Chapter 2 SB
Financial and economic viability
Starbucks offers investors a healthy return on investment, including paying dividends.
To build trust among individuals, organizations should adhere to conduct that is _____ in order to validate and promote confidence in business relationships.
ethical
While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.
ethical
What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?
ethical conflict
_______ refers to the rules and regulations that govern the conduct of business.
Business law
Trevor 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. This exemplifies a(n) ______.
ethical issue
Codes of _______ are formalized rules and standards describing expected employee behavior.
ethics
Fairness and honesty are at the heart of business _____ and relate to the general values of decision makers.
ethics
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
A key component of ethical communications from companies to consumers is that the communication be ______.
truthful
Air pollution
usually the result of smoke and other pollutants emitted by manufacturing facilities
Which behavior is the most common ethical problem for employees?
Abusive behavior
______ is/are principles and standards that determine acceptable conduct in business.
Business ethics
Knowing the importance of employee relations, what is the likely result of a company that does NOT listen to employee grievances or treat employees fairly?
Difficulty in attaining company goals
Which act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?
Dodd-Frank
What person is engaged in plagiarism?
Edmund, a manager, takes credit for his employee's ideas.
Which statement is TRUE of business ethics?
Ethical issues are not limited to for-profit organizations.
When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as _____ _____.
Global Warming
Which statement is accurate regarding the use of alternative energy?
Government subsidies will most likely be needed in order to make significant progress in the use of alternative energy.
______ refers to creating a positive association with environmental issues for an unsuitable product, service, or practice.
Greenwashing
Select the questions to consider when determining whether an action is ethical. (Select all that apply)
How does this activity fit with your own beliefs and values? Are there legal restrictions? Would this activity be accepted by your co-workers? Is this action customary in your industry?
Which three are outcomes of having effective business ethics programs and organizational ethics initiatives?
Increased customer loyalty Increased profitability for the firm Greater employee satisfaction
_______ is an example of a conflict of interest.
Insider trading
How does ethical conduct validate and promote confidence in business relationships?
It creates a sense of trust between partners.
Which person is engaged in a misuse of company time?
Joel spends an hour or more a day surfing the web and checking his social media sites.
True or false: Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.
True
Select from the following the typical actions of consumerism. (Select all that apply)
Making public service announcements Boycotting companies Writing letters to companies Lobbying government agencies
Identify the TRUE 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.
Joe spends an hour or more each day at work checking his Facebook page, Twitter account, and watching YouTube videos, even though it is against company policy to do so. Joe 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
True or false: Perceptions of ethics can differ in different societies.
True
Laws regulating safety in the workplace are enforced by ______.
OSHA
Regarding the misconduct of business firms, which of the following statements is TRUE?
Often, misconduct evolves from ethical conflicts into legal disputes.
Thinking of the various categories for misconduct in the workplace, select the person who BEST fits misconduct based on "fairness and honesty."
Sandra takes reams of copy paper from the office to use with her printer at home.
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.
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 U.S. and the foreign country.
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as _____.
Sustainability
Which scenario exemplifies one of the most common ways employees abuse company resources?
Taylor uses her company computer to shop online and check her Facebook page.
What role does the media play when it comes to ethical conduct by business?
The media reports on unethical behavior by businesses far more often than businesses with good ethical behavior.
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
The right to choose The right to be heard The right to safety The right to be informed
Which scenario 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.
True or false: Ethical issues often emerge from conflict.
True
True or false: When it comes to business ethics in the workplace, the "fairness and honesty" principle means, in part, not harming customers, employees, clients or competitors knowingly through deception.
True
What two criticisms are levied against businesses regarding unemployment?
Unwillingness to train employees Unfair hiring standards
What has been identified as the most common way employees abuse company resources?
Using company computers for personal use
What three items represent a misuse of company resources?
Using the company copier for personal use Submitting personal expenses on a company expense report Using the company computer for sending personal e-mails
Organizational _____ initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty.
ethics
All of the following are questions to consider in determining whether an action is ethical EXCEPT ______.
