Ch. 5 hw questions for business

What are the two basic contrasting principles that guide managerial responsibility? Multiple select question. As agents for the shareholders, managers have an obligation to maximize profit. Managers should be motivated by self-interest. Managers should be motivated by principled moral reasoning. The primary role of management is to meet workers' needs.

As agents for the shareholders, managers have an obligation to maximize profit. Managers should be motivated by principled moral reasoning.

Select the requirements that are part of the Sarbanes-Oxley Act (Check all that apply.) Multiple select question. Companies must be audited monthly by national accounting firms. All employees are required to sign non-compete agreements. Companies must have more independent board directors. Companies must adhere strictly to accounting rules. Senior managers must personally sign off on financial results.

Companies must have more independent board directors. Companies must adhere strictly to accounting rules. Senior managers must personally sign off on financial results.

Which statement best defines the ethical system known as utilitarianism? Multiple choice question. It is a philosophy that bases ethical behavior on the opinions and behaviors of other people. It is an ethical system in which acceptable behavior is that which maximizes consequences for the individual. It is an ethical system stating that all people should uphold certain values that society needs to function. It is an ethical system in which the goal is to create the greatest good for the greatest number of people.

It is an ethical system in which the goal is to create the greatest good for the greatest number of people.

Which statement best defines the ethical system known as utilitarianism? Multiple choice question. It is an ethical system in which acceptable behavior is that which maximizes consequences for the individual. It is an ethical system stating that all people should uphold certain values that society needs to function. It is an ethical system in which the goal is to create the greatest good for the greatest number of people. It is a philosophy that bases ethical behavior on the opinions and behaviors of other people.

It is an ethical system in which the goal is to create the greatest good for the greatest number of people.

Which factors make for an effective ethics code? (Check all that apply.) Multiple select question. It is concise and easy to understand. Those affected by it are involved in writing the statement. It focuses on real-life situations that employees can relate to. Only executives are required to follow it. It uses complex terms and ideas.

It is concise and easy to understand. Those affected by it are involved in writing the statement. It focuses on real-life situations that employees can relate to.

What are the effects on employees of a weak ethical climates? (Check all that apply.) Multiple select question. Job dissatisfaction Unethical behavior Increased commitment Ethical behavior

Job dissatisfaction Unethical behavior

Which are common perceptions of how business leaders get ahead by using illegal means? (Check all that apply.) Multiple select question. Kickbacks Insider trading Outsourcing Philanthropic contributions

Kickbacks Insider trading

Which model of cognitive development classifies people based on their level of moral judgme? Multiple choice question. Caux Principles of moral development The universal theory of classification Kohlberg's model of cognitive moral development Kant's utilitarian model of moral classification

Kohlberg's model of cognitive moral development

Which model of cognitive development classifies people based on their level of moral judgme? Multiple choice question. Kant's utilitarian model of moral classification The universal theory of classification Kohlberg's model of cognitive moral development Caux Principles of moral development

Kohlberg's model of cognitive moral development

Which stage of Kohlberg's model of cognitive moral development is based on rewards and punishment and immediate self-interest? Multiple choice question. Preconventional Virtue Conventional Principled

Preconventional

Which statement is true about the reconciliation of profit maximization with corporate social responsibility? Multiple choice question. Socially responsible organizations are always more successfully financially. There is no way to reconcile profit maximization with corporate social responsibility. incorrect There is no possible competitive advantage for firms that focus on corporate social responsibility. Profit maximization and corporate social responsibility can successfully converge.

Profit maximization and corporate social responsibility can successfully converge.

