Test 2 - Business and Society

By law, the financial records of publicly held companies are required to be

audited by a certified professional accounting firm.

The primary purpose of the International Monetary Fund is to

lend foreign currency to member countries.

Bias within the hiring process refers to

selecting only candidates that match a preconceived ideal of the role.

The growing diversity in the U.S. workforce is due to

All of these choices are correct. - millennials and members of gen z are entering the workforce - significant immigration from other countries - shifting patterns of work and retirement

Using Figure 6.1 in the text, how would you classify the ethical climate of Vale Mining Company, as described in the case?

Egoism

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate

Which type of employee is most likely to report ethical issues in the workplace?

Executives

Which factor of moral intensity likely played the biggest role in 3M's response to FEMA's request, according to the case?

Magnitude of consequences

A society where economic power is concentrated in the hands of government officials and political authorities is called

a central state control system.

The rejection reason, saying the firm had "hired so many foreign nationals that it seems time for us to hire an American or be unfair," implies which type of bias, according to the case?

National origin

In 2019, more than 50 percent of minority-owned businesses were owned by

Asian Americans.

In 2015, more than 50 percent of minority-owned businesses were owned by:

Asian americans

Mature adults typically base their ethical reasoning on broad principles and relationships such as

Both "human rights and constitutional guarantees of human dignity" and "universal principles of justice, such as equal treatment" are correct.

A global action network exhibits which characteristic?

Some members can help overcome other members' weaknesses.

What evidence of weak labor laws in African mineral mining did the case present?

Children dug minerals by hand, with no health or safety protections.

Which law protects Xiuying, as introduced in the case, from job discrimination based on race, color, gender, religion, or national origin?

Civil Rights Act (and its amendments)

At what stage of moral development would you classify a decision that focuses only on how U.S. customers are affected?

Stage 4, society-centered

The main drawback to utilitarian reasoning is that

it is difficult to accurately measure both costs and benefits.

People everywhere depend on ethical systems to tell them whether their actions are:

Right or wrong

The blend of ideas, customs, company values, and shared meanings within a firm are referred to as its

corporate culture.

In early adulthood, young people can improve their level of moral reasoning by

learning the give-and-take of group life.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations

Racial harassment is illegal under

Title VII of the Civil Rights Act.

A just or fair ethical decision occurs when

benefits and burdens are distributed in fair proportions.

Aristotle argued

moral virtue is a mean between two vices.

Experts attribute the growth of nongovernmental organizations to

greater openness in many societies.

Global market channels involve a firm producing goods in

their home country to sell to other countries.

What was Intel's primary interest in mineral mining, according to the case "Intel and the Responsible Minerals Initiative"?

to distance themselves from human rights abuses associated with conflict minerals

Ethical relativism is most accurately defined by which statement?

What's ethical in one society may be forbidden in another.

Why do some disagree with the trend toward a stronger presence of religion in the workplace?

They cite the separation of church and state in the United States and other countries.

Which type of U.S. company is required to follow the Family and Medical Leave Act (FMLA) and offer up to 12 weeks of unpaid employee leave to address family needs?

firms with at least 50 employees

If a manager approaches ethics with benevolence in mind, he or she would stress what?

friendly relations with coworkers

Multisector partnerships that address specific social issues in the global economy are called

global action networks.

Government rules on equal employment opportunity include

government contractors must have written affirmative action plans to overcome the past and present effects of discrimination.

Under the Sarbanes-Oxley Act, corporations are required to

have executives vouch for the accuracy of a firm's financial reports.

Business managers need a set of ethical guidelines to help them

identify and analyze the nature of an ethical problem.

Building ethical safeguards into a company's everyday routines is called

institutionalizing ethics.

Research has shown that the primary type of ethics policy in the United States is

instrumental.

An argument against affirmative action is

it is inconsistent with the principles of fairness and equality.

An ethics issue based on cross-cultural contradictions is best illustrated by which example?

legally marketing a pesticide abroad that has been banned in the United States

Which factor of moral intensity likely played the biggest role in 3M's response to FEMA's request, according to the case "3M and N95 Respirators for Americans"?

magnitude

The primary goal of a "vulture fund" is to

make a profit.

Many executives believe that a diverse workforce boosts innovation because

many unique perspectives provide valuable insights into tastes and preferences.

According to the textbook, Asian American men now have higher median weekly earnings than white American men primarily because

most Asians had earned a bachelor's degree or higher.

The term race to the bottom refers to

moving production jobs to the country with the lowest labor cost.

As part of a global action network, business may exhibit which weakness?

not enough focus on long-term impacts

The theory of comparative advantage states that

productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Income at the bottom of the pyramid may be adjusted per country according to its overall

prosperity.

The deep anti-Americanism that exists in some parts of the world is thought to be caused by

resentment of cultural penetration from U.S.-based multinational corporations.

A giant step is taken toward improving ethical performance throughout the company when:

senior-level managers signal to employees that they believe ethics is a high priority.

A recent study found that, compared to the 1980s, managers today place what level of importance on moral values, such as honesty and forgiveness?

slightly more important

A firm that has global operations has

some or all of their manufacturing or service operations abroad.

