GBU Chapters 1-5

Integrity-based ethics programs:

Combines concern for the law with an emphasis on employee responsibility.

The Human Development Index scale ranges from:

0 to 1

Which ethical criterion is described by the idea that a company should strive for efficiency? A) Egoism B) Benevolence C) Principle D) Business-Centered

A) Egoism

Which of the following statements regarding the Gini Index is true? A) Zero percent stands for absolute equality B) It is a statistical measure of complexity C) Fifty percent represents absolute inquality D) Inequality reduces as the percentage figure rises toward 100

A) Zero percent stands for absolute equality

Positive reputation can be valued as an intangible corporate

Asset

Which of these statements is true about the U.K. Bribery Act? A)Provides an exemption for "facilitating payments" B) Contains a strict liability offense for failure to prevent bribery by commercial organizations C) Prohibits bribery only for government officials D) Requires that improper actions be made "corruptly"

B) Contains a strict liability offense for failure to prevent bribery by commercial organizations

The SEC filed civil false-certification charges against which U.S. financial institution? A) Wells Fargo B) Countrywide C) J.P. Morgan, Chase D) Bear Stearns

B) Countrywide

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: A) increased B) reduced C) unaffected D) decided by the company

B) Reduced

Provide three arguments in favor of corporate social responsibility

Balances Corporate power with responsibility Discourages government regulation Promotes long-term profits for business

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:

Boundary-Spanning departments

Which of the following fulfills the human need for concepts and categories of meaning that explain daily life? A) Paradigms B) Reality C) Ideology D) Subjective beliefs

C) Ideology

A stakeholder analysis: A) Creates equality among all stakeholder interests B) Allows managers to examine two primary questions C) Involves understanding the nature of stakeholder interests D) All of the above

C) Involves understanding the nature of stakeholder interests

Which of the following situations contributed to the Industrial Revolution? A) Society that was low on capital and labor B) Closed society C) Society that encouraged individual initiative D) Inadequate transportation

C) Society that encouraged individual initiative

Corporate power refers to... A) The capability of competitors to influence legislation, trade, and the stock market based on their organizational resources B) The capability of politicians to influence corporations, employees, and unions based on their organizational resources C) The capability of corporations to influence government, the economy, and society, based on their organizational resources D) The capability of CEO's to influence product development, employee morale, and currency indices, based on their organizational resources

C) The capability of corporations to influence government, the economy, and society, based on their organizational resources

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions

Stakeholders have been able to form international coalitions more successfully through use of A) Government regulation B) Community involvement C) Communications technology D) Unions

Communications technology

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees

A system of shared knowledge, values, norms, customs, and rituals that are acquired by social learning is called a:

Culture

Which statement is not correct about the business-society interdependence? A) Business is a part of society B) Business is separated from the rest of society by clear boundaries C) Business activities impact other activities in society D) Actions by governments rarely affect business

D) Actions by governments rarely affect business

The core components upon which a company's ethical performance depends include... A) The values and virtues of the managers B) The personal character of the managers and employees C) The traditions, attitudes, and business practices built into a company's culture D) All of the above

D) All of the above

Which of the following statements is true about corporate social responsibility? A) Businesses should monitor and prevent social problems in advance of their becoming major issues B) A company should seek maximum profits from its operations in order to provide the best for society C) Corporations should be accountable for any actions that affect people, their communities, and the environment D) Both A and C but not B

D) Both A and C but not B

Which of the following is NOT an example of an ethical criterion? A) Egoism B) Concern for others C) Principle D) Corporate Driven

D) Corporate Driven

Which of the following is considered to be the bedrock of economic globalization? A) Monopoly B) Foreign direct investment C) Oligopoly D) Trade liberlization

D) Trade liberlization

Which of the following is the result of the inseparable relationship between business and society? A) All Business decisions have a social impact B) The vitality of business depends on society's actions and attitudes C) The survival of business is independent of society D) Both A and B, but not C

D) both A and B but not C

Which argument says that stakeholder management realistically depicts how companies really work? A) Descriptive argument B) Instrumental argument C) Normative argument D) Fiduciary argument

Descriptive argument

Which ethical criterion is described by the idea that a company should strive for efficiency?

