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Ethics – Final

An ethical issue is a problem, situation, or opportunity
a. that has no correct answer.
b. that harms the environment.
c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong.
d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
e. requiring an individual, group, or organization to choose between harming consumers or the environment and earning more profits.
D. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
Ethical issues in business typically arise because of conflicts between individuals & personal moral philosophies and values and the:
a. values and attitudes of the organization in which they work.
b. values and attitudes of the society in which they live.
c. values and attitudes of the organization in which they work and the society in which they live.
d. laws and regulations of the country in which they live.
e. values and attitudes of their parents and religion.
C. values and attitudes of the organization in which they work and the society in which they live.
_________ is an important element of virtue and means being whole, sound, and in unimpaired condition.
a. Optimization
b. Ethical issue
c. Honesty
d. Trust
e. Integrity
E. Integrity
A court found an oil company guilty of placing profits over the safety and well-being of its employees. This situation can be classified as
a. ethical.
b. unethical.
c. an ethical issue.
d. a dilemma.
e. a justice issue.
C. an ethical issue.
A person uncomfortable with his employer & unspoken policy of hiring only white men is experiencing
a. a conflict of interest.
b. an ethical issue.
c. a feeling of guilt.
d. cognitive dissonance.
e. a moral attribute.
B. an ethical issue.
Issues related to fairness and honesty may arise because business is sometimes regarded as a:
a. legal case, where everything must be done to the letter of the law.
b. contest, with the most ethical firm “winning.”
c. guerrilla war where anything goes in the fight for consumers & dollars.
d. game governed by its own rules rather than those of society.
e. game governed by the rules of society.
D. game governed by its own rules rather than those of society.
War metaphors are common in business. This kind of mindset can be dangerous for business leaders because:
a. it may lead executives to become violent.
b. it may foster the idea that honesty is unnecessary in business.
c. it may lead organizations to be excessively aggressive.
d. business is not like warfare and the metaphors are not appropriate.
e. business is more like a game than a war.
B. it may foster the idea that honesty is unnecessary in business.
Conflicts of interest exist when employees must choose whether to:
a. advance their own personal interests, those of the organization, or those of some other group.
b. advance the interests of the organization or those of society.
c. accept bribes or not.
d. carry out an assignment they perceive to be unethical.
e. report an unethical coworker.
A. advance their own personal interests, those of the organization, or those of some other group.
____________ is the offering of something of value in order to gain an illicit advantage.
a. Shoulder surfing
b. Hacking
c. Gift exchange
d. Conflicts of interest
e. Bribery
E. Bribery
Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
a. Conflict of interest
b. Honesty
c. Communications
d. Discrimination
e. Intellectual property rights
e. Intellectual property rights
__________ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
a. Stealing
b. Lying
c. Fraud
d. Misappropriation
e. Accounting fraud
c. Fraud
In marketing communications, lying causes predicaments for companies because it destroys:
a. trust.
b. honor.
c. confidence.
d. integrity.
e. products.
a. trust.
When a commercial states that a product is superior to any other on the market, the marketer risks accusations of:
a. concealed facts.
b. false labeling.
c. deceptive advertising.
d. concealed facts.
e. puffery.
e. puffery.
Optimization is defined as:
a. the quality of being just, equitable, and impartial.
b. a trade-off between equity and efficiency.
c. an interchange of giving and receiving in social relationships.
d. how wealth or income is distributed between employees within a company.
e. a lack of integrity, incomplete disclosure, and an unwillingness to tell the truth.
b. a trade-off between equity and efficiency.
Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?
a. Discrimination
b. Bullying
c. Lying
d. Misuse of company resources
e. Sexual harassment
d. Misuse of company resources
An activity is probably ethical if it:
a. is approved of by most individuals in the organization and is customary in the industry.
b. is approved of by no one in the organization, but has been carried out in the industry before.
c. is customary in the industry.
d. is not illegal.
e. does not make consumers feel cheated, deceived, or manipulated.
a. is approved of by most individuals in the organization and is customary in the industry.
The first step toward understanding business ethics is to:
a. know your company & ethical policies.
b. know your own morals and philosophies.
c. know society & ethical policies.
d. develop ethical-issue awareness.
e. develop a set of decision-making rules.
d. develop ethical-issue awareness.
Among retail stores, is a larger problem than customer shoplifting.
a. poor stock performance
b. weak leadership
c. internal employee theft
d. misuse of merchandise
e. employee dissatisfaction
c. internal employee theft
The ethical decision-making process begins
a. with a conflict of interest.
b. when an individual experiences a conflict between his or her values and those of his or her firm.
c. when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.
d. with a conflict in values.