Will this activity further my career?
Social responsibility is defined as ______.
a business's obligation to maximize its positive impact and minimize its negative impact on society
Organizations that adopt integrity-based ethical initiatives recognize that ______.
ethics should be a part of core organizational values
Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?
abusive behavior
Even though there are plenty of people unemployed, many companies have positions that go unfilled. A survey in Indiana revealed that 39% of companies surveyed say the reason positions go unfilled is because applicants ______.
are not qualified
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 benefits an individual or a company at the expense of other stakeholders.
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, workplace _______ has little legal recourse at this time.
bullying
What type of behavior creates a hostile workplace environment but has little legal recourse?
bullying
The legal rules and regulations that govern the conduct of business is referred to as ______.
business law
Global Warming
carbon dioxide in the earths atmosphere prevents the earth's surface from cooling
Natalia notices that one of her coworkers takes extended lunch hours and often leaves the office early. In deciding whether or not to report this behavior, what should Natalia do first?
check her company's policies and codes of ethics regarding this behavior
According the the consumer bill of rights, 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.
communication
Sustainability can be defined as ______
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as ______.
conducting activities in such a way as to provide for the long-term well-being of the natural environment
This exists 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 that makes decisions which profit him personally rather than profiting the firm and its investors?
conflict of interest
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 legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ______.
corporate citizenship
Experience with the _____ in which a business operates is critical to understanding what is ethical or unethical.
culture, cultural, or society
Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which three of the following? (Select all that apply)
dishonesty conflicts of interest manipulation
Businesses must first be responsible to their owners, who are primarily concerned with ______.
earning a profit
Wind power, solar power, and nuclear power are all forms of alternative _____ sources that businesses are turning to in order to reduct carbon emissions.
energy, power, or fuel
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.
ethical issue
The Dodd-Frank Act was passed to reform the ______ industry.
financial
A manufacturer made the decision to buy less expensive materials from another 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 impressions of a business can affect its ability to achieve its goals
Select from the following the four stages of social responsibility.
legal compliance ethics financial philanthropy
Select the three items that would be considered ethical behavior in a business.
meeting obligations and responsibilities avoiding conflicts of interest keeping company secrets
Whistleblowers can be helped by protecting them from ______.
negative treatment on the job
An individual's values, principles, and standards of conduct are referred to as ______.
personal ethics
When employees copy the work or ideas of others and present 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
Employees expect businesses to ______. (select all that apply)
provide a safe workplace keep them informed of what is happening in their company pay them adequately for their work
Land pollution
results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
Acid rain
results when certain chemical compounds emitted by manufacturing facilities react with air and rain
Water Pollution
results when the burial of industrial waste leeches into underground water supplies
A firm that is viewed negatively may have a hard time ______. (select all that apply)
retaining employees attracting investors building customer relationships
OSHA regulates the ______ of employees in the workplace.
safety
To truly create an ethical culture, managers must ______.
show a strong commitment to ethics and compliance
Built-right Manufacturing 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 Built-right manufacturing 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.
society
Insider trading is the buying or selling of _____ by insiders who possess material that is still not public.
stock
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What key factor would keep Jacinta from behaving unethically?
the ethical behavior of her managers and co-workers
According to your text, ethical decisions in organizations are influenced by which three key factors?
the influence of managers and co-workers the opportunity to engage in misconduct individual moral standards and values
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
While unemployment is seen as an economic issue, it carries ethical implications when ______.
the unemployment gap between rich and poor is large
Studies have found that firms have a better chance of generating stronger profits when ______.
there are equal numbers of male and female managers
When it comes to fairness and honesty, what two things are expected of businesses?
to follow applicable laws and regulations to avoid harming customers, employees, clients or competitors
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 a unethical company practices to a government regulatory agency are called ______.
whistleblowers
In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ______.
whistleblowers to come forward with information