Business Ethics Mid Term

A(n) ________ is defined as a central guide that supports day-to-day decision making at work.

code of ethics

In addition to achieving social benefits, which of the following best illustrates an example of a company effectively implementing corporate social responsibility (CSR)?

It fulfills all its legal obligations.

Which of the following is true of corporate ethics?

It has moved from the domain of legal departments into the organizational mainstream.

Which of the following is true of corporate governance?

It is the system by which business corporations are directed and controlled.

Identify a true statement about a company's organizational culture.

It represents the sum of all the policies and procedures from each of the functional departments in the organization.

Which of the following is an example of an organization's instrumental approach to corporate social responsibility (CSR)?

Larsen's Corp., an investment company, uses different mechanisms to increase profits and has performance incentives for its employees.

Which of the following statements is true of altruistic corporate social responsibility (CSR)?

Organizations use shareholders' funds for initiatives to give back to the company's local community

The ________ of 2002 introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent.

Sarbanes-Oxley Act

The quality by which the pursuit of one value is a good way to reach another value is known as ________.

instrumental value

Identify an example of instrumental value.

money

Over the last five decades, codes of ethics have matured from cosmetic public relations documents into ________ documents.

performance-measurement

Which of the following is one of the four basic categories of ethics?

personal integrity

In the context of the value chain of an organization, ________ is a support activity.

general administration

The accounting profession is governed by a set of ________.

generally accepted accounting principles

An example of intrinsic value is ________.

health

If an employee leaves a company, the ________ department should host an exit interview to ensure that anything the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.

human resources

The efficient management of providing payroll and benefits for happy and productive employees is looked after by the ________ department of an organization.

human resources

Brendon joins Almer Inc. as the head of the research and development (R&D) team. In order to allow Almer Inc. to capture and maintain a leading position in the market, Brendon should ________ .

incorporate customer feedback from market research and competitive feedback from closely monitoring the organization's competition

Which of the following, according to Joseph F. Keefe, is a major trend behind the phenomenon of corporate social responsibility (CSR)?

increased transparency of companies

Riley was granted the title of Doctor of Medicine by a medical school in Ohio. His parents were extremely happy and content with his achievement. The worth attached to the feelings experienced by Riley's parents is an example of ________.

intrinsic value

The quality by which a value is a good thing in itself and is pursued for its own sake, whether anything comes from that pursuit or not, is called a(n) ________.

intrinsic value

A perspective of business ethics that involves recommending what should be happening in a business situation is termed ________ perspective.

normative

In the context of business ethics, a ________ perspective evaluates the degree to which the observed customs, attitudes, and rules within a business can be considered ethical.

normative

Over the last five decades, the issue of corporate social responsibility has advanced from an abstract debate to a core ________ issue with clearly established legal liabilities.

performance-assessment

Which of the following statements is true of Milton Friedman's view of the corporate world?

Friedman argues that, as an employee of the corporation, a manager has an ethical obligation to fulfill his role in delivering on the expectations of his employers.

According to the ________ to management, by recognizing stakeholders and not just shareholders, corporations must maintain a long-term perspective rather than simply delivering quarterly earnings numbers.

social contract approach

A ________ is defined as someone with a share or interest in a business enterprise.

stakeholder

Society refers to a(n)

structured community of people bound together by similar traditions and customs.`

The definition of corporate social responsibility as the actions of an organization that prioritize social benefit over maximizing profits and meeting legal obligations assumes that

the corporation is operating in a competitive environment.

A criticism of the triple bottom-line (3BL) approach is that ________.

there is no real evidence on how it can be measured

Which of the following statements is true of corporate social responsibility (CSR)?

The awakening to CSR for most companies happened only after being surprised by public responses to issues that had not previously been a part of their business responsibilities.

Which of the following statements is true of codes of ethics?

The codes are structured to empower employees to make effective decisions confidently.

GeoTransmit, a large multinational telecommunications company, hid from its investors the extensive debt and losses it had accumulated. Its fraudulent accounting behavior was eventually discovered, and the company went bankrupt. Which of the following statements is true of the future of GeoTransmit and its stakeholders?

The different stakeholders of GeoTransmit will be affected in different ways.

Which of the following statements is true of the social contract approach to corporate management?

The modern social contract approach argues that there is an obligation for the corporation to meet the demands of society rather than just the demands of a targeted group of customers.

Which of the following statements describes the terms "morals" and "values"?

They are a set of personal principles by which one aims to live one's life.

As a message to an organization's stakeholders, ________ should represent a clear corporate commitment to the highest standards of principled behavior.

a code of ethics

A company is of the view that what is best for its shareholders may not be best for its employees and the community. It also believes that the most efficient means to achieve increased profits is to close its factory and move production overseas, which is not agreed upon by its shareholders. This is an example of ________.

a conflict of interest

In the context of the basic categories of ethics, ________ is just doing the right thing, and it is something most people can understand and support.

a simple truth

Which of the following will most likely influence the moral standards of an individual?

a strict family upbringing

The code of ethics adopted by the ________ speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."

American Marketing Association (AMA)

________ is the application of standards of moral behavior to business situations.

Business ethics

________ is one of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR).

Carbon neutral operations

Bector Airlines supports relief camps in the Republic of Cadmia with donations of both money and employee-donated volunteer hours. It also provides packaged food in times of natural crises such as hurricanes, earthquakes, etc. This is an example of ________ corporate social responsibility (CSR).

altruistic

When an employee is parting ways with a company, the human resources department should ensure that

an exit interview is arranged for the employee.

The difference between intrinsic value and instrumental value is that

as opposed to intrinsic value, instrumental value refers to the quality by which the pursuit of one value is a good way to reach another value.

Organizations pursue operational efficiency through detailed monitoring of their ________, that is, how much money is left after all the bills have been paid from the revenue generated from the sale of their product or service.

bottom line

The term ________ is defined as the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

corporate conscience

Amanda and Ross have been chosen to go to Ethiopia for their university's International Student Exchange Program. They read about the beliefs, attitudes, practices, norms, traditions, cuisine, and music of Ethiopia to better adapt to the place. Amanda and Ross are reading about the ________ aspect of Ethiopia.

cultural

A true statement about corporate social responsibility (CSR) initiatives is that they ________.

do not always generate immediate financial gains to the organization

Which of the following is the most likely reason why organizations maintain their own internal auditors?

to monitor the accuracy of financial functions