e. when an individual experiences a conflict between his or her values and those of society.
c. when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.
Which of the following is not a side-effect of being the victim of workplace bullying?
a. Increased productivity
b. Sleep disturbance
c. Depression
d. Increased sick days
e. Stomach problems
a. Increased productivity
Accountants must abide by a strict code of ethics that defines their responsibilities to
a. their clients only.
b. their clients and the public interest.
c. the public only.
d. their investors and shareholders.
e. government regulators.
b. their clients and the public interest.
Which of the following statements is most correct?
a. Affirmative action programs require quotas to govern employment decisions.
b. Affirmative action programs have eliminated discrimination in employment.
c. Affirmative action programs are required in all organizations by law.
d. Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups
that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
e. Affirmative action programs involve efforts to avoid recruiting, hiring, training, and promoting qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
d. Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups
that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred?
a. Is your boss treating you well and compensating you adequately?
b. Is your boss asking obviously impossible things from you without training and stating that, once completed, the work is never good enough?
c. Are surprise meetings called without your knowledge?
d. Have others at work told you to stop working, talking, or socializing with them?
e. Are you never left alone to do your job without interference?
a. Is your boss treating you well and compensating you adequately?
_________ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.
a. A code of conduct
b. Sexual harassment
c. Coercive power
d. Bullying
e. Rewards
d. Bullying
Which of the following is not a consequence of ethical misconduct?
a. Decreased reputation
b. Shaken customer loyalty
c. Reduced investor confidence
d. Increased sales
e. Legal actions by wronged parties
d. Increased sales
The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people
a. who are under the age of 18.
b. who are between 16 and 20.
c. who are between 39-69.
d. who are past retirement age.
e. who are younger than 18 and older than 49.
c. who are between 39-69.
Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
a. Physical threats
b. False accusations
c. Being annoying
d. Profanity
e. Performance probation
e. Performance probation
The _________ makes it illegal for individuals, firms, or third parties doing business in American markets to “make payments to foreign government officials to assist in obtaining or retaining business.”
a. U.S. Foreign Corrupt Practices Act (FCPA)
b. Kyoto Protocol
c. World Trade Organization (WTO)
d. Consumer Protection Act
e. Gramm-Leach- Bliley Act
a. U.S. Foreign Corrupt Practices Act (FCPA)
Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better
than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not
really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of:
a. false advertising.
b. commission lying.
c. omission lying.
d. noise.
e. surrogate lying.
d. noise.
________________ involves tricking individuals into revealing their passwords or other valuable corporate information.
a. Shoulder surfing
b. Remote hacking
c. Social engineering
d. Physical hacking
e. Dumpster diving
c. Social engineering
When Devon looked at what another employee was typing in order to get a password, he committed:
a. shoulder surfing.
b. whacking
c. discrimination
d. password guessing
e. hacking
a. shoulder surfing.
A company can be sued for discrimination if it:
a. hires minorities.
b. maintains reasonable minority standards.
c. discharges a minority individual, but has a just cause for doing so.
d. uses age as a hiring or firing criterion.
e. has more men than women on staff.
d. uses age as a hiring or firing criterion.
Affirmative action programs:
a. involve the promotion of unqualified employees.
b. are not imposed by federal law on employers.
c. are not very commonly used anymore because there is no need to protect minorities.
d. only involve the training of individuals.
e. involve the recruitment, hiring, promotion, and training of qualified individuals.
e. involve the recruitment, hiring, promotion, and training of qualified individuals.
What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair
economic advantage over an organization?
a. Channel
b. Integrative
c. Consumer
d. Product
e. Conventional
c. Consumer
What type of fraudulent activity could involve a consumer staging an accident to seek damages?
a. Whacking
b. Duplicity
c. Guile
d. Defamation
e. Collusion
b. Duplicity
What type of fraudulent activity involves an employee who assists a consumer in fraud?
a. Whacking
b. Duplicity
c. Guile
d. Defamation
e. Collusion
e. Collusion
Prior to the financial meltdown, bond ratings agencies were accused of having ________ because they were paid by the
organizations that they rated. The organizations would shop around for the agency that gave them the best rating.
a. high ethical standards
b. excessively complicated systems
c. a hostile workplace
d. conflicts of interest
e. a good business model
d. conflicts of interest
__________ are used to obtain or retain business and are not generally considered illegal in the U.S.
a. Facilitation payments
b. Bribes
c. Gifts
d. Coercive techniques
e. Threats
a. Facilitation payments
Principles are
c. specific and pervasive boundaries for behavior that are universal and absolute.
Social responsibility is
a. an organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders.

