MGMT3880; PART 2

Corporate culture is accurately described by which statements? (Check all that apply.)

A blend of customs, traditions, and shared meanings. Observing "the way we do things around here."

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which example?

A large quantity of food contaminated with salmonella was distributed to stores.

Altruism is accurately characterized by which statements? (Check all that apply.)

Acting for the benefit of others Sacrificing self-interest

Describe the current trends in global social assistance policies. (Check all that apply.)

Advanced nations have developed elaborate social services. International standards have been established. Developing economies have improved social assistance.

Who are the major players that influence public policy in Japan? (Check all that apply.)

Agriculture groups Labor groups Big business

A business conflict of interest is exemplified by which scenarios? (Check all that apply.)

An agent buys parts from the most cost-effective firm that gave money to the agent. An agent receives a substantial fee for buying parts from a certain company. An agent buys parts from a high-cost firm that donated a valuable gift to the agent.

Which of the following are included in the U.S. Corporate Sentencing Guidelines? (Check all that apply.)

Assigning a high-level, risk-free officer for compliance responsibility Enforcing standards through discipline, including response and prevention Establishing and training ethical standards to reduce criminal conduct

Which principle within 3M's code of conduct refers to keeping complete business records?

Be accurate

At a rough level, how much money did U.S. businesses spend annually on lobbying to influence political issues?

Billions of dollars

How does the relationship between business and government in the United States provide an argument in favor of political participation by firms?

Business is a vital stakeholder of government.

Identify arguments in favor of business being a political participant. (Check all that apply.)

Business provides a counterbalance to social participants. Business should be included in the pluralistic system.

PACs are especially active for businesses that fit which criteria?

Businesses within highly regulated industries, such as financial services

According to scholars, how does spirituality affect employee and organizational performance? (Check all that apply.)

By enhancing individual capacity for innovation By increasing personal growth

A day in the life of a public affairs executive typically includes which activities? (Check all that apply.)

Coalition building Attending fundraising activities Direct lobbying

Identify the reasons that frequently trigger ethical problems in business, according to Figure 5.3. (Check all that apply.)

Conflicts of interest Personal gain and selfish interest

How can management choose amongst different ethical approaches that do not lead to the same conclusion? (Check all that apply.)

Consider the organization's culture and ethical climate. Assign priorities to each ethical approach.

Social regulations address which types of public issues? (Check all that apply.)

Consumer protection Health and safety

Political action committees (PACs) are accurately described by which statements? (Choose all that apply.)

Contributions are capped at low levels. PACs are popular in highly regulated industries.

In the discussion case, how did Facebook respond to government concerns over personal privacy?

Cooperated by centralizing Facebook's security and privacy settings.

When a firm faces criminal charges for ethics violations in the United States, which rules are used to compute culpability?

Corporate Sentencing Guidelines

Utilitarian reasoning is characterized by which statements? (Check all that apply.)

Cost-benefit analysis Benefits outweigh costs Greatest good for the most people

Those against business participation in politics believe that engagement introduces which primary risk for a firm, using Figure 8.1?

Credibility

What was the primary ethical marketing issue in the Outcome Health example?

Deceptive advertising

Why is it difficult to be sure if a business made the most ethical decision? (Check all that apply.)

Different sources of information may be used. The priority of human rights may be ranked differently. Different values may be applied to make the decision.

In the case Equifax's Data Breach, which ethical climate dominated during the data breach?

Egoism

The ethical concern of invasion of privacy in information technology relates to which issues? (Check all that apply.)

Electronic mail confidentiality Access to personal information Data collection

Which specific corporate ethics reporting mechanism allows employees to report ethical concerns anonymously?

Employee helpline

Since 1960, social regulation spending grew in which areas? (Check all that apply.)

Environmental health Consumer protection Occupational safety

Which of the ethical safeguards tends to be the most costly and time-consuming?

Ethics training

True or false: A cooperative partnership between government and business on one issue guarantees cooperation on all issues.

