements meant to prohibit discrimination against employees or applicants based on race, color, religion, sex, national origin, age, disability, or economic status.

Equal opportunity

A philosophical perspective in which moral values and judgments are relative to one's feelings, or their culture, or society

Ethical relativism

Having corporate values in place does not mean that a company has __________ in place.

Ethical values

A branch of philosophy that addresses the moral values and rules for determining right from wrong.

Ethics

A course or series of integrated courses or steps used to educate, assess, implement, and support conduct and decision making regarding morality within an organization.

Ethics program

What is customary or conventional in a society; the distinctive traits or traditions of a culture.

Ethos

The official currency of the European states of Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Slovenia, and Finland; not all states in the European Union have chosen to adopt this currency.

Euro

An agreement between various European nations that eliminates tariffs and quotas between member countries, establishes common tariffs for nonmember imports, and creates common economic policies.

European Union

A characteristic referring to that which is commendable and worthy of imitation.

Exemplary

Bob's Bubble Gum, Inc. does not deny equal treatment and it fulfills all of its legal and ethical responsibilities regarding the prevention of unfair practices in the workplace, yet the company does not take any proactive steps to redress past inequalities.

Passive non-discrimiation

Avoidance of disparate treatment through the prevention of certain unfair acts, as opposed to taking proactive steps to increase equality, such as through affirmative-action programs.

Passive nondiscrimination

Costs of doing business, such as contamination or depletion of water supplies, which burden third parties who are outside of the economic transaction between buyer and seller, such as future generations or community residents.

Externalities

Valuing individuals not simply as a means to fulfill others' purposes but as an end in themselves.

Human dignity

Virtue ethics assumes that your sense of __________ is founded upon your desires, beliefs, values, and attitudes—these are part of who you are.

Identity

An assurance by a seller to a buyer that the product or service is reasonably suitable for the described purposes.

Implied warranty of merchantability

The exchange of goods and services between nations through imports and exports.

International trade

A category of persons who do not belong as members to a specific gathering of people.

Outgroup

The problems being prevented by the whistleblowing must __________ potential harm resulting from the whistleblowing itself.

Outweigh

Disparate treatment that uses gender as a deciding factor in decision making within the workplace.

Overt discrimination

A protective level in the stratosphere containing a concentration of a colorless gas sufficient to block most of the ultraviolet radiation from the Sun.

Ozone layer

The quality of being motivated toward bettering oneself and moral soundness, based on notions of right and wrong.

Personal integrity

When Nancy tries to influence potential customers by sending out fliers showing how they will enjoy their experience at her nail and hair salon, she is engaged in what type of marketing technique?

Persuasion

Your __________ is violated if an employer gives or sells your name to advertisers or to political organizations, unless you explicitly agree to this usage.

Privacy

In economic theory, this is a perspective in which businesses are defined in terms of ownership by stockholders and, as such, corporate executives and employees are expected to serve the profit-making needs of the owners.

Private property rights

A responsibility on the part of manufacturers, wholesalers, or retailers to the buyers or users to make a product safe for consumer use or pay damages when injury occurs as a result of the product's use.

Products liability

Which of the following focuses on the concept of business practices and what type of people these practices are creating? Select one: a. Virtue ethics b. Kantian ethics c. Utilitarian ethics d. Principle-based ethics

a. Virtue ethics

Which of the following is an example of reverse discrimination in America? Select one: a. An African-American interviewer rejects an African-American interviewee based on ethnicity. b. A female interviewer rejects a male interviewee because of gender. c. A white interviewer rejects an African-American interviewee based on ethnicity. d. A female interviewer rejects a female interviewee because of gender.

b. A female interviewer rejects a male interviewee because of gender.

Which of the following is a similarity between utilitarianism and stakeholder theory? Select one: a. Both place organizational benefits above other considerations. b. Both consider the consequences of management decisions for the well-being of all affected groups. c. Both contribute to society in ways that go beyond the narrow obligations of law and economics. d. Both strive to focus only on consumers.

b. Both consider the consequences of management decisions for the well-being of all affected groups.

Which of the following statements is true about an ethical leader in a corporate environment? Select one: a. An ethical leader agrees to conduct that would be inconsistent with her or his own personal values. b. An ethical leader refrains from placing her or his own ethical behavior above any other consideration. c. An ethical leader shirks her or his duties in the corporate structure. d. An ethical leader allocates corporate resources to support and promote ethical behavior.

d. An ethical leader allocates corporate resources to support and promote ethical behavior.

Which of the following best describes a business stakeholder? Select one: a. Only the minority shareholders in a business entity b. Only those who have acquired significant shares in a firm c. Anyone who audits a firm d. Anyone who affects or is affected by decisions made within a firm

d. Anyone who affects or is affected by decisions made within a firm

"We ought to stop at a red light, even if no cars are coming and I could get to my destination that much sooner." Identify the ethical approach that follows this line of thought. Select one: a. Virtue ethics b. Utilitarianism c. Role ethics d. Ethics of principles

d. Ethics of principles

The act of influencing or inducing a particular belief or action through communication, argument, or reasoning.

persuasion

It's not enough for a multinational corporation to simply have a labor standards code of conduct on paper, it must also be which of the following?

