Business Ethics Final
The _______ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent.
10-40-40-10
A strong ethics program includes all of the following elements expect
A clause promising good stock market performance
Motivation is defined as
A force within the individual that focuses his or her behavior on achieving a goal
More than a compliance program, business ethics is becoming
A management issue to achieve competitive advantage
Which of the following describes a dual relationship?
A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities
Stakeholders' power over businesses stems from their
Ability to withdraw or withhold resources
The originator of the idea the invisible hand, which is a fundamental concept in free market capitalism, was
Adam Smith
Conflicts of interest exist when employees must choose whether to
Advance their own personal interests, those of the organization, or those of some other group
Business ethics is a part of decision making
At all levels of work and management
______ is associated with hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.
Bullying
Cause related marketing can affect consumer ________, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.
Buying patterns
Enlightened egoism
Centers on one's long-term self-interest but takes others' well-being into account
Which of the following is a major ethical concern among corporate boards of directors
Compensation
High levels of ______ create a higher probability that firms cut corners because margins are usually low.
Competition
A _______ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes.
Compliance orientation
A broader view of social responsibility
Considers the long-term welfare of society
For an ethics and compliance program to properly function,
Consistent enforcement and disciplinary action are essential
Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements:
Culture is shared, relatively stable, and is formed over a long period of time
Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level
Define right as that which conforms to the expectations of good behavior of the larger society
A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a ______ because he believes in the rights of all individuals
Deontologist
A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd-Frank Act is to
Encourage employees to report misconduct
Companies that ______ will most likely be found in violation of procompetitive legislation.
Establish monopolies
A(n) ________ requires an individual to choose among several actions that have negative outcomes.
Ethical dilemma
Both individual ethics and organizational ethics have an impact on employee's
Ethical intention
People who believe in ________ go with the flow because they feel the events in their lives are uncontrollable.
External locus of control
A study has found that those with an external locus of control were positively correlated with ethical decision making, whereas those with an internal locus of control were negatively correlated.
False
One of the main reasons employees do not report observed misconduct
Fear of retaliation
Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?
Federal Sentencing Guidelines for Organizations, Sarbanes-Oxley Act, and Dodd-Frank Act
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Federal sentencing guidelines for organizations FSGO
Top managers tend to focus on ______ because their jobs and personal identity are often connected to quarterly returns.
Financial performance
Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
Free samples
Issues related to fairness and honesty may arise because business is sometimes regarded as a
Game governed by its own rules rather than those of society
No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent
Informal expressions of an organization's culture
Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as
Informal groups
Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
Intellectual property rights
Employees who believe they control the events in their lives by their own effort and skill have a(n)
Internal locus of control
Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _______.
Internal pressures and ambiguity surrounding internal organizational rules
An activity is probably ethical if it
Is approved by most individuals in the organization and is customary in the industry
Research concerning nationality and the ability to make ethical decisions
Is hard to interpret in a business context because of cultural differences
In order for whistleblowing to be effective,
It requires that the individual have adequate knowledge of wrongdoing that could damage society
To ensure than an ethics program addresses the needs of the average employee, it should include all of the following except
Lengthy legal documents
New employees in bureaucratic organizations usually have ________ into the basic operating rules and procedures for getting things done.
Limited input
Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements are known as
Mandated boundaries
Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?
Material resources and/or intangible knowledge
Management's sense of the organization's culture
May be quite different from the employees' perceptions
Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief?
Milton Friedman
The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with
Milton Friedman
An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg's stages of development?
Mutual interpersonal expectations, relationships, and conformity (3rd stage)
Which of the following is true regarding abusive and intimidating behavior?
Not everyone agrees on what constitutes abusive behavior
Following the ethical directives of a superior relates to
Obedience to authority
According to the ethical decision-making framework, the absence of punishment provides a(n) ______ for unethical behavior.
Opportunity
Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _______ can alter this intent.
Organizational or social forces
A stakeholder group that is absolutely necessary for a firm's survival is defined as
Primary
Title VII of the Civil Rights Act of 1964
Prohibits discrimination on the basis of race, color, sex, religion, or national origin
When a restaurant claims that it sells the world's best cup of coffee, it could be accused of
Puffery
An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a
Relativist
The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and
Reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct
Because a corporation can be considered a moral agent, it is therefore
Responsible to society for its actions
The ______ model is founded in classic economic precepts
Shareholder
Many people wrongly assume that a company will be ethical if it
Simply hires ethical employees
The ______ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.
The Food and Drug Administration
Which of the following groups is not a group that receives special legal protections?
The highly educated
In the absence of ethics programs, employees are likely to make decisions based on
Their observations of how their coworkers and superiors behave
Business ethics, as a field, has passed through which of the following states?
Theological discussion to recognition of social issues to a field of study
When unethical acts are discovered in a firm, in most instances
There was knowing cooperation or complicity from within the company
For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?
This is in keeping with my personal morals and the code of conduct, so it is okay
What is one of the goals of ethics training?
To identify key risk areas employees will face
Ethical concerns in centralized structures can occur because of very little
Upward communication
Ethical issues in business typically arise because of conflicts among individuals' morals and
Values and attitudes of the organization in which they work and the society in which they live
______ responsibilities relate to a business's contributions to stakeholders.
voluntary