ch 1

Question 1

refer to person’s personal philosophies about what is right or wrong

Answer 1

morals

Question 2

comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from legal system that primarily guide individuals and group behavior in business

Answer 2

business ethics

Question 3

are specific and pervasive boundaries for behavior that should not be violated

Answer 3

principles

Question 4

are enduring beliefs and ideals that are socially enforced

Answer 4

values

Question 5

four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard

Answer 5

consumers’ Bill of Right

Question 6

an organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact

Answer 6

corporate social responsibility

Question 7

was developed to guide corporate support for ethical conduct

Answer 7

defense industry initiative on business ethics and conduct

Question 8

a series of rules set by the U.S. Sentencing Commission

Answer 8

federal sentencing guidelines for organizations

Question 9

is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations

Answer 9

Sarbanes-Oxley act

Question 10

An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system

Answer 10

Dodd-Frank wall street reform and consumer protection act

Question 11

is acceptable behavior as defined by the company and industry

Answer 11

ethical culture

Question 12

is the component of corporate culture that captures the values and norms an organization defines

Answer 12

Ethical culture

Question 13

Corporate social responsibility is defined as

Answer 13

An organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders

Question 14

After the accounting scandals of the early 2000s, was/were enacted to restore confidence in financial reporting and business ethics

Answer 14

Sarbanes-Oxley Act

Question 15

Which of the following is one of the rights spelled out by John F. Kennedy in his “Consumers’ Bill of Rights”?
a. The right to consumerism
b. The right to safety
c. The right to be protected
d. The right to be ethical
e. The right to be heard

Answer 15

The right to safety

Question 16

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

Answer 16

Federal Sentencing Guidelines for Organizations

Question 17

A framework for evaluation of firm performance in the areas of environmental, social, and governance

Answer 17

Environmental Social Governance (ESG)

Question 18

The 1960s saw a rise of consumerism. What is consumerism?

Answer 18

Activities undertaken by independent individuals, groups, and organizations to protect their rights as consumers

Question 19

Ethically charged decisions _______.
a. are made at all levels of work and management
b. are made primarily by top management
c. stem from individual moral philosophies
d. are less important than other decision-making processes
e. are an isolated personal issue

Answer 19

a. are made at all levels of work and management

Question 20

was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices?

Answer 20

Defense Industry Initiative on Business Ethics and Conduct

Question 21

Firms taking action to prevent and detect business misconduct in cooperation with government regulation are incentivized to do so by the rewards that are the focus of

Answer 21

Federal Sentencing Guidelines for Organizations

Question 22

Which of the following statements about morals is true?
a. Morals are the same as principles and ethics.
b. Morals relate to the business’s ethical culture.
c. Morals are emphasized in business ethics programs.
d. Morals relate to you and you alone.
e. Morals do not have much influence over individual ethical decision making.

Answer 22

d. Morals relate to you and you alone.

Question 23

Which of the following statements about values is true?
a. Values are specific and pervasive boundaries for behavior that should not be violated.
b. Values are acceptable behavior as defined by the company and industry.
c. Values are attempts by businesses to minimize their negative impact on society.
d. Values are a person’s moral philosophies about what is right or wrong.
e. Values are enduring beliefs and ideals that are socially enforced.

Answer 23

e. Values are enduring beliefs and ideals that are socially enforced.

Question 24

As more than a compliance program, what is business ethics becoming?

Answer 24

An integral part of management’s efforts to achieve competitive advantage

Question 25

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

Answer 25

make personal sacrifices for the organization

Question 26

President Obama’s administration focused on which of these major ethical issues?

Answer 26

Healthcare and consumer protection

Question 27

Which of the following statements about business ethics is true? a. A firm that has ethical management will succeed financially. b. Codes of ethics should cover every business ethics issue. c. Business ethics focuses more on laws than on values. d. Individuals apply the same ethical rules in business as they do at home. e. Conflict or trade-offs do not exist between profits and business ethics.

Answer 27

Conflict or trade-offs do not exist between profits and business ethics.

Question 28

A far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense, was accomplished by

Answer 28

Sarbanes-Oxley Act

Question 29

The Foreign Corrupt Practices Act outlawed

Answer 29

Bribery of a foreign public official

Question 30

The Sarbanes-Oxley Act resulted in which of the following? a. It stiffened penalties for personal fraud. b. It created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting. c. It required stakeholders to approve corporate firms' financial statements. d. It outlawed bribery of officials in other countries. e. It made securities fraud a civil offense.

Answer 30

b. It created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting.

Question 31

To survive and contribute to society, which of the following is true? a. Businesses must operate at a loss. b. Businesses must bribe foreign officials with facilitation payments. c. Businesses must ignore the needs and desires of stakeholders. d. Businesses must make a trade-off between profits and business ethics. e. Businesses must earn a profit.