Egoism

The most significant motivator of corporate social reporting is:

Ethical concerns

A form of government requiring popular sovereignty, political liberty, and majority rule is the androcracy

False

All ethics issues in business are the same

False

Business must develop its own definition of what is right and wrong, apart from ethics

False

Businesses and Society are independent of one another

False

Change in the business environment is the work of 10 deep historical forces or streams of related events

False

Corporate power says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it

False

Ethics are primarily based on religious beliefs

False

Global income inequality is measured by the Lorenz index

False

In the United States, most ethics policies are primarily based on the company's mission and vision

False

Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services

False

T/F In most companies, a moral atmosphere cannot be detected

False

T/F Managers in the same company are likely to be at the same stages of moral reasoning at any given time.

False

T/F Today, more companies than ever, are turning to formal ethics audits to measure the quality of their ethics programs

False

T/F it is impossible for multiple ethical climates to exist within one organization

False

T/F the majority of large U.S. corporations do not have a code of ethics

False

The American Institute of Certified Accountants Code directs accountants to be responsible to their clients and their profession, but not to the public

False

The Living Planet Index measures the human consumption of the renewable natural resources

False

The Sarbanes-Oxley Act requires that firms maintain good financial practices, apart from high ethical standards, in how they conduct and monitor business operations

False

The capability of corporations to influence government, the economy, and society , based on their organizational resources is called the big business principles

False

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

False

Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society

False

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

Identify and analyze the nature of ethical problems

The iron law of responsibility says that:

In the long run, those who do not use power responsibly will lose it.

What is an example that illustrates an ethics issue based on cross-cultural contradictions?

Legally marketing a pesticide abroad that has been banned in the U.S.

------ in an economic policy of lowering tariffs and other barriers to encourage trade

Liberalization

The ----- combines in one measure thousands of population trends among terrestrial, freshwater, and marine vegetable species

Living Planet Index

When undertaking social initiatives, a company:

May sacrifice short-term profits

Values based on assumptions of security and affluence are known as _____ values.

Post materialist

----- is the belief that sacred authority called for hard work, saving, thrift, and honesty as necessary for salvation

Protestant ethic

Most ethics or compliance officers are generally entrusted to:

Reduce the risks to the company's employee misconduct

What is an argument against corporate social responsibility?

Requires skills businesses may lack

A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:

Shareholders

Identify the correct statement regarding the waves of innovation that have taken place since the beginning of the Industrial Revolution

So far, the general trend has been the shortening of successive waves

Herbert Spencer's idea the evolutionary competition in human society, as well as the natural world, weeded out the unfit and advanced humanity is known as:

Social Darwinism

The invention of the --- in the late 1700's and its widespread use beginning in the early 1800s triggered the Industrial Revolution

Steam engine

The critical component in installing an effective ethics program is:

The integration of various ethics safeguards into a comprehensive program

In a benevolence ethical climate, the interests of the company's employees and external stakeholders most likely would be given high priority

True

A business is any organization that is engaged in making a product or providing a service for a profit

True

According to a recent Transparency International survey, Denmark and New Zealand are two countries that are least likely to be subjected to bribery

True

An argument against corporate social responsibility is that it imposes unequal costs among competitors

True

Being ethical includes developing a sense of trust, which promotes positive alliances among business partners

True

Corporate Social Responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals

True

Ethics training is typically the most costly element of an ethics program

True

Global Corporate Citizenship activities help companies create value, reputation, and competitive advantage

True

Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse.

True

If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree

True

Personal values and moral character play key roles in improving a company's ethical performance

True

T/F A business is any organization that is engaged in making a product or providing a service for a profit

True

T/F For managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass

True

T/F Marketing ethics includes having concern for consumer health and safety issues

True

T/F The U.S. Corporate Sentencing Guidelines provide a strong incentive for businesses to promote their ethics at work

True

The number of children a woman must have in average to ensure that one daughter survives to reproductive age is known as the replacement fertility rate

True

U.S. Corporate Sentencing Guidelines provide strong incentive for businesses to promote ethics at work

True

Walmart has been called a "template for 21st century capitalism."

True

A set of reinforcing beliefs and values that constructs a worldview is called a(n):

ideology