BUSINESS ETHICS
Primary
A stakeholder group that is absolutely necessary for a firm's survival is defined as
Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
Community
Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?
Comply with ISO 14000 guidelines
An independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."
Consumer Financial Protection Bureau (CFPB)
Which of the following is not a side-effect of being the victim of workplace bullying?
Corporate intelligence
enhanced performance
Employees' perceptions of their firm as having an ethical climate leads to
is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Fraud
Act as if the maxims of your action were to become through your will a universal law of nature."
KANT
Investors are concerned about business ethics because they know that misconduct can do what?
Lower the stock value & prices.
Strategic-level
Major corporate governance issues normally involve _____ decisions. (Choose the response that is most correct)
Environmental groups
Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?
c. the principles or rules that people use to decide what is right and wrong.
Moral philosophy refers to
Which of the following is true regarding abusive and intimidating behavior?
Not everyone agrees on what constitutes abusive behavior.
Normative business ethics takes into account the realities outside the legal realm in the form of industry standards.
Political
Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?
Pure Food and Drug Act of 1906
Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
Secondary stakeholders
An individual who defines what is right by considering his/her duty to society, not just to other specific people, is in which of Kohlberg's stages of cognitive moral development?
Social system and conscience maintenance
Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties?
The Dodd-Frank Act.
FEDERAL SENTENCING GUIDELINES FOR ORGANIZATION
The _____________ focus(es) on firms taking actions to prevent and detect business misconduct in cooperation with government regulation.
Guidelines focus
The guidelines focus on firms taking action to prevent and detect business misconduct in cooperation with government regulations.
The Federal Sentencing Guidelines for Organizations
The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
Identifying and gaining government feedback.
The specific steps for implementing the stakeholder perspective do not include which of the following?
Why is the public more tolerant of consumer misconduct than business misconduct?
There are big differences in wealth and success between businesses and consumers.
Which memo provided advanced general principles to consider in cases involving corporate wrongdoing in that it makes clear that ethics and compliance programs are important to detecting the types of misconduct most likely to occur in a particular corporations' line of business?
Thompson memo
The elements of _____ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness.
Virtue
What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
a. Because the large size creates economies of scale and they can charge lower prices
Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue?
a. Educational attainment
In Kohlberg's model, the stage of mutual interpersonal expectations, relationships, and conformity (Stage 3) differs from the stage of individual instrumental purpose and exchange (Stage 2) in terms of the individual's motives in
a. considering fairness to others.
Those who have influence in a work group are referred to as significant others and include
a. peers, managers, coworkers, and subordinates.
Conflicts of interest exist when employees must choose whether to
advance their own personal interests, those of the organization, or those of some other group.
Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
b. any practice is permitted that does not substantially reduce competition and harm consumers or society.
Following the ethical directives of a superior relates to
b. obedience to authority
behavior associated with a hostile workplace where an individual or a group considered a target is threatened, harassed, belittled, or verbally abused or overly criticized
bullying
is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.
c. Corporate culture
Prior to the financial meltdown, bond ratings agencies were accused of having _____ because they were paid by the organizations that they rated. The organizations would shop around for the agency that gave them the best rating.
conflict of interests
A broader view of social responsibility
considers the long-term welfare of society.
The ethical decision making process in business includes all of the following except
d. Making ethical decisions
Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level
define right as that which conforms to the expectations of good behavior of the larger society.
____are person-specific, whereas _______ are based on decisions made by groups or when carrying out tasks to meet business objectives
e. Moral philosophies; business ethics
Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing,
e. organizational or social forces
anti competitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
free samples.
Codes, rules, and compliance are essential in organizations. However, an organization built on to develop a high integrity corporate culture
informal relationships
More than a compliance program, business ethics is becoming-a
management issue to achieve competitive advantage.
The U.S. Foreign Corrupt Practices Act outlawed the practice of
paying bribes to foreign government officials in order to gain business
In the Reagan/Bush eras, the major focus of the business world was
self-regulation rather than regulation by government
Federal Sentencing Guidelines for Organizations-
set the tone for organizational ethical compliance programs, mitigate penalties if a company lacks an effective ethical compliance program and it employees violate the law, initiated into law incentives to reward organization for taking action to prevent misconduct such as developing effective internal legal and ethical compliances programs
The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
the Federal Sentencing Guidelines for Organizations.
Ethical issues in business typically arise because of conflicts among individuals' morals and
the core values and culture of the organizations where they work.
Accountants must abide by a strict code of ethics that defines their responsibilities to
their clients and to the public interest.
When unethical acts are discovered in a firm, in most instances
there was knowing cooperation or complicity from within the company.
Why might an individual's moral philosophies differ when making a personal decision versus a work-related decision?
Goals and pressures in the workplace are different from those outside of work.