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as

temporal immediacy.

Why does the inclusion of women on corporate boards improve company performance?

All of these are correct -Alternative courses of action are more realistically considered -Women bring different life experiences to discussions -Women are more likely to raise multiple stakeholder concerns

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices

Based on evidence provided in the case, how effective were Vale Mining Company's ethical safeguards?

Highly ineffective because numerous reports of safety violations were reported but ignored.

Which law eliminated certain time restrictions for filing pay discrimination lawsuits?

Lilly Ledbetter Fair Pay Act of 2009

Integrity-based ethics programs

combine concern for the law with an emphasis on employee responsibility.

The purpose of the World Trade Organization is to

eliminate barriers to free trade among nations.

Which type of organization typically conducts regular, ongoing ethics training?

larger and more mature firms

Why are ethics policies or codes important to business managers?

to identify and analyze the nature of an ethical problem

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

How did Intel eliminate conflict minerals from their supply chain?

They required all member nations to comply with responsible sourcing guidelines

How did the public sector help reduce trade in conflict minerals, according to the case "Intel and the Responsible Minerals Initiative"?

They required all member nations to comply with responsible sourcing guidelines.

How would a manager at moral reasoning level 4, full adulthood, likely respond to a new government regulation?

comply with the law

As spirituality in the workplace has increased, how have some organizations responded?

created ways to allow for religious diversity and expression at work

The unspoken understanding among employees of what is and is not acceptable behavior is called

ethical climate.

Within society, what is the primary goal of the civil sector, according to Figure 4.4?

expression of values

Which law protects Xiuying, as introduced in the case "Hello, My Name Is," from job discrimination based on race, color, gender, religion, or national origin?

the Civil Rights Act (and its amendments)

Benefits of managing diversity and inclusion effectively include all except

the federal government provides diversity-related tax breaks.

Representation on the World Bank's board of directors is based on

the size of the member nation's economy.

People's ethical principles come from

their religious background, family, and education.

Why is it important for an ethical decision maker to consider the probability that the action will lead to the consequences predicted?

to mitigate the likelihood of harm

What normative reason is there for business to be ethical, according to Figure 5.1?

to promote personal morality

What is one reason why woman and minorities fail to move into executive or board positions?

The old boys network

The reason(s) behind the uncertainty of an ethical decision is(are) that different people and groups

All of these choices are correct. - may use different sources of information - may rank various rights in different ways - may not share the same meaning of justice

The ethical issue(s) of top concern within the marketing function of a firm include

All of these choices are correct. - consumer health and safety - honesty and transparency in advertising - customer privacy, especially for children

The core components upon which a company's ethical performance depends include:

All the above - The personal character of the managers and employees - The values and virtues of the managers, and the traditions, attitudes, and business practices built into a company's culture

Women in the U.S. workforce are accurately characterized by which statement(s)?

Both the answers "The participation rate has been between 46 and 47 percent since the late 2000s" and "A lack of family-friendly businesses policies has made it difficult for working mothers" are correct.

Why do critics of globalization claim that it creates job insecurity?

Businesses move to other countries to find cheap labor and lay off workers at home.

Which type of ethical issue did 3M face regarding price-gouging accusations, according to the case?

Competitive pressures on profits

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of:

Conflict of interest

What was the primary ethical challenge between Vale Mining and their auditor, TUV SUD, according to the case?

Conflict of interest

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

Due process

Which law eliminated certain time restrictions for filing pay discrimination lawsuits?

Lilly Ledbetter Fair Pay Actt of 2009

Which foreign mandate was considered to be one of the most powerful anti-corruption laws in the world?

The U.K. Bribery Act

A conception of right and wrong is:

The definition of ethics

How do ethical business practices impact the sentencing of an employee convicted of criminal activity, according to the U.S. Corporate Sentencing Guidelines?

The degree of blame is calculated based on how strong the firm's ethical policies are.

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs?

The financial bottom line

As a factor of moral intensity, how does the proximity of an issue affect the decision maker?

The greater the empathy, the higher the intensity.

How did the public sector help reduce trade in conflict minerals, according to the case?

They required all member nations to comply with responsible sourcing guidelines.

Why are the World Bank, the International Monetary Fund, and the World Trade Organization so important to the current global economy?

They set the rules by which international commerce is transacted.

What was Intel's primary interest in the sourcing of materials, according to the case?

To distance themselves from human rights abuses associated with conflict minerals.

Which line from the case implied racial bias?

Unfortunately, we do not consider candidates that have suggestive "ghetto" names.

Under the World Trade Organization's most-favored nation rule

all import restrictions are illegal unless proven scientifically.

What is one of the most common reasons that sexual harassment occurs on the job?

an imbalance of power

Which age groups within the stages of moral development apply egocentric reasoning?

childhood, youth

Which U.S. act prohibits executives of U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

the U.S. Foreign Corrupt Practices Act

Historically, global corporations have focused their attention on which income level(s)?

All at the top of the pyramid and some of the middle class.

One action a company can take to effectively manage diversity and inclusion is:

Set up a diversity council to monitor the company's goals

An example of a Global Action Network, or GAN, is:

The kimberely process