Answer 31

e. Businesses must earn a profit.

Question 32

Because of Sarbanes-Oxley, what must publicly traded companies develop in order to assist in maintaining transparency in financial reporting?

Answer 32

Codes of ethics

Question 33

When building long-term relationships between businesses and consumers, which of the following is essential for success? a. Profit b. Governance c. Trust d. Knowledge e. A code of ethics

Answer 33

c. Trust

Question 34

Which of the following statements about the Dodd-Frank Wall Street Reform and Consumer Protection Act is true? a. It was very popular among Wall Street bankers. b. It represented modest reform to the finance industry. c. It came out of theological discussions in the 1920s. d. It was designed to make the financial services industry more responsible. e. It made it mandatory for public corporations to hire ethics officers.

Answer 34

d. It was designed to make the financial services industry more responsible.

Question 35

In the Reagan/Bush eras, the major focus of the business world was on which of the following? a. Self-regulation rather than regulation by government b. Decreasing the number of mergers c. Decreasing the multinational presence in the U.S. marketplace d. Increasing government influence on the economic arena e. Improving business ethics

Answer 35

a. Self-regulation rather than regulation by government

Question 36

The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for

Answer 36

The Federal Sentencing Guidelines for Organizations

Question 37

Ethical culture is defined as which of the following? a. Ethical culture refers to rules, standards, and moral principles regarding what is right or wrong in specific situations. b. Ethical culture is the establishment and enforcement of ethical codes throughout an organization. c. Ethical culture involves the development of rules and norms that are socially enforced. d. Ethical culture refers to the codification of laws to reward organizations for taking action to prevent misconduct. e. Ethical culture is acceptable behavior as defined by the company and industry.

Answer 37

e. Ethical culture is acceptable behavior as defined by the company and industry.

Question 38

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs through a. By codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct b. By forcing all organizations to develop mandatory reporting systems and ethics programs c. By eliminating most of the federal legislation that created inefficient and time-consuming activities for businesses d. By providing detailed guidelines for how to set up organizational ethics programs to guard against unethical conduct e. By providing a thorough examination of company codes of ethics to determine whether they are sufficient

Answer 38

a. By codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct

Question 39

The Federal Sentencing Guidelines for Organizations are described by which of the following statements? a. They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties. b. They strive to prosecute misconduct. c. They encourage companies to develop standards and procedures for penalizing misconduct. d. They utilize a carrot-and-stick approach by taking preventive action against misconduct. e. They encourage self-regulation as opposed to oversight of compliance.

Answer 39

d. They utilize a carrot-and-stick approach by taking preventive action against misconduct.

Question 40

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

Answer 40

Performance-enhancing outcomes

Question 41

A global compliance management standard that addresses risks, legal requirements, and stakeholder needs is known as

Answer 41

ISO 19600

Question 42

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

Answer 42

lower stock prices

Question 43

When an organization has a strong ethical environment, it usually focuses on the core value of placing whose interests first?

Answer 43

Customers'

Question 44

Why is the public more tolerant of consumer misconduct than business misconduct? a. Businesses are expected to have a better idea of right and wrong. b. The decisions of individuals have little to do with ethics in the business world. c. There are big differences in wealth and success between businesses and consumers. d. More organizations commit misconduct than individual consumers. e. There is a large income disparity among professional businesspeople.

Answer 44

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

Question 45

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

Answer 45

Legislation usually follows.

Question 46

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

Answer 46

Living wage

Question 47

Prior to the 1960s, ethical issues related to business were often discussed in the domain of theology or philosophy. a. True b. False

Answer 47

True

Question 48

ISO 19600 is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption. a. True b. False

Answer 48

False

Question 49

Every organization has the potential for unethical behavior, even if it is not a business. a. True b. False

Answer 49

True

Question 50

Morals are enduring beliefs and ideals that are socially enforced. a. True b. False.

Answer 50

b. False.

Question 51

The Consumers' Bill of Rights developed by John F. Kennedy maintains that consumers have the right to safety, the right to be heard, the right to free speech, and the right to choose. a. True b. False

Answer 51

False

Question 52

A majority of consumers believe it is a company’s responsibility to have a moral or ethical viewpoint. a. True b. False

Answer 52

True

Question 53

Specific and pervasive boundaries for behavior that should not be violated are known as

Answer 53

principles

Question 54

Which of the following concepts refers to a person’s personal philosophy about what is right or wrong?

Answer 54

Morals

Question 55

The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guides individual and group behavior in business is defined as _______.

Answer 55

business ethics

Question 56

A situation where a person is faced with multiple choices, all of which are undesirable as defined by that person, is known as a(n) _______.

Answer 56

moral dilemma