Section 1 Flashcards
(29 cards)
L1Q: Which of the following best describes personal ethics?
The principles that guide a country’s legal system
The principles that guide a person’s behavior based on their beliefs about right and wrong
The regulations that businesses must follow to be considered ethical
The universal standards that all individuals follow in terms of behavior
The principles that guide a person’s behavior based on their beliefs about right and wrong
L1Q: What distinguishes organizational ethics from personal ethics?
Organizational ethics are the ethical standards that guide the behavior of an organization.
Personal ethics are always aligned with organizational ethics.
Organizational ethics are irrelevant in business decision-making.
Organizational ethics are legally binding, while personal ethics are not.
correct
Organizational ethics are the ethical standards that guide the behavior of an organization.
L1Q: Which scenario exemplifies a legal-unethical conflict?
A manager enforces strict adherence to both legal and ethical standards in the workplace.
A company follows all labor laws but allows unsafe working conditions in its overseas factory.
An employee refuses to follow a company policy that is both legal and ethical.
A business complies with environmental regulations and promotes sustainability.
A company follows all labor laws but allows unsafe working conditions in its overseas factory.
L1Q: Which statement accurately reflects the relationship between law and ethics?
Laws may not address every ethical issue, leaving room for personal and organizational ethics.
Ethical behavior is always legal behavior.
Laws and ethics are interchangeable terms that mean the same thing.
Laws are designed to cover all aspects of ethical behavior in society.
correct
Laws may not address every ethical issue, leaving room for personal and organizational ethics.
L1Q: What role do executives play in building ethical organizations?
They only need to focus on legal compliance, not ethical behavior.
They are solely responsible for the ethical behavior of all employees.
They have no impact on the ethical culture of the organization.
They set the ethical tone that can influence the entire organization.
They set the ethical tone that can influence the entire organization.
L2Q: What is Corporate Social Responsibility (CSR)?
A marketing tactic to attract more customers.
A strategy to maximize profits at the expense of society.
A legal requirement for all businesses.
A philosophy in which a company voluntarily engages in actions that benefit society at large.
A philosophy in which a company voluntarily engages in actions that benefit society at large.
L2Q: What does CSR include?
Ignoring the needs of the community.
Producing a reliable product and charging a fair price.
Caring for the environment and acting on social concerns.
Maximizing profits at all costs.
Caring for the environment and acting on social concerns.
L2Q: What is the goal of corporate codes of ethics?
To promote unethical behavior within the organization.
To establish key values and describe obligations to stakeholders.
To avoid transparency and accountability.
To hide unethical practices from the public.
correct
To establish key values and describe obligations to stakeholders.
L2Q: What is greenwashing in the context of CSR?
Fostering ethical behavior within the organization.
Promoting genuine change through CSR missions.
Encouraging transparency and accountability.
Claiming ethical and environmental commitments contrary to actual practices
Claiming ethical and environmental commitments contrary to actual practices
L2Q: How does internal transparency impact organizational ethics?
It promotes openness, communication, and accountability.
It hinders ethical awareness and consistency.
It discourages whistleblowing and transparency.
It encourages unethical behavior and deception.
It promotes openness, communication, and accountability.
S1T: You are a manager at a pharmaceutical company that is launching a new product and is facing financial difficulties. The CEO suggests cutting corners on safety and efficacy test measures to save costs. What ethical concern does this scenario raise?
Compliance to regulatory standards
Product integrity
Conflict of interest
Internal transparency
Compliance to regulatory standards
You work in the HR department and notice that a colleague is discriminating against job applicants based on their gender. What ethical issue is present in this situation?
Labor laws compliance
Brand messaging implications
Performance tracking and measurement
Hiring practices and procedures
Hiring practices and procedures
As part of the marketing team, you are asked to target vulnerable populations with misleading advertising. What ethical consideration should you be aware of in this scenario?
Safety and maintenance
Privacy considerations
Audience targeting procedures
Environment stewardship concerns
Privacy considerations
In the accounting department, you discover that financial reports are being manipulated to show higher profits. What ethical concern is evident in this situation?
Performance tracking and measurement
Internal transparency
Brand messaging implications
State and federal filings
Internal transparency
You are part of the IT team and have access to sensitive customer data. A colleague asks you to share this information for personal gain. What ethical issue does this scenario highlight?
Hiring practices and procedures
Data privacy and confidentiality
Access to data
Product integrity
Data privacy and confidentiality
An entry-level employee decides to borrow the company car for the weekend despite the company’s code of ethics against the practice. Which ethical analysis applies to this behavior?
It is acceptable since the employee is in an entry-level position.
It is not acceptable because the employee could have an accident while driving the car.
It is not acceptable since it clearly violates policy.
It is acceptable as long as no one discovers the car was borrowed.
It is not acceptable since it clearly violates policy.
A chief executive officer (CEO) wants to implement a corporate social responsibility (CSR) strategy that will positively affect the company’s employees, unions, suppliers, consumers, and local and national governments. Which group is being targeted by this CSR activity?
Shareholders
Board of directors
Market niche
Stakeholders
Stakeholders
A junior accountant discovered fraud in the recording of accounts receivable and plans to report this information to the local media. Which law protects this junior accountant from retaliation by management of the company?
Fair Labor Standards Act
Sarbanes–Oxley Act
Securities and Exchange Act
Civil Rights Act of 1964
Sarbanes–Oxley Act
As a manager, you discover that a colleague is engaging in unethical behavior that could harm the company’s reputation. What ethical consideration should you prioritize in this situation?
Integrity
Competitive advantage
Maximizing profits
Employee satisfaction
Integrity
In an effort to cut costs, an apparel factory is moving operations to another country where labor is cheap and employment laws are less stringent. Costs can only be kept low if the factory operates like a sweatshop. Which type of problem is this company facing?
Illegal-ethical
Legal-ethical
Legal-unethical
Illegal-unethical
Legal-unethical
The chief executive officer (CEO) of a company decides to change the way the company has been functioning over the years in order to improve its reputation. The CEO decides to pay the employees a fair wage, show a good profit margin, and produce a reliable product. But even after a year, there is not much change in the way the community perceives the company. Which action will provide the improvement this CEO is seeking?
Creating an internal safety awareness program
Advertising products during popular sports programs
Recruiting additional employees
Investing in social and environmental causes
Investing in social and environmental causes
The chief executive officer (CEO) of a beverage company wants to promote a healthy lifestyle to its customers. Which action will achieve this goal?
Set an example to customers by donating corporate profits to a local health organization
Build a park for the community that includes walking trails
Donate food to a local food bank
Encourage employees to carpool to work
Build a park for the community that includes walking trails
A manufacturing cosmetics company currently avoids testing its products on animals, but the new chief executive officer (CEO) decides to begin that practice since it will help cut company costs. Which impact will this have on the organization?
It will be viewed as being unethical.
It will be seen as being committed to producing reliable products.
It will be able to increase the company’s market share.
It will reduce the company’s position as an advocate for customer safety.
It will be viewed as being unethical.
A company is considering outsourcing jobs to a country with lower labor standards to reduce costs. What ethical concern should be addressed in this decision?
Technological innovation
Market dominance
Corporate Social responsibility
Rapid expansion
Corporate Social responsibility