F

True or false: In 2017, the current administration expanded a rule proposed by the Obama Administration that would require airlines to disclose baggage fees along with fares and schedules.

F

True or false: The focus of the 2017 Global Electoral Organization (GEO) was reducing transparency in the election process.

F

True or false: The industry codes of conduct for accounting, finance, marketing, and information technology are identical, because the same ethical dilemmas exist for all functions.

F

True or false: The trend in business PAC contributions between 2008 and 2018 involves a significant increase in labor union activity that replaced businesses and trade groups, according to Figure 8.4.

F

Economic leverage is associated with which type of corporate political strategy?

Financial-incentives

Identify the most basic human rights. (Check all that apply.)

Freedom, free speech Life, safety, property Due process, be informed

Public services that commonly utilize social assistance policy includes _____. (Check all that apply.)

Health care Education Housing

Why might the stakeholders of a firm form a coalition to influence politics? (Check all that apply.)

If a public policy issue negatively impacts a firm, it will likely impact the firm's stakeholders. When regulatory costs impact a business, they will probably impact the firm's stakeholders. They want to support their own agendas.

Managers' ethics are most often influenced by which entities? (Check all that apply.)

Immediate work group Legal compliance Family relationships

How did the 2014 decision of McCutcheon v. Federal Election Commission affect individual political contributions? (Choose all that apply.)

Individuals with enough money could influence politics more heavily. The contribution cap was eliminated.

In the discussion case Political Action by the U.S. Steel Industry, 2015-2018, which political strategy did the U.S. steel industry use when it sent expert witnesses to Congress?

Information

Ethical challenges for information technology professionals include which issue?

Intellectual property protection

Which statements are true regarding the primary professional association that supports ethical initiatives for executives?

It changed their name to the Ethics and Compliance Officer Association. It represents over fifty countries. The membership doubled from 2000 to 2004.

Identity ways that the U.K Bribery Act is stricter than the U.S. Foreign Corrupt Practices Act (FCPA).

It does not require evidence of the intent to corrupt. It contains a strict liability clause for failure to prevent bribery. There is no exemption for "facilitating payments."

The Dodd-Frank Act introduced which financial regulations? (Check all that apply.)

It implemented changes to executive compensation practices. It added stricter capital requirements.

How has the Affordable Care Act affected businesses? (Check all that apply.)

It increased concern over an individual's right to have no insurance. It raised company health care costs.

Bribery is accurately described by which statements? (Select all that apply.)

It is a questionable or unjust payment that facilitates a transaction. It is a payment often made to a government official.

Identify the statements that accurately describe government regulation. (Check all that apply.)

It is a way of achieving public policy. It establishes rules of conduct for citizens and businesses. It exists at the federal, state, and local levels.

The revolving door policy is accurately described by which statement?

It is the circulation of individuals between business and government.

Describe the process of continuous regulatory reform.

It is the ongoing cycle of regulation, reregulation, and deregulation.

Select all of the statements that are true about the Sarbanes-Oxley Act (SOX). (Check all that apply.)

It makes executives responsible for the accuracy of financial reports. It enforces high ethical standards in business.

Researchers have shown that both values and mission policies are particularly popular in which parts of the world? (Check all that apply.)

Japan Europe

In 2017, pressure for leaders to act unethically impacted about how many managers?

Just over 60 percent

The Citizen United's decision allowed direct contributions to political candidates by which entities, according to Exhibit 8.D? (Check all that apply.)

Labor unions Corporations

Which type of business is more likely to believe that a culture of ethics encourages workers to speak up?

Larger and more mature businesses

In the Google EU antitrust case, which tactics were employed by the firm to influence the political outcome? (Check all that apply.)

Lobbying Coalition building

What argument did Lafarge managers make to justify their decision to pay terrorist groups in Syria, according to the case?

Managers attempted to secure safe travels for its employees to and from the plant.

Why are the values held by managers especially important in the workplace?

Managers serve as organizational role models.

Identify the statements that are true about typical public affairs departments.