Select the common elements of compliance-based ethics programs (Check all that apply.) Multiple select question. Punishments imposed on violators Auditing and monitoring compliance Personal responsibility for ethical behavior Established legal standards and procedures

Punishments imposed on violators Auditing and monitoring compliance Established legal standards and procedures

Gert's company manufactures jeans. The equipment in her factory is old and temperamental, and she has a hard time finding knowledgeable repair personnel. Although it means giving up direct control over the manufacturing process, Gert decides that the only way to keep delivering products to her loyal customers is to shut down the factory and manufacture the jeans overseas at a new facility. Other jean manufacturers understand Gert's decision to move production overseas, but her employees who lost their jobs do not understand or agree with her decision. This is an example of which ethical system? Multiple choice question. Relativism Utilitarianism Virtue ethics Egoism

Relativism

Which are danger signs that suggest that an organization may be allowing or encouraging unethical behavior? (Check all that apply.) Multiple select question. Responding to the demands of shareholders at the expense of other constituencies Excessive emphasis on short-term revenues over longer-term considerations Failure to establish a written code of ethics Identifying the alternatives and associated effects, risks, costs and legal implications

Responding to the demands of shareholders at the expense of other constituencies Excessive emphasis on short-term revenues over longer-term considerations Failure to establish a written code of ethics

Which piece of legislation was passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence? Multiple choice question. Free Trade Act Sarbanes-Oxley Act Kolberg Act Caux Principles Act

Sarbanes-Oxley Act

What are the possible results of lying for a reason of negotiation? Multiple choice question. Develops reputation of integrity Short-term gain and economically positive Supports high-quality Improve long-term relationship

Short-term gain and economically positive

______ means contributing to the long-term welfare of others. Multiple choice question. Corporate social responsibility Ethical decision making Ethics Stewardship

Stewardship

What term describes economic development that meets present needs without harming the needs of future generations? Multiple choice question. Life-cycle analysis Corporate social responsibility Sustainable growth Profitability policies

Sustainable growth

Choose the answer that best describes the relationship between sustainable growth and natural ecosystems. Multiple choice question. Sustainable growth meets the organization's needs without harming the environment; therefore, it is fully compatible with natural ecosystems. Sustainable growth is that needed to sustain the usual lifestyle of consumers in the present with the assumption that new plans will be made to deal with future consequences. Natural ecosystems are highly adaptable and can support all the needs of an organization to sustain growth with minimal problems. All economic growth and development that meet the organization's needs is sustainable growth and fully compatible with natural ecosystems

Sustainable growth meets the organization's needs without harming the environment; therefore, it is fully compatible with natural ecosystems.

hich statements best describe the aim of ethics? (Check all that apply.) Multiple select question. The aim of ethics is to identify the 'goods' that are worth seeking. The aim of ethics is to single-out those people who consistently break the rules. The aim of ethics is to identify the impact to a firm's competitive advantage. The aim of ethics is to identify the rules that govern people's behavior.

The aim of ethics is to identify the 'goods' that are worth seeking. The aim of ethics is to identify the rules that govern people's behavior.

Which of the following is a danger sign of unethical behavior? Multiple choice question. Corporate communications issues a press release explaining how the firm handled an ethical violation. The executives establish a written code of ethics and hold training sessions to discuss them. A group of managers approaches upper management to discuss guidelines for handling ethical issues. The manager drops prices to increase sales revenue, even though it will negatively impact the company in the long term.

The manager drops prices to increase sales revenue, even though it will negatively impact the company in the long term.

If everyone follows the ethical system known as egoism, which of the following is supposed to happen? Multiple choice question. Everyone will be focused on selfish behavior and thoughts to the detriment of society. Altruism and human dignity will not be priorities, and corporate greed will increase. Individuals will sacrifice personal well-being for the greater good. The well-being of society as a whole should increase.

The well-being of society as a whole should increase.

Which statement about norms is true? Multiple choice question. They are outside the bounds of acceptable behavior. They do not have an impact on ethical viewpoints or decisions. They are different in different cultures. They are universal.

They are different in different cultures.

Which of the following statements about effective ethics codes is correct? Multiple choice question. They should be followed by executives who wish to set a good example. They should be written by the board of directors. They should be written in complex, detailed language. They should go above and beyond what is realistically attainable.

They should be followed by executives who wish to set a good example.

