Chapter 2 Business Principles
The Global Business Ethics Survey found that nearly _____ of employees surveyed observed examples of ethical misconduct.
47%
Which behavior is the most common ethical problem for employees?
Abusive behavior
What is the status of alternative energy to replace gasoline used to fuel cars in the United States?
As of yet, there has been no "best" form of alternative energy identified.
Which two situations would be considered ethical behavior in a business?
Avoiding conflicts of interest Meeting obligations and responsibilities
______ is/are principles and standards that determine acceptable conduct in business.
Business ethics
What is being demonstrated when a person must choose whether to advance his or her own personal interests or those of others?
Conflict of interest
Which ethical issue is being exhibited by a manager who makes decisions which profit him or her personally rather than profiting the firm and its investors?
Conflict of interest
Which piece of Congressional legislation includes a "whistleblower bounty program?"
Dodd-Frank Act
Which of these employees is engaged in plagiarism?
Edmund, a manager, takes credit for his employee's ideas.
What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?
Ethical conflict
Non-profit firms are immune to ethical issues.
False
Organizations that exhibit a high ethical culture discourage employees from acting with integrity and adhering to business values.
False
Knowing the importance of employee relations, what is the likely result of a company that listens to employees' grievances and treats them fairly?
Higher morale among employees
How does ethical conduct validate and promote confidence in business relationships?
It creates a sense of trust between partners.
Which of these employees is demonstrating the most common way that employees abuse company resources?
Jessica spends at least two hours every workday checking her Instagram account on her work computer.
Aidan does not offer any direction to his employees regarding ethical behavior. Because of this, Aidan is putting his company at risk for which three situations?
Manipulation Conflicts of interest Dishonesty
Identify the accurate statement about legal issues in business.
Many problems in business could be avoided if managers and employees knew more about business law and the legal system.
Rachel spends an hour or more each day at work checking her Facebook feed, Instagram account, and watching YouTube videos. Rachel is guilty of which form of misconduct?
Misuse of company time
Which craft brewer is the first all-wind-powered brewery in the United States?
New Belgium Brewing Company
Laws regulating safety in the workplace are enforced by ______.
OSHA
Regarding the misconduct of business firms, which statement is accurate?
Often, misconduct evolves from ethical conflicts into legal disputes.
What are the four categories of social responsibility?
Philanthropy Ethics Economic Legal
Thinking of the various categories for misconduct in the workplace, select the person who is engaged in misconduct based on "fairness and honesty."
Sandra takes reams of copy paper from the office to use with her printer at home.
Evan told his manager that he needs to leave two hours early every Wednesday because he is attending a financial seminar that will benefit him at work. His co-worker, Natalie, knows he is really leaving early to take his son to soccer practice. She is conflicted on reporting his conduct because she knows his son won't be able to attend practice without Evan driving him there. What is making this ethical decision difficult for Natalie?
She will create a dilemma for Evan regardless of what she does.
What do studies show about the relationship between social responsibility and profitability?
Social responsibility is associated with improved business performance.
Philanthropic activities
Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
Ethics, principles, and values
Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices.
Financial and economic viability
Starbucks offers investors a healthy return on investment, including paying dividends.
Compliance with legal and regulatory requirements
Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the United States and the foreign country.
Which three items represent a misuse of company resources?
Submitting personal expenses on a company expense report Using the company computer for sending personal e-mails Using the company copier for personal use
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What is one of the three key factors influencing ethical decisions that will affect Jacinta's actions?
The behavior of her managers and co-workers
According to your text, ethical decisions in organizations are influenced by what three key factors?
The influence of managers and co-workers The opportunity to engage in misconduct Individual moral standards and values
According to John F. Kennedy, what are the four basic rights of consumers?
The right to choose The right to be informed The right to be heard The right to safety
Which of the following examples best represents a company with a strong ethical culture?
The top management at Tom's company clearly communicate to all employees the ethical behavior that is expected of them.
When it comes to fairness and honesty, which two actions are expected of businesses?
To avoid harming customers, employees, clients, or competitors To follow applicable laws and regulations
A business's ability to achieve its goals is directly affected by society's views on the actions of the business, even if the business is judged incorrectly.
True
Ethical issues often emerge from conflict.
True
Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.
True
Taking office supplies to use at home is an example of dishonesty in the office that goes against the principle of fairness and honesty.
True
Theft of time is a common area of misconduct observed in the workplace.
True
What is the most common way that employees abuse company resources?
Using company computers for personal use
What are two typical forms of consumerism?
