Business Ethics: Final

People's ethical beliefs come from:

Their religious background, family, and education.

Which of the following is not a benefit of managing diversity and inclusion effectively?

These businesses get tax breaks from the federal government.

When an employee believes their employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials, what has occurred?

Whistle-blowing.

The emergence of a public issue indicates that

A gap has developed between what stakeholders expect and what an organization is actually doing.

Social investors seek to eliminate from their investment portfolios companies that:

All of the above.

The core components upon which a company's ethical performance depends include:

All of the above.

The growing diversity in the U.S. workforce is due to:

All of the above.

The typical public affairs executive spends most of the day:

All of the above.

Which of these specializations was/were spurred by the rapid changes in technology over the past few decades?

All of the above.

Which of these statements accurately describe(s) the corporate reputation

All of the above.

Why should business be ethical?

All of the above.

Which of these actions can businesses take to reduce income inequality?

Commit to paying a living wage to all employees.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:

Compliance and Integrity.

A company that builds stakeholder coalitions to influence government is using which strategy?

Constituency-building.

Which argument says that stakeholder management realistically depicts how companies really work?

Descriptive argument

Variation in the important human characteristics that distinguish people from one another is called:

Diversity

The buying and selling of goods and services electronically is called:

E-business.

Supporters of digitized medical records claim that:

Electronic alerts prevented dangerous drug combinations from being prescribed.

Organizations always have full control of a public issue.

F

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.

F

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.

F

Patterns of government taxing and spending that are intended to stimulate or support the economy are:

Fiscal policies.

Hackers employed by businesses or governments to intentionally discover weaknesses in information systems are called:

White hatters.

List the five steps to the Issues Management Process

1. Identify Issue 2. Analyze Issue 3. Generate Options 4. Take Action 5. Evaluate Results

A firm can affect the general public's opinion of its reputation through:

All of the above.

Most U.S. state laws permit the monitoring of employees through:

All of the above.

Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by:

Both A and B, but <u>not</u> C.

During crisis management, doing the right thing should include:

Both A and B, but <u>not</u> C.

Employees in the United States have a legal right to:

Both A and B, but <u>not</u> C.

Which of these steps has the U.S. recently taken to counter cybercrime

Both A and B, but <u>not</u> C.

Why is income inequality an environmental problem?

Both A and B, but <u>not</u> C.

Proponents of business as a political participant argue:

Both A and C, but <u>not</u> B.

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger.

Life-cycle analysis involves:

Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal.

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate.

A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm.

F

Because the public issues that garner the most public attention change over time, companies do not waste time tracking them.

F

Businesses and society are independent of one another.

F

The drivers of stakeholders of engagement are:

Goals, motivation, and operational capacity.

These individuals hack into government or corporate computer networks and then release information to try to embarrass those organizations or gain leverage against these organizations:

Hacktivists.

Which of the following is a key feature of effective boards of directors?

Hold regular meetings without the CEO present.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of ethical problem.

Public policy tools involve a combination of:

Incentives and penalties.

The digital divide describes the gap between those:

Individuals who have technology and those who do not.

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

Industry self-regulation.

Discuss why businesses should be ethical

Just like each individual, it is important for businesses to act ethically. It's important to make ethical business decisions to keep the company from being forcefully shut down. Business have laws and set standards to follow and it's important that leaders keep close tabs on these. Businesses should be ethical for both their employees and their customers. Employees deserve good working practices and clear ethical standards available. An ethical business is honest to their customers. People do not want to purchase from companies who are known for unethical behavior. All in all, practicing ethically in the workplace is the right thing to do. As long as you work hard and honestly, there shouldn't be any reason to do otherwise.

Policies that affect the supply, demand, and value of a nation's currency are:

Monetary policies.

In the U.S., the right to free speech:

Must be weighed against the consequences for the community.

Stakeholders stand out to managers when they exhibit:

Power, legitimacy, and urgency.