Which statement about corporate ethics codes is true? Multiple choice question. Privately-owned companies are required by law to disclose whether they have adopted ethics codes. Reason: This is only required of public companies. Most companies follow the same code of ethics. They usually address a number of subjects. They are intended for shareholders.

They usually address a number of subjects.

Which factors make for an effective ethics code? (Check all that apply.) Multiple select question. Those affected by it are involved in writing the statement. It uses complex terms and ideas. Only executives are required to follow it. It focuses on real-life situations that employees can relate to. It is concise and easy to understand.

Those affected by it are involved in writing the statement. It focuses on real-life situations that employees can relate to. It is concise and easy to understand.

The Americans with Disabilities Act required companies to change the physical work environment to allow people with disabilities to function on the job. What would be an integrity-based response to the Act? Multiple choice question. Doing nothing until federal regulators conduct an inspection. Training people to better understand people with disabilities. Making necessary workplace changes to avoid legal problems. Hiring managers to punish employees who refuse to comply.

Training people to better understand people with disabilities.

Corporate ethics programs commonly include Blank______. Multiple choice question. formal ethics codes that detail the company's expectations informal suggestions about preferred employee behaviors monthly reports from employees to high-level managers mandatory off-site training sessions

formal ethics codes that detail the company's expectations

According to John Rawls, a decision maker can apply the veil of ignorance to Blank______. Multiple choice question. satisfy personal needs best serve the needs of upper management help minimize personal bias convince oneself the most ethical decision was made

help minimize personal bias

What term describes the system of rules that establishes moral values and guides behavior? Multiple choice question. Ethics Guidelines Expectations Regulations

Ethics

Which system strives to instill people with personal responsibility for ethical behavior? Multiple choice question. Sunshine principle Integrity-based ethics program Caux principle Compliance-based ethics program

Integrity-based ethics program

Select the common elements of compliance-based ethics programs (Check all that apply.) Multiple select question. Auditing and monitoring compliance Established legal standards and procedures Personal responsibility for ethical behavior Punishments imposed on violators

Auditing and monitoring compliance Established legal standards and procedures Punishments imposed on violators

Which are factors in becoming an ethical leader? (Check all that apply.) Multiple select question. Being seen by others as a moral person Influencing others to behave ethically Offering spiritual guidance to coworkers Requiring subordinates to follow any order

Being seen by others as a moral person Influencing others to behave ethically

What term describes a cooperative economic system that works to minimize the environmental impact of business? Multiple choice question. Consumer-centered economy Linear economy Capitalist economy Circular economy

Circular economy

Which of the following is not a reason organizations see ethics as an important issue? Multiple choice question. Ethical temptations occur in every organization. Scandals have affected executives, auditors, politicians, regulators, and employees alike. Scandals cause the public to become cynical. Ethical organizations always lose money when compared to unethical organizations.

Ethical organizations always lose money when compared to unethical organizations

Which of the following is a key reason for businesses' growing interest in protecting the natural environment? Multiple choice question. Companies see ecological sustainability as a major driver of innovation. Increased marketing improves their corporate image. Competition with other companies forces them to be more aggressive in their use of the environment. Reason: Ecologically sound business practices and sustainable businesses do not exploit the environment. All businesses are required by law to develop business plans that recycle waste.

Companies see ecological sustainability as a major driver of innovation.

The Sarbanes-Oxley Act of 2002 was a response to which of the following? Multiple choice question. Corporate scandals Increased globalization Increase in whistleblowers Strict ethical standards

Corporate scandals

What term describes the obligation businesses assume toward society and the greater good? Multiple choice question. Business ethics Corporate social responsibility Legal responsibility Stewardship

Corporate social responsibility

What term describes the obligation businesses assume toward society and the greater good? Multiple choice question. Stewardship Corporate social responsibility Legal responsibility Business ethics

Corporate social responsibility

What term is used to describe the policies and practices that reflect business responsibility for societal goods and reflects the social imperatives and social consequences of business success? Multiple choice question. Legal responsibilities Ethical responsibilities Corporate social responsibility Economic responsibilities

