Chapter 4 Ethics
Who provides information to managers, investors, tax authorities, and other stakeholders who make resource allocation decisions for corporations?
Accountants
What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
Because the large size creates economies of scale and they can charge lower prices
tie(s) an organization's product(s) directly to a social concern through a marketing program.
Cause-related marketing
law defines the rights and duties of individuals and organizations (including businesses).
Civil
Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?
Comply with ISO 14000 guidelines
The is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."
Consumer Financial Protection Bureau
The was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes.
Consumer Financial Protection Bureau
focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals.
Core practices
Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
Creates an organization to pay the bills of low-income consumers
law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.
Criminal
Which of the following is not a provision of the Sarbanes-Oxley Act?
Discourages the creation of ethical and legal compliance programs
The was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression."
Dodd-Frank Wall Street Reform and Consumer Protection Act
1. Which of the following is not an aspect of the institutionalization of social responsibility?
Familial responsibilities
Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.
Federal Sentencing Guidelines for Organizations
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 and the Sarbanes-Oxley Act
Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?
Improve employee compensation and retention
Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?
Institutionalization of ethics is now mandated for all organizations by governments around the world
Which is not one of the four sources of criminal and civil laws?
Judicial law
. Which of the following acts exempted the insurance industry from antitrust legislation?
McCarran-Ferguson Act of 1944
The Sarbanes-Oxley Act created the establish rules and standards for auditing. to oversee the accounting firms that audit public corporations and to
Public Company Accounting Oversight Board
Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?
Pure Food and Drug Act of 1906
2. Which of the following acts can be classified as procompetitive legislation?
Sherman Antitrust Act of 1890
is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.
Strategic philanthropy
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 forces of the business environment involves the rivalry among businesses for customers and profits?
The competitive dimension
Which of the following groups is not a group that receives special legal protections?
The highly educated
responsibilities relate to a business's contributions to stakeholders.
Voluntary
Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates
a conflict of interest.
Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
any practice is permitted that does not substantially reduce competition and harm consumers or society.
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
By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate
conflicts of interest.
The primary objective of U.S. antitrust laws is to
distinguish competitive strategies that enhance consumer welfare from those that reduce it.
Companies that will most likely be found in violation of procompetitive legislation.
establish monopolies
Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
free samples.
The ______ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.
institutionalization
Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation
is excessively complex and financially burdensome.
Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except
most analysts were completely untrained and unprepared to do their jobs.
Title VII of the Civil Rights Act of 1964
prohibits discrimination on the basis of race, color, sex, religion, or national origin.
Donation of computer equipment to schools by Toshiba would be associated with responsibilities.
voluntary
