BE chapter 3-4

_____ is the offering of something of value in order to gain an illicit advantage.

Bribery

_____ 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

_____ are used to obtain or retain business and are not generally considered illegal in the U.S.

Facilitation payments

The _____ makes it illegal for individuals, firms, or third parties doing business in American markets to "make payments to foreign government officials to assist in obtaining or retaining business."

U.S. Foreign Corrupt Practices Act (FCPA)

_____ responsibilities relate to a business's contributions to stakeholders.

Voluntary

Optimization is defined as

a trade-off between equity and efficiency.

Conflicts of interest exist when employees must choose whether to

advance their own personal interests, those of the organization, or those of some other group.

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

The first step toward understanding business ethics is to

develop ethical-issue awareness.

The primary objective of U.S. antitrust laws is to

distinguish competitive strategies that enhance consumer welfare from those that reduce it.

The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.

institutionalization

_____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.

Bullying

_____ tie(s) an organization's product(s) directly to a social concern through a marketing program. Voluntary contributions

Cause-related marketing

_____ law defines the rights and duties of individuals and organizations (including businesses). _____ law defines the rights and duties of individuals and organizations (including businesses).

Civil

What type of fraudulent activity involves an employee who assists a consumer in fraud?

Collusion

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.

Federal Sentencing Guidelines for Organizations

_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.

Fraud

____ is an important element of virtue and means being whole, sound, and in unimpaired condition.

Integrity

Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?

Intellectual property rights

Which is not one of the four sources of criminal and civil laws?

Judicial law

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

_____ involves tricking individuals into revealing their passwords or other valuable corporate information.

Social engineering

The _____ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.

The Food and Drug Administration

A court found an oil company guilty of placing profits over the safety and well-being of its employees. This situation can be classified as

an ethical issue.

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.

Companies that _____ will most likely be found in violation of procompetitive legislation.

establish monopolies

Issues related to fairness and honesty may arise because business is sometimes regarded as a

game governed by its own rules rather than those of society.

Among retail stores, _____ is a larger problem than customer shoplifting.

internal employee theft

Affirmative action programs

involve the recruitment, hiring, promotion, and training of qualified individuals.

An activity is probably ethical if it

is approved of by most individuals in the organization and is customary in the industry.

Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation

is excessively complex and financially burdensome.

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because

it may foster the idea that honesty is unnecessary in business.

When Devon looked at what another employee was typing in order to get a password, he committed

shoulder surfing.

In marketing communications, lying causes predicaments for companies because it destroys

trust.

Ethical issues in business typically arise because of conflicts between individuals' personal moral philosophies and values and the

values and attitudes of the organization in which they work and the society in which they live.

The ethical decision-making process begins

when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.