Chapter 3

Question 1

An ____ is a problem, situation,
or opportunity that requires an individual
or group to choose among actions

Answer 1

ethical issue

Question 2

What mindset leads companies to ignore ethical issues?

Answer 2

The perception that business is a game to be won.

Question 3

Uncompromising adherence to

ethical values

Answer 3

integrity

Question 4

How does integrity relate to virtue?

Answer 4

One of the most important terms relating to virtue

Question 5

Truthfulness or trustworthiness, to the best of one’s knowledge

Answer 5

honesty

Question 6

A lack of integrity, incomplete

disclosure, or an unwillingness to tell the truth

Answer 6

dishonesty

Question 7

The quality of being just, equitable,

and impartial

Answer 7

fairness

Question 8

How wealth or income is distributed

Answer 8

equitableness

Question 9

Occurs when an action that has an

effect upon another is returned

Answer 9

reciprocity

Question 10

The tradeoff between equity and

efficiency

Answer 10

optimization

Question 11

a is a problem, situation, or
opportunity that requires an individual or group
to chose among several wrong or unethical
actions

Answer 11

ethical dilemmas

Question 12

How many ethical choices in an ethical dilemmas

Answer 12

None

Question 13

What is the leading form of observed misconduct

Answer 13

misuse of company resources

Question 14

What is a major part of misuse of company resources

Answer 14

time theft (billions of dollars annually)

Question 15

What is one of the most common ethical problems

Answer 15

aggressive behavior and intimidation

Question 16

What are some examples of aggressive behavior and intimidation?

Answer 16

Can be physical threats, false accusations,
profanity, insults, harshness, ignoring
someone, or unreasonableness

Question 17

What is an important metric in determining abuse?

Answer 17

intent

Question 18

What is a growing problem

that Is associated with a hostile workplace

Answer 18

bullying

Question 19

What are the three types of lying?

Answer 19

Joking w/o malice
Commission Lying
Omission Lying

Question 20

is creating a false
perception with words that deceive the
receiver–Creating noise

Answer 20

commission lying

Question 21

is intentionally not
informing channel members of problems
relating to a product that affects awareness,
intention, or behavior

Answer 21

omission lying

Question 22

What exist when an individual must choose
whether to advance his/her personal
interests, those of the organization, or
some other group

Answer 22

conflicts of interest

Question 23

How can a person avoid conflicts of interest

Answer 23

Individuals must separate personal interests

from business dealings

Question 24

The practice of offering something in

order to gain an illicit advantage

Answer 24

Bribery

Question 25

The person who promises or | gives the bribe commits the offense

Answer 25

active bribery

Question 26

An offense committed by the | official who receives the brib

Answer 26

passive bribery

Question 27

What are payments made to retain or obtain business/advantage--must be small

Answer 27

facilitation payments

Question 28

What is the collection and analysis of information | on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends

Answer 28

Corporate Intelligence

Question 29

What are the three corporate intelligence models?

Answer 29

 Passive monitoring system for early warning  Tactical field support  Support dedicated to top management strategy

Question 30

A company can be sued for discrimination if | it

Answer 30

 Refuses to hire an individual for discriminatory reasons  Unreasonably excludes an individual from employment  Unreasonably discharges an individual  Discriminates against an individual with respect to hiring, employment terms, promotion, or privileges 18 © 2015 Cengage Learning. All ri

Question 31

A repeated, unwanted behavior of a sexual nature perpetrated upon an individual by another

Answer 31

Sexual Harassment

Question 32

What does Sexual Harassment entail?

Answer 32

Hostile work environment

Question 33

What are the three criteria for a hostile work environment

Answer 33

 The conduct was unwelcome  The conduct was severe, pervasive, and regarded by claimant as hostile/offensive  The conduct was such that a reasonable person would find it hostile or offensive

Question 34

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

Answer 34

dual relationship

Question 35

The relationship causes a conflict of interest or impairment of professional judgment

Answer 35

unethical dual relationship

Question 36

What does a firm need to avoid sexual harassment?

Answer 36

``` Statement of policy 2. Definition of sexual harassment 3. Non-retaliation policy 4. Specific procedures for prevention 5. Establish, enforce, and encourage victims to report 6. Establish a reporting procedure 7. Timely reporting requirements to the proper authorities ```

Question 37

Any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression

Answer 37

fraud

Question 38

 Misrepresentation of company’s financial reports  Dramatic changes in accounting field  Increased competition and pressures to perform can create opportunities for misconduct  Accountants should abide by a strict code of ethics

Answer 38

accounting fraud

Question 39

The process of dishonestly creating, distributing, promoting, and pricing products

Answer 39

marketing fraud

Question 40

Claims can be divided into tests prove (establishment claims) and bald assertions (non-establishment claims)

Answer 40

literally false

Question 41

An advertising message that | misleads, confuses, or deceives the public

Answer 41

implied falsity

Question 42

Exaggerated advertising claims, | blustering, and boasting

Answer 42

puffery

Question 43

When consumers attempt to deceive | businesses for personal gain

Answer 43

consumer fraud

Question 44

What are some examples of consumer fraud?

Answer 44

Price tag switching, item switching, or lying to | obtain discount

Question 45

involves an employee who helps a | consumer commit fraud

Answer 45

collusion

Question 46

involves a consumer duping a | store

Answer 46

duplicity

Question 47

is associated with a person who uses | tricks to obtain an unfair advantage

Answer 47

guile

Question 48

What caused the recent financial crisis?

Answer 48

The failure to understand and manage ethical risks was a key problem in the recent financial crisis

Question 49

What are the two types of insider trading?

Answer 49

Legal and illegal

Question 50

Involves legally buying and selling stock in an insider’s own company, but not all the time

Answer 50

legal insider trading

Question 51

The buying or selling of stocks by insiders who possess material that is not public

Answer 51

illegal insider trading

Question 52

Involve the legal protection of intellectual | properties

Answer 52

Intellectual Property

Question 53

 Employee use of technology  Consumer privacy  Can be challenging for businesses today to meet the needs of consumers while protecting privacy

Answer 53

privacy issues

Question 54

Most ethical issues become visible through

Answer 54

stakeholder concerns

Question 55

The ethical decision making process starts | when

Answer 55

ethical issue awareness occurs and a | discussion begins