Ethics Chapter 1-2 Quiz

Fortunately, social responsibility and ethics are completely interchangeable terms. (T/F)

False

The Sarbanes-Oxley Act made it illegal for U.S. businesses to issue bribes to foreign government officials. (T/F)

False

The final step in implementing a stakeholder perspective is identifying stakeholders. (T/F)

False

Prior to the 1960s, ethical issues related to business were discussed mainly in the domain of theology or philosophy. (T/F)

True

The ethical component of a corporate culture relates to the values, beliefs, and established and enforced patterns of conduct that employees use to identify and respond to ethical issues. (T/F)

True

Which approach to stakeholder theory focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships. a. Descriptive approach b. Control approach c. Normative approach d. Strategic decision making approach e. Instrumental approach

a. Descriptive approach

The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with a. Milton Friedman. b. Archie Carroll. c. Jack Ma. d. Noel Biderman e. Adam Smith.

a. Milton Friedman.

Which of the following statements is correct? a. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation. b. Secondary stakeholders are essential for a company's survival. c. Primary stakeholders do not typically engage in transactions with a company. d. Social responsibility is associated with decreased profits. e. Ethical issues are usually easy to detect and simple to fix.

a. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation.

The concept that refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations is defined as _____. a. accountability b. oversight c. a duty of loyalty d. a duty of oversight e. control

a. accountability

The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business is defined as _____. a. business ethics b. philosophy c. morals d. values e. principles

a. business ethics

The four levels of social responsibility are _____. a. economic, legal, ethical, and philanthropic b. economic, legal, political, and social c. political, economic, legal, and ethical d. economic, legal, philanthropic, and social e. ethical, philanthropic, social, and religious

a. economic, legal, ethical, and philanthropic

Some examples of what concept can include human rights, freedom of speech, and the fundamentals of justice? a. principles b. business ethics c. values d. philosophy e. morals

a. principles

The concept that centers around enduring beliefs and ideals that are socially enforced, such as teamwork, trust, and integrity is called _____. a. values b. principles c. philosophy d. morals e. business ethics

a. values

Because of Sarbanes-Oxley, publicly traded companies must develop _____ to assist in maintaining transparency in financial reporting. a. ethics programs b. codes of ethics c. legal counsel d. accountants e. ethics officers

b. codes of ethics

The term ethical culture is associated with all of the following except _____. a. acceptable behavior as defined by the company and industry b. maximizing profits and placing shareholder's first c. positively related to workplace confrontation over ethics issues, reports to management of observed misconduct, and the presence of ethics hotlines d. the component of corporate culture that captures the values and norms an organization defines and is compared to by its industry as appropriate conduct e. culture that creates shared values and support for ethical decisions and is driven by the ethical leadership of top management

b. maximizing profits and placing shareholder's first

Which of the following is NOT a primary stakeholder group? a. employees b. the Media c. shareholders d. customers e. investors

b. the Media

The _____ is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption. This document seeks to create openness and alignment among business, government, society, labor, and the United Nations. a. NAFTA b. The Sullivan Principals c. Global Compact d. CERES Principals e. MERCOSUR

c. Global Compact

_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes. a. Gatekeepers b. Customers c. Stakeholders d. Investors e. Employees

c. Stakeholders

Which of the following is NOT a secondary stakeholder group? a. trade associations b. magazines c. employees d. television news reporters e. special interest groups

c. employees

According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system. a. laws b. meanings c. norms d. morals e. directions

c. norms

A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments. a. code of ethics b. stakeholder bias c. stakeholder interaction model d. corporate interface model e. stakeholder model of socially responsible corporate governance

c. stakeholder interaction model

In the stakeholder interaction model, _____. a. it recognizes other stakeholders and but does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments b. it recognizes other stakeholders, does not explicitly acknowledge that dialogue must exist, but can exist between the firm's employees and customers c. there are reciprocal relationships between the firm and its stakeholders d. it recognizes other stakeholders and does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments e. there are no reciprocal relationships between the firm and its stakeholders

c. there are reciprocal relationships between the firm and its stakeholders

The concept of board members being linked to more than one company is known as _____. a. a board member compensation problem b. the stakeholder model of corporate governance c. the stakeholder concept d. an interlocking directorate e. the shareholder concept

d. an interlocking directorate

Corporate governance is defined as _____. a. classic economic precepts, including the goal of maximizing wealth b. the management style of the firm's CEO c. the memos sent out by upper management on appropriate conduct d. formal systems of accountability, oversight, and control e. the members of the Board of Directors

d. formal systems of accountability, oversight, and control

What concept refers to a person's personal philosophy about what is right or wrong? a. business ethics b. principles c. values d. morals e. philosophy

d. morals

Groups that influence and/or are affected by a company and that neither engage in economic exchanges with the firm nor are fundamental to its daily survival are collectively called _____. a. significant others b. community organizations c. market constituents d. secondary stakeholders e. primary stakeholders

d. secondary stakeholders

An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its _____. a. ethical dilemma b. consumerism c. regulation mandate d. social responsibility e. moral justice

d. social responsibility

The two-way relationship between a firm and its stakeholders is conceptualized by the _____. a. measures of corporate impacts table b. stockholder-focus approach c. stakeholder orientation model d. stakeholder interaction model e. corporate governance model

d. stakeholder interaction model

What happens when society deems a particular business action as wrong or unethical? a. The guilty individual is jailed. b. Fines automatically follow. c. The company goes bankrupt. d. Self-regulation is deemed a failure. e. Legislation usually follows.

e. Legislation usually follows.

Many studies have found a positive relationship between which of the following? a. high cultural values and low industry competition b. high levels of government regulation and cultural values c. unmotivated employees and good business performance d. apathetic boards of directors and an ethical culture e. an ethical culture and good business performance

e. an ethical culture and good business performance

An organization that has a strong ethical environment usually has a core value of placing _____ interests first. a. competitors' b. stockholders' c. management's d. government's e. customers'

e. customers'

Directors share a ______, which means all their decisions should be in the best interests of the corporation and its stakeholders. a. duty of oversight b. duty of accountability c. duty of conflict d. duty of control e. duty of loyalty

e. duty of loyalty

The Consumers' Bill of Rights decreed by President John F. Kennedy specified all of the following EXCEPT the right to _____. a. be heard b. be informed c. safety d. to choose e. freedom

e. freedom

Before anything else, businesses must _____ to survive. a. sell internationally b. have a great reputation c. be popular d. compensate their employees well e. make a profit

e. make a profit

The concept in the chapter that is defined as a situation where the person is faced with multiple choices, all of which are undesirable as defined by the person is called a _____. a. value crisis b. philosophical analysis c. value turpitude d. principle decision e. moral dilemma

e. moral dilemma