Corporate social responsibility

Which subjects are commonly addressed in ethics codes? (Check all that apply.) Multiple select question. Employee conduct Suppliers and contractors Competitors and substitutes Health insurance Community and environment

Employee conduct Suppliers and contractors Community and environment

You have been asked to manage a fast-food restaurant with a staff of 20 people of all ages. One of the shift supervisors is dating an employee and giving that employee all the extra hours that other employees have requested. There are no company rules about employee dating, but it doesn't seem fair to let one employee have all the extra hours. You feel you have a responsibility to deal with the issue. What type of responsibility is this? Multiple choice question. Ethical Economic Philanthropic Legal

Ethical

Which of the following describes the ethical system of egoism? Multiple choice question. Ethical behavior is based upon the opinions and behaviors of relevant other people. Ethical behavior is that which maximizes benefits for the individual. Ethical behavior is based upon what mature people with good "moral character" would deem right. Ethical behavior is that which provides the greatest good for the greatest number.

Ethical behavior is that which maximizes benefits for the individual.

What term describes the processes in an organization where decisions are evaluated and made on the basis of right and wrong? Multiple choice question. Moral development Organizational hierarchy Corporate culture Ethical climate

Ethical climate

How are ethical responsibilities different from legal responsibilities? Multiple choice question. Legal responsibilities never include ethical responsibilities. Legal responsibilities can only be met by a lawyer. Ethical responsibilities are rarely found in business. Ethical responsibilities involve moral and societal expectations.

Ethical responsibilities involve moral and societal expectations.

Which of the following are generally part of corporate ethics programs? (Check all that apply) Multiple select question. Ethics committees that develop policies, evaluate actions, and investigate violations Disciplinary processes for addressing unethical behavior An informal list of people or positions exempt from the the ethics program Ethics communication systems that give employees a means of reporting problems or getting guidance

Ethics committees that develop policies, evaluate actions, and investigate violations Disciplinary processes for addressing unethical behavior Ethics communication systems that give employees a means of reporting problems or getting guidance

Which are the most basic sources of risk in our society? (Check all that apply.) Multiple select question. Lack of education among the population Economic disparity among members of society Excessive production of hazards Ecologically unsustainable consumption of natural resources

Excessive production of hazards Ecologically unsustainable consumption of natural resources

Which statements are true about ethical biases? (More than one answer may be correct.) Multiple select question. Managers often hire people who are like them and think they are immune to conflicts of interest. Most people have no biases that favor themselves and their own group. Most people have unconscious biases that favor themselves and their own group. Managers are more likely to blame themselves more than they blame others.

Managers often hire people who are like them and think they are immune to conflicts of interest. Most people have unconscious biases that favor themselves and their own group.

What are benefits of the partnerships created in a circular economy? (Check all that apply.) Multiple select question. More efficient use of energy Reduction in waste Less use of resources Ability to fix consumer prices

More efficient use of energy Reduction in waste Less use of resources

Which statements are true about ethical biases? (More than one answer may be correct.) Multiple select question. Most people have unconscious biases that favor themselves and their own group. Managers are more likely to blame themselves more than they blame others. Managers often hire people who are like them and think they are immune to conflicts of interest. Most people have no biases that favor themselves and their own group.

Most people have unconscious biases that favor themselves and their own group. Managers often hire people who are like them and think they are immune to conflicts of interest.

Nkoze works for a global nonprofit organization that treats every employee and volunteer with the same degree of fairness and honesty. This is an example of which type of ethical system? Multiple choice question. Universalism Virtue ethics Egoism Relativism

Universalism

Which ethical system holds that all people should uphold certain values that society needs to function? Multiple choice question. Universalism Egoism Relativism Utilitarianism

Universalism

Which of the following are elements of the process for ethical decision making? (Check all that apply.) Multiple select question. Using business judgment to assess costs of ethical behavior Using judgment to recognize what actions are morally defensible Having awareness to realize the issue has ethical implications Having moral character to act in accordance with your ethics