-Disseminated -Implemented -Brought to the attention of foreign subcontractors -Monitored for compliance (All of the above)

The Occupational Safety and Health Administration (OSHA) was established to set industry-wide standards in what year?

1970

__________ is a type of responsibility that determines who must take care of damages.

Accountability

Establishing standards for business ethics can provide economic __________ to a company, by boosting its place in the marketplace, and enhancing its reputation with customers, suppliers, and employees

Advantagee

Which of the following is a subcategory of promotion in which goods and services are presented to the public to increase their attractiveness?

Advertising

Virtue ethics emphasize human __________ by focusing on emotions and feelings.

Affect

In an effort to increase the likelihood of women applying for the position, Clear-Nose Pharmaceuticals increased its recruiting efforts for locating women applicants, even though it will not reduce its hiring standards or qualifications.

Affirmative action

Policy referring to actions taken to redress the harms of past and present discrimination and inequality for the purpose of providing assistance beyond the requirements of legislation for equal opportunity and nonpassive discrimination.

Affirmative action

One who acts as a representative for another person or institution, such as an employee or an accountant.

Agent

A legal concept involving rights and duties in the relationship of employees as representatives of a company and the employer or owner of a company.

Agent-principal

An obligation that must be carried out regardless of circumstance.

Categorical duty

A Latin phrase referring to "Let the buyer beware" in contractual agreements between sellers and buyers.

Caveat emptor

The phrase __________ relates to contractual agreements between buyers and sellers, and means "Let the buyer beware."

Caveat emptor

A set of principles, values, guidelines to which members of an organization are expected to adhere.

Code of ethics

A state of being closely connected, holding together, or resisting separation.

Cohesiveness

Binding oneself to a course of action with sincerity and steadfastness.

Commitment

A macroeconomic principle explaining why it can be beneficial for two international companies to trade if one has a lower relative cost of producing some good.

Comparative advantage

Discretion in revealing information and protection from embarrassment or harm through concealment of sensitive details.

Confidentiality

According to William H. Whyte, groupthink is a type of rationalized __________ .

Conformity

An outcome that follows and is caused by some previous phenomenon.

Consequence

The second of three levels in Lawrence Kohlberg's theory of moral development, relating to interaction, conformity, and social order.

Conventional

Jackson and Sheryl both apply for a job as a controller. Jackson is more qualified, and he is hired for the job.

Differentiation

Possessing an authoritative, domineering stance.

Directive

Self-centeredness focusing primarily on one's own needs, with little or no concern for the needs of others.

Egocentric

The initial series of workers to be employed in an industry; used in reference to observed harm in workplace health and safety concerns.

First generation

Legislation created in 1977 regulating business transactions between U.S. companies and entities abroad aimed at preventing bribery and dishonest practices.

Foreign Corrupt Practices Act (FPCA)

Intentional deception to obtain benefit or advantage or deny others what is due.

Fraud

An economic system in which the price of goods or services is arranged through voluntary consent among sellers and buyers, where supply and demand are unregulated with regard to government control.

Free market

An economic system in which the price of goods or services is arranged through voluntary consent among sellers and buyers, where supply and demand are unregulated with regard to government control.

Free market economic

A profession that serves as a watchdog by ensuring that participants abide by the rules ensuring proper market functioning.

Gatekeeper

An international conference that was held on a regular basis from 1947 to 1995 to reduce trade barriers.

General Agreement on Tariffs and trade (GATT)

The increase in the average temperature of the Earth's nearsurface air and oceans in recent decades and its projected continuation.

Global warming

A process of economic integration on a worldwide scale that expands through open competition, free trade, and monetary policies that remain stable across international borders.

Globalization

A physical phenomenon of warming as a result of gases that trap solar radiation in the Earth's atmosphere.

Greenhouse effect

A thought process occurring when individuals interact in such a way to minimize conflict and reach agreement without full analysis and consideration of the consequences of decisions.

Groupthink

A symptom of groupthink is the illusion of __________ which creates excessive optimism and encourages risk taking.

Invulnerability

As an attempt to curb corporate scandals and protect the public from financial harm, the __________ was enacted by Congress in 2002

Sarbanes-Oxley Act

A sense of allegiance or faithfulness to another person or institution, often requiring personal sacrifice.

Loyalty

A system of producing, distributing, and consuming goods and services that relies on the forces of supply and demand to allocate products and resources and to determine prices.

Market economy

A complex system of rules governing commercial activity where goods and services are bought and sold.

Market system

A principle that is used in ethical decision making.

Maxim

Corporate social responsibility requires meeting __________ as ethical obligations business managers must meet before engaging in the pursuit of profit.

Minumum moral duties

When you move to a new town and shop around for a cable television provider and find that there is only one company providing service in your area, you realize that this company has a _______.

Monopoly

A requirement of the neoclassical model of corporate social responsibility involving those ethical obligations corporations must meet before engaging in the pursuit of profit.

Moral minimum

Coherent and logical thinking regarding right from wrong.

Moral reasoning

An understanding and heightened awareness of issues concerning right from wrong.

Moral sensitivity

A sense of concern with right and wrong, often involving conformity with the standards for appropriate character and conduct.

Morality

A psychological aspect that propels one into action toward a goal.

