Business Law Worksheet 5.3

Under Leonard Bucklin's approach, decision makers should go through the following steps in order: Discussion Evaluation Inquiry Decision Justification

1) Inquiry 2) Discussion 3) Decision 4) Justification 5) Evaluation

Managers who set unrealistic production or sales goals decrease the probability that employees will act unethically. T/F

False

The justification stage is used to explain the decision and rationalize why a bad decision may actually be good. T/F

False

The FCPA does not prohibit payments to low-level employees of foreign nations who exercise little (or no) discretion in their jobs, but merely process paperwork. T/F

True

Since the late 1970's, the ______________ has prohibited U.S. businesses fro bribing foreign officials a. Foreign Corrupt Practices Act b. Sarbanes-Oxley Act c. Patriot Act d. U.S. Antibribary Act

a. Foreign Corrupt Practices Act (FCPA)

Which three of the following may contribute to a lack of ethics in a workplace? a. Unrealistic production or sales goals b. Managers who do not actively discuss ethics c. Ethics seminars and open forums d. Unethical activities by management e. Quality ethics training f. Written codes of ethics

a. unrealistic production or sales goals b. managers who do not actively discuss ethics d. unethical activities by management

Companies must keep detailed records that _______________ and fairly reflect ______________ payments.

accurately foreign

_____________ is the key to setting an ethical tone for a business a. a strong company code of ethics b management's attitude. c. an ethics training program d. decentralized management

b. management's attitude

The law that requires companies to set up confidential systems so that "red flags" can be raised about suspected illegal and unethical business practices is the: a. Private Compliance Act. b. Enron-Joyce Act. c. Sarbanes-Oxley Act. d. Patriot Act.

c. Sarbanes-Oxley Act

Why is it important to monitor the employment practices of foreign suppliers? a. Because foreign suppliers may be overpaying their employees, causing a higher price to an American company, which then is passed on to consumers. b. Because foreign suppliers may be too lenient with their employees, allowing for employee theft, which causes higher prices for consumers. c. Because corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the American company, and harm its reputation. d. Because the governments of foreign nations often overlook unethical behavior by American companies, but American companies are better than that.

c. because corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the American company, and harm its reputation

The listing of alternatives and evaluation of them using ethical theories occurs in the _________ stage and the agreement of a plan of action happens in the ___________ stage

discussion decision

The inquiry analysis involves identifying the ______ and collecting the relevant ___________

parties facts