Using judgment to recognize what actions are morally defensible Having awareness to realize the issue has ethical implications Having moral character to act in accordance with your ethics

Which of the following are elements of the process for ethical decision making? (Check all that apply.) Multiple select question. Using judgment to recognize what actions are morally defensible Having awareness to realize the issue has ethical implications Having moral character to act in accordance with your ethics Using business judgment to assess costs of ethical behavior

Using judgment to recognize what actions are morally defensible Having awareness to realize the issue has ethical implications Having moral character to act in accordance with your ethics

A company is losing market share and realizes it must increase efficiency and cut costs in order to survive and succeed. It decides to shut down several underperforming facilities in the United States and open factories overseas where costs are much lower. This decision will allow the company to compete more effectively in the global market and result in more job opportunities and profits down the road. This is an example of which ethical system? Multiple choice question. Relativism Utilitarianism Egoism Virtue ethics

Utilitarianism

Which ethical perspective is based on taking society's rules for moral behavior and then applying one's own personal virtues such as faith, honesty, and integrity? Multiple choice question. Egoism Utilitarianism Virtue ethics Relativism

Virtue ethics

Which statement is most consistent with the virtue ethics perspective? Multiple choice question. The ethical perspective is that all people should uphold certain values that society needs to function. What is considered to be moral must also come from what a mature person with good moral character would say is right. Ethical behavior seeks the greatest good for the greatest number of people. A ethical perspective is one based on doing the right thing if it is likely to be reported in the newspaper.

What is considered to be moral must also come from what a mature person with good moral character would say is right.

Companies, managers, and their communities all benefit over the long term when managers act with integrity and Blank______. Multiple choice question. focus only on profit apply ethics work their employees as hard as they can emphasize low cost over quality

apply ethics

To create a culture that encourages ethical behavior, managers must Blank______. (Check all that apply.) Multiple select question. be ethical people lead others autocratically be able to lead others to behave ethically be focused on the bottom line

be ethical people be able to lead others to behave ethically

One of the biggest impacts of the Sarbanes-Oxley Act was the requirement for Blank______. Multiple choice question. companies to develop an integrity-based ethics program for all areas of the company companies to provide reports about the effectiveness of their financial reporting process companies to ensure employee privacy and confidentiality auditors to ensure companies maintain an ethical climate

companies to provide reports about the effectiveness of their financial reporting process

Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations are called Blank______ ethics programs. Multiple choice question. compliance-based sunshine moral awareness integrity-based

compliance-based

Stewardship is the act of Blank______. Multiple choice question. producing goods and services that society wants at an appealing price establishing rules that govern the ordering of values contributing to the long-term welfare of others evaluating decisions on the basis of right and wrong

contributing to the long-term welfare of others

In addition to philosophical reasons, companies are becoming environmentally conscious in order to Blank______. Multiple select question. save money on production create a competitive advantage comply with legal requirements satisfy consumer demand react to a competitor's action

create a competitive advantage comply with legal requirements satisfy consumer demand react to a competitor's action

General Mills is one of the largest producers of breakfast cereals in the United States. The company offers these in-demand cereals at prices that maximize profits and provide long-term stability. General Mills is fulfilling its Blank______ responsibilities. Multiple choice question. philanthropic ethical legal economic

economic

The Blank______ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. Multiple choice question. economic ethical legal philanthropic

economic

Christine must choose the most morally right action among several actions to solve her problem. She is dealing with a(n) Blank______ issue. Multiple choice question. ambiguous ethical external convenient

ethical

The aim of business Blank______ is to identify the rules that should govern people's behavior. Multiple choice question. relationships management ethics forecasting

ethics

An ethical leader is best defined as someone who Blank______. Multiple choice question. has strong personal character but doesn't get involved with workplace behavior is personally moral and a moral manager considers, but does not act upon, ethical developments works for an organization with ethical standards