Motivation

An agreement that established a free trade zone between the U.S., Mexico, and Canada to be phased in over a period of 15 years.

North American Free Trade Agreement (NAFTA)

Compliance with commands and a degree of submissive acceptance of instruction from another.

Obedience

A duty or responsibility to behave in a certain way or take a particular action with regard to what is right for another person, group, institution, or entity.

Obligation

In philosophy, this refers to the human characteristic of having good sense, sound judgment, and the ability to reason using intellect.

Rationality

A state of the world as it truly is rather than how one wishes or expects it to be.

Reality

Environmental __________ shifted the burden of proof; the focus switched to prevention of harm rather than compensation for injury.

Regulatory laws

The likelihood that harm will result from workplace activities compared with other types of non-work activities.

Relative risk

Difficulties in implementing and managing diversity policies often derive from the strain of limited __________

Resources

A type of social force that binds one to the obligation or duty to take certain actions or behave in a particular manner.

Responsibility

A phrase with several different meanings, ranging from union requirements to job entitlement to protection from harm on the job.

Right to work

The idea that every person is entitled to employment or protection from harm as an employee.

Right to work

When he opened his pool construction business, Bill spent a lot of time on __________ for health and safety issues involved in marketing his service to customers.

Risk analysis

You can recognize defective decision making as a result of groupthink when the group fails to examine the potential __________ of the preferred choice.

Risks

The act or process of separating on the basis of certain specific characteristics, such as gender, race, age, or religion, often producing inequality and unfair advantage.

Segregation

A type of discrimination based on gender, involving unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature, affecting an individual's employment, performance, or work environment.

Sexual harassment

A term in Islam referring to mutual consultation, as indicated by the Quran.

Shura

Tamara knew in selecting her new car that she would have to forgo a certain degree of safety in exchange for an affordable price; what she didn't realize was that this was an ethical matter related to the __________ value of life.

Social

A form of political ideology geared toward altering capitalism to integrate the protection of citizens' economic rights in much the same way that a democracy aims to preserve citizens' political and civil rights.

Social democracies

Rules or generally agreed upon customs within a culture or society for appropriate behavior.

Social norms

A person or entity that can impact or be impacted by the actions of a corporation; includes employees, shareholders, consumers, or investors

Stakeholder

This step in ethical decision making is to determine the actual facts of the situation and review the circumstances.

Step 1

This step in ethical decision making is to recognize the ethical issues involved.

Step 2

This step in ethical decision making is to Identify and consider the people who will be affected by a decision.

Step 3

This step in ethical decision making is to compare and weight the alternatives.

Step 4

This step in ethical decision making involves actually making your decision and monitoring the impact of the outcome.

Step 5

__________ can be considered a "no-fault accountability" approach to product safety

Strict liability

Individuals or businesses are considered liable and held accountable for damages to compensate for harm caused by a product, whether or not at fault.

Strict products liability

Effective diversity policies require __________ in the form of changes in attitude, values, and corporate culture

Support

A perspective in environmental ethics in which economic progress to meet the needs of society today is balanced with the capacity for future generations to meet their needs.

Sustainable development

A work setting that ignores standard labor laws with crowded, dangerous conditions in which poorly paid workers have little or no choice but to endure.

Sweatshop

A work setting that ignores standard labor laws, with crowded, dangerous conditions in which poorly paid workers have little or no choice but to endure is called a _________.

Sweatshop

This results when countries compete for contracts with multinational corporations. Those with the lowest wages and least regulations are the most attractive to profit-seeking corporations.

Sweatshop labor

Norms appeal to certain values that would be promoted or attained by acting in a certain way. Select one: True False

True

The Grayson-Himes Pay for Performance Act was passed to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008. Select one: True False

True

The Sarbanes-Oxley Act of 2002 is an external, proactive legislative measure requiring ethical guidelines in business.

True

The major categorical imperative put forth by Kant states that humans should act only according to that maxim by which you can also will that it would become a __________ law.

Universal

A principle that can be universally applied to all people at all times.

Universal moral standard

Recently, _____ became the first country to legalize child labor from the age of 10. Select one: a. Bolivia b. Colombia c. Peru d. Ecuador

a. Bolivia

Identify the step of the ethical decision-making process that involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders. Select one: a. Comparing and weighing the alternatives b. Making the decision c. Identifying the ethical issues d. Monitoring and learning from the outcomes

a. Comparing and weighing the alternatives

Which of the following ethical requirements is the type of responsibility established by the precedents of tort law? Select one: a. Duty to not cause avoidable harm to the society b. Duty to find employment for employees injured at work c. Duty to engage in charitable work d. Duty to volunteer for causes related to the environment

a. Duty to not cause avoidable harm to the society

Identify a true statement about ethical decision making in business. Select one: a. Ethical decision making is not limited to major corporate decisions with dramatic social consequences. b. Ethical decisions that employees make have to always be based upon clearly established guidelines laid down by the board of directors. c. All ethical decisions can be covered by economic, legal, or company rules and regulations. d. Every instance of ethical decision making should be based on the law of the land.

a. Ethical decision making is not limited to major corporate decisions with dramatic social consequences.

