Business Ethics chapter 1 questions
The rise of consumerism occurred during the
1960s
The ________ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation
Federal Sentencing Guidelines for Organizations
Who argued that when a business also cares about the well-being of stakeholders, it earns trust and cooperation that ultimately reduce costs and increase productivity?
Norman Bowie
Which of the following are not typically primary stakeholders?
Trade associations
Which of the following are not typically secondary stakeholders?
customers
In the Reagan/Bush eras, the major focus of the business world was on
self-regulation rather than regulation by government
The _____ model is founded in classic economic precepts.
shareholder
The ability of a business organization to achieve its business goals is directly affected by whether its behavior is judged to be right or wrong by
society
Principles are
specific and pervasive boundaries for behavior in general
A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments
stakeholder interaction model
Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as
stakeholders
Major corporate governance issues normally involve _____ decisions. (Choose the response that is most correct)
strategic-level
Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
technology
The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
the federal sentencing guidelines for organizations
Before the 1960s, ethical issues related to business were often discussed
theologically and philosophically.
When unethical acts are discovered in a firm, in most instances
there was knowing cooperation or complicity from within the company.
Business professors began to teach and write about social responsibility during the:
1970s
Business ethics was acknowledged as a field of study by business academics and practitioners in the:
1980s
According to the Millennium Poll, _____ percent of respondents focus on social responsibility ahead of brand reputation or financial factors when forming impressions of companies
60
Which of the Following is not one of the rights spelled out by John F Kennedy in his "consumers' bill of rights"?
A. the right to choose B. the right to safety c. the right to be informed **d. the right to be ethical** e. the right to be heard
Which of the following is not generally considered a business ethics issue?
Abortion
Enlightened capitalism is associated with which individual?
Adam Smith
The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
Adam Smith
What is the first step in implementing a stakeholder perspective in an organization?
Assessing the corporate culture
The study of business ethics is important to better understand all of the following except: A.that a person's own moral philosophies and decision-making experience may not be sufficient to guide him or her in the business world. B. how and why people make ethical or unethical decisions. C.how to cope with conflicts between a person's own values and those of the organization in which he or she works. D.that business ethics is merely an extension of an individual's own personal ethics. E. how to identify ethical issues arising in the business world
D.that business ethics is merely an extension of an individual's own personal ethics.
Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices?
Defense Industry Initiative on Business Ethics and Conduct
Which ISO guideline pertains to environmental regulation standards and was designed to help reduce a firm's pollution, waste, and carbon footprint?
ISO 14000
Which ISO guideline was established as a corporate responsibility regulation that is meant to encourage discussions on the role of social responsibility and the importance of stakeholders?
ISO 26000
The specific steps for implementing the stakeholder perspective do not include which of the following? a. Identifying stakeholder groups b. Identifying stakeholder issues c. Identifying and gaining stakeholder feedback d. Identifying and gaining government feedback e. Assessing organizational commitment to social responsibility groups
Identifying and gaining government feedback
Why do critics argue that high compensation for boards of directors is a bad thing?
It could cause conflicts of interest between the directors and the organization.
What are the four levels of social responsibility?
Legal, economic, ethical, and philanthropic
Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief?
Milton Friedman
The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with
Milton Friedman
The _____ was (were) enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.
Sarbanes- Oxley Act
_____ argued that, although profits are required for business, profit is not the primary purpose of business
Theodore Levitt
Business ethics, as a field, has passed through which of the following states?
Theological discussion to recognition of social issues to a field of study
Which of the following statements about the Federal Sentencing Guidelines for Organizations is false ?
They use a mechanical approach with legalistic logic to avert serious penalties.
Why were the International Organization for Standardization (ISO) 26000 guidelines established?
To promote a common understanding in the area of social responsibility.
_________ is essential in building long-term relationships between businesses and consumers
Trust
Which of the following was not cited by your text as an example of a global collaborative effort to establish standards of business conduct? Council on Economic Priorities' Social Accountability 8000 Ethical Trading Initiative U.S. Apparel Industry Partnership United States Sentencing Commission World Trade Organization
United States Sentencing Commission
The degree to which a firm understands and addresses stakeholder demands can be referred to as
a stakeholder orientation
Stakeholders' power over businesses stems from their
ability to withdraw or withhold resources
A stakeholder orientation is not complete unless it includes
activities that actually address stakeholder issues
when employees see honesty, respect, and trust applies frequently in the workplace, they: -feel less pressure to compromise ethical standards. -observe less misconduct. -are more satisfied with their organizations overall. - feel more valued as employees. -All of these
all of these
social responsibility is
an organizational obligation to maximize its positive effects and minimize its negative effects on stakeholders
The Foreign Corrupt Practices Act outlawed
bribery of officials in other countries
Because of Sarbanes-Oxley, publicly traded companies must now develop to assist in creating transparency in financial reporting.
code of ethics
The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by
codifying into law incentives for organizations to take action such as developing effective nternal legal and ethical compliance programs to prevent misconduct
Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
community
Which of the following is a major concern among corporate boards of directors?
compensation
A stakeholder orientation can be viewed as a(n)
continuum
In corporate governance, _____ is the process of auditing and improving organizational decisions and actions.
control
The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is
corporate citizenship
Most strong organizational climates usually focus on the core value of placing ________ interests first
customers
which of the following is not associated with the stakeholder interaction model? a. Involves a two-way relationship between firm and stakeholders b. Recognizes the input of investors, employees, and suppliers c. Explicitly acknowledges dialogue with a firm's internal environment d. Explicitly acknowledges dialogue with a firm's external environment e. Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders
e. Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders
In ascending order, Caroll's four levels of social responsibility are
economic, legal, ethical, philanthropic
According to the text, disaster - relief programs, like those at Home Depot, help foster
employee commitment
Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?
environmental groups
A description of corporate social responsibility should include a list of all of the following except
environmentally friendly activities
The study of business ethics in North America has evolved through distinct stages
five
Accountability, oversight, and control all fall under the definition and implementation of corporate
governance
Which of the following is not one of the benefits of being ethical and socially responsible in business?
greater employee turnover
Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
guessing
In the 1920s, the "living wage" was
income sufficient for education, recreation, health, and retirement
Individuals' personal ethics play a major role in the evaluation of business decisions only when their preferences or values
influence their performance in the workplace.
Board members being linked to more than one company is an example of
interlocking directorate.
The term business ethics is best describes by the following statement
it compromises the principles and standards that guide behavior in the world of business
Which of the following was not a provision of the Sarbanes-Oxley Act? a. It stiffened penalties for corporate fraud. b. It created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting and to develop greater transparency in financial reports. c. It requires top executives to sign off on their firms' financial statements. d. It outlawed bribery of officials in other countries. E. It made securities fraud a criminal offense.
it outlawed bribery of officials in other countries.
Having acceptable personal ethics may not be sufficient to handle complex business ethical issues when an individual has
limited business experience
investors are concerned about business ethics because they know that misconduct can
lower stock prices
One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _____
managers should earn no more than twenty times the pay of other employees.
Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?
material resources and/or intangible knowledge
Which economist espoused a kind of Darwinian or "wild west" version of capitalism?
milton friedman
The first of the three activities that are associated with the stakeholder orientation is the
organization-wide generation of data
Employees' perceptions of their firm as having an ethical climate leads to
performance- enhancing outcomes
A stakeholder group that is absolutely necessary for a firm's survival is defined as
primary
Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
pro - bono book keeping
Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
secondary stakeholders
