Chapter 2

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What is likely the single MOST effective step that a company can take to set ethical standards?

Demonstrate support from top management.

Ethics are beliefs about what is right and wrong. (true or false)

TRUE

Some ethical and unethical behaviors fall into gray areas, while others are widely agreed upon. (true or false)

TRUE

) Standards that help to shape behaviors towards employees, the organization, and other economic agents are

managerial ethics.

What category of ethics relates to matters such as hiring, firing, working conditions, privacy and respect?

Behavior toward employees

How do top managers best demonstrate a commitment to ethical business practices?

By adopting and enforcing written codes of ethics

Which of the following should be the first step in assessing ethical behavior in a certain situation?

Collects facts related to the situation.

When an activity benefits an individual but not the employer, what ethical dilemma has been created?

Conflict of interest

When evaluating a decision based on the ethical norm of rights, a manager is MOST likely to consider which of the following questions?

Does the decision respect the individuals involved?

What are individual beliefs about what is right and wrong or good and bad referred to as?

Ethics

Business ethics refers to ethical or unethical behaviors by employees in the context of their personal lives. (true or false)

FALSE

The standards of behavior that guide managers in their work are called employee ethics. (true or false)

FALSE

Which of the following is the BEST description of organizational stakeholders?

Individuals and groups that are directly affected by the practices of a company

What do ethical norms that ensure an action is consistent with what's fair entail?

Justice

Which ethical norm considers whether a particular act optimizes the benefits to those who are affected by it?

Utility


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