Many firms connect their primary business activity leaders to their public affairs department. Most public affairs departments are run by a senior manager or executive.

At which level of political involvement might a firm use the technique of bundling?

Moderate organizational involvement

In nondemocratic countries, government may derive power from which authorities? (Check all that apply.)

Monarchy Military dictatorship Religious group

When determining a fair distribution, which human factors are taken into consideration? (Check all that apply.)

Needs Efforts Abilities

According the 2017 survey published by Transparency International, which of the following were countries where having to pay a bribe was least likely? (Check all that apply.)

New Zealand Denmark

How had the Affordable Care Act impacted the American public by 2018? (Check all that apply.)

Over 11 million Americans gained healthcare coverage through the marketplace. Coverage for Americans could no longer be denied or dropped because of preexisting conditions.

Common law is accurately described by which statements? (Check all that apply.)

Past decisions of the courts The basis of U.S. law

Why do some argue against the "Right to Try" experimental drugs for terminally ill patients, as seen in the example Exhibit 5.A?

Patients have no right to medication that is not federally approved.

Why do some people support the "Right to Try" experimental drugs for terminally ill patients, as seen in the example Exhibit 5.A? (Check all that apply.)

Patients should have a right to choose. The end result overrides the means.

The U.K. Bribery Act prohibits bribery of which individuals? (Check all that apply.)

Private executives Government officials

How can a business that is closing offer a fair response to their stakeholders? (Check all that apply.)

Provide training for workers. Contribute funds to the local community. Offer pay-out bonuses to managers.

The term lobbying is accurately described by which statements? (Check all that apply.)

Providing business with direct contact to policymakers Employing business representatives to communicate with government Business attempting to influence regulatory decisions

Identify the purposes of corporate ethics reporting mechanisms. (Check all that apply.)

Providing general information about corporate topics. Offering a way for employees to report ethical violations. Providing clarifications regarding expected ethical behavior.

Within a business, which groups tend to monitor and manage government regulation? (Check all that apply.)

Public affairs Legal team

How does having a good reputation affect a company's ability to recruit employees? (Check all that apply.)

Reduced recruiting costs Greater employee retention

How have regulators responded to critics of banning cell-phone usage while driving?

Regulators permitted the use of hands-free phone devices.

Which of the following are sources from which ethical principles that guide right and wrong conduct are derived?

Role models Family institution Religious beliefs

A conflict of interest is defined by which statement?

Self-interest is at odds with an obligation to act in the best interest of others.

Which business practice violates antitrust law in the United States?

Setting prices at the same level as agreed upon by a group of businesses

What are the major types of public policy? (Check all that apply.)

Social Economic

Globally, what is the primary factor that affects how governments and businesses collaborate?

Societal values and customs

The Bipartisan Campaign reform Act (BCRA) of 2002, prohibited which type of contributions to political parties?

Soft money

Regulations apply to different industries and businesses in what ways? (Check all that apply.)

Some regulations apply to all industries and businesses, such as pollution control. Some regulations apply only to specific industries, such as banking.

Researchers have consistently found that most managers typically rely on criteria associated with reasoning at ______. (Check all that apply.)

Stage 4 Adulthood Stage 3 Early adulthood

A compliance-based ethics program is characterized by which statements? (Check all that apply.)

Stresses punishment as a deterrent Seeks to avoid legal sanctions

Ethics Resource Center experts have stated that ethical culture impacts firms in what ways?

Strong ethical cultures can mitigate behaviors that could harm the firm. Weak ethical cultures can foster ongoing bad behavior.

Super political action committees (Super PACs) are accurately described by which statements? (Check all that apply.)

Super PACs often work together to support a particular political candidate.. Contributions from individuals, unions, or corporations are unlimited. They are also known as independent expenditure-only committees.

According to a 2017 survey by Transparency International, which of the following countries were considered the world's most corrupt countries? (Select all that apply.)

Syria Somalia

True or false: Ethical dilemmas are highly complex and go beyond the language of the law.

