Business Ethics ch. 5

What is Corporate Culture?

A blend of ideas, customs, traditional practices, company values, and shared meanings that help define normal behavior for everyone who works in a company

Whats an ethical reporting mechanism?

A program that enables employees, customers, or suppliers to report an ethical concern directly to someone in authority in an organization.

What is it called when you emphasizes threat of detection and punishment to promote lawful employee behavior?

Compliance-based approach

True or False. Laws and ethics is the same.

False. Laws are reduced to written rules, the general public's ideas about constitutes right and wrong. Ethics deal with human dilemmas that frequently go beyond the formal language of law.

What is white-collar crime?

Illegal acts committed by individuals, employees, or business professionals, such as fraud, insider trading, embezzlement, or computer crime.

Which ethical criterion is described by integrity approach and focused on personal morality?

Principle

what is employee ethical training?

Programs developed by businesses to further reinforce their ethical expectations for their employees.

Marketing refers to advertising, distribution, and selling products or services. True or False

True

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.

The unspoken understanding among employees of what is and is not acceptable behavior is called: a. Ethical climate. b. Efficiency. c. Success. d. Rites and rituals.

a. Ethical climate.

Typically, ethics training is offered to: a. Managers. b. To the rank-and-file. c. Both managers and the rank-and-file. d. The Board of Directors only.

a. Managers.

Ethics policies typically cover all of the following issues except: a. Developing guidelines for accepting or refusing gifts from suppliers. b. Encouraging discriminatory personnel practices. c. Avoiding conflict of interest. d. Maintaining the security of proprietary information.

b. Encouraging discriminatory personnel practices

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except: a. The Public Interest. b. Objectivity and Independence. c. Due Process. d. Due Care.

c. Due Process.

Which ethical criterion is described by a concerned from others approach/friendship/team interest/social responsibility?

Benevolence

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is: a. Operating under the compliance-based approach. b. Practicing "tone at the top." c. Operating under the integrity-based approach. d. Operating under the instrumental policy approach.

a. Operating under the compliance-based approach.

Integrity-based ethics programs: a. Seeks to avoid legal sanctions. b. Combines concern for the law with an emphasis on employee responsibility. c. Threatens employees with punishment for non-compliance with the ethics program. d. Are predominately implemented within the European Union.

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

Recipients of the corporate ethics awards show that: a. Awards are based on economic power, not ethical performance. b. Firms can be financially successful and ethically focused. c. Being legally compliant results in receiving an ethics award. d. Improving ethical performance is very costly, but bolsters a firm's reputation.

b. Firms can be financially successful and ethically focused.

Building ethical safeguards into a company's everyday routines is called: a. Change management. b. Justifying ethics. c. Institutionalizing ethics. d. Ethical awareness.

c. Institutionalizing ethics.

The critical component in installing an effective ethics program is: a. To allow all employees the freedom to act as they wish. b. In hiring an expensive ethics consultant. c. The integration of various ethics safeguards into a comprehensive program. d. Maintaining the position as the industry sales leader.

c. The integration of various ethics safeguards into a comprehensive program.