Which of the following statements is true about the stakeholder theory? Select one: a. It begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others. b. It argues that the narrow economic model successfully provides an accurate descriptive and a reasonable normative account of business management. c. It holds that business firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model. d. It suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

a. It begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

Identify a true statement about social responsibility. Select one: a. It refers to what a business should or ought to do for the sake of the society, even if it comes with an economic cost. b. It refers to the responsibility of an organization to fulfill the terms of contract with its employees and lenders. c. It refers to the steps taken by an organization to avoid internal malpractices or misconduct. d. It refers to the responsibility that society has to ensure a business's success.

a. It refers to what a business should or ought to do for the sake of the society, even if it comes with an economic cost.

Identify a true statement about the integrative model of corporate social responsibility (CSR). Select one: a. It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model. b. It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged. c. It recognizes that some stakeholders have different power and impact on decisions than others. d. It argues that every business should adopt the principles of benefit corporations and devote all their activities to service of social goals.

a. It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model.

Which of the following is a disadvantage of monitoring? Select one: a. Monitoring tends to constrain effective performance since it can cause increased stress and pressure. b. Monitoring prevents employers from managing their workplaces to place workers in appropriate positions. c. Monitoring does not allow managers to ensure compliance with affirmative action requirements. d. Monitoring cannot be utilized to prevent the loss of productivity due to inappropriate technology use.

a. Monitoring tends to constrain effective performance since it can cause increased stress and pressure.

____ typically assert that individual rights and duties are fundamental and thus can also be referred to as a rights-based, or duty-based approach to ethics. Select one: a. Principle-based ethics b. Role ethics c. Virtue-based ethics d. Pragmatic ethics

a. Principle-based ethics

Identify an act that expanded states' rights with regard to Internet surveillance technology, including workplace surveillance, and amended the Electronic Communications Privacy Act. Select one: a. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act b. The USA Freedom Act c. The Federal Information Security Management Act d. The Personal Information Protection and Electronic Documents Act

a. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act

Which of the following is an essential element in establishing an ethical leadership? Select one: a. The end or objective toward which the leader leads b. The prevailing culture in the external environment c. The ethical nature of the team members d. The personality traits of the team members

a. The end or objective toward which the leader leads

Which of the following can be thought of as the answer to the fundamental questions of theoretical reason? Select one: a. The scientific method b. The practical approach c. The contingency approach d. The normative model

a. The scientific method

What is the difference between virtue ethics and principle-based ethics? Select one: a. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules. b. Virtue ethics is based on the consequences of actions, whereas principle-based ethics is based on character traits. c. Virtue ethics is based on set of rules, whereas principle-based ethics is based on consequences of actions. d. Virtue ethics is based on producing the greater good, whereas principle-based ethics is based on self-interest.

a. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules.

Which of the following is a true statement about the Americans with Disabilities Act (ADA)? Select one: a. What counts as a disability remains ambiguous under the law. b. The law lays out clear-cut rules for reasonable accommodation. c. The law has not been put into practice till date. d. Mental disabilities have been left out of the purview of the law.

a. What counts as a disability remains ambiguous under the law.

In the context of downsizing in an organization, allowing a worker to remain in a position for a period of time after she or he has been informed of impending termination might not be the best course of action. Identify a supporting argument for this statement. Select one: a. Workers are less likely to interpret early notice as an effort to allow them time to come to grips with the loss of their jobs. b. Terminated workers are more likely to be inclined to put their best effort, which might result in temporary improvement in customer service. c. Workers who are not terminated are likely to have a very bad impression about the organization for terminating their coworkers. d. Terminated workers rarely interpret early notice as a measure to get the most out of them before departure.

a. Workers are less likely to interpret early notice as an effort to allow them time to come to grips with the loss of their jobs.

The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referred to as: Select one: a. decision making for social responsibility. b. corporate cultural responsibility. c. organizational ethical responsibility. d. institutional morality.

a. decision making for social responsibility.

Telling organizations that their ethical responsibilities end with obedience to the law: Select one: a. is just inviting more legal regulation. b. is enough to maintain an ethical business environment. c. reduces the frequency of corporate scandals. d. eliminates ambiguity while making personal ethics-related decisions.

a. is just inviting more legal regulation.

A true statement about corporate culture is that _____. Select one: a. it provides stability that can be a benefit at one time and can be a barrier to success at another b. it is unlikely to play any role in determining or influencing the decision making within a firm c. it differs significantly across different countries in a global firm d. is generally easy to modify

a. it provides stability that can be a benefit at one time and can be a barrier to success at another

Enlightened self-interest would be a valuable theory to introduce and apply in the _____ approach to health and safety. Select one: a. market controlled b. integrative c. acceptable risk d. government-regulated

a. market controlled

The crux of normative ethics is that these disciplines: Select one: a. presuppose some underlying values. b. describe what people do. c. should always involve the study or discipline of ethics. d. branch away from social ethics to personal ethics.

a. presuppose some underlying values.

The practice of attending to the "image" of a firm is sometimes referred to as: Select one: a. reputation management. b. branding. c. crisis management. d. gentrification.

a. reputation management.