The ______ was/were enacted to restore confidence in financial reporting and business ethics after the accounting

scandals of the early 2000s.

b. Sarbanes-Oxley Act
The term business ethics is best described by the following statement:
e. It comprises the principles, values, and standards that guide behavior in the world of business.
Which of the following is not one of the rights spelled out by John F. Kennedy in his “Consumers’ Bill of Rights”?
d. The right to be ethical
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Federal Sentencing Guidelines for Organizations
Business ethics, as a field, has passed through which of the following states?
Theological discussion to recognition of social issues to a field of study
The 1960s saw a rise of consumerism. What is consumerism?
Activities undertaken by independent individuals, and groups to protect their rights as consumers
Ethics is a part of decision making
at all levels of work and management.
Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices?
Defense Industry Initiative on Business Ethics and Conduct
The _______ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with
government regulation.
Federal Sentencing Guidelines for Organizations
The study of business ethics is important to better understand all of the following except
that business ethics is entirely an extension of an individual’s own personal ethics.
According to the role of ethical culture in performance, all of these are drivers of profit except
opportunity for misconduct.
More than a compliance program, business ethics is becoming
a management issue to achieve competitive advantage.
. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has
limited business experience.
One of the major ethical issues President Obama’s administration focused on was
health care and consumer protection.
Which of the following is generally not considered a business ethics issue?
Corporate hierarchy
Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
Sarbanes-Oxley Act.
The Foreign Corrupt Practices Act outlawed
bribery of officials in other countries.
Which of the following was not a provision of the Sarbanes-Oxley Act?
It outlawed bribery of officials in other countries.
Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct?
United States Sentencing Commission
Because of Sarbanes-Oxley, publicly traded companies must develop financial reporting.
code of ethics
______is essential in building long-term relationships between businesses and consumers.
trust
The Dodd-Frank Wall Street Reform and Consumer Protection Act
was designed to make the financial services industry more responsible.
In the Reagan/Bush eras, the major focus of the business world was on
self-regulation rather than regulation by government.
The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
. the Federal Sentencing Guidelines for Organizations
Ethical culture is defined as
acceptable behavior as defined by the company and industry.
The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by
codifying into law incentives for organizations to take action such as developing ethical compliance programs
to prevent misconduct.
Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?
They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties.
Which of the following is not one of the benefits of being ethical and socially responsible in business?
A high degree of employee dissent
Employees’ perceptions of their firm as having an ethical climate leads to
enhanced performance.
Employees feel less pressure to compromise ethically, observe less misconduct, are more satisfied with their organizations, and feel more valued when
they see honesty, respect, and trust applied in the workplace.
Investors are concerned about business ethics because they know that misconduct can
lower stock value and prices.
Most organizations with strong ethical climates usually focus on the core value of placing ________ interests first.
customers’
Which of the following is not something a firm might do to encourage organizational ethics and compliance?
Ignoring potential ethical issues

1. Those who have a claim in some aspect of a firm’s products, operations, markets, industry, and outcomes are known as

a. shareholders.
b. stockholders.
c. stakeholders.
d. claimholders.
e. special-interest groups

C

2. Stakeholders’ power over businesses stems from their

a. ability to withdraw or withhold resources.
b. ability to generate profits.
c. media impact.
d. political influence.
e. stock ownership.

A

3. Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

a. Employees
b. Secondary stakeholders
c. Primary stakeholders
d. Investors
e. Customers

B

4. A firm that makes use of a __________ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm’s internal and external environments.

a. stakeholder model of corporate governance
b. stakeholder bias
c. code of ethics
d. stakeholder interaction model
e. corporate interface mode

D

5. The degree to which a firm understands and addresses stakeholder demands can be referred to as

a. a stakeholder orientation.
b. a shareholder orientation.
c. the stakeholder interaction model.
d. a two-way street.
e. a continuum.

