management ch. 4

business ethics

Principles, values, and codes of conduct that define acceptable behavior in business.

Ethical violations destroy

TRUST

When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups is

a. reduced. A b. unaffected. c. slightly higher. d. significantly higher.

Georgia realized her supervisor was padding his expense account. Research has shown that her response will most likely be to

a. report her supervisor. b. call the media. c. blackmail the supervisor into giving her a raise. d. pad her own expense account D

The phrase caveat emptor means

a. seize the day. b. let the buyer beware. B c. provide financing for customers with empty pockets. d. be all you can be.

According to research, the most important factor affecting daily ethical decisions at work is the

a. supervisor's consistent workplace practices. b. work group or the perceived ethicalness of the work group. B c. individual's own ideas about what is right and wrong. d. company's code of ethics.

The greater a person's exposure to unethical behavior, the greater is the likelihood that

a. the person will behave ethically. b. the person will behave unethically. B c. the person will be honest. d. he entire organization will soon be corrupt.

social audit

a systematic examination of the objectives, strategies, organization, and performance of the social responsibility function

In the United States, if a businessperson brought an elaborately wrapped gift to a prospective client on their first meeting, it might be viewed as

a. appropriate. b. expected. c. thoughtful. Selected: d. a bribe. D

Businesses must first be responsible to their, who are primarily concerned with earning a profit.

a. managers b. workers. c. customers. d. owners.

Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is

a. the overall moral climate of your organization. A b. your personal moral and ethical standards. c. your rationalization that this behavior is OK. d. your immaturity in understanding ethical issues.

deontology

focuses on human rights and values and on the intentions associated with a particular behavior.

code of ethics

formalized rules and standards that describe and delineate what the organization expects of its employees.

whistle blowing

occurs when employees expose an employer's wrongdoing. this might occur internally or externally.

consumerism

the activites undertaken by independent individuals, groups, and organizations to protect their rights as consumers.

social responsibility

the obligation of a business assumes to maximize its positive impact and minimizae its negative imact on society.

utilitarianism

a philosophy where believers seek the greatest satisfaction for the largest number of individuals.

Also known as moral philosophies, what term describes sets of principles that describe what a person believes are the right way to behave?

Individual Values

ethics audit

a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective.

Which of the following characteristics relates to codes of ethics?

a. A systematic examination of the objectives, strategies, organization, and performance of the social responsibility function b. The obligation a business assumes to maximize its positive impact and minimize its negative impact on society Selected: c. Formalized rules and standards that describe and delineate what the organization expects of its employees. C d. A philosophy where believers seek the greatest satisfaction for the largest number of individuals

What name is given to the obligation a business assumes to maximize its positive impact and minimize its negative impact on society?

a. Consumerism b. Deontology c. Utilitarianism Selected: d. Social responsibility D

Which of the following refers to an identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical?

a. Ethical issue A b. Social audit c. Whistle blowing d. Ethics audit

Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?

a. Ethics audit A b. Utilitarianism c. Business ethics d. Whistle blowing

Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?

a. Ethics audit A b. Utilitarianism c. Business ethics d. Whistle blowing

Which of the following characteristics relates to business ethics?

a. Formalized rules and standards that describe and delineate what the organization expects of its employees b. Principles, values, and codes of conduct that define acceptable behavior in business. B c. An identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical d. The obligation a business assumes to maximize its positive impact and minimize its negative impact on society

The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?

a. Global A b. Economic c. Technological d. Political-legal

A managerial decision becomes an ethical issue when

a. accepted rules no longer apply, and the person must use his or her own moral standards. A b. the manager does not have a clear guideline to follow from top management. c. it becomes clear that the decision may result in breaking the law. d. the manager realizes that lying and deception may be involved in the decision.

A good way to judge the ethics of a decision is to

a. call your lawyer for an up-to-date legal opinion. b. call a reporter from your local paper to get that viewpoint. c. assume everything will be OK as long as you don't get caught. d. look at the situation from several viewpoints. D

Managers tend to be more concerned about ethical issues that

a. have long-term consequences. b. have immediate consequences. B c. affect the government. d. will get them arrested

The role of management in fostering ethical behavior in an organization is extremely important because managers

a. have no effect on employee's day-to-day activities. b. who act ethically may appear to condemn such activity. c. who ask employees to do something wrong have a powerful influence. C d. cannot influence behavior by implementing ethical standards.

The difference between an ethic and a law is that a law

a. is not concerned with issues of right and wrong. b. is defined by legislators; an ethic by ethicists. c. defines a minimally acceptable standard of conduct. d. is made to be broken; an ethic to be upheld.

For businesspersons to be ethical, they must strive for success while

a. making a profit for owners as their sole guide. b. being fair, just, and trustworthy. B c. following government regulations as long as it doesn't cost them. d. following the policy caveat emptor.

Social responsibility is the obligation a business has to

a. maximize its positive impact on society and minimize its negative impact. A b. make the highest possible return for investors. c. be as competitive as possible. d. develop total quality management.

If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is

a. minimal. b. average. Selected: c. increased. C d. decreased.

A set of principles that describe what a person believes is the right way to behave is called

a. moral philosophy. A b. utilitarian philosophy. c. immoral philosophy. d. ethical formalism.

The _____ conflict that exists within an organization, the _____ the perception of the ethicalness of the work group.

a. more; higher b. less; higher Selected: c. more; lower C d. less; lower

In analyzing the relationship between ethics and social responsibility, ethics may be viewed as

a. much more concerned with right and wrong. b. more pragmatic and situational than social responsibility. c. broader than social responsibility. Selected: d. a component of social responsibility. D

For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making

a. must be enforced by rewards for proper behavior and punishments for unacceptable behavior. A b. must be communicated to managers and employees at every level in the organization. c. must be part of a larger strategic plan for the business conduct of the entire company. d. should allow employees and managers a large zone of discretion in making ethical choices.

When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of

a. organizational management. Selected: b. employee relations. B c. operations and communications. d. social responsibility.

When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of

a. organizational management. b. employee relations B c. operations and communications. Selected: d. social responsibility.

While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually

a. promote trust and learning in an organization. A b. get everyone more interested in ethical issues. c. promote clearer understanding of the relevant laws. d. lead to the immediate development of a code of ethics.

individual values

also known as moral philosophies, are sets of principles that describe what a person believes are the right way to behave.

ethical issues

an identifiable problem, situation, or oppourtunity that requires a person or organization to choose among several actions that may be evaluated ethical or unethical.