Unit 1 Test: Chapters 1-3

uses age as a hiring or firing criterion

A company can be sued for discrimination if it

continuum

A stakeholder orientation can be viewed as a(n)

Performance probation

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?

their clients and the public interest

Accountants must abide by a strict code of ethics that defines their responsibilities to

Is approved of by most individuals in the organization and is customary in the industry

An activity is probably ethical if it

corporate intelligence

An employee sorts through a competing business's trash to see if there are any documents that could reveal secret information. This is a misuse of

Reciprocity

An interchange of giving and receiving in social relationships is known as

Interlocking directorate

Board members being linked to more than one company is an example of

At all levels of work and management

Business ethics is a part of decision making

Federal Sentencing Guidelines for Organizations

During the 1990s, the institutionalization of business ethics was largely driven by which piece of legislation?

make personal sacrifices for the organization

Employees who view their organizational culture as ethical are more likely to

Enhanced outcomes

Employees' perceptions of their firm as having an ethical climate leads to

The core values and culture if of the organizations where they work

Ethical issues in business typically arise because of conflicts among individuals' morals and

Control

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

lower stock value and prices

Investors are concerned about business ethics because they know that misconduct can

Customers'

Most organizations with strong ethical climates usually focus on the core value of placing _______ interests first.

a trade-off between equity and efficiency

Optimizations is defined as

Community

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

Material resources and/or intangible knowledge

Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?

ability to withdraw or withhold resources

Stakeholders' power over businesses stems from their

was designed to make the financial services industry more responsible

The Dodd-Frank Wall Street Reform and Consumer Protection Act

Sarbanes-Oxley Act

The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000's.

identifies guidelines that dictate how firms should treat stakeholders

The normative approach

Adam Smith

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

corporate citizenship

The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is

It may foster the idea that honesty is unnecessary in business

War metaphors are common in business. This kind of miindset can be dangerous for business leaders because

Living wage

What business ethics issue was a major concern during the 1920s?

Legislation usually follows

What happens when society deems a particular business action as wrong or unethical?

puffery

When a restaurant claims that it sells the world's best cup of coffee, it could be accused of

Customers

Which of the following are not typically secondary stakeholders?

economic, legal, ethical, and philanthropic

Which of the following describes the four levels of social responsibility?

Technology

Which of the following industries tends to generate a high level of trust from consumers and stakeholders?

Compensation

Which of the following is a major ethical concern among corporate boards of directors?

Reputation

Which of the following is one of an organization's greatest intangible assets with tangible values?

They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties

Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?

It outlawed bribery of officials in other countries

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

There are big differences in wealth and success between businesses and consumers

Why is the public more tolerant of consumer misconduct than business misconduct?

Fraud

______ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.

Bribery

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

Bullying

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