BUS Ethics Final

In the Reagan/Bush eras, the major focus of the business world was on - self-regulation rather than regulation by government. - decreasing the number of mergers. - decreasing the multinational presence in the U.S. marketplace. - increasing government influence on the economic arena. - improving business ethics.

- self-regulation rather than regulation by government.

The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was -Adam Smith. -Archie Carroll. -Jack Ma. -Noel Biderman. -Milton Friedman.

-Adam Smith.

What are the four levels of social responsibility? Financial, religious, ethical, and philanthropic -Ethical, philanthropic, selfish, and short-sighted -Economic, long-term, ethical, and philanthropic. -Economic, legal, ethical, and philanthropic -Economic, compliance, legal, and philanthropic

-Economic, legal, ethical, and philanthropic

Shareholders provide resources to an organization that are critical to long-term success. Which of the following does the book suggest that suppliers offer? - The promise of customer loyalty - Material resources and/or intangible knowledge - Infrastructure - Revenue - Leadership skills

- Material resources and/or intangible knowledge

The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s. - Defense Industry Initiative on Business Ethics and Conduct - Sarbanes-Oxley Act - Federal Sentencing Guidelines for Organizations - Foreign Corrupt Practices Act - Dodd-Frank Wall Street Reform and Consumer Protection Act

- Sarbanes-Oxley Act

What type of fraudulent activity could involve a consumer staging an accident to seek damages? Whacking Duplicity Guile Defamation Collusion

Duplicity

Your textbook (Ferrell) defines morals as 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. True False

False

T or F facilitation payments are not exempt from FCPA

False are exempt

While he is normally against the idea of harming animals, Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint? Egoism Relativism Humanitarianism Utilitarianism Individualism

Utilitarianism

The _____ formed in 1995, and it administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations International Monetary Fund United Nations World Trade Organization North American Free Trade Act European Union

World Trade Organization

Ethical Culture

acceptable behavior as defined by the company and industry

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 - stakeholder orientation - values - principles - business ethics - integrity management

business ethics

Cause-related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit. individual ethics tastes attitudes budgets buying patterns

buying patterns

Those who have influence in a work group are referred to as significant others and include - peers, managers, coworkers, and subordinates. - family members, peers, and coworkers. - spouses and friends. - employees in similar job situations. - employees who hold the same job.

peers, managers, coworkers, and subordinates.

Title VII of the Civil Rights Act of 1964

prohibits discrimination on the basis of race, color, sex, religion, or national origin.

An interchange of giving and receiving in social relationships is known as reciprocity. optimization. honesty. integrity. justice.

reciprocity.

Morals - are the same as principles and ethics. - relate to the business's ethical culture. - are emphasized in business ethics programs. - relate to you and you alone. - do not have much influence over individual ethical decision making.

relate to you and you alone.

The ability to influence the behavior of others by offering them something desirable is best described as coercive power. reward power. expert power. legitimate power. referent power.

reward power.

The _____ model is founded in classic economic precepts. economic shareholder stakeholder board ISO

shareholder

what is the #1 country with no health insurance

sweden

what is ethical issue intensity

the perceived relevance or importance of an ethical issue to individual, work group etc.

____ ____ arent typically primary stakeholders

trade association

How members of a society respond to uncertainty or ambiguity is referred to as rational economics cultural relativism. collectivism. power distance. uncertainty avoidance.

uncertainty avoidance.

A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n) ________ because she is trying to secure the greatest good for the greatest number of people. egoist. deontologist. utilitarian. relativist. humanitarian.

utilitarian.

Organizations that have ethics programs based on a _____ orientation are found to make a greater contribution than those based simply on compliance, or obeying laws and regulations. customer political principles values social

values

The thought experiment used by John Rawls that examined how individuals would formulate principles if they did not know what their future position in society would be is called equality principle utilitarian veil liberty principle universal principle veil of ignorance

veil of ignorance

Dodd-Frank Wall Street Reform and Consumer Protection Act was designed to help

was designed to help make financial services industry more ethical and responsible

The original meaning of the word ethics comes from the Greek, "ethos" and caries with it the idea of something that is always changing. True False

False

The terms moral intensity and ethical issue intensity can be used interchangeably. True False

False

economic and social equalities should be arranged to..

benefit the least advantaged memebers

Which of the following is true about the U.K. Bribery Act? -It allows for small facilitation payments. -It only applies to companies headquartered in the United Kingdom. -It is not as stringent as the Foreign Corrupt Practices Act. -It classifies bribes among businesspeople to be illegal. -It mandates that companies must have explicit knowledge of the bribe to be liable.