Jason, a Caucasian in his mid-thirties, is a high-ranking manager at an insurance firm. He is well qualified and has received multiple accolades for his good work. When the firm receives news of potential business from a corporation that has primarily Africa American stakeholders, Jason gets overlooked and the opportunity to handle this account is given to his colleague, Dwayne, who is of African American descent. In this scenario, Jason is a victim of _____. Select one: a. reverse discrimination b. affirmative action c. inverse discrimination d. backward discrimination

a. reverse discrimination

Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the: Select one: a. strict product liability standard. b. actual foreseeability standard. c. reasonable person standard. d. consent and informed decision standard.

a. strict product liability standard.

Marketing practices targeted at elderly individuals for goods, such as supplemental health insurance, and funerals, are subject to criticism because: Select one: a. that population is vulnerable. b. interest gained on such investments are not highly profitable. c. they target the considered and rational desires of the consumers. d. they do not abide by the principles of welfare economics.

a. that population is vulnerable.

Unlike tort law, contract law states that: Select one: a. the only duties that a person owes are those that have been explicitly promised to another party. b. one owes other people certain general duties, even if one has not voluntarily assumed them. c. no matter how careful a business is in its product, if harm results from use, the business is liable. d. the reasonable person standard can be interpreted in various ways.

a. the only duties that a person owes are those that have been explicitly promised to another party.

An ethics of _____ shifts the focus from questions about what a person should do, to a focus on who that person is. Select one: a. virtue b. principle c. stoicism d. intuition

a. virtue

_____ requires that an economic value be placed on one's life and bodily integrity. Select one: a. Cost-effectiveness analysis b. Cost-benefit analysis c. Cost margin analysis d. Cost variance analysis

b. Cost-benefit analysis

Identify the duty of obedience according to which board members should strive toward corporate objectives and are not permitted to act in a way that is inconsistent with the central goals of an organization. Select one: a. Duty of care b. Duty of good faith c. Duty of candor d. Duty of loyalty

b. Duty of good faith

Identify a true statement about the stakeholder theory. Select one: a. It holds that a firm's financial goals must be balanced against, and perhaps even overridden by, environmental considerations. b. It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. c. It suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment. d. It suggests that firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.

b. It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management.

Which of the following is true about an integrity-based culture? Select one: a. It reinforces a particular set of rules. b. It reinforces a particular set of values. c. It empowers legal bodies to monitor compliance. d. It emphasizes rules as the primary responsibility of ethics.

b. It reinforces a particular set of values.

Which of the following situations could result in the business culture becoming a determining factor in ethical decision making? Select one: a. Lack of competition b. Law providing incomplete answers c. Lack of strong leadership d. Stagnant or decreasing profits

b. Law providing incomplete answers

_____ and an ongoing ethics audit allow organizations to uncover silent vulnerabilities that could pose challenges later to the firm, thus serving as a vital element in risk assessment and prevention. Select one: a. A mission statement b. Monitoring c. Statements of values d. Ombudsperson

b. Monitoring

Conative damages may amount to many times the amount of actual damages paid to a plant it. The purpose of this excess payment is

b. She discourage the manufacture from acting negligently or recklessly in the future c. To punish the manufacturer for recklessness or culpable negligence BOTH B & C

Identify the true statement about ethics based on rights. Select one: a. Rights and duties can be easily defined. b. There is no agreement on the scope and range of rights. c. Application of theory to real-life situations is easy. d. There exists a well-defined line between rights and desires.

b. There is no agreement on the scope and range of rights.

In the context of elements of the Committee of Sponsoring Organizations, identify a true statement about information and communications. Select one: a. They address the policies and procedures that support the control environment. b. They are directed at supporting the control environment through fair and truthful transmission of information. c. They set the tone of an organization, influencing the control consciousness of its people. d. They are directed at providing assessment capabilities and uncovering vulnerabilities.

b. They are directed at supporting the control environment through fair and truthful transmission of information.

Identify a true statement about hypernorms. Select one: a. They are values that are determined within free moral space. b. They are values that are fundamental across culture and theory. c. They determine who maintains control over tangibles and intangibles. d. They are limited to an individual's property rights.

b. They are values that are fundamental across culture and theory.

Which of the following is true of excessive compensation packages? Select one: a. When executive compensation is tied to stock price, executives have a strong incentive to focus on long-term corporate interests rather than short-term stock value. b. When huge amounts of compensation depend on quarterly earnings reports, there is a strong incentive to manipulate those reports in order to achieve the money. c. Economic fairness and personal morality always exists in executives receiving lofty compensation packages. d. Excessive compensation packages serve corporate interests when they provide an incentive that is not based on executive performance or accomplishments.

b. When huge amounts of compensation depend on quarterly earnings reports, there is a strong incentive to manipulate those reports in order to achieve the money.

Social sciences such as psychology and sociology are different from ethics owing to the fact that they are _____. Select one: a. normative in nature b. descriptive in nature c. conjectural in nature d. clinical in nature

b. descriptive in nature

Discussions in ethics about employee health and safety tend to focus on the relative risks workers face and the level of acceptable workplace risk because: Select one: a. workers' compensation is easier to calculate. b. employers cannot be responsible for providing an ideally safe and healthy workplace. c. insurance laws mandate the focus on relative risks and acceptability of workplace risk. d. they results in a completely safe and healthy workplace.

b. employers cannot be responsible for providing an ideally safe and healthy workplace.

