Exam 2
Which of the following is not true about justice reasoning: - The reasoner relies upon some accepted rule or standard - The reasoner considers who pays the costs and who receives the benefits - The reasoner seeks a fair distribution to all affected - The reasoner is interested in the net value of benefits
The reasoner is interested in the net value of benefits
Business managers should use all four methods of ethical reasoning - virtues, utility, rights, and justice - to better understand ethical issues at work
True
Managers, as major decision makers, are one of the keys to whether a company will act ethically or unethically
True
Marketing ethics include having concern for consumer health and safety issues
True
Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries
True
Under US law, lobbying activities must be disclosed publicly
True
The information strategy tool must used by business is: - Political contributions - Lobbying - Legal challenges - Direct communications
Lobbying
A Super PAC is a financial-incentive political strategy tool
True
A just or fair ethical decision occurs when: - Benefits and burdens are distributed in fair proportions - The rights of all affected are considered - Benefits exceed costs - The greatest good for those with power is achieved
Benefits and burdens are distributed in fair proportions
Businesses are expected to be ethical in their relationships with: - Customers - All of these answers are correct - Stockholders - Competitors
All of these answers are correct
When a business seeks to overturn a law after is has been passed or threaten to challenge the legal legitimacy of the new regulation in the courts, this is called: - Accumulating - Overturn lobbying - Legal challenges - Funneling
Legal challenges
Antitrust laws protect consumers from: - Anticompetitive practices by business - Selling products above cost to drive away rivals - Conspiring with business partners to increase competition - Firms using market dominance to expand commerce
Anticompetitive practices by business
The unspoken understanding among employees of what is and is not acceptable behavior is called: - Ethical climate - Ethical relativism - Rites and rituals - Corporate image
Ethical climate
In most companies, a moral atmosphere cannot be detected
False
Regulation cannot be applied to international business behavior
False
Public policy tools involve a combination of: - Incentives and political favors - Penalties and prison terms - Incentives and penalties - Political favors and prison terms
Incentives and penalties
At the core of rights reasoning is the belief that: - The right to join a union is no longer universally accepted - Economic and political powers determine who is right - Respecting others is the essence of human rights - The company's right to a profit must be protected
Respecting others is the essence of human rights
European Union regulators accused Uber of engaging in: - Price-fixing - False advertising - Unfair competition - Unhealthy working conditions
Unfair competition
A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of: - Egotism - Ethical relativism - Moral development - Conflict of interest
Conflict of interest
Business cannot expect to be profitable while adhering to ethical principles of conduct
False
Ethics are primarily based on religious beliefs
False
Government and business together establish the regulatory rules under which business operates in society
False
A national health care policy an example of an economic policy
False
Stakeholder groups typically use far different tactics than businesses to influence government officials, elections, and regulation
False
The American Institute of Certified Public Accountants Code directs accountants to steadfast in honorable behavior, but not to the point of personal sacrifice
False
If a manager approaches ethics with benevolence in mind, he or she would stress what? - Laws and professional codes - Economic efficiency - Friendly relations with an employee - Company rules and procedures
Friendly relations with an employee
A company that has ranked among the most ethical firms form 2007 to 2017, according to Forbes magazine is: - Walmart - Equifax - AFLAC - Amazon.com
AFLAC
Most ethics or compliance officers are entrusted to: - Audit the company's financial records - Reduce the risks to the company of employee misconduct - Arrange customer training courses at a nearby university - Act as a liaison between company and their temporary employees
Act as a liaison between the company and their temporary employees
The most effective ethics program utilize which of the following: - Quick reference guides - Posters - Written policy - All of these answers are correct
All of these answers are correct
The core components upon which a company's ethical performance depends include: - All of these answers are correct - The traditions, attitudes, and business practices built into a company's culture - The personal character of the managers and employees - The values and virtues of the managers
All of these are correct
A corporate political strategy does not: - Hinder a competitor's ability to compete economically - Seek to continue the firm's economic survival or growth - Determine the legal limits allowed for campaign financing - Exercise a firm's right to a voice in government affairs
Determine the legal limits allowed for campaign financing