-It classifies bribes among businesspeople to be illegal.

Why do critics argue that high compensation for boards of directors is a bad thing? -It is too expensive for the organization. -It could cause conflicts of interest between the directors and the organization. -It is not fair to poorly compensated employees. -High pay will render the board less complacent. -Board of director compensation is negatively related to corporate growth.

-It could cause conflicts of interest between the directors and the organization.

_____is defined as a situation where the person is faced with multiple choices, all of which are undesirable as defined by the person. -Value dilemma -Integrity management -Philosophical dilemma -Legal dilemma -Moral dilemma

-Moral dilemma

Which is not considered a white collar crime? -Corporate tax evasion -Credit card fraud -Insider trading -Identity theft -Mugging someone

-Mugging someone

_____ are satisfied by social and interpersonal relationships, and _____ are satisfied by creative or productive activities. -Growth needs; relatedness needs -Personal needs; group needs -Coercive needs; ethical needs -Relatedness needs; growth needs -Group needs; personal needs

-Relatedness needs; growth needs

values have all the following characteristics except -Provides guidance to organizations -Subjective and related to choice -Widely accepted -Used to develop norms -Differs across cultures and firms

-Widely accepted

Motivation is defined as -the reason why high achieving employees strive for high job performance. -a force within the individual that focuses his or her behavior on achieving a goal. -personal ambition without regard to the impact on others. -a desire to be finished with a project. -individual goals.

-a force within the individual that focuses his or her behavior on achieving a goal.

Stakeholders' power over businesses stems from their -ability to withdraw or withhold resources. -ability to generate profits. -media impact. -political influence. -stock ownership.

-ability to withdraw or withhold resources.

The famous statement "Act as if the maxim of thy action were to become by thy will a universal law of nature" is called -categorical imperative. -economic imperative. -philosophy of action. -rule of deontologists. -utilitarianism.

-categorical imperative.

A broader view of social responsibility​ ​- views customers as the most important stakeholder. - ​takes into account a shareholder orientation. ​- prioritizes all stakeholders the same way -considers the long-term welfare of society. ​-emphasizes adherence to law as the highest priority.

-considers the long-term welfare of society.

The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization. -corporate culture -intentions of a corporation -ethical issue awareness -determination of a corporation -individual factors

-corporate culture

Familiarizing employees with company values and training them to recognize common ethical scenarios helps them generate -ethical awareness. -moral intensity. -ethical issue intensity. -individual values. -principles.

-ethical awareness.

To motivate employees, an organization offers _____ to _____ employees to work toward organizational objectives. -punishment; force -peer pressure; guilt -incentives; encourage -rewards; bribe -threats; frighten

-incentives; encourage

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to -cultural differences. -multinational corporations. -consumerism. -legal differences. -international negotiations.

-multinational corporations.

A central problem with relativism is -that it emphasizes people's differences, not similarities. -that few people believe that these principles are important. -that it is very complicated. -that it represents unattainable goals. -that many feel that it only works in theory.

-that it emphasizes people's differences, not similarities.

Which decade was known for a code of conduct aimed at defense contractors? 1970s 1980s 1990s 2000s

1980s

_____ typically focuses on the end result of actions and happiness created by them, whereas _____ emphasizes the means and motives by which actions are justified. -Pragmatism; hedonism -Deontology; pragmatism -Utilitarianism; deontology -Utilitarianism; a goodness theory -A goodness theory; an obligation theory

A goodness theory; an obligation theory

Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the action, with rules serving as guidelines in the decision-making process? Rule utilitarianism Act utilitarianism Rule deontology Act deontology The relativist perspective

Act deontology

_____ is considered the father of free market capitalism. He believed that business was and should be guided by the morals of good men. John Maynard Keynes Immanuel Kant Aristotle Adam Smith Lawrence Kohlberg

Adam Smith

The moral philosophy of idealism is a branch of the economic value orientation that views ethics as whether an act produces more economic value for its effort. True False

False

High levels of _____ create a higher probability that firms cut corners because margins are usually low. Profit Return Cooperation Competition Loss

