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Chapters 4 & 5

• Why should a business be ethical
o Most people want to act in ways that are right and wrong
o Ethical behavior protects business firms from abuse by unethical employees and competitors
o Society’s stakeholders expect it from business
• Business executives are finding that a trusting, ethical relationship with a business partner is:
o Often essential in conducting business
• Under the Sarbanes Oxley Act, corporations are required to
o Have executives vouch for the accuracy of a firm’s financial reports
• A bottom line mentality in business is reflected in which statement?
o “We have to beat the others at all costs”
• A purchasing agent directing her company’s orders to a firm which she received a valuable gift, is an example of:
o Conflict of Interest
• Cross cultural contradictions arise due to:
o Differences between home and host countries ethical standards
• According to a 2009 opinion poll, Americans hold a dim view of
Wall street executives
• Mature adults typically base their ethical reasoning on broad principles and relationships such as
o Human rights and constitutional guarantees of human dignity
o Universal principles of justice
o Both A and B, not C
• All of the following values are present in most ethical decisions except
Act resonsibly
• Utilitarian reasoning primarily considers
o The end results of an action
o Distribution of benefits
o Both of A and C, not B
• If a manager approaches ethical issues with a self-centered approach, emphasis will be on:
economic efficiency
• If a manager approaches with benevolence in mind, he or she would stress what?
friendly relations with an employee
• By law, the financial records of publicly held companies are required to be:
o Audited by a certified professional accounting firm
• Building ethical safeguards into a company’s everyday routines is called
Institutionalizing ethics
• A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:
o Operating under the compliance-based approach
• Integrity-based ethics programs:
o Combines concern for the law with an emphasis on employee responsibility
• A giant step is taken toward improving ethical performance throughout the company when:
o Senior level managers signal to employees that they believe ethics is a high priority
• Which of the following is not a typical use of an ethics reporting mechanism
o To give employees an opportunity to discuss the appropriate rating on their annual performance reviews without management’s influence
• Typically, ethics training is offered to:
• Which of the following is a typical practice in an ethics audit procedure?
o Auditor notes any deviations from company’s ethics standard during the audit
o Auditor brings deviations to the attention of the audit supervisor
o Department managers are required to file a report with the auditor on the corrective action they took
o All the Above
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