Test Chapter 1-3

Ethics and social responsibility can be used interchangeably.​ Select one: True False

False

Government regulators are a secondary stakeholder. ​ Select one: True False

False

The three fundamental elements that motivate people to be fair are honesty, integrity, and equality. ​ Select one: True False

False

Developing ethical issue awareness ​is the first step toward understanding business ethics. Select one: True False

True

Every organization has the potential for unethical behavior, even if it is not a business. Select one: True False

True

Examples of consumer fraud include shoplifting, collusion, guile, and duplicity​. Select one: True False

True

Many consumers are willing to pay more money for socially responsible products. Select one: True False

True

Social responsibility rests on a stakeholder orientation. ​ Select one: True False

True

The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was Select one: a. Adam Smith. b. Archie Carroll. c. Jack Ma. d. Noel Biderman. e. Milton Friedman.

a. Adam Smith.

Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder? Select one: a. Environmental groups b. Suppliers c. Employees d. Industry leaders e. Investors

a. Environmental groups

_____ are used to obtain or retain business and are not generally considered illegal in the U.S. Select one: a. Facilitation payments b. Bribes c. Gifts d. Coercive techniques e. Threats

a. Facilitation payments

More than a compliance program, business ethics is becoming Select one: a. a management issue to achieve competitive advantage. b. a guaranteed way to earn higher financial returns. c. mainly a government regulatory issue. d. an initiative led by nonprofit organizations. e. a program that decreases profits but increases societal benefits.

a. a management issue to achieve competitive advantage.

Corporate social responsibility is Select one: a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. b. principles, values, and norms that primarily guide individual and group behavior in the world of business. c. the institutionalization of business ethics into all levels of business decision making. d. a business's responsibility to manufacture products that function properly. e. charitable contributions made by a business to enhance its reputation with stakeholders.

a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.

Business ethics is a part of decision making Select one: a. at all levels of work and management. b. made primarily by top management. c. that stems from individual moral philosophies. d. that is less important than other decision making processes. e. that is not emphasized in most of today's organizations.

a. at all levels of work and management.

Most organizations with strong ethical climates usually focus on the core value of placing _____ interests first. Select one: a. customers' b. employees' c. stockholders' d. suppliers' e. distributors'

a. customers'

The first of the three activities that are associated with the stakeholder orientation is the Select one: a. organization-wide generation of data. b. organization's responsiveness to intelligence. c. set of consumer attributes identified. d. organizational strategy of target markets. e. human relations department's set of priorities.

a. organization-wide generation of data.

Which of the following do not typically engage in transactions with a company and thus are not essential for its survival? Select one: a. Employees b. Secondary stakeholders c. Primary stakeholders d. Investors e. Customers

b. Secondary stakeholders

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because Select one: a. it may lead executives to become violent. b. it may foster the idea that honesty is unnecessary in business. c. it results in organizations that are not profitable. d. it leads executives to commit illegal actions. e. business is more like a game than a war.

b. it may foster the idea that honesty is unnecessary in business.

The _____ model is founded in classic economic precepts. Select one: a. economic b. shareholder c. stakeholder d. board e. ISO

b. shareholder

The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for Select one: a. the Foreign Corrupt Practices Act. b. the Federal Sentencing Guidelines for Organizations. c. the Ethical Trading Initiative. d. the Federal Trade Commission compliance requirements. e. the Sarbanes-Oxley Act.

b. the Federal Sentencing Guidelines for Organizations.

Because of Sarbanes-Oxley, publicly traded companies must develop _____ to assist in maintaining transparency in financial reporting. Select one: a. ethics officers b. ethics programs c. codes of ethics d. legal counsel e. accountants

c. codes of ethics

A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as Select one: a. optimization. b. insider trading. c. collusion. d. a dilemma. e. a conflict of interest.

c. collusion.

Board members being linked to more than one company is an example of Select one: a. strategic philanthropy. b. stakeholder commitment. c. interlocking directorate. d. conflict of interest. e. an illegal activity.

c. interlocking directorate.