The primary way of accomplishing public policy is through:

Regulation.

Natural capital refers to the world's:

Supply of geology, soil, air, water and all living things.

A living wage has been defined as a wage that:

Support half the basic needs of an average-sized family, based on local prices.

Emerging public issues are both a risk and an opportunity.

T

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

Which of the following illustrates the idea of sustainable development through technology cooperation?

The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies.

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to:

Utilitarian reasoning.

The five types of stakeholders' power recognized by most experts are:

Voting, economic, political, legal, and informational power.

There are four reasons stated in the textbook as to why ethical problems occur in business. Identify the nature of each ethical problem and the typical approach taken in response to the problem

1. Reason: Personal gain and self interest Nature: Selfish interest versus others' interests Typical Approach: Egotistical mentality 2. Reason: Competitive pressures on profits Nature: Firm's interests versus others' interests Typical Approach: Bottom-line mentality 3. Reason: Conflicts of interest Nature: Multiple obligations or loyalties Typical Approach: Favoritism mentality 4. Reason: Cross-culture contradictions Nature: Company's interests versus diverse cultural traditions and values Typical Approach: Ethnocentric mentality

The complexity of products makes choices complicated for consumers.

Behavioral advertising.

A just or fair ethical decision occurs when:

Benefits and burdens are distributed equally.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

To influence government policymakers' actions, an information strategy involves:

Business leaders speaking before government policymakers.

Which of the following are examples of natural monopolies?

Electric utilities and railroads.

If a manger approaches ethics with benevolence in mind, he or she would stress what?

Friendly relations with an employee.

Which of the following statements are not true about the right to a safe and healthy workplace?

Over recent years no new categories of accidents or illnesses have emerged.

The corporate reputation of distinction must be built:

Over time

One of the main reasons that American executives are paid so much is:

Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.

Which of the following is (are) core rights of consumers?

The right to safety.

Which of the following is not a legal right of shareholders?

To vote on who will become chief executive officer (CEO).

The interests of different stakeholders often coincide.

T

Understanding and responding to changing societal expectations is a business necessity.

T

The self-reinforcing feature of technology means that:

Technology acts as a multiplier to encourage is own faster development.

Economic leverage occurs when a business uses it economic power to:

Threaten to leave a location unless a desired political action is taken.

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

Discuss what factors have fueled technological growth and development

I think our three major factors in the fueling of technological growth and development are our use of the internet, use of technological devices, and E-commerce. Internet: Our access to the internet has grown creating a much greater usage. In 2019, we can do almost everything on the internet. This creates a need for the internet to continue growing. I feel like would be almost impossible without the internet. I use it for my job, banking, education, entertainment, you name it! Technological Devices: Since our need to access the internet is greater, new technological devices are created continuously to make it easier. When I was younger, I could really only remember my parents having a cell phone and I only used a desktop computer in school in the computer lab. Now new devices are everywhere! Computers, laptops, tablets, watches, etc. The development is crazy! E-commerce: So, E-commerce is the ability to make transactions online. So, this is being able to shop, pay bills, exchange, etc, money over the internet. This is one of the main reasons the internet has really taken off. Besides participating in class, I spend most of my time on the internet paying bills and online shopping. Being able to make transactions online is a huge deal for busy adults!

The "agency problem" arises when:

Managers act in their own interest, rather than in the interest of shareholders.

All of the following are external stakeholders of the firm except:

Managers.

Organizations with strong positive reputations are generally more successful because they:

Often get the benefit of the doubt in uncertain circumstances.

Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity?

Primary

Firms that generally act only when forced to do so, and then in a defensive manner are:

Reactive companies.

The most successful global businesses in coming years will be those companies that:

Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action.

A giant step is taken toward improving ethical performance throughout the company when:

Senior-level managers signal to employees that they believe ethics is a high priority.

The issues management process is a:

Systematic process companies use when responding to public issues that are of greatest importance to the business.

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

T