Business Ethics Ch.1-10
Internal Whistleblowing occurs when an employee discovers corporate misconduct within his/her organization and brings it to the attention of law enforcement agencies and/or the media
False
The manufacturing process is responsible for ensuring that a product reaches the hands of a satisfied customer.
False
The sentence of an organization punished under the Federal Sentencing Guidelines for Organization is calculated through a three-step process: determination of mitigation factors, evaluating the credit rating, and the determination of base fine
False
The social contract approach is a very simplistic model that argues that the organization only has an obligation to itself.
False
The social contract approach to corporate management is the perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers.
False
Under no circumstances can the culpability score be increased or decreased
False
Under the Dodd-Frank Wall Street Reform and Protection Act of 2010, a whistleblower is penalized stiffly for acting against the Commodity Futures Trading Commission
False
Under the Federal Civil False Claims Act, whistle blowers who expose fraudulent behavior against the government are entitled to a minimum of 75% of the recovered amount
False
Unethical corporate behavior does not have any impact on a company's stakeholders.
False
With the transition to an information based economy, it has become impossible for consumers and investors to hav any information at their disposal at any time in history.
False
Henry Ford II recognizes the fact that corporations operate in an isolated environment.
Fasle
International Ethics Centers that serve the needs of global businesses were formed in the 1960s.
Fasle
Employers feel necessary to monitor employees at the workplace because they have an obligation to their stakeholders to operate as efficiently as possible
True
Friedman's view of the corporate world supports the rights of individuals to make money with their investments.
True
The King II report, released by the committee formed by Mervyn King, formally recognized the need to move the stakeholder model forward and to consider a triple bottom line instead of a single bottom line of profitability.
True
The King report on corporate governance of 1994 incorporated a code of corporate practices and conduct that looked beyond the corporation itself, taking into account its impact on the larger community.
True
The argument over privacy at work traditionally centered on the amount of time that employees were on site.
True
The board members of a company are not accountable to the company and its shareholders.
True
The code of ethics adapted by the American Marketing Association speaks about improving "customer confidence in the integrity of the marketing exchange system"
True
The corporate governance committee of an organization is staffed by members of the board of directors and specialists
True
In an organization, the commitment to ethical behavior must be documented in a code of ethics, so that everyone begins from the same starting point.
True
One of the ways in which multinational corporations lower their expenses by shipping work to countries with lower labor costs.
True
Technological advances over the last two decades have made it possible for some employers to read the personal emails that employees send from their work stations.
True
The "office of the Whistleblower" was created by the Securities and Exchange Commission
True
A code of ethics is a guide that covers every possible event for employees.
False
Marketing professionals are responsible for ensuring that the right programs and policies for ethical business conduct are in place.
False
Technological advances over the last two decades have made it more difficult to pass personal data of customers from one place to another.
False
Telecommuting does not allow employees any degree of flexibility in terms of location from which they work.
False
The Cadbury report, established by Sir Adrian Cadbury in1992 to address financial aspects of corporate governance, dealt exclusively with external governance.
False
The King II report emphasized the need for companies to adopt an exclusive approach to corporate governance instead of an inclusive one.
False
The human resource function within an organization seldom needs to be involved in the relationship between the company and an employee
False
The interests of the creditors of an organization focus specifically on the employment of local residents and the safety of the work environment
False
The intranet is a private piece of a company's internet network that is made available to customer and/or vendor partners on the basis of secured access by a unique password.
False
The last stage of Lawrence Kohlberg's stages of ethical reasoning is conventional
False
Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes.
False
Universal Ethics refers to ethical choices that offer the greatest good for the greatest number of people.
False
When trying to resolve an ethical dilemma, the Golden Rule principle considers only legal aspects of the problem.
False
The False Claims Act of 1863 specifically protected whistle-blowers from retaliatory behavior.
Fasle
As an internal document, a code of ethics should represent a clear guide to ________ for making good decisions and choices
Managers and employee
Which of the following is one of the four basic categories of ethics?
Personal integrity
A company can be found in violation of the Foreign Corrupt Practices Act even if its bribe is unsuccessful
True
A company's cod of ethics comprises written standards of moral behavior that are designed to guide managers and employees in making the decisions and choices they face everyday.
True
A value system refers to a set of personal principles formalized into a code of behavior
True
A well written code of ethics can capture what an organization understands ethical behavior to mean.
True
A well-written code of ethics can establish a detailed guide to acceptable behavior.
True
According to the Ethics Resource Code, a good code of ethics is structured to liberate and empower people to make more effective decisions with greater confidence
True
Corporate ethics refer to the actions of an organization that are targeted towards achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.
