Chapter 4: Quiz

​________ describes the values and expectations that guide the decisions of all employees in a firm. A. A code of ethics B. Corporate governance C. A global ethical standard D. A sustainable practice E. A code of conduct

A. A code of ethics

Which of the following is the result of good corporate​ governance? A. Attracting committed employees B. Facing increased regulatory scrutiny C. Building an unfavorable brand image D. Experiencing more government intervention E. Having a lower growth rate

A. Attracting committed employees

What practice is NOT a good example of​ sustainability? A. Deregulating fossil fuel usage B. Using​ cost-effective solar energy C. Minimizing waste D. Recycling used water E. Rotating crops

A. Deregulating fossil fuel usage

According to the​ five-step framework for ethical decision​ making, which question is most relevant when examining the​ facts? A. Have all the groups affected been​ consulted? B. What should have been done​ differently? C. Will any personnel be​ harmed? D. Is an ethical dilemma​ present? E. What can the company do to increase market share and maximize​ profits?

A. Have all the groups affected been​ consulted?

What is the most notable form of corruption in international​ business? A. Blackmail B. Bribery C. Theft D. Fraud E. Money laundering

B. Bribery

What is intellectual​ property? A. Unethical management practices. B. Ideas or works created by individuals or firms. C. Trademarks, copyrights, and patents. D. Pirated and counterfeit products. E. The legal claim that protects assets.

B. Ideas or works created by individuals or firms.

What is meant by the term corporate governance​? A. Protecting and nurturing a​ company's corporate image. B. The system of procedures and processes by which corporations are​ managed, directed, and controlled. C. Meeting​ humanity's needs today without harming future generations. D. Moral principles about right and wrong. E. The operation of a business in a way that meets or exceeds the​ ethical, legal, and commercial expectations of its stakeholders.

B. The system of procedures and processes by which corporations are​ managed, directed, and controlled.

The first step in the​ five-step framework for ethical​ decision-making is to​ ________. A. examine the facts B. identify the problem C. implement a course of action D. create alternatives E. evaluate results

B. identify the problem

Global sourcing most likely raises concerns about​ ________ A. providing information to investors and customers B. operating factories that generate pollution C. advertising and promoting products and services D. marketing products to children E. identifying opinion leaders

B. operating factories that generate pollution

Corporate social responsibility​ (CSR) is best illustrated by an organization​ ________. A. procuring products or services from suppliers located abroad B. powering a certain percentage of its operations with green energy C. selling vaccines to people in developing countries D. ignoring the working conditions of its suppliers in Latin America E. charging consumers for recycling outdated electronics

B. powering a certain percentage of its operations with green energy

Which of the following would most likely be a social interest of a sustainable​ business? A. Maximizing waste water B. Offshoring C. Avoiding the use of sweatshops D. Importing raw materials E. Establishing tax flows

C. Avoiding the use of sweatshops

​________ are small payments made to​ low-level government officials to perform routine duties more efficiently. A. Counterfeit items B. Falsified contracts C. Grease payments D. Blackmail payments E. Extortions

C. Grease payments

​Coca-Cola developed a global plan to protect water resources. This is an example of what type of CSR​ value? A. Undertaking philanthropic efforts B. Avoiding human rights abuses C. Protecting the natural environment D. Employee volunteer programs E. Guarding against corruption

C. Protecting the natural environment

A company has an ethical challenge in that its overseas supplier is employing laborers to work in harsh conditions for next to nothing. How would a fairness approach to ethics differ from a common good approach to this​ challenge? A. The fairness approach would promote punishing the​ supplier, whereas the common good approach would promote encouraging the supplier to be more equitable. B. The fairness approach would promote changing​ suppliers, whereas the common good approach would promote reforming the supplier. C. The fairness approach would promote paying all of the laborers an equal​ wage, whereas the common good approach would promote lobbying the government to pass laws requiring equal wages. D. The fairness approach would promote developing the local community of the​ laborers, whereas the common good approach would promote ethical requirements for the supplier. E. The fairness approach would promote helping the laborers and the​ supplier, whereas the common good approach would promote helping only the laborers.

C. The fairness approach would promote paying all of the laborers an equal​ wage, whereas the common good approach would promote lobbying the government to pass laws requiring equal wages.

Law firms sometimes ask their employees to pad their billable hours or charge customers for tasks they did not perform. This is an example of​ ________. A. unfair compensation practices B. deceptive marketing C. unethical behavior D. piracy E. counterfeiting

C. unethical behavior

According to the​ ________ approach, the best ethical action is the one that produces the greatest balance of good over harm. A. virtue B. rights C. utilitarian D. fairness E. common good

C. utilitarian

A U.S. firm does not send female managers to a country where women are expected to be subservient to men. Which of the following is being illustrated by the​ firm? A. A virtue approach to ethical standards B. Corporate social responsibility C. A rights approach to ethical standards D. A relativistic ethical perspective E. A normative ethical perspective

D. A relativistic ethical perspective

​_______ are moral principles and values that govern the behavior of​ people, firms, and governments regarding right and wrong. A. Attitudes B. Behavioral standards C. Social responsibilities D. Ethics E. Beliefs

D. Ethics

A firm has an issue with its overseas plant employing children as​ laborers, and the​ firm's top manager is using the​ five-step ethical framework to address the problem. The firm is considering the idea of educating the children several days each week in an​ on-site classroom. Based on the​ five-step ethical​ framework, which statement illustrates the manager implementing a course of​ action? A. The manager interviews the parents of the children. B. The manager considers offering incentives to the children. C. The manager contacts a competitor that also employs children. D. The manager follows up on the​ firm's education initiative. E. The manager determines the cost of an educational program.

D. The manager follows up on the​ firm's education initiative.

Nations that score well on the Corruption Perceptions Index tend to​ ________. A. use bribes as part of a business transaction B. deceive people to gain assets C. attract very little investment D. attract global investors E. provide unclear financial information

D. attract global investors

Which of the following situations illustrates​ sustainability? A. Nokia phases in toxic materials for its cell phones. B. Coca-Cola increasingly seeks ways to use scarce water supplies. C. GAP markets a line of​ children's wear even though the supplier used child labor. D. Unilever defunds a global handwashing campaign that aims to reduce disease in Africa. E. BMW introduces electric cars with​ carbon-fiber bodies to save fuel.

E. BMW introduces electric cars with​ carbon-fiber bodies to save fuel.

What is a proactive approach to ethical behavior in which firms seek not only to maximize​ profits, but also to benefit society and the​ environment? A. Engaging in philanthropy B. International ethics C. Superior standards D. Sustainability E. Corporate social responsibility

E. Corporate social responsibility

A​ company's plan for corporate social responsibility​ (CSR) is to rely solely on local suppliers for its operations. What effect will this most likely​ have? A. Eliminate ethical dilemmas. B. Hasten cultural change. C. Reduce corruption in the company. D. Add to the​ company's negative social impact. E. Increase the​ company's positive economic impact.

E. Increase the​ company's positive economic impact.

​________ is defined as meeting​ humanity's needs without harming future generations. A. Corporate governance B. Corporate social responsibility C. Ethics D. Impact E. Sustainability

E. Sustainability

A company that decides to come forward with the truth about its unethical practices is practicing the​ ________ approach to ethical standards. A. utilitarian B. rights C. common good D. fairness E. virtue

E. virtue