According to the economic model of corporate social responsibility (CSR), the sole social responsibility of a business is to: Select one: a. go beyond legal responsibilities to cater to the needs of the society. b. fulfill the economic functions that it was designed to serve. c. think beyond economic ends that have to be met to help society. d. analyze the defects in society and design products to overcome these defects.

b. fulfill the economic functions that it was designed to serve.

Ethics refers to the applications of _____ on which people's decisions are based. Select one: a. values b. morals c. etiquettes d. norms

b. morals

While approaching an ethical issue in marketing, the utilitarian tradition would want to know: Select one: a. the degree to which individuals freely participate in an exchange. b. the degree to which a transaction provided actual as opposed to merely apparent benefits. c. about other values that are affected by the exchange. d. about the personal character of the parties that are involved in the exchange.

b. the degree to which a transaction provided actual as opposed to merely apparent benefits.

The philanthropic perspective of the economic model in which business support for a social cause is done because it is the right thing to do differs from the reputational version only in terms of the: Select one: a. level of social good done. b. underlying motivation. c. reach of the social good done. d. medium used.

b. underlying motivation.

Identify a true statement about a compliance-based culture. Select one: a. A compliance-based culture recognizes that where a rule does not apply, a firm must rely on the personal integrity of its workforce when decisions need to be made. b. A compliance-based culture is one that reinforces a particular set of values rather than a particular set of rules. c. A compliance-based culture is only as strong and as precise as the rules which workers are expected to follow. d. A compliance-based culture is perceived to have a more flexible and far-sighted corporate environment.

c. A compliance-based culture is only as strong and as precise as the rules which workers are expected to follow.

Which of the following approaches to health and safety at a workplace can be considered paternalistic decision making which treats employees like children and makes crucial decisions for them? Select one: a. Government-regulated ethics approach b. Diversifiable risk approach c. Acceptable level of risk approach d. Market controlled approach

c. Acceptable level of risk approach

How is an ethical, effective leader different from an effective leader? Select one: a. An ethical, effective leader takes decisions based only on a set of rules unlike an effective leader. b. An ethical, effective leader follows a set of rules regardless of consequences unlike an effective leader. c. An ethical, effective leader empowers the employees in decision making unlike an effective leader. d. An ethical, effective leader achieves her or his goals through intimidation unlike an effective leader.

c. An ethical, effective leader empowers the employees in decision making unlike an effective leader.

Identify a true statement about corporate cultures. Select one: a. Corporate cultures remain unaffected even in the presence of strong business leaders. b. Corporate cultures are static in nature. c. Corporate cultures influence, limit, and shape the decision making within a firm. d. Corporate cultures in a global firm differ significantly across different countries.

c. Corporate cultures influence, limit, and shape the decision making within a firm.

Which of the following is a cognitive barrier to responsible, ethical decision making? Select one: a. Choosing the alternative that meets maximum decision criteria b. Considering unlimited alternatives c. Following simplified decision rules d. Selecting only the best option

c. Following simplified decision rules

Which of the following is the second step of the ethical decision-making process? Select one: a. Considering available alternatives b. Making the decision c. Identifying the ethical issues involved d. Considering the impact of the on stakeholders

c. Identifying the ethical issues involved

Which of the following is true of a market version of utilitarianism? Select one: a. Questions of safety and risk are determined by experts. b. Social science determines policies to maximize the overall good. c. Individuals calculate for themselves what risks they wish to take. d. A government regulator determines the safety standards in the marketplace.

c. Individuals calculate for themselves what risks they wish to take.

Which of the following statements is true about whistle-blowing? Select one: a. It involves the disclosure of ethical activities. b. It occurs internally when stakeholders report wrongdoing to legal authorities. c. It can expose and end unethical activities. d. It is safe and seldom causes any harm to the whistle-blower or the business.

c. It can expose and end unethical activities.

Identify a true statement about the economic model of corporate social responsibility (CSR). Select one: a. It shifts focus from pursuit of profit to environment sustainability. b. It has its roots in the Kantian tradition of ethics. c. It has direct implications for the proper role of business management. d. It holds that social goals should be at the heart of a firm's mission.

c. It has direct implications for the proper role of business management.

Which of the following is a challenge associated with ethical pay offs? Select one: a. It ruins the reputation that triggered it. b. It is very small in comparison to profits. c. It is very difficult to measure ethical pay offs. d. It can easily be duplicated by competitors.

c. It is very difficult to measure ethical pay offs. d. self-determination

Identify a true statement about the environmental legislation enacted in the 1970s. Select one: a. It overestimated the influence that businesses can have in establishing a law. b. It focused mainly on providing compensation after the occurrence of pollution or any other environmental harm. c. It shifted the burden from those threatened with harm to those who would cause the harm. d. It primarily addressed environmental concerns using tort law.

c. It shifted the burden from those threatened with harm to those who would cause the harm.