T

True or false: Marketing ethics emphasizes honesty and transparency in advertising and data about advertising.

T

True or false: Most U.S. managers concentrate on themselves and highly value a comfortable and exciting life.

T

True or false: The Dodd-Frank Act created a new agency to enforce consumer finance laws.

T

True or false: The U.S. Steel Industry expanded to level two involvement when they developed an aggressive employee grassroots program,according to the case Political Action by the U.S. Steel Industry, 2015-2018.

T

True or false: The consequences of foreign bribery deny U.S. companies the ability to compete in a fair and transparent marketplace.

T

True or false: The primary argument of media executives supporting the AT&T-Time Warner merger was that both content creation and distribution were required to fairly compete with technology companies like Amazon and Netflix.

T

True or false: Under U.S. law, lobbying activities are restricted by the government so that politicians remain free from undue influence and are able to represent the public interest.

T

Why do critics of the Sarbanes-Oxley Act believe the law is no longer effective?

The Act has not totally eliminated fraudulent financial reports over the past 15 years.

Starting in 2017, which economic regulations were minimized in an effort to lessen business obligations? (Check all that apply.)

The Volcker Rules were lessened. The Dodd-Frank Act of 2010 was minimized.

What was the impact of changes to direct corporate contribution limits as a result of the McCutcheon v. Federal Election Commission case?

The amount of campaign contributions continued to rise.

Identify an example of a natural monopoly.

The electric utility industry

Why did the drone makers want the U.S. Federal Aviation Administration to regulate the drone industry?

The industry wanted rules so they could develop drones for commercial purposes.

Identify the disadvantages of utility ethics. (Check all that apply.)

The means to reach the end are not always considered Difficulty in measuring costs

How has the number of lobbyists that companies engaged to influence politics changed between 1998 and 2017?

The number of lobbyists peaked in 2007 and has generally declined since then.

Identify the primary purpose of economic regulations.

They aim to adjust the forces of supply and demand within a free market.

Public policy goals are accurately described by which statements? (Check all that apply.)

They can be narrow and self-serving goals. They can be broad and high-minded goals.

Identify evidence from the case Political Action by the U.S. Steel Industry, 2015-2018 that shows that the U.S. Steel industry operated at least at the first level of political involvement. (Check all that apply.)

They contributed significant dollars to political campaigns. The industry created a new trade association

How do firms that are frequent targets of public scrutiny typically establish a corporate political strategy?

They have a long-term, ongoing political strategy in place at all times.

Researchers found that integrity-based ethics programs had what effects on employees? (Check all that apply.)

They increased their sense of integrity. They made it easier to deliver bad news to supervisors. They enhanced their confidence in decision-making.

How do the major types of public policy relate to one another? (Check all that apply.)

They sometimes overlap. They are at times distinct from each other.

Why would a firm implement advocacy advertising? (Check all that apply.)

They want to influence constituents about a public issue. They wish to promote the firm's viewpoint on a political issue.

What is the primary ethical concern when former business executives accept employment in government positions?

They will favor their former business.

What is the primary motivation for companies to develop employee ethics programs?

To comply with laws and regulations

Why do governments act in the public interest? (Check all that apply.)

To effect a substantial segment of the public. To solve public issues.

What is the major reason for a firm to adopt an institutionalized ethics program?

To enhance their ethical performance.

Why should business be ethical? (Check all that apply.)

To meet the demands of stakeholders To enhance business performance To prevent or minimize harm

Why does the Sarbanes-Oxley Act (SOX) limit auditors from offering non-audit consulting services?

To prevent an accounting conflict of interest.

What are the primary drivers for countries to participate in global regulatory agreements? (Check all that apply.)

To protect their citizens from dangerous or unhealthy imports To protect their economy from unfair foreign competition

Government incentives and penalties represent which element of public policy?

Tools

Evidence of "passive complicity" at Equifax after the data breach, according to the case Equifax's Data Breach, included which reasons?

Top executives focused on their own stock portfolios. The company delayed going public after the cyberattack.