Competition

______________ are central to an organization and provide directions for action. Core values Normative approaches Ethical issues Opportunities Institutions

Core values

Actions associated by firms with various stakeholder (other than investors) interests as a priority is a definition of Shareholder Theory Corporate Social Responsibility The Friedman Theory None of the above

Corporate Social Responsibility

Sarbanes-Oxley is considered to be the most sweeping financial overhaul of the regulatory system since the Great Depression. ​ True False

False

Socialism is synonymous with communism. ​ True False

False

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance? - Department of Justice, Sarbanes-Oxley Act, and Open Compliance Ethics Group - Department of Justice, Dodd-Frank Act, and Sarbanes-Oxley Act -Federal Sentencing Guidelines for Organizations, tSarbanes-Oxley Act, and Dodd-Frank Act -Food and Drug Administration, Federal Sentencing Guidelines for Organizations, and Sarbanes-Oxley Act -Securities and Exchange Commission and Sarbanes-Oxley Act

Federal Sentencing Guidelines for Organizations, tSarbanes-Oxley Act, and Dodd-Frank Act

Which President began The New Deal and blamed business for the cause of the Great Depression? Herbert Hoover Richard Nixon Barrack Obama Franklin Roosevelt

Franklin Roosevelt

_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression. Stealing Insider trading Fraud Misappropriation Accounting fraud

Fraud

________ is associated with a person who is crafty or understands right/wrong behavior but uses tricks to obtain an unfair advantage. Shoplifting Collusion Guile Shrinkage Implied falsity

Guile

Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred? -Has your boss given you a raise within the last year? -Is your boss asking obviously impossible things from you without training and stating that, once completed, the work is never good enough? -Are surprise meetings called without your knowledge? -Have others at work told you to stop working, talking, or socializing with them? -Are you never left alone to do your job without interference?

Has your boss given you a raise within the last year?

The specific steps for implementing the stakeholder perspective do not include which of the following? - Identifying stakeholder groups - Identifying stakeholder issues - Identifying and gaining stakeholder feedback -Identifying and gaining government feedback - Assessing organizational commitment to social responsibility groups

Identifying and gaining government feedback

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades? -Institutionalization of ethics is now mandated for all organizations by governments around the world -Stakeholders have recognized the need for improving business ethics -The government has stepped in when scandals and misconduct have damaged key constituents of businesses -Gatekeepers have been questioned as to their contributions to major scandals -Highly ethical companies tend to be more profitable than those suffering from misconduct issues

Institutionalization of ethics is now mandated for all organizations by governments around the world

The _____ was a result of a meeting in which international leaders decided that primary responsibility for the regulation of monetary relationships among nations should rest in an external body. United Nations North American Free Trade Agreement World Trade Agreement World Bank International Monetary Fund

International Monetary Fund

Which is not one of the four sources of criminal and civil laws? Judicial law Common law Constitutional law Administrative law Statutory law

Judicial law

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the "invisible hand." Consumerism Cultural relativism Social democracy Laissez-fair Bimodal wealth distribution

Laissez-fair

What concept refers to a person's personal philosophy about what is right or wrong? Philosophy Values Principles Integrity Morals

Morals

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept? Physical threats False accusations Being annoying Profanity Performance probation

Performance probation

Which of the following is one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program? -Engage in cause-related marketing -Provide oversight by high-ranking personnel -Develop a system of voluntary practices -Submit to periodic privacy audits -Comply with ISO 14000 guidelines

Provide oversight by high-ranking personnel

Which of the following is called the mother of all virtues? Love Faith Prudence Fortitude

Prudence

The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing. -Public Company Accounting Oversight Board -Corporate Accounting Oversight Commission -Consumer Financial Protection Bureau -Occupational Health and Safety Administration -Equal Employment Opportunity Commission

Public Company Accounting Oversight Board

Which of the following is the first step in the ethical decision making process? a. Being socialized into the firm's corporate culture b. Applying a personal moral philosophy in order to individualize the ethical decision making process c. Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong d. Soliciting the opinions of others in a work group or in the overall business in order to gain feedback e. Enforcing the firm's ethical standards with rewards and punishment

Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong

Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually? Rule utilitarianism Act utilitarianism Rule deontology Act deontology Egoism

Rule utilitarianism

Which of the following acts can be classified as procompetitive legislation? Equal Pay Act of 1963 Civil Rights Act of 1964 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 Sherman Antitrust Act of 1890 Occupational Safety and Health Act of 1970

Sherman Antitrust Act of 1890

_____ institutions include religion, education, and individuals such as the family unit. Social Conservative Economic Liberal Political

Social

Insensibility and self-indulgence would be having which of the following to in a deficient amount or in an excess amount, respectively? Temperance Faith Magnanimity Fortitude

Temperance

Which of the following is one of the three criteria that must be met to constitute a hostile work environment? -Misconduct must be prevalent. -The manager must be directly involved. -The conduct was unwelcome. -Discrimination must be proven. -The workplace is unfriendly.

