Business Ethics 10th Ed. Ferrell
economic, legal, ethical, and philanthropic
The four levels of social responsibility are
stakeholder framework
Utilizing a(n) _____ allows an organization to identify, monitor, and respond to the needs, values, and expectations of different stakeholder groups.
stakeholders
_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes.
criminal law
_____ impose(s) fines or imprisonment as punishment for breaking the law.
values
_____________ is the enduring beliefs and ideals that are socially enforced.
marketing fraud
_____________ is the process of dishonestly creating, distributing, promoting, and pricing products.
principles
_____________ is the specific and pervasive boundaries for behavior that should not be violated.
physical hacking
_____________ requires the agent to enter a facility personally and use an unsecured workstation with an employee's login name and password in order to gain access to the company's system.
password guessing
______________ is a social engineering technique where a person uses personal things about someone in order to guess a password.
dumpster diving
______________ is messy but successful for acquiring trade secrets.
fairness
______________ is the quality of being just, equitable, and impartial.
ethical culture
______________ reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior.
shoulder surfing
_________________ is when someone simply looks over an employee's shoulder while he or she types in a password.
core practices
__________________ are documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations.
primary stakeholders
__________________ are those whose continued association is absolutely necessary for a firm's survival.
conflict of interest
A(n) _____ exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group.
sentiment
According to Adam Smith's version of capitalism, the values each individual must have to produce for the common good are propriety, prudence, reason, __________ and promoting the happiness of mankind.
make a profit
Before anything else, businesses must _____ to survive.
secondary stakeholders
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
philanthropy
Most firms engage in ________________ - giving back to communities and causes.
descriptive approach
Stakeholder theory that focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships.
hostile work environment
A _____________ is when the conduct is unwelcome; the conduct was severe, pervasive, and regarded by the claimant as so hostile or offensive as to alter his or her conditions of employment; and the conduct was such that a reasonable person would find it hostile or offensive.
a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share.
A corporate culture can be defined as
Equal Employment Opportunity Commission
A federal agency that administers and enforces civil rights laws against workplace discrimination.
the media
According to researchers, normative values largely originate from all of the following EXCEPT:
norms
According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system.
government agency
All of the following generate discussion about the ethical nature of a decision EXCEPT:
customers
An organization that has a strong ethical environment usually has a core value of placing _____ interests first.
reputation
An organization's greatest intangible asset with tangible value is it's _______________.
The 1990s
Business ethics was institutionalized through the Federal Sentencing Guidelines for Organizations during which of the following periods?
formal systems of accountability, oversight, and control
Corporate governance is defined as
union affiliation
Discrimination on the basis of all but which of the following is defined as harassment?
awareness
Ethical ______ is the ability to perceive whether a situation or decision has an ethical dimension.
Sarbanes-Oxley Act
In order to address the loss of confidence in financial reporting and corporate ethics, Congress passed the _____________________ in 2002.
An ethical culture and good business performance
Many studies have found a positive relationship between which of the following?
efficiency
Optimization is the tradeoff between equity and:
abusive or intimidating behavior
Physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness are all associated with ______________________.
freedom
The Consumers' Bill of Rights decreed by President John F. Kennedy specified all of the following EXCEPT the right to
corporate accounting practices
The Sarbanes-Oxley Act was passed to provide oversight of
Global Compact
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.
Defense Industry Initiative on Business Ethics and Conduct
The ________________ was developed to guide corporate support for ethical conduct and is comprised of six principles.
Federal Sentencing Guidelines for Organizations
The _________________ was approved by Congress in 1991 and sets the tone for organizational ethical compliance by providing incentives to reward voluntary action to prevent misconduct and mitigate penalties.
Dodd-Frank Wall Street Reform and Consumer Protection Act
The ______________________ addresses some of the issues related to the financial crisis and recession and was designed to make the financial services industry more ethical and responsible.
corporate intelligence
The collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends is called ________________.
interlocking directorate
The concept of board members being linked to more than one company is called ____________.
equality
The distribution of benefits and resources in business is called ____________.
corporate citizenship
The extent to which businesses strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by various stakeholders is called __________________.
stakeholder interaction model
The two-way relationship between a firm and its stakeholders is conceptualized by the:
Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs.
