Chapter 4 Business Ethics
_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals.
Core practices
Which of the following is not a provision of the Sarbanes-Oxley Act?
Developed the Consumer Financial Protection Bureau
Which of the following acts can be classified as procompetitive legislation?
Sherman Antitrust Act of 1890
The _____ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.
The Food and Drug Administration
Which of the following groups is not a group that receives special legal protections?
The highly educated.
This is a leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases.
Better Business Bureau
Which of the following is one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?
????
What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
Because the large size creates economies of scale and they can charge lower prices.
_____ tie(s) an organization's product(s) directly to a social concern through a marketing program.
Cause-related marketing
_____ law defines the rights and duties of individuals and organizations (including businesses).
Civil
The _____ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."
Consumer Financial Protection Bureau
The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes.
Consumer Financial Protection Bureau
Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
Creates an organization to pay the bills of low-income consumers.
_____ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.
Criminal
The _____ was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression."
Dodd-Frank Wall Street Reform and Consumer Protection Act
Which of the following is not an aspect of the institutionalization of social responsibility?
Familial responsibilities
Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.
Federal Sentencing Guidelines for Organizations
Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?
Federal Sentencing Guidelines for Organizations, Sarbanes-Oxley Act, and Dodd-Frank Act
____________ must be trusted to make business work properly and includes accountants.
Gatekeepers
Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?
Institutionalization of ethics is now mandated for all organizations by governments around the world
Which is not one of the four sources of criminal and civil laws?
Judicial Law
Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements are known as
Mandated boundaries.
Which of the following acts exempted the insurance industry from antitrust legislation?
McCarran-Ferguson Act of 1944
The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.
Public Company Accounting Oversight Board
Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?
Pure Food and Drug Act of 1906
_____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.
Strategic philanthropy
Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties?
The Dodd-Frank Act.
_____ responsibilities relate to a business's contributions to stakeholders.
Voluntary
How do violations of the law usually start?
When businesspeople stretch the limits of ethical standards.
Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
any practice is permitted that does not substantially reduce competition and harm consumers or society.
Cause related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.
buying patterns
By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate
conflicts of interest.
The primary objective of U.S. antitrust laws is to
distinguish competitive strategies that enhance consumer welfare from those that reduce it.
An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except
employee compensation.
Companies that _____ will most likely be found in violation of procompetitive legislation.
establish monopolies
Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
free samples.
The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.
institutionalization
Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation
is excessively complex and financially burdensome.
Title VII of the Civil Rights Act of 1964
prohibits discrimination on the basis of race, color, sex, religion, or national origin.
The ________________ desires to find a solution to a social problem rather than to simply earn profits.
social entrepreneur