The conduct was unwelcome.

Which of the following statements about corporate culture is false? -Corporate culture refers to the patterns and rules that govern the behavior of an organization and its employees, particularly the shared values, beliefs, and customs. -The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture. -Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization. -The culture of an organization may be explicitly stated or unspoken. -Failure to monitor or manage an organization's culture may foster unethical behavior.

The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture.

Why is the public more tolerant of consumer misconduct than business misconduct? - Businesses are expected to have a better idea of right and wrong. - The decisions of individuals have little to do with ethics in the business world. - There are big differences in wealth and success between businesses and consumers. - More organizations commit misconduct than individual consumers. - There is a large income disparity among professional businesspeople.

There are big differences in wealth and success between businesses and consumers.

Why do certain countries view bribery as ethical? ​

They see these bribes as "favors" of minimal value.

An excess of fortitude might cause one to behave rashly. True False

True

Non-profit organizations, corporations, and government agencies all have their own organizational cultures. ​ True False

True

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

True

The board of directors' fiduciary duty to a company means they have assumed a position of trust and confidence that entails certain responsibilities. ​ True False

True

Your textbook (Ferrell) defines morals as personal philosophies that define right and wrong. True False

True

​In Dodge vs. Ford Motor Co., the court ruled that a business exists for the profit of shareholders, and the board of directors should focus on that objective. True False

True

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights. The Global Sullivan Principles Sarbanes-Oxley Act FSGO Global common values UN Global Compact

UN Global Compact

Optimization is defined as

a trade-off between equity and efficiency.

A high concern for people but minimal concern for performance can best describe the _____ culture. caring apathetic exacting shareholder employee

caring

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by - codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct. - forcing all organizations to develop mandatory reporting systems and ethics programs. - eliminating most of the federal legislation that created inefficient and time-consuming activities for businesses. - providing detailed guidelines for how to set up organizational ethics programs to guard against unethical conduct. - providing a thorough examination of company codes of ethics to determine whether they are sufficient.

codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct.

stakeholder orientation can be viewed as a _______

continuum

Means the message has a tendency to mislead, confuse, or deceive the public. a. Collusion b. Puffery c. Literally false d. Implied falsity

d. Implied falsity

The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role-sets is referred to as group norms. cognitive memory dissonance. cognitive association. differential association. casual interaction.

differential association.

what is not a provision to the dodd frank act

loosening regulation and lessening oversight of hedge funds

Relavist Perspective

ethical behavior subjectively from the unique expeierences of individuals and groups

One of the major ethical issues President Obama's administration focused on was - decreasing environmental legislation. - deregulation. - tax decreases. - incentives to oil companies. - health care and consumer protection.

health care and consumer protection.

The _____ includes the motivational "carrots and sticks" superiors use to influence employee behavior.

immediate job context

The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society. institutionalization rationalization commercialization mobilization enforcement

institutionalization

Melinda is a very popular executive. She inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Melinda has helped to create a(n) _____ culture. authoritative caring integrative apathetic affiliative

integrative

An activity is probably ethical if it -is approved of by most individuals in the organization and is customary in the industry. -is approved of by no one in the organization, but has been carried out in the industry before. -is customary in the industry. -does not violate any laws. -does not make consumers feel cheated, deceived, or manipulated.

is approved of by most individuals in the organization and is customary in the industry.

In order for whistle-blowing to be effective, -the individual must have indisputable proof of guilt. -employees must wish ill on the organization for which they work. -lawmakers must make an effort to force employees to discuss details about the misconduct. -it requires that the individual have adequate knowledge of wrongdoing that could damage society. -it must occur at a very large multinational corporation.

it requires that the individual have adequate knowledge of wrongdoing that could damage society.