Exam 1 ethics
Corporate Social Responsibility
An organization's obligation to maximize its positive impact and minimize its negative impact on society
stakeholders power over business stems for their
ability to withdraw or withhold resources
Ethical culture is defined as
acceptable behavior as defined by the company and industry
a stakeholder orientation is not complete unless it includes
activities that actually address stakeholder issues
the 1960's saw a rise of consumerism. what is consumerism
activities undertaken by independent individuals groups and organizations 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
conflicts of issues exist when employees must choose whether to
advance their own personal interests those of the organization or thoseof some other group
business ethics is a part of decision making
at all levels of work and management
the foreign corrupt practices act outlawed
bribery of officials in other countries
is associated with a hostile workplace where someone considered a target is threatened harassed belittled or verbally abused
bullying
the federal sentencing guidelines for organizations set the tone for organizational compliance program by
codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct
which of the following is a major ethical concern among corporate boards of directors
compensation
the term used to express how a firm needs its stakeholder expectations pf its economic legal ethical and philanthropic responsibilities is
corporate citizenship
most organizations with a strong ethical climate usually focus on the core value of placing interests first
customers
which of the following was developed in the 1980's to guide corporate support for ethical conduct by establishing a method for discussing best practices
defense industry initiaitive on business ethics and conduct
the first step toward understanding business ethics is to
develop ethical issues awareness
what are the four levels of social responsibility
economic legal and philanthropic
which of the following describes the four levels of social responsibility
economic, legal, ethical, and philanthropic
values are
enduing the beliefs and ideas that are socially enforced
Employees' perceptions of their firm as having an ethical climate leads to
enhanced outcomes
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
federal sentencing guidelines for organization
Federal Sentencing Guidelines for Organizations
focuses on firms taking action to prevent and detect business misconduct in cooperation with government regulation
is associated with a person who is crafty or understands right and wrong behavior but uses tricks to obtain a unfair advantage
guide
the normative approach
identifies the guidelines that dictate how firms should treat stakeholders
an activity is probably ethical if it
is approved of by most individuals in the organization and is customary in the industry.
trust
is essential to building long term relationships between business and consumers
The term business ethics is best described by the following statement:
it compromises the principles values and standards that guide behavior in the world of business
Why do critics argue that high compensation for boards of directors is a bad thing?
it could cause conflicts of interest between the directors and the organization
which of the following was not a provision of the sarbanes oxley act
it outlawed bribery of officials in other countries
Investors are concerned about business ethics because they know that misconduct can
lower stock value and prices
Employees who view their organizational culture as ethical are more likely to
make sacrifices for their organization
shareholders provide to an organization that are critical to long term success which of the following does the book suggest that suppliers offer
material resources and or intangible knowledge
the purpose of a stakeholder orientation is to
maximize positive outcomes that meet stakeholder needs
which of the following is true regarding abusive and intimidating behavior
not everyone agrees on what constitutes abusive behavior
what will happen to a firm found to be in violation if the company had proactively tried to prevent misconduct from occuring
penalties or fines may be reduced
Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept? a. Physical threats b. False accusations c. Being annoying d. Profanity e. Performance probation
performance probation
when a restaurant claims that it sells the worlds best cup of coffee it could be accussed of
puffery
morals
relate to you and you alone
which represented a far reaching change to organizational control and accounting system making securities fraud a criminal offense
sarbanes oxley act
which of the following do not typically engage in transactions with a company and thus are not essential for its survival
secondary stakeholders
principles are
specific and pervasive boundaries for behavior that are universal and absolute
ethical issues in business typically arise because of conflicts among individuals morals and
the core values and culture of the organization where they work
accountants must abide by a strict code of ethics that defines the responsibilities to
their clients and the public interest
business ethics as a field has passed through which of the following states
theological discussion to recognition of social issues to a field of study
which of the following statements are true about business ethics
there is no conflict between profits and business ethics
when unethical acts are discovered in a firm, in most instances
there was knowing cooperation or complicity from within the company
the make it illegal for individuals firm o third parties doing business in american market to make payments to foreign government officials to assist in obtaining a retaining business
us foreign corrupt practice act
a company can be used for discrimination if it
uses age as a hiring o firing criterion
the dodd frank wall street reform and consumer protection act
was designed to make the financial services industry more responsible
Sarbanes-Oxley Act
were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000's