A

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

a. Insurance
b. Technology
c. Banks
d. Mortgage lenders
e. Financial services

B

7. Which of the following is not a benefit that primary stakeholders tend to provide to organizations?

a. Supplies of capital and resources.
b. Expertise and leadership
c. Word-of-mouth promotion
d. Infrastructure
e. Pro-bono bookkeeping

E

8. A stakeholder group that is absolutely necessary for a firm’s survival is defined as

a. direct.
b. tertiary.
c. secondary.
d. special-interest.
e. primary.

E

9. When unethical acts are discovered in a firm, in most instances

a. they are caused by unwilling participants.
b. the cause is due to external stakeholders.
c. the perpetrators are caught and prosecuted.
d. there was knowing cooperation or complicity from within the company.
e. the cause is a corrupt Board of Directors.

D

10. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?

a. Surveys
b. Focus groups
c. Internet searches
d. Press reviews
e. Guessing

E

11. A stakeholder orientation can be viewed as a(n)

a. necessity for business success.
b. continuum.
c. polarizing concept.
d. good marketing ploy.
e. expensive proposition.

B

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

a. The promise of customer loyalty
b. Material resources and/or intangible knowledge
c. Infrastructure
d. Revenue
e. Leadership skills

B

13. Which of the following is not associated with the stakeholder interaction model?

a. Involves a two-way relationship between firm and stakeholders
b. Recognizes the input of investors, employees, and suppliers
c. Explicitly acknowledges dialogue with a firm’s internal environment
d. Explicitly acknowledges dialogue with a firm’s external environment
e. Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders

E

14. The first of the three activities that are associated with the stakeholder orientation is the

a. organization-wide generation of data.
b. organization’s responsiveness to intelligence.
c. set of consumer attributes identified.
d. organizational strategy of target markets.
e. human relations department’s set of priorities.

A

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

a. Investors
b. Community
c. Suppliers
d. Customers
e. Employees

B

16. Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?

a. Environmental groups
b. Suppliers
c. Employees
d. Industry leaders
e. Investors

A

17. The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with

a. Adam Smith.
b. Theodore Levitt.
c. Norman Bowie.
d. Herman Miller
e. Milton Friedman.

E

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

a. Adam Smith
b. Theodore Levitt.
c. Norman Bowie.
d. Herman Miller
e. Milton Friedman.

A

19. Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory are they following most closely with this belief?

a. Adam Smith.
b. Theodore Levitt.
c. Norman Bowie.
d. Herman Miller
e. Milton Friedman.

E

20. In ascending order, Carroll’s four levels of social responsibility are

a. ethical, legal, economic, philanthropic.
b. economic, ethical philanthropic, legal.
c. economic, legal, ethical, philanthropic.
d. legal, ethical, economic, philanthropic.
e. ethical, legal, moral, economic

C

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

a. reputation.
b. corporate citizenship.
c. corporate ethical audit.
d. ethical citizenship.
e. fiduciary duties.

B

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

a. profit
b. loyalty
c. accountability
d. control
e. diligence

D

23. Accountability, oversight, and control all fall under the definition and implementation of corporate

a. profit.
b. loyalty.
c. care.
d. governance.
e. diligence.

D

24. Major corporate governance issues normally involve _______ decisions.

a. strategic-level
b. tactical-level
c. divisional-level
d. marketing-level
e. accounting-level

A

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

a. Compensation
b. The non-traditional directorship approach
c. Dividend reporting
d. Corporate social audits
e. Debt swaps

A

26. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _________

a. there should be no limit on what top executives can earn.
b. managers should earn no more than twenty times the pay of other employees.
c. top managers should make the same amount as other employees.
d. employees can determine how much managers make.
e. the government should determine the worth of each manager’s service.

