Business Ethics test 1

Which of the following is not one of the benefits of being ethical and socially responsible in business?

A high degree of employee dissent

The 1960s saw a rise of consumerism. What is consumerism?

Activities undertaken by independent individuals, and groups to protect their rights as consumers

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

Adam Smith.

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

Bribery

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

Bullying

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

Which of the following is generally not considered a business ethics issue?

Corporate hierarchy

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

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

Duplicity

Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?

Environmental groups

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

Facilitation payments

_____ 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

The term business ethics is best described by the following statement:

It comprises the principles, values, and standards that guide behavior in the world of business.

Which of the following was not a provision of the Sarbanes-Oxley Act?

It outlawed bribery of officials in other countries.

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.

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

Social engineering

Which of the following are not typically primary stakeholders?

Trade associations

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)

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

Ethical culture is defined as

acceptable behavior as defined by the company and industry

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.

Social responsibility is

an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.

In corporate governance, _____ is the process of auditing and improving organizational decisions and actions.

control

In ascending order, Carroll's four levels of social responsibility are

economic, legal, ethical, philanthropic.

Accountability, oversight, and control all fall under the definition and implementation of corporate

governance.

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.

Having acceptable personal ethics is probably not going to 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 value and prices.

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

primary.

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

shoulder surfing.

Principles are

specific and pervasive boundaries for behavior that are universal and absolute

The study of business ethics is important to better understand all of the following except

that a person's own moral philosophies and decision-making experience may not be sufficient to guide him or her in the business world.

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

trust.

The ethical decision-making process begins

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