Employees who view their organizational culture as ethical are more likely to Select one: a. ask for a raise. b. use their personal moral philosophies in decision making. c. make personal sacrifices for the organization. d. gain more organizational training. e. have a greater desire to become managers themselves.

c. make personal sacrifices for the organization.

The ethical decision-making process begins Select one: a. with a conflict of interest. b. when an individual experiences a conflict between his or her values and those of his or her firm. c. when stakeholders trigger ethical issue awareness and individuals openly discuss it with others. d. with a conflict in values. e. when an individual experiences a conflict between his or her values and those of society.

c. when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people Select one: a. who are under the age of 18. b. who are between 16 and 20. c. who are 40 and over. d. who are between 39-69. e. who are younger than 18 and older than 39.

c. who are 40 and over.

The specific steps for implementing the stakeholder perspective do not include which of the following? Select one: a. Identifying stakeholder groups b. Identifying stakeholder issues c. Identifying and gaining stakeholder feedback d. Identifying and gaining government feedback e. Assessing organizational commitment to social responsibility groups

d. Identifying and gaining government feedback

The Foreign Corrupt Practices Act outlawed Select one: a. global accounting fraud. b. price collusion. c. corruption in foreign governments. d. bribery of officials in other countries. e. executive misconduct.

d. bribery of officials in other countries.

In corporate governance, _____ is the process of auditing and improving organizational decisions and actions. Select one: a. profit b. loyalty c. accountability d. control e. diligence

d. control

Morals... Select one: a. are the same as principles and ethics. b. relate to the business's ethical culture. c. are emphasized in business ethics programs. d. relate to you and you alone. e. do not have much influence over individual ethical decision making.

d. relate to you and you alone.

An ethical issue is a problem, situation, or opportunity Select one: a. that has no correct answer. b. that harms the environment. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. e. requiring an individual, group, or organization to choose between harming consumers or the environment and earning more profits.

d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

When unethical acts are discovered in a firm, in most instances Select one: a. they are caused by unwilling participants. b. the cause is due to external stakeholders. c. the perpetrators are caught and prosecuted. d. there was knowing cooperation or complicity from within the company. e. the cause is a corrupt Board of Directors.

d. there was knowing cooperation or complicity from within the company.

A company can be sued for discrimination if it Select one: a. abuses or intimidates its employees. b. creates an anticompetitive corporate culture. c. discharges a minority individual, but has a just cause for doing so. d. uses age as a hiring or firing criterion. e. has more men than women on staff.

d. uses age as a hiring or firing criterion.

_____ is an important element of virtue and means being whole, sound, and in unimpaired condition. Select one: a. Optimization b. Ethical issue c. Honesty d. Trust e. Integrity

e. Integrity

The term business ethics is best described by the following statement: Select one: a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong. b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct." c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession." d. It is an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. e. It comprises the principles, values, and standards that guide behavior in the world of business.

e. It comprises the principles, values, and standards that guide behavior in the world of business.

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? Select one: a. Adam Smith. b. Archie Carroll. c. Jack Ma. d. Noel Biderman. e. Milton Friedman.

e. Milton Friedman.

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

e. Performance probation

Business ethics, as a field, has passed through which of the following states? Select one: a. A field of study to theological discussion to recognition of social issues b. Recognition of social issues to a field of study to theological discussion c. A field of study to recognition of social issues to theological discussion d. Recognition of social issues to theological discussion to a field of study e. Theological discussion to recognition of social issues to a field of study

e. Theological discussion to recognition of social issues to a field of study

Which of the following describes the four levels of social responsibility? Select one: a. economic, social, legal, and voluntary b. economic, legal, environmental, and ethical c. financial, legal, environmental, and philanthropic d. economic, financial, legal, and ethical e. economic, legal, ethical, and philanthropic

e. economic, legal, ethical, and philanthropic

Affirmative action programs Select one: a. involve the promotion of unqualified employees. b. are not imposed by federal law on employers. c. are not very commonly used anymore because of reverse discrimination concerns. d. only involve the training of individuals. e. involve the recruitment, hiring, promotion, and training of qualified individuals.

e. involve the recruitment, hiring, promotion, and training of qualified individuals.