Writing letters to companies Boycotting companies
What should a company have in place to give guidance to employees when facing gray or ambiguous situations at the workplace or when confronted with an ethical issue that they have never faced before?
a code of ethics
Connor doesn't understand why Arturo is so upset with him. When Connor called him a name after Arturo kept answering every question at the meeting, Connor was just joking and didn't really think of Arturo that way. At the same time, Arturo was very offended by the name he was called because his family had been taught to never use that word. This demonstrates how _______ is difficult to assess and manage because of diversity in culture and lifestyle.
abusive behavior
Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?
abusive behavior
When some chemical compounds emitted by manufacturing facilities react with air and rain, the resulting type of air pollution is called . (Enter one word in each blank.)
acid rain
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is referred to as _______.
an ethical issue
A firm that is viewed negatively may have a hard time ______.
attracting investors building customer relationships retaining employees
Why is ethical decision making difficult?
because there are always gray areas that create dilemmas
Money given in exchange for a special favor is called a ______ and it benefits an individual or a company at the expense of other stakeholders.
bribe
Just like insider trading, _______ is also an example of a conflict of interest.
bribery
Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.
bribery and are unethical
Although sexual harassment has legal recourse, ______ has little recourse at this time.
bullying
During the 2020 pandemic shutdown, many companies were forced to move to a remote working situation. In terms of unethical behavior, this likely reduced incidents of Blank______.
bullying
What type of behavior creates a hostile workplace environment but has little legal recourse?
bullying
According to the rights of consumers established by John F. Kennedy, the right to _____ ensures that consumers have access to a variety of goods and services at competitive prices.
choose
The formalized rules and standards describing expected employee behavior are outlined in ______.
codes of ethics
False and misleading advertising is an example of how _______ is an area in which ethical concerns may arise in business.
communication
When the FDA warned three cigarette manufacturers against using the term "additive-free" on their packaging because it might imply to some consumers the product was healthier, it demonstrated how Blank______ can become an ethical issue for a company.
communication
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.
consumerism
The extent to which businesses meet the four dimensions of social responsibility placed on them by stakeholders is referred to as Blank______ citizenship.
corporate
A commitment to _______ by a firm indicates a strategic focus on fulfilling the legal, ethical, economic, and voluntary responsibilities expected of it by its stakeholders.
corporate citizenship
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as Blank______.
corporate citizenship
There is a store in Jessica's neighborhood that recently stopped stocking vaping devices because it felt it was contradictory to stock a product that was known to cause health issues in a store that had a pharmacy that promoted health care. This is an example of
corporate citizenship.
In some nations, it is expected that a prospective client will bring a gift to the first meeting with a company, while in other nations, this would be frowned upon. This demonstrates how _____ affects the ethical decisions in business.
culture
Businesses must first be responsible to their owners, who are primarily concerned with ______.
earning a profit
To build trust among individuals, organizations should adhere to conduct that is ________ in order to validate and promote confidence in business relationships. (Enter one word in the blank.)
ethical
Jarek is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. His only other choice is to accept he hasn't met the goal and will lose some of his commission. This exemplifies a(n) ______.
ethical issue
Codes of ______ are formalized rules and standards that describe what the company expects of its employees.
ethics
Fairness and honesty are at the heart of business ________ and relate to the general values of decision makers.
ethics
Organizations that adopt integrity-based ethical initiatives recognize that ______.
ethics should be a part of core organizational values
The Dodd-Frank Act was passed to reform the ______ industry.
financial
A manufacturer made the decision to buy less expensive component parts from a supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of:
how negative judgments can affect an organization's ability to achieve its goals.
As a member of the board of directors, Frank knows that if he buys stock in the company at the lower price today, by next week it will more than double in price after the company announces the merger. If Frank proceeds with the purchase of the stock, he will be guilty of
insider trading.
Employees expect businesses to ______.
keep them informed of what is happening in their company provide a safe workplace pay them adequately for their work
The current trend is to move away from _______-based ethical initiatives in organizations to _______-based initiatives that make ethics a part of core organizational values.
legally; cultural
A business's primary obligation to its owners and investors is to ______.
maximize the owners' investments in the firm
Studies have shown that organizations that employ a diverse set of leaders tend to be ________ profitable. (more/less)
more
Corporations can help whistleblowers by protecting them from ______.
negative treatment on the job
Abusive behavior is difficult to assess and manage because ______.
people have very diverse cultures and lifestyles
An individual's values, principles, and standards of conduct are referred to as ______.
personal ethics
When an employee copies the work or ideas of others and presents it as his or her own this is called _______.
plagiarism
A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.
profitability
OSHA regulates the ______ of employees in the workplace.
safety
New View Window Corp. has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by New View Window Corp. exemplify ______.
social responsibility
Regardless of what an individual believes about a particular action, if ________ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals. (Enter only one word in the blank.)
society/public
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as ________. (Enter one word in the blank.)
sustainability or sustainable
Spending work hours looking at personal email, submitting personal expenses on company expense reports, and using the company copier for personal use are all examples of ______.
the misuse of company resources the misuse of company time
Studies have found that firms have a better chance of generating stronger profits when ______.
there are equal numbers of male and female managers
Business ethics
this relates to an individual's or work group's decisions that society evaluates as right or wrong
Social responsibility
this relates to the impact of an entire business's activities on society
What is the most common way businesses exercise their community responsibility?
through donations to charitable organizations
Select the three reasons why a code of ethics is important for a business to have in place.
to provide the foundation for evaluating ethical decision making to help to establish uniform ethical conduct to alert employees about important issues and risks
Perceptions of ethics can differ in different societies.
true
A key aspect of ethical communications about product safety and quality is that the communication be ______.
truthful
While parents of young children want to see video games rated for appropriate use, many people in the entertainment industry claim that this
violates their First Amendment rights.
A key aspect of ethical communications about product safety and quality is that the communication be ______. Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
whistleblower
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
whistleblower
Employees who report concerns about unethical company practices to a government regulatory agency are called ______.
whistleblowers