Which of the following is emphasized by a compliance-based culture? Select one: a. Reliance on personal integrity of employees for decision making b. Use of values as the principle for decision making c. Obedience to rules as the primary responsibility of ethics d. Reinforcement of a set of values rather than a set of rules

c. Obedience to rules as the primary responsibility of ethics

Which of the following approaches emphasizes the need to follow legal rules regardless of unfavorable consequences? Select one: a. Virtue ethics b. Utilitarianism c. Principle-based ethics d. Egoism

c. Principle-based ethics

According to economist Antonio Argandona, which of the following elements would include issues relating to company secrets, espionage, and intelligence gathering? Select one: a. Truthfulness and accuracy b. Respect for property and safety rights c. Respect for privacy d. Accountability

c. Respect for privacy

UniCo—a multinational corporation that specializes in designing, developing, and selling consumer electronics—outsources manufacturing products to a third-world country company. Human rights activists have criticized UniCo for operating inhumane sweatshops at the manufacturing plants to gain profits. Although UniCo is not directly liable for the labor exploitation, it threatens to pull out its business from the contracted company if the laborers are not provided with dignified wages and good working conditions. Which of the following responsibilities did the company fulfill in this scenario? Select one: a. Caveat emptor b. Implied merchantability c. Respondent superior d. Strict liability

c. Respondent superior

Which of the following acts grants access to sensitive data with only a court order rather than a judicial warrant and imposes or enhances civil and criminal penalties for knowingly or intentionally aiding terrorists? Select one: a. The Federal Information Security Management Act b. The USA Freedom Act c. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act d. The Personal Information Protection and Electronic Documents Act

c. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act

Identify the statement that most accurately describes the difference between the market and the administrative versions of utilitarianism. Select one: a. The administrative version of utilitarianism promotes policies that protect property rights and encourage competition. b. The administrative version of utilitarianism uses social sciences to predict consequences. c. The administrative version of utilitarianism turns to policy experts for the design and implementation of policies. d. The administrative version produces those goods that the consumers want.

c. The administrative version of utilitarianism turns to policy experts for the design and implementation of policies.

Which of the following should an organization do in order to have an effective compliance and ethics program? Select one: a. The organization should refrain from promoting and consistently enforcing its compliance and ethics program. b. It should ensure that people who have previously engaged in unethical activities are placed in charge of programs. c. The organization should establish standards and procedures to prevent and detect criminal conduct. d. Low-level personnel must be assigned to have responsibility for the program.

c. The organization should establish standards and procedures to prevent and detect criminal conduct.

Which of the following best describes ethics? Select one: a. An academic discipline that originated in the early 1900s b. A descriptive approach that provides an account of how and why people act the way they do c. The study of how human beings should properly live their lives d. A descriptive approach such as psychology and sociology

c. The study of how human beings should properly live their lives

Which of the following conditions makes issue identification the first step in the ethical decision-making process? Select one: a. When the ethical predicament of the situation is hard to determine b. When the responsibility for the decision lies with one person c. When the issue is presented from the start d. When the stakeholders in the decision cannot be determined

c. When the issue is presented from the start

Along with product safety, _____ is another area of marketing that has received significant legal and philosophical attention within business ethics. Select one: a. customer service b. distribution c. advertising d. manufacturing

c. advertising

One of the challenges in the acceptable risk approach to workplace health and safety is that it: Select one: a. is a liberal approach to workplace health and safety that allows employees to recognize the risk they are likely to face. b. involves the determination of "relative risks," the calculation of which is a complicated process and not always reliable. c. assumes an equivalency between workplace risks and other types of risks when there are significant differences between them. d. It treats health and safety merely as an instrumental value and denies its intrinsic value.

c. assumes an equivalency between workplace risks and other types of risks when there are significant differences between them.

A simple situation in which two parties come together and freely agree to an exchange is only prima facie ethically legitimate because: Select one: a. research studies prove that a simple exchange does not involve unethical situations. b. it involves the consent of both parties involved and leaves no room for unethical acts. c. certain conditions must be met before it can be concluded that autonomy has been respected and mutual benefit has been achieved. d. it rejects the assumption that individuals are capable of pursuing their own ends.

c. certain conditions must be met before it can be concluded that autonomy has been respected and mutual benefit has been achieved.

When faced with a situation that suggests two clear alternative ways forward, we often consider only those two clear paths, missing the fact that other alternatives might be possible. Considering limited alternatives is a stumbling block to responsible action that can be categorized as a(n) _____. Select one: a. personality barrier b. perceptual barrier c. cognitive barrier d. individuality barrier

c. cognitive barrier

According to the market-based approach, environmental problems: Select one: a. are caused by conservationists. b. are caused by the inexhaustible supply of resources. c. deserve economic solutions. d. need to be solved through corporate social responsibility.

c. deserve economic solutions.

Corporate social responsibility (CSR) refers to the: Select one: a. dedication that businesses show in expanding their market share. b. accountability that a manager has to his subordinates. c. ethical expectation that society has for business. d. actions that maximize the profit of an organization.

c. ethical expectation that society has for business.

Focusing failures result in moments where we ask ourselves, "How could I have missed that?" According to Bazerman and Chugh, this phenomenon is known as: Select one: a. change blindness. b. descriptive ignorance. c. inattentional blindness. d. normative myopia.

c. inattentional blindness.