B

27. The specific steps for implementing the stakeholder perspective do not include which of the following?

a. Identifying stakeholder groups
b. Identifying stakeholder issues
c. Identifying and gaining stakeholder feedback
d. Identifying and gaining government feedback
e. Assessing organizational commitment to social responsibility groups

D

28. What are the four levels of social responsibility?

a. Financial, religious, ethical, and philanthropic
b. Ethical, philanthropic, selfish, and short-sighted
c. Economic, long-term, ethical, and philanthropic.
d. Legal, economic, ethical, and philanthropic
e. Economic, compliance, legal, and philanthropic

D

29. The _____ model is founded in classic economic precepts.

a. economic
b. shareholder
c. stakeholder
d. board
e. ISO

B

30. Which of the following are not typically secondary stakeholders?

a. Television news anchors
b. Special-interest groups
c. Customers
d. Trade associations
e. Journalists

C

31. Which of the following are not typically primary stakeholders?

a. Customers
b. Trade associations
c. Employees
d. Shareholders
e. Suppliers

B

32. Why do critics argue that high compensation for boards of directors is a bad thing?

a. It is too expensive for the organization.
b. It could cause conflicts of interest between the directors and the organization.
c. It is not fair to poorly compensated employees.
d. High pay will render the board less complacent.
e. Board of director compensation is not a major issue.

B

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

a. strategic philanthropy.
b. stakeholder commitment.
c. interlocking directorate.
d. conflict of interest.
e. an illegal activity.

C

34. What is the first step in implementing a stakeholder perspective in an organization?

a. Identifying resources and determining urgency
b. Identifying stakeholder groups
c. Identifying stakeholder issues
d. Assessing the corporate culture
e. Assessing organizational commitment to social responsibility

D

35. A stakeholder orientation is not complete unless it includes

a. clear accounting procedures.
b. major financing activities.
c. marketing strategy.
d. feedback from special-interest groups.
e. activities that actually address stakeholder issues.