True
In its mission to promote ethical organizational behavior and increase the cost of unethical behavior, the FSFO establish a definition of an organization that is so broad as to prompt the assessment that "no business enterprise is exempt"
True
Marketing professionals abide by a code of ethics adapted by the American Marketing Association.
True
Payments to foreign officials made in connection with expanding lawful customs clearances and attaining the issuance of entry or exit visas are considered bribes under the Foreign Corrupt Practices Act.
True
Simple truth is one of the four basic categories of ethics and can be expressed simply as doing the right thing
True
Since the code of ethics cannot capture every possible example, each department of an organization should apply the code to examples that arise in its area.
True
Sustainable ethics in culture are those that persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword.
True
The Ethics Resource Center states that a code of ethics should help managers, employees, and stakeholders understand how an organization's cornerstones translate into everyday decisions, behaviors and actions.
True
The Foreign Corrupt Practice Act was introduced to more effectively control bribery, another less obvious form of payment to foreign officials and politicians by American publicly traded companies as they pursued international growth.
True
The advocates of ethical business to conduct argues that an organizations human resource should be the sole creator of any corporate code of ethics.
True
The new technological ability that allows employees to work from locations other than their office and log into their companies network remotely is known as telecommuting.
True
The processing of governmental papers, such as visas, is an example of a routine governmental action
True
The real test of any company's ethical policy comes when one of its employees is presented with a potentially unethical situation.
True
Companies can now make vast amounts of information available to its employees and customers on their internet, intranet, and extranet sites.
True
If an employe leaves a company, the human resources department is responsible for hosting an exit interview to ensure that anything the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.
True
The Foreign Corrupt Practices Act focuses on disclosure which requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the securities and exchange commission provisions.
True
The concept of "at work" has become blurred because of the advances in computer technology and the new capability of telecommuting.
True
The interests of wholesalers in an organization include accurate deliveries of quality products on time and at a reasonable cost
True
The main responsibility of the auditing committee of an organization is to set the compensation for all the employees of the organization, including its outside contractors.
True
The triple bottom line proposed by King II report, released by the committee formed by Mervyn King, recognizes the economic, environmental, and social aspects of a company's activities
True
Under the Federal Civil False Claims Act, whistle-blowers are referred to as "relators"
True
Under the Foreign Corrupt Practices Act, payments to the foreign officials mode in connection with the promotion or demonstration of company products or services are legal
True
Whistleblowers are often severely criticized since they have in someway breached the trust and loyalty they owe to their employers.
True
In the context of _______, actions are taken out of duty and obligation to a purely moral ideal rather than based on the needs of a situation
Universal Ethics
The Greek philosopher Aristotle's belief in individual character and integrity established the concept of
Virtue ethics
Society refers to a(n)
group of individuals who share similar psychological oder and community resources
A whistle-blower is an individual who discover corporate misconduct and chooses not to do anything about it
False
According to Adam Moore, consent given by employee with little choice is referred to as thick consent.
False
An intrinsic value means that the pursuit of one value is a good way to reach another value
False
Celebrating and rewarding ethical behavior demonstrated by an organization's employees is the last stage and making ethical behavior sustainable for an organization.
False
Code of ethics have matured from performance measurement documents into cosmetic public relation documents
False
Corporate citizenship is an element of corporate social responsibility
False
Creditors, supplies, and professional consultants represent the inside members of a board of directors
False
Extabet enterprises donates a certain percentage of the profits to local charities, but it does not comply with all the legal industry standards of operating in a safe working environment. This depicts corporate social responsibility.
False
Given that research and development teams do not interact directly with customers, the potential for ethical dilemmas.
False
Happiness and health are examples of instrumental values that are pursued to reach another value
False
Information, once digitized, cannot be sent over a fiber optic cable.
False
Layoffs reduce corporation cost and only affect the laid off employees
False
Members of a board of directors are not eligible to be a part of the audit committee of an organization
False
Milton Friedman asserted that there are five major trends behind the corporate social responsibility phenomenon.
False
Prior to the passing of the Foreign Corrupt Practices Act, the securities and exchange commission was not authorized to penalize company executives for failing to disclose payments under at the securities rules.
False
Sending digitized information across fiber-optic wires raises no ethical questions
False
Supporting the code of ethics with extensive training for every member of the organization is the first stage and making ethical behavior sustainable for an organization.
False
The Whistle-blower Protection Act of 1989 is also known as the Corporate and Criminal Fraud Accountability Act.
False
The Whistleblower Protection Act of 1989 did not apply to federal employees
False
The ability of ongoing technological advancements has made it easier to determine precisely where work ends and personal life begins.
False
The advocates of ethical business conduct argue that an organization's marketing team should be at the center of any corporate code of ethics.
False
The extranet is part of a company's website which can only be accessed by its senior executives.
False
"Do unto others as you would have them do unto you" is the Golden Rule
true