Misappropriation of proprietary knowledge is an example of _____. Select one: a. corporate espionage b. asset overstating c. insider trading d. inventory theft

c. insider trading

The _____ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment. Select one: a. annual report b. vision statement c. mission statement d. income statement

c. mission statement

According to the philosopher Norman Bowie, the contractual duty that managers have to stockholder-owners: Select one: a. makes them focus on philanthropy. b. makes them feel obliged to perform social good and prevent harm to society. c. overrides their responsibility to prevent harm or to do good. d. leads them to take environment-conscious managerial decisions.

c. overrides their responsibility to prevent harm or to do good.

Which of the following is true of inattentional blindness? Select one: a. It occurs when someone deliberately avoids taking a decision about an unpleasant ethical issue. b. It refers to the shortsightedness about values. c. It distinguishes good people who make ethically responsible decisions from good people who do not. d. It occurs when people pay specific attention to a particular element of a decision, while losing sight of other aspects of it.

d. It occurs when people pay specific attention to a particular element of a decision, while losing sight of other aspects of it.

Identify a true statement about the Genetic Information Non-Discrimination Act (GINA) of 2008. Select one: a. It mandates all employees to disclose their genetic information to their employers. b. It does not include the family medical history of a person. c. It prevents employers from monitoring their employees. d. It prohibits discriminatory treatment in employment based on genetic information.

d. It prohibits discriminatory treatment in employment based on genetic information.

The _____ tradition claims that our fundamental human rights, and the duties that follow from them, are derived from our nature as free and rational beings. Select one: a. utilitarian b. virtue-based c. role-based d. Kantian

d. Kantian

Which of the following qualities would an effective decision maker display when considering the available alternatives for ethical decision making? Select one: a. Reciprocal obligation b. Servant leadership c. Social entrepreneurship d. Moral imagination

d. Moral imagination

_____ is one element that distinguishes good people who make ethically responsible decisions from good people who do not. Select one: a. Normative myopia b. Inattentional blindness c. Change blindness d. Moral imagination

d. Moral imagination

According to Kevin Bahr, which of the following is a cause for conflicts in the financial markets? Select one: a. The independence and expertise of audit committees b. The presence of shareholder activism c. Long-term executive greed versus short-term shareholder wealth d. Self-regulation of the accounting profession

d. Self-regulation of the accounting profession

Which of the following models of corporate social responsibility (CSR) considers business as a citizen of the society that it operates in? Select one: a. Philanthropic model b. Economic model c. Altruistic model d. Stakeholder model

d. Stakeholder model

Identify the sustainability model that would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill. Select one: a. The bioinspiration model b. The open-loop production model c. The take-make-waste model d. The cradle-to-grave model

d. The cradle-to-grave model

What is the term used to describe a potentially damaging or ethically challenged corporate culture? Select one: a. Caustic b. Pyrophoric c. Corrosive d. Toxic

d. Toxic

If we judge a leader solely by the results produced, we are following the _____ ethical tradition. Select one: a. deontological b. virtual c. Kantian d. utilitarian

d. utilitarian

The final step in the development of corporate codes of conduct or mission statements is to: Select one: a. ask oneself what one stands for or what the company stands for. b. articulate a clear vision regarding the firm's direction. c. identify clear steps as to how the cultural shift will occur. d. believe that the culture is actually possible and achievable.

d. believe that the culture is actually possible and achievable.

The three major categories of an ethical framework are: Select one: a. utility, virtue, and values. b. universal rights, values, and moral principles. c. universal rights, cultural norms, and morals. d. consequences, principles, and personal character.

d. consequences, principles, and personal character.

The term "sweatshops" refers to workplaces where: Select one: a. employers constantly supervise and evaluate employees. b. employee interests are protected by rights from being subjected to utilitarian and financial calculations. c. employers treat employees well as a means to produce greater workplace harmony. d. employees lack even the most basic health and safety protections.

d. employees lack even the most basic health and safety protections.

Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if: Select one: a. multiple owners were involved in the strategic decision-making process of the firm. b. there was transparency among all stakeholders. c. firms had the obligation to justify bad decisions. d. investors were protected from undue personal risks.

d. investors were protected from undue personal risks.

A true statement about an effective internal mechanism of whistle-blowing is that: Select one: a. it occurs when employees report wrongdoing to legal authorities. b. it must expose unethical behaviors to the press. c. it should disallow confidentiality and anonymity. d. it must strive to protect the rights of the accused party.

d. it must strive to protect the rights of the accused party.

According to ethicists Thomas Donaldson and Thomas Dunfee, the right to _____ is an example of a hypernorm. Select one: a. armed protest b. public information c. intelligence gathering d. physical movement

d. physical movement

Two general and connected understandings of privacy have been identified: privacy as a right to be "left alone" within a personal zone of solitude, and privacy as the: Select one: a. right to understand one's emotions. b. right to understand others' emotions. c. right to control information about others. d. right to control information about oneself.

d. right to control information about oneself.

Consumers are vulnerable when they are not aware that they are subject to a marketing campaign. This type of campaign is called: Select one: a. imminent marketing. b. word-of-mouth marketing. c. network marketing. d. undercover marketing.

d. undercover marketing.

An indirect, misleading means of influencing a person or target audience involving cunning, deceitfulness, trickery, or lies; a type of manipulation.

deception