E
Which of the following is the first step in the ethical decision making process?
a. Being socialized into the firm’s corporate culture
b. Applying a personal moral philosophy in order to individualize the ethical decision making process
c. Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong
d. Soliciting the opinions of others in a work group or in the overall business in order to gain feedback
e. Enforcing the firm’s ethical standards with rewards and punishment
c. Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong
Which of the following is not one of the six “spheres of influence” to which individuals are subject when confronted with an ethical issue?
a. Educational attainment
b. Workplace
c. Family
d. Legal system
e. Community
a. Educational attainment
The perceived relevance or importance of an ethical issue to the individual, work group, or organization is
a. organizational culture.
b. immediate job context.
c. ethical issue intensity.
d. leadership.
e. locus of control.
c. ethical issue intensity.
Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _____.
a. stakeholder expectations and pressures. b. pressures to satisfy customers.
c. pressures from the government to perform at a high level.
d. internal pressures and ambiguity surrounding internal organizational rules.
e. investor expectations.
d. internal pressures and ambiguity surrounding internal organizational rules.
According to the ethical decision-making framework, the absence of punishment provides a(n)______ for unethical
behavior.
a. reason
b. significant other
c. individual factor
d. opportunity
e. ethical issue intensity
d. opportunity
_______have been found to decrease unethical practices and increase positive work behavior.
a. High educational attainment levels
b. High levels of community involvement
c. Charismatic leaders
d. Strong religious beliefs
e. Good personal values
e. Good personal values
_________ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.
a. Obedience to authority
b. Locus of control
c. Opportunity
d. Transactional leadership
e. Immediate job context
a. Obedience to authority
Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing,
________can alter this intent.
a. cognitive dissonance
b. familial expectations
c. religious beliefs
d. the desire for financial gain
e. organizational or social forces
e. organizational or social forces
If management fails to identify and educate employees about ethical problem areas, ethical issues may not reach the critical
a. awareness level.
b. aptitude level.
c. ethical level.
d. organizational level.
e. individual level.
a. awareness level.
The ______can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization.
a. corporate culture
b. intentions of a corporate
c. ethical issue awareness
d. determination of a corporation
e. individual factors
a. corporate culture
Which of the following would not be considered a negative reinforcement of employee behavior?
a. Demotions
b. Firings
c. Ignoring the behavior
d. Reprimands
e. Pay penalties
c. Ignoring the behavior
Codes, rules, and compliance are essential in organizations. However, an organization built on_______ is more likely to develop a high integrity corporate culture.
a. a charismatic leader
b. the preferences of the CEO
c. the grapevine
d. formal relationships
e. informal relationships
e. informal relationships
Following the ethical directives of a superior relates to
a. an internal locus of control.
b. obedience to authority.
c. moral intensity.
d. gender.
e. ethical issue intensity.
b. obedience to authority.
Which of the following is not considered a significant other group in the workplace?
a. Peers
b. Managers
c. Spouses
d. Coworkers
e. Subordinates
c. Spouses
Studies have shown that _______ within the organization have more impact on a worker’s decisions on a daily basis than any other factor.
a. significant others
b. religion
c. education
d. chief executive officers
e. ethical issues
a. significant others
External and internal rewards relate to which part of the ethical decision-making framework?
a. Individual factors
b. Significant others
c. Cognitive moral development
d. Obedience to authority
e. Opportunity
e. Opportunity
Which of the following is not an issue that helps in business ethics evaluations and decisions?
a. Ethical issue intensity
b. Individual factors
c. Organizational factors
d. Personal guilt
e. Opportunity
d. Personal guilt
_______ is the first sign that an unethical decision has occurred.
a. Guilt
b. Reward
c. Punishment
d. Cognitive dissonance
e. Happiness
a. Guilt
People who believe in________, go with the flow because they feel the events in their lives are uncontrollable.
a. ethical decision making
b. internal locus of control
c. an ethical culture
d. external locus of control
e. significant others.
d. external locus of control
Which of the following is not an individual factor that affects business ethics?
a. Nationality
b. Age
c. Religion
d. Significant others
e. Education
d. Significant others
___________is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.
a. Oversight
b. Significant others
c. Corporate culture
d. The ethical climate
e. The legal climate
c. Corporate culture
22. An ethical corporate culture needs __________ along with _________
to establish an ethics program and monitor the complex ethical decisions being made by employees .
a. individual ethics; ethical issue intensity
b. ethical issue intensity; ethics training
c. organizational factors; individual factors d. employee evaluations; good intentions
e. shared values; proper oversight
e. shared values; proper oversight
Those who have influence in a work group are referred to as significant others and include
a. peers, managers, coworkers, and subordinates.
b. family members, peers, and coworkers. c. spouses and friends.
d. employees in similar job situations.
e. employees who hold the same job.
a. peers, managers, coworkers, and subordinates.
Research concerning nationality and the ability to make ethical decisions
a. shows no relationship between the two.
b. is hard to interpret in a business context because of cultural differences.
c. suggests that organizations should be very concerned about an employee’s nationality.
d. suggests that corporations pay a lot of attention to such research.
e. suggests that the influence of nationality on corporate culture is growing.
b. is hard to interpret in a business context because of cultural differences.
The relationship between business ethics and age
a. shows a negative correlation.
b. is simple. Greater experience leads to better ethical decision making.
c. is complex, although experience helps older employees make ethical decisions.
d. suggests that employees with less experience have a greater ability to deal with complex industry-specific ethical issues.
e. does not demonstrate a statistically significant correlation.
suggests that employees with less experience have a greater ability to deal with complex industry-specific ethical issues.
Employees that see themselves as going with the flow because that’s all they can do have a(n)
a. external locus of control.
b. moral intensity
c. obedience to authority
d. opportunity
e. internal locus of control.
a. external locus of control.
For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?
a. I need a paycheck and can’t afford to quit right now. b. Those around me are doing it so why shouldn’t I?
c. If I don’t do this, I might not be able to get a good reference from my boss when I leave.
d. If I don’t do this, I might never be promoted.
e. This is in keeping with my personal morals and the code of conduct, so it is okay.
e. This is in keeping with my personal morals and the code of conduct, so it is okay.
______ is the ability to perceive whether a situation or decision has an ethical dimension.
a. Ethical issue intensity
b. Locus of control
c. Ethical awareness
d. Moral intensity
e. Opportunity
c. Ethical awareness

______ relates to individuals’ perceptions of social pressure and the harm they believe their decisions will have on others

a. Ethical awareness
b. Moral intensity
c. Individual factors
d. Ethical issue intensity
e. Social awareness

