Chapter 2 - Business Ethics and Social Responsibility

Which of the following have not been cited in your text as incidents of unethical business activity recently? A. Unfair competitive practices in the computer industry B. Deceptive advertising of food and diet products C. Accounting fraud D. Stealing via the Internet E. Corporate charitable giving

E. Corporate charitable giving

An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical. True/False

True

Business ethics refers to principles and standards that determine acceptable conduct in business organizations. True/False

True

Ethics is related to the culture in which a business operates. True/False

True

Nearly all business decisions may be judged as right or wrong, ethical or unethical. True/False

True

The most basic ethical concerns have been formalized through laws and regulations that encourage conformity to society's values and norms. True/False

True

Theft of time is the leading area of misconduct observed in the workplace. True/False

True

Workplace bullying is an increasing problem. True/False

True

If a manager chooses to act so that she benefits financially or otherwise at the expense of her firm, then she A. is bullying. B. is engaging in bribery. C. has a conflict of interest. D. is cheating. E. has broken the law.

C. has a conflict of interest.

One of the most difficult things for a business to restore after an ethics scandal is A. regulations. B. jobs. C. trust. D. profits. E. morale.

C. trust.

The principles and standards that determine acceptable conduct in business are referred to as_____ A. norms. B. strategies. C. ethics. D. laws. E. rules.

C. ethics.

If Sony was investigated for allegedly raising prices of its PlayStation excessively during the Christmas buying season and thereby manipulating the supply of games available at that time, this would be an ethical issue concerned primarily with A. conflict of interest. B. communications. C. fairness and honesty. D. cost control. E. game rules.

C. fairness and honesty.

Which of the following statements is false? A. Ethical issues are limited to for-profit organizations. B. Business ethics goes beyond legal issues. C. Ethical conduct builds trust among individuals and in business relationships. D. Ethical conflicts may evolve into legal disputes. E. Regardless of what an individual feels about a particular action, if society judges it to be unethical, that judgment affects the organization's ability to achieve its objectives.

A. Ethical issues are limited to for-profit organizations.

Which of the following statements about business ethics is false? A. It concerns the impact of a business's activities on society. B. It refers to principles and standards that define acceptable behavior in business organizations. C. It relates to an individual's values and moral standards and the resulting business decisions he or she makes. D. What is ethical is determined by the public, government regulators, interest groups, competitors, and each individual's personal moral values. E. Studying it can help you recognize ethical issues and understand how others make unethical decisions.

A. It concerns the impact of a business's activities on society.

Managers use the ______ of their position to influence employees' decisions and actions. A. authority B. standards C. scope D. responsibility E. acceptance

A. authority

That business people are expected not to harm customers, clients, and competitors knowingly through deception, misrepresentation, coercion, or discrimination is part of A. fairness and honesty. B. communications. C. conflict of interest. D. business relationships E. consumerism.

A. fairness and honesty.

The following behavior is an example of ethical consideration within business relationships: A. keeping company secrets. B. communicating with customers. C. whistle-blowing. D. obeying environmental laws. E. donating to local charities.

A. keeping company secrets.

Social ______ relates to a business's impact on society. A. responsibility B. strategy C. ethics D. law E. rule

A. responsibility

Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to A. conflict of interest. B. communications. C. product design. D. business relationships. E. financing.

B. communications.

What is considered ethical may differ depending on the ___ in which a business operates. A. city B. culture C. trade bloc D. hemisphere E. industry

B. culture

____ involves taking someone else's work and presenting it as your own. A. Conflict of interest B. Bullying C. Manipulation D. Bribery E. Plagiarism

Bribery E.

The warning on cigarette packages about the health implications of smoking is an example of which of the following ethical issues? A. Conflict of interest B. Fairness and honesty C. Communications D. Relationships within a business E. Environmental issues

C. Communications

The ______ Act criminalized securities fraud and toughened penalties for corporate fraud. A. Dodd-Frank B. Federal Trade Commission C. Foreign Corrupt Practices D. Sarbanes-Oxley E. Sherman Antitrust

D. Sarbanes-Oxley

A. punish those who committed accounting fraud in the late 1990s. B. improve corporate profits. C. help laid-off employees get their jobs back. D. help investors recoup their losses. E. help restore confidence in Corporate America.

E. help restore confidence in Corporate America.

Studying business ethics will not necessarily A. help you recognize ethical issues. B. help you understand the importance of ethical decisions. C. inform you about the impact of the work group on ethical decisions. D. describe the ethical decision-making process. E. tell you what you ought to do.

E. tell you what you ought to do.

Only corporations have to worry about ethics scandals and social responsibility issues. True/False

False All for-profit and non-profit organizations have to worry about ethics scandals and social responsibility issues.

Ethics and social responsibility mean the same thing. True/False

False Although many people use the terms social responsibility and ethics interchangeably, they do not mean the same thing. Business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire business's activities on society.

It is almost always easy to recognize specific ethical issues. True/False

False Although we've presented a variety of ethical issues that may arise in business, it can be difficult to recognize specific ethical issues in practice.

Conflicts of interest are payments, gifts, or special favors intended to influence the outcome of a decision. True/False

False Conflicts of interest exists when a person must choose whether to advance his or her own personal interests or those of others

All a business has to do to maintain ethical conduct is to follow the law. True/False

False The MOST basic ethical and social responsibility concerns have been codified by laws and regulations that encourage businesses to conform to society's standards, values, and attitudes. All actions deemed unethical by society are not necessarily illegal, and both legal and ethical concerns change over time. Therefore, just only following the law is not enough for a business to maintain ethical conduct.

The best way to judge the ethics of a decision is to look at it from a manager's or employee's point of view. True/False

False The best way to judge the ethics of a decision is to look at a situation from a customer's or competitor's viewpoint.