What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on?
guilt or uneasiness
What is the first sign that you may have made an unethical decision?
phone eavesdropping
When someone with a digital recording device can monitor and record a fax line, it is called __________________.
whacking
Wireless hacking is known as _________________.
opportunity
_____ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior.
puffery
_____ is exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely.
integrity
_______ is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition.
honesty
____________ refers to truthfulness or trustworthiness.
remote hacking
_____________ involves attempting to remotely penetrate a system across the Internet.
reciprocity
_____________ is an interchange of giving and receiving in social relationships.
social engineering
_______________ is the tricking of individuals into revealing their passwords or other valuable corporate information.
implied falsity
________________ means the message has a tendency to mislead, confuse, or deceive the public.
ethical issue
A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n):
ethical dilemma
A problem, situation, or opportunity that requires an individual, group, or organization to choose among several action that have negative outcomes is called a(n) ____________________.
social responsibility
An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its
seniors
The most vulnerable segment of demography when it comes to financial scams are:
passive bribery
The official who receives the bribe commits this offense:
active bribery
The person who promises or gives the bribe commits this offense:
bribery
The practice of offering something in order to gain an illicit advantage is
ethical issue intensity
The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as:
affirmative action programs
Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions?
fair healthcare packages for employees
Which of the following is NOT a common ethical issue in organizations?
bribes
Which of the following is NOT a component of immediate job context that may relate to opportunity for misconduct in the workplace?
employee benefits packages
Which of the following is NOT a factor in the ethical decision-making model?
the media
Which of the following is NOT a primary stakeholder group?
Business relationships require the highest level of transparency and open communication.
Which of the following is NOT a problematic line of reasoning people use in business that can lead to problems with honesty?
employees
Which of the following is NOT a secondary stakeholder group?
working more hours than reported
Which of the following is NOT one of the top types of observed misconduct?
The Office of Financial Research
Which of the following is an office, created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is charged with creating a better system for analyzing the financial industry?
The conditions in an organization that limit or permit ethical or unethical behavior.
Which of the following statements best describes an opportunity?
The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation.
Which of the following statements is correct?
it mandates that employees provide safe and healthy working conditions
Which of the following statements is true of the Occupational Safety and Health Act?
insider trading can be legal or illegal
Which of the following statements is true?
Warren Buffet
Which of these argued that it is impossible to eradicate all wrongdoing in a large corporation, and that the best one can hope is that the wrongdoing is minor and caught in time?
identifying stakeholder groups
Which of these represent the second step in stakeholder framework to manage responsibility and business ethics?
The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization.
Which statement best describes ethical issue intensity?
lying
_________ is defined as untruthful statements that result in damage or harm.
discrimination
_________ on the basis of race, color, religion, sex, marital status, sexual orientation, public assistance status, disability, age, national origin, or veteran status is illegal in the United States.
system hacking
___________ assumes the attacker already has access to a low-level, privileged-user account.
morals
___________ is a person's personal philosophies about what is right or wrong.
hacking
___________ is considered one of the top three methods for obtaining trade secrets.
strategic philanthropy
___________ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.
oversight
___________ provides a system of checks and balances that limit employees' and mangers' opportunities to deviate from policies and strategies aimed at preventing unethical and illegal activities.
dual relationship
____________ is defined as a personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities.
consumer fraud
____________ occurs when consumers attempt to deceive businesses for their own gain.
voluntary practices
_____________ includes the beliefs, values, and voluntary contractual obligations of a business.
fraud
_____________ is any purposeful communication that deceives, manipulates, or conceals facts in order to harm others.
unethical dual relationship
______________ are those where the relationship could potentially cause a direct or indirect conflict of interest or a risk of impairment to professional judgment.
civil law
______________ defines the rights and duties of individuals and organizations (including businesses).
Age Discrimination in Employment Act
______________ specifically outlaws hiring practices that discriminate against people 40 years of age or older, as well as those that requires employees to retire before the age of 70.
insider trading
_______________ is the buying or selling of stocks by insiders who possess information that is not yet public.
intellectual property rights
________________ involves the legal protection of intellectual property such as music, books, and movies.
accounting fraud
_________________ usually involves a corporation's financial reports, in which companies provide important information on which investors and others base decisions involving millions of dollars.
sexual harassment
___________________ is defined as any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another.
facilitation payment
_____________________ are made to obtain or retain business or other improper advantages.
executive compensation
_____________________ is the biggest issue corporate boards of director's face, sometimes spending more time deciding on this than ensuring the integrity of the company's financial reporting systems.
stakeholder model of corporate governance
_____________________ states that it has a responsibility for economic success and viability to satisfy its stockholders but it must also answer to other stakeholders.
shareholder model of corporate governance
________________________ includes the goal of maximizing wealth for investors and owners.