How did the pro-Israeli American advocacy group StandWithUs get their message out in China? (Choose all that apply.)

University programs Networking events Using social media

Economic leverage refers to influencing politics in what ways? (Check all that apply.)

Using economic power to persuade policy makers Using economic power to threaten policy makers

Denying basic human rights is normally considered to be unethical under what conditions?

Using others for your own purpose, while denying them their goals and purposes.

Ethical

_____ principles are guides to moral behavior. (Enter one word in the blank.)

The U.S. Foreign Corrupt Practice Act (FPCA) combats bribery by _____.

assessing criminal penalties assessing civil penalties requiring full disclosure of company transactions

Governments and businesses may work in opposition to each other because government regulations can ______. (Check all that apply.)

be costly to businesses stifle innovation

Detractors of spirituality in the workplace believe that ______.

business should reflect the separation of church and state business is a secular, nonspiritual institution

In the most effective ethics programs, the ethics officer reports to the ______. (Check all that apply.)

chief executive officer board of directors

Some argue that business should not participate in politics because _____, using Figure 8.1. (Check all that apply.)

companies are too selfish to care about the common good managers are not qualified to engage in political debate

When a firm performs activities to acquire, develop, and use power to gain an advantage, this is called ______.

corporate political strategy

The act of bribery is an economic force that _____.

corrupts the financial exchange

The scope of the U.S. Foreign Corrupt Practice Act (FPCA) covers _____. (Check all that apply.)

countries that have U.S. affiliates across a range of industries

Donations to 527 organizations by unpublished contributors are called ______.

dark money

The unspoken ethical tone in a company is called _____.

ethical climate

The corporate political strategy that calls for making contributions to policymakers is called a(n) ______.

financial-incentives strategy

Some economic impacts of bribery include ______. (Check all that apply.)

funds for roads and hospitals siphoning off to pay corrupt officials companies indicted for bribery typically paying fines and legal fees

The specific constituency-building strategy that seeks to influence local opinion leaders is called _____.

grasstops

The most significant social regulation in the United States since the 1960s was passed in 2009 and covered ______.

health care

A constituency-building strategy targets government officials by ______.

indirectly forming coalitions

Identify which of these points refer to economic policy. (Check all that apply.)

industrial trade taxation

When an organization builds ethical safeguards into its daily routines, this is called _____.

institutionalizing ethics.

The type of ethics policy that provides ethical rules for employees to follow is called a(n) _____.

instrumental policy

Advertisements that promote a firm's political viewpoint are called ______. (Check all that apply.)

issue advertisements advocacy advertisements

In 2017, the Ethics and Compliance Initiative reported that the most unethical practice at work was ______.

lying to employees and external stakeholders

The practice of selling products below cost to drive out rivals is called ______.

predatory pricing

Accountants often face conflicts of interest such as _____.

providing a good audit in return for the promise of more of the client's business

One factor in determining the moral intensity of an ethical issue is how close the decision maker feels to the people affected by the decision, a factor that is known as ______.

proximity

A plan of action put forth by the government to achieve its purposes is called _____.

public policy

The correct definition of ethical egoist is a manager or employee who always puts _____.

self-interests first

The AT&T-Time Warner merger was approved after detractors failed to prove that the combined firm would _____. (Check all that apply.)

set higher prices for television and Internet services offer fewer choices for consumers

International regulation of global commerce is especially important when ______.

the issue crosses national borders

An example of the U.S. Steel industry using a financial-incentive strategy was when ______, according to the case Political Action by the U.S. Steel Industry, 2015-2018.

they increased their levels of political action committee (PAC) campaign contributions

Facebook stated that they would be willing to consider which type of regulatory legislation, according to the case?

transparency into a public library of paid political ads used on the site

The type of ethical reasoning that theorizes that having good moral values direct an individual to good behavior is called _____.

virtue ethics

The political contribution technique referred to as bundling is defined as ______.

when a firm combines shareholder contributions and donates the sum to one or more candidates