b. Moral intensity
The ethical decision making process in business includes all of the following except
a. Individual factors
b. Opportunity
c. Ethical issue intensity
d. Making ethical decisions
e. Organizational factors
d. Making ethical decisions
________culture involves values and norms that prescribe a wide range of behavior for organizational members, while ________ culture reflects the integrity of decisions made and is a function of many factors, including corporate policies,
top management’s leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior.
a. Ethical, corporate
b. External, internal
c. Corporate, ethical
d. Positive, negative
e. Compromising, collaborative
c. Corporate, ethical
All of the following are true with regards to organizational factors except
a. Employees approach ethical issues on the basis of what they learned from others in the organization.
b. An alignment between a person’s own values and the values of the organization help create positive
organizational outcomes.
c. Congruence in personal and organizational values is related to commitment, satisfaction, motivation, ethics, work stress, and anxiety.
d. Ethical choices in organizations are most often made individually.
e. Just as a family guides an individual, specific industries give behavioral cues to firms.
a. Employees approach ethical issues on the basis of what they learned from others in the organization.
The ______-includes the motivational “carrots and sticks” superiors use to influence employee behavior.
a. Obedience to authority
b. Immediate job context
c. Locus of control
d. Normative approach
e. Descriptive approach
b. Immediate job context
All of the following are true with regards to opportunity and ethical decision making except
a. Despite the existence of rules, misconduct can still occur without proper oversight.
b. The opportunities that employees have for unethical behavior in an organization can be eliminated through formal codes, policies, and rules adequately enforced by management.
c. Opportunity also comes from knowledge.
d. The opportunity for unethical behavior can be eliminated with aggressive enforcement of codes and rules.
e. Opportunity results from conditions that either provide rewards or fail to erect barriers against unethical
behavior.
d. The opportunity for unethical behavior can be eliminated with aggressive enforcement of codes and rules.
When we discuss _______approaches, we are talking about how organizational decision makers should approach an issue
a. Normative
b. Individual
c. Descriptive
d. Organizational
e. Values-based
a. Normative
By incorporating __________objectives into corporate core values, companies begin to view ____________ as significant.
a. shareholder, stakeholders
b. stakeholder, shareholders
c. CEO, CEOs
d. customer, customers
e. stakeholder, stakeholders
a. shareholder, stakeholders
Normative business ethics takes into account the___________realities outside the legal realm in the form of industry standards.
a. Descriptive
b. Political
c. Social
d. Economic
e. Normative
b. Political
__________ institutions include religion, education, and individuals such as the family unit.
a. Social
b. Conservative
c. Economic
d. Liberal
e. Political
a. Social
All of the following are true regarding institutions except
a. Stakeholders closely align with institutions.
b. The regulatory system aligns with political institutions.
c. There is no clear link between institutional theory and the stakeholder orientation of management.
d. Competition relates to economic institutions.
e. Personal values and norms derive from social institutions.
c. There is no clear link between institutional theory and the stakeholder orientation of management.
High levels of ______create a higher probability that firms cut corners because margins are usually low.
a. Profit
b. Return
c. Cooperation
d. Competition
e. Loss
d. Competition
The thought experiment used by John Rawls that examined how individuals would formulate principles if they did not know what their future position in society would be is called
a. Equality principle
b. Utilitarian veil
c. Liberty principle
d. Universal principle
e. Veil of ignorance
a. Equality principle
Moral philosophy refers to
a. a subject that most business people do not consider very important.
b. the morality of business activities.
c. the principles or rules that people use to decide what is right and wrong.
d. the legality of business activities.
e. the principles or rules that policymakers use to create legislation.
c. the principles or rules that people use to decide what is right and wrong.
Which moral philosophy evaluates the morality of an action on the basis of its consequences for everyone affected
(seeks the greatest good for the greatest number)?
a. Act deontology
b. Rule deontology
c. Egoism
d. Utilitarianism
e. Hedonism
d. Utilitarianism
Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result?
a. Teleology
b. Deontology
c. The relativist perspective
d. Ethical formalism
e. Hedonism.
a. Teleology
Which moral philosophy focuses on the rights of individuals and on the intentions associated with a particular behavior, rather than its consequences?
a. Deontology
b. The relativist perspective
c. Teleology
d. Egoism
e. Utilitarianism
a. Deontology
_____are person-specific, whereas _______ are based on decisions made by groups or when carrying out tasks to meet business objectives
a. Organizational factors; business ethics
b. Codes of conduct; individual factors
c. Individual factors; codes of conduct
d. Business ethics; moral philosophies