is personally moral and a moral manager

In order to create a culture that encourages ethical behavior, a manager needs to Blank______. Multiple choice question. check for violations of organization guidelines lead others to behave ethically encourage employees to maintain high productivity make sure everyone follows the rules

lead others to behave ethically

If you are running a company, and you fail to follow the worker pay and safety standards, you are not meeting your Blank______ responsibilities. Multiple choice question. philanthropic economic legal ethical

legal

What type of responsibilities are exemplified by the need to obey local, state, federal, and international laws? Multiple choice question. Legal Ethical Philanthropic Economic

legal

When corporations behave badly, which stakeholder group tends to suffer the most? Multiple choice question. low-ranking employees suppliers Board of Directors top executives

low ranking employees

Ethical decision making requires Blank______. (Check all that apply.) Multiple select question. religious affiliation financial security moral character moral judgment moral awareness

moral character moral judgment moral awareness

If you were asked to describe the principles, rules, and values that you use when deciding what is right or wrong, you would be talking about your Blank______. Multiple choice question. social norm ethical climate moral perspective moral philosophy

moral philosophy

What term describes the standards of expected and acceptable behavior that vary from one culture to another? Multiple choice question. Virtues Norms Morals Laws

norms

About half of all employees in large companies have Blank______. Multiple choice question. engaged in unethical behaviors reported unethical behavior observed misconduct in the workplace don't believe in business ethics

observed misconduct in the workplace

We live in a society where the creation and distribution of wealth generates byproducts that can cause injury, loss, or danger to people and the environment. This is known as a(n) Blank______ society. Multiple choice question. agrarian futuristic risk utopian

risk

Ethics becomes more complicated when a situation arises in which one value Blank______ other values. Multiple choice question. complicates overrules supports regulates

overrules

Behaviors such as charitable donations that society finds desirable and that the values of the business support are Blank______ responsibilities. Multiple choice question. ethical socio-economic philanthropic legal

philanthropic

Supporting community projects and donating to charities are examples of Blank______ responsibilities. Multiple choice question. economic political/legal ethical philanthropic

philanthropic

Gert's company manufactures jeans. The equipment in her factory is old and temperamental, and she has a hard time finding knowledgeable repair personnel. Although it means giving up direct control over the manufacturing process, Gert decides that the only way to keep delivering products to her loyal customers is to shut down the factory and manufacture the jeans overseas at a new facility. Other jean manufacturers understand Gert's decision to move production overseas, but her employees who lost their jobs do not understand or agree with her decision. This is an example of which ethical system? Multiple choice question. Relativism Egoism Utilitarianism Virtue ethics

relativism

Firms can perform a cost-benefit analysis to identify actions that will maximize profits while satisfying the demand for corporate _________ responsibility

social

Which of the following is not an ethical system that supports moral philosophy? Multiple choice question. Egoism Virtue ethics Social theory Universalism

social thoery

According to Milton Friedman, a business should attempt to increase its profits while conforming to Blank______. (Check all that apply.) Multiple select question. society's law ethical customs principles of self-interest transcendent education

society's law ethical customs

According to Milton Friedman, a business should attempt to increase its profits while conforming to Blank______. (Check all that apply.) Multiple select question. transcendent education society's law principles of self-interest ethical customs

society's law ethical customs

Advocates of corporate social responsibility argue that organizations should Blank______. (Check all that apply.) Multiple select question. focus solely on profit maximization strive to increase their customer base responsibly participate in the environment actively participate in the community

strive to increase their customer base responsibly participate in the environment actively participate in the community

John Rawls created a thought experiment based on Blank______. Multiple choice question. the Caux principle integrity ethics courage the veil of ignorance

the veil of ignorance

Which ethical perspective is based on taking society's rules for moral behavior and then applying one's own personal virtues such as faith, honesty, and integrity? Multiple choice question. Egoism Virtue ethics Utilitarianism Relativism

virtue ethics

Advocates of corporate social responsibility argue that organizations have a Blank______ range of responsibilities beyond simply producing goods and services at a profit. Multiple choice question. narrower wider flatter smaller

wider