Which of these statements accurately describe a Super PAC? - Allows limited contributions from unions - Allows limited contributions from individuals - Is also called the dependent expenditure-only committee - Does not allow direct contributions to candidates or political parties
Does not allow direct contributions to candidates or political parties
An example of global regulation that mitigates the impact of jet fuel on the environment is: - The Aviation Plan - The Clean Air Act - The Space Force Initiative - The International Space Station
The Aviation Plan
When the benefits of an action outweigh its costs, the action is considered ethically preferred according to: - Utilitarian reasoning - Plato and Aristotle - Virtue ethics - Theological reasoning
Utilitarian reasoning
Which statement characterizes the moral reasoning typically found in a child? - "Respect the rights of others" - "I'll let you play with my toy I play with yours" - "When in Rome, do as the Romans do" - "Seek the greatest good for the greatest number"
"I'll let you play with my toy if I can play with yours"
Proponents of business as a political participant argue: - A pluralistic system invites many participants - It is business's constitutional right to be involved - Business is vital stakeholder of government - Both of these answers are correct: A pluralistic system invites many participants; and business is vital stakeholder of government
Both of these answers are correct: A pluralistic system invites many participants; and business is vital stakeholder of government
Hiring former government officials for positions in the corporate world is: - Normally legal - Always unethical - Considered unethical by over 50% of Americans - Both of these answers are correct: Always unethical; and considered unethical by over 50% of Americans
Both of these answers are correct: Always unethical; and considered unethical by over 50% of Americans
Supporters of advocacy advertisements believe that they: - Identify a company as an interested and active stakeholder - Can help mold public opinion on a particular policy issue - Increase union activity and long-term expenses for an organization - Both of these answers are correct: Identify a company as an interested and active stakeholder; and can help mold public opinion on a particular policy issue
Both of these answers are correct: Identify a company as an interested and active stakeholder; and can help mold public opinion on a particular policy issue
Since 2008, the total amount spent on lobbing activity has: - Remained exactly the same - Doubled - Decreased slightly - Increased slightly
Decreased slightly
One of the oldest financial-incentive tools is: - Political action committee contributions - Political consulting aid - Advocacy advertising - Lobbying
Political action committee contributions
The critical component in installing an effective ethics program is: - To allow all employees the freedom to act as they wish - In hiring an expensive ethics consultant - Maintaining the position as the industry sales leader - The integration of various ethics safeguards into a comprehensive program
The integration of various ethics safeguards into a comprehensive program
Which of the following represents a structural remedy for an antitrust violation? - Paying a large fine - Breaking up a monopoly - Disclosure of company information to rivals - Agreeing to change a firm's conduct
Breaking up a monopoly
When a firm solicits its stockholders for political contributions for a particular candidate by letter and then sends those contributions to the candidate on behalf of its stockholders, it is called: - Lobbying - Bundling - Collating - Constituency building
Bundling
According to a 2017 survey, Americans hold a dim view of: - The Supreme Court - Nurses - Business executives - Churches
Business executives
To influence government policymakers' actions, an information strategy involves: - Business leaders speaking before government policymakers - Government policymakers hiring special interest groups for fact-finding projects - Businesses listening to government policymakers in order to develop a corporate strategy - Gaining support from other affected organizations
Business leaders speaking before government policymakers
In the case Equifax's Date Breach, which ethical climate dominated during the data breach? - Benevolence - Egoism - Team approach - Integrity
Egoism
Which ethical criterion is described by the idea that a company should strive for efficiency? - Egoism - Benevolence - Business-centered - Principle
Egoism
Which of the following are examples of natural monopolies? - Electric utilities and railroads - Cable television and the media - Internet services and trucking - None of these answers are correct
Electric utilities and railroads
Which of the following is not a constituency-building strategy tool? - Expert witness testimony - Advocacy advertising - Public relations - Legal challenges
Expert witness testimony
An ethical egoist acts for the benefit of others and sacrifices self-interest
False
In Europe, unions are prohibited by law to be on businesses' administrative boards
False
In the United States, most ethics policies are based primarily on the company's mission and vision
False
Moral intensity refers to the perception of how illegal an ethical issue is
False
The Sarbanes- Oxley Act requires that firms maintain financial practices, apart from high ethical standards, in how they conduct and monitor business operations
False
Today, more companies than ever are turning to formal ethics audits to measure the quality of their ethics programs
False
An example of a regulatory agency charged with enforcing social regulation is: - Federal Aviation Administration - Federal Trade Commission - Federal Communications Commission - Internal Revenue Service
Federal Trade Commission
In a survey of 105 companies in 2017, the most frequent public affairs tactic was related to: - Grassroots issues - Political action committees - Issues management - Federal government relations
Federal government relations
Patterns of government taxing and spending that are intended to stimulate or support the economy are: - International standards policies - Social assistance policies - Fiscal policies - Monetary policies
Fiscal policies
Under the Sarbanes- Oxley Act, corporations are required to: - Have executives vouch for the accuracy of a firm's financial reports - Have their audit committee comprised of only executives employed by the firm - All of these answers are correct - Collect reimbursements from the US government if financial restatements occur
Have executives vouch for the accuracy of a firm's financial reports
Expert witness testimony is often collected: - Through company newsletters - On the steps of the White House - In congressional hearings - From The Wall Street Journal
In congressional hearings
Governments being asked to regulate driving distractions are examples of public policy: - Input - Goal - Effect - Tool
Input
Building ethical safeguards into a company's everyday routines is called: - Justifying ethics - Ethical awareness - Institutionalizing ethics - Change management
Institutionalizing ethics
The main drawback to utilitarian reasoning is that: - Cost-benefit calculations can only be provided by accountants - The majority may override the rights of those in the minority - Managers using this reasoning process often fail to consider the means taken to reach the end - It is difficult to accurately measure both costs and benefits
It is difficult to measure both costs and benefits
An ethics issue based on cross-cultural contradictions is best illustrated by which example? - False and misleading advertising claims - Hiring child workers in violation of civil law - Legally marketing a pesticide abroad that has been banned in the US - Circumventing government regulations to ensure company profits
Legally marketing a pesticide aboard that is been banned in the US
Which country passed major anti-corruption reforms in 2016? - India - Russia - Mexico - Brazil
Mexico
Government regulations help balance negative externalities such as: - No smoking rules enforced to mitigate the effects of second-hand smoke - Gender controls over alcohol purchases and consumption - Drug testing at private businesses - Age restrictions for Social Security recipients
No smoking rules enforced to mitigate the effects of second-hand smoke
Economic regulations are illustrated by which action? - Allowing market forces to set prices - Preventing anticompetitive business practices - Providing protection of pension benefits - Ensuring safe working conditions
Preventing anticompetitive business practices
The Principles and Standards of Ethical Supply Chain Management Conduct include the principle: - Social competence - Promote competitive relationships with suppliers - Protect confidentiality - Be true to yourself
Protect confidentiality
People everywhere depend on ethical systems to tell them whether their actions are: - Logical and reasonable judgment - Legal or illegal - Right or wrong - Financially attainable or not
Right or wrong
Around the world, government: - Tends to cooperate with business - Tends to be in conflict with business - Sometimes cooperates and sometimes is in conflict with business - Tends to be controlled by business
Sometimes cooperates and sometimes is in conflict with business
in 2016, the Global Electoral Organization (GEO) discussed which critical election administration issues? - How to disengage electoral stakeholders - The use of technology to increase accountability - How to increase election disputes - How to hide dark money contributions
The use of technology to increase accountability
Cooperation between business and government often occurs when: - They encounter a common problem or enemy - Business can afford it - Business operates at arm's length from the government - Government has the support of the people
They encounter a common problem or enemy
According to a recent Transparency International survey, Denmark and New Zealand are two countries that are least likely to be subject to bribery
True
According to utilitarian reasoning, an action is ethically preferred when its benefits outweigh its costs
True
Bribery is found in nearly every sector of the global marketplace, but can be worse in some parts of the world
True
Cost-benefit analysis is often used to determine the costs of regulation
True
Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand
True
Expert witnesses provide testimony to legislators for business or business groups
True
For managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass
True
Dark money refers to: - Anonymous contributions to for-profit organizations - Money collected illegally by PACs - Soft money - Undisclosed contributions to tax-exempt organizations
Undisclosed contributions to tax-exempt organizations