e. Moral philosophies; business ethics
e. Moral philosophies; business ethics
According to Kohlberg’s model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she
a. is unlikely to change his/her values and ethical behavior.
b. may change his/her values and ethical behavior.
c. will likely be promoted.
d. will depend more on the input of significant others in ethical decision making. e. will experience less opportunity to behave unethically.
b. may change his/her values and ethical behavior.
An individual who defines what is right by considering his/her duty to society, not just to other specific people, is in which of Kohlberg’s stages of cognitive moral development?
a. Punishment and obedience
b. Individual instrumental purpose and exchange
c. Mutual interpersonal expectations, relationships, and conformity
d. Social system and conscience maintenance
e. Prior rights, social contract, or utility
d. Social system and conscience maintenance
Which is the last of Kohlberg’s stages of cognitive moral development?
a. Individual instrumental purpose and exchange
b. Need achievement
c. Social system and conscience maintenance
d. Punishment and obedience
e. Universal ethical principles
e. Universal ethical principles
A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)
a. egoist.
b. teleologist.
c. utilitarian.
d. relativist.
e. humanitarian.
c. utilitarian.
Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights?
a. The relativist perspective
b. Act utilitarianism
c. Rule utilitarianis
d. Act deontology
e. Rule deontology
e. Rule deontology
_______is considered the father of free market capitalism. He believed that business was and should be guided by the morals of good men.
a. John Maynard Keynes
b. Henry Kissinger
c. George Washington
d. Adam Smith
e. Lawrence Kohlberg
d. Adam Smith
________ believe that no one thing is intrinsically good.
a. Hedonists
b. Pluralists
c. Relativists
d. Deontologists
e. Teleologists
b. Pluralists
Kant’s categorical imperative and the Golden Rule are examples of which moral philosophy?
a. Teleology
b. Deontology
c. The relativist perspective
d. Egoism
e. Utilitarianism
b. Deontology
A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a(n) _______ because he believes in the rights of all individuals.
a. egoist
b. utilitarian
c. deontologist
d. relativist
e. hedonist
c. deontologist
Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually?
a. Rule utilitarianism b. Act utilitarianism c. Rule deontology
d. Act deontology e. Egoism
a. Rule utilitarianism
Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the action, with rules serving as guidelines in the decision-making process?
a. Rule utilitarianism
b. Act utilitarianism
c. Rule deontology
d. Act deontology
e. The relativist perspective
d. Act deontology
Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?
a. Virtue ethics
b. Egoism
c. The relativist perspective
d. Absolutism
e. Justice
c. The relativist perspective
Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives?
a. The relativist perspective
b. Teleology
c. Deontology
d. Egoism
e. Rule deontology
a. The relativist perspective
________-typically focuses on the end result of actions and happiness created by them, whereas_________ emphasizes the means and motives by which actions are justified.
a. Pragmatism; hedonism
b. Deontology; pragmatism
c. Utilitarianism; deontology
d. Utilitarianism; a goodness theory
e. A goodness theory; an obligation theory
e. A goodness theory; an obligation theory
An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)
a. utilitarian.
b. relativist.
c. teleologist.
d. deontologist.
e. egoist.
b. relativist.
Enlightened egoism
a. is when an individual puts spiritual feelings above all others. b. centers completely on the short-term well-being of others.
c. centers on one’s short-term self-interest.
d. centers on one’s longterm selfinterest but takes others’ wellbeing into account.
e. centers on the long-term well-being of others.
d. centers on one’s longterm selfinterest but takes others’ wellbeing into account.
Which moral philosophy is based on the premise that equal respect must be given to all persons?
a. The relativist perspective
b. Deontology
c. Egoism
d. Teleology
e. Utilitarianism
b. Deontology
______ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.
a. Relativists
b. Hedonists
c. Pragmatists
d. Deontologists
e. Teleologists
a. Relativists
_______ justice is based on the evaluation of outcomes or results of the business relationship. a. Procedural
b. Interactional
c. Distributive
d. Ethical
e. Egotistical
c. Distributive
Kohlberg’s six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level
a. define right as that which conforms to the expectations of good behavior of the larger society.
b. see beyond the norms, laws, and authority of groups or individuals.
c. are concerned with their immediate interests and with external rewards and punishments. d. are concerned with their long-term interests and with internal rewards and punishments.
e. are unethical.
a. define right as that which conforms to the expectations of good behavior of the larger society.
__________ argues that ethical behavior involves not only adhering to conventional moral standards but also considering
what a mature person with a “good” moral character would deem appropriate.
a. Act utilitarianism
b. Virtue ethics
c. Reciprocity d. Hedonism
e. Rule deontology
b. Virtue ethics
When a person defines right and wrong on the basis of legal contracts, he or she is using which of Kohlberg’s stages of development?
a. