Exam 1 ethics

Corporate Social Responsibility

An organization's obligation to maximize its positive impact and minimize its negative impact on society

stakeholders power over business stems for their

ability to withdraw or withhold resources

Ethical culture is defined as

acceptable behavior as defined by the company and industry

a stakeholder orientation is not complete unless it includes

activities that actually address stakeholder issues

the 1960's saw a rise of consumerism. what is consumerism

activities undertaken by independent individuals groups and organizations to protect their rights as consumers

the originator of the idea of the invisible hand which is a fundamental concept in free market capitalism was

adam smith

conflicts of issues exist when employees must choose whether to

advance their own personal interests those of the organization or thoseof some other group

business ethics is a part of decision making

at all levels of work and management

the foreign corrupt practices act outlawed

bribery of officials in other countries

is associated with a hostile workplace where someone considered a target is threatened harassed belittled or verbally abused

bullying

the federal sentencing guidelines for organizations set the tone for organizational compliance program by

codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct

which of the following is a major ethical concern among corporate boards of directors

compensation

the term used to express how a firm needs its stakeholder expectations pf its economic legal ethical and philanthropic responsibilities is

corporate citizenship

most organizations with a strong ethical climate usually focus on the core value of placing interests first

customers

which of the following was developed in the 1980's to guide corporate support for ethical conduct by establishing a method for discussing best practices

defense industry initiaitive on business ethics and conduct

the first step toward understanding business ethics is to

develop ethical issues awareness

what are the four levels of social responsibility

economic legal and philanthropic

which of the following describes the four levels of social responsibility

economic, legal, ethical, and philanthropic

values are

enduing the beliefs and ideas that are socially enforced

Employees' perceptions of their firm as having an ethical climate leads to

enhanced outcomes

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

federal sentencing guidelines for organization

Federal Sentencing Guidelines for Organizations

focuses on firms taking action to prevent and detect business misconduct in cooperation with government regulation

is associated with a person who is crafty or understands right and wrong behavior but uses tricks to obtain a unfair advantage

guide

the normative approach

identifies the guidelines that dictate how firms should treat stakeholders

an activity is probably ethical if it

is approved of by most individuals in the organization and is customary in the industry.

trust

is essential to building long term relationships between business and consumers

The term business ethics is best described by the following statement:

it compromises the principles values and standards that guide behavior in the world of business

Why do critics argue that high compensation for boards of directors is a bad thing?

it could cause conflicts of interest between the directors and the organization

which of the following was not a provision of the sarbanes oxley act

it outlawed bribery of officials in other countries

Investors are concerned about business ethics because they know that misconduct can

lower stock value and prices

Employees who view their organizational culture as ethical are more likely to

make sacrifices for their organization

shareholders provide 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

the purpose of a stakeholder orientation is to

maximize positive outcomes that meet stakeholder needs

which of the following is true regarding abusive and intimidating behavior

not everyone agrees on what constitutes abusive behavior

what will happen to a firm found to be in violation if the company had proactively tried to prevent misconduct from occuring

penalties or fines may be reduced

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept? a. Physical threats b. False accusations c. Being annoying d. Profanity e. Performance probation

performance probation

when a restaurant claims that it sells the worlds best cup of coffee it could be accussed of

puffery

morals

relate to you and you alone

which represented a far reaching change to organizational control and accounting system making securities fraud a criminal offense

sarbanes oxley act

which of the following do not typically engage in transactions with a company and thus are not essential for its survival

secondary stakeholders

principles are

specific and pervasive boundaries for behavior that are universal and absolute

ethical issues in business typically arise because of conflicts among individuals morals and

the core values and culture of the organization where they work

accountants must abide by a strict code of ethics that defines the responsibilities to

their clients and the public interest

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

which of the following statements are true about business ethics

there is no conflict between profits and business ethics

when unethical acts are discovered in a firm, in most instances

there was knowing cooperation or complicity from within the company

the make it illegal for individuals firm o third parties doing business in american market to make payments to foreign government officials to assist in obtaining a retaining business

us foreign corrupt practice act

a company can be used for discrimination if it

uses age as a hiring o firing criterion

the dodd frank wall street reform and consumer protection act

was designed to make the financial services industry more responsible

Sarbanes-Oxley Act

were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000's