Business Ethics Final

The _______ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent.

10-40-40-10

A strong ethics program includes all of the following elements expect

A clause promising good stock market performance

Motivation is defined as

A force within the individual that focuses his or her behavior on achieving a goal

More than a compliance program, business ethics is becoming

A management issue to achieve competitive advantage

Which of the following describes a dual relationship?

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

Stakeholders' power over businesses stems from their

Ability to withdraw or withhold resources

The originator of the idea the invisible hand, which is a fundamental concept in free market capitalism, was

Adam Smith

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

Business ethics is a part of decision making

At all levels of work and management

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

Bullying

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

Enlightened egoism

Centers on one's long-term self-interest but takes others' well-being into account

Which of the following is a major ethical concern among corporate boards of directors

Compensation

High levels of ______ create a higher probability that firms cut corners because margins are usually low.

Competition

A _______ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes.

Compliance orientation

A broader view of social responsibility

Considers the long-term welfare of society

For an ethics and compliance program to properly function,

Consistent enforcement and disciplinary action are essential

Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements:

Culture is shared, relatively stable, and is formed over a long period of time

Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level

Define right as that which conforms to the expectations of good behavior of the larger society

A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a ______ because he believes in the rights of all individuals

Deontologist

A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd-Frank Act is to

Encourage employees to report misconduct

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

Establish monopolies

A(n) ________ requires an individual to choose among several actions that have negative outcomes.

Ethical dilemma

Both individual ethics and organizational ethics have an impact on employee's

Ethical intention

People who believe in ________ go with the flow because they feel the events in their lives are uncontrollable.

External locus of control

A study has found that those with an external locus of control were positively correlated with ethical decision making, whereas those with an internal locus of control were negatively correlated.

False

One of the main reasons employees do not report observed misconduct

Fear of retaliation

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

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

Federal sentencing guidelines for organizations FSGO

Top managers tend to focus on ______ because their jobs and personal identity are often connected to quarterly returns.

Financial performance

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

Free samples

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

No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent

Informal expressions of an organization's culture

Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as

Informal groups

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

Intellectual property rights

Employees who believe they control the events in their lives by their own effort and skill have a(n)

Internal locus of control

Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _______.

Internal pressures and ambiguity surrounding internal organizational rules

An activity is probably ethical if it

Is approved by most individuals in the organization and is customary in the industry

Research concerning nationality and the ability to make ethical decisions

Is hard to interpret in a business context because of cultural differences

In order for whistleblowing to be effective,

It requires that the individual have adequate knowledge of wrongdoing that could damage society

To ensure than an ethics program addresses the needs of the average employee, it should include all of the following except

Lengthy legal documents

New employees in bureaucratic organizations usually have ________ into the basic operating rules and procedures for getting things done.

Limited input

Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements are known as

Mandated boundaries

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

Management's sense of the organization's culture

May be quite different from the employees' perceptions

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

An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg's stages of development?

Mutual interpersonal expectations, relationships, and conformity (3rd stage)

Which of the following is true regarding abusive and intimidating behavior?

Not everyone agrees on what constitutes abusive behavior

Following the ethical directives of a superior relates to

Obedience to authority

According to the ethical decision-making framework, the absence of punishment provides a(n) ______ for unethical behavior.

Opportunity

Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _______ can alter this intent.

Organizational or social forces

A stakeholder group that is absolutely necessary for a firm's survival is defined as

Primary

Title VII of the Civil Rights Act of 1964

Prohibits discrimination on the basis of race, color, sex, religion, or national origin

When a restaurant claims that it sells the world's best cup of coffee, it could be accused of

Puffery

An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a

Relativist

The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and

Reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct

Because a corporation can be considered a moral agent, it is therefore

Responsible to society for its actions

The ______ model is founded in classic economic precepts

Shareholder

Many people wrongly assume that a company will be ethical if it

Simply hires ethical employees

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

In the absence of ethics programs, employees are likely to make decisions based on

Their observations of how their coworkers and superiors behave

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

When unethical acts are discovered in a firm, in most instances

There was knowing cooperation or complicity from within the company

For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?

This is in keeping with my personal morals and the code of conduct, so it is okay

What is one of the goals of ethics training?

To identify key risk areas employees will face

Ethical concerns in centralized structures can occur because of very little

Upward communication

Ethical issues in business typically arise because of conflicts among individuals' morals and

Values and attitudes of the organization in which they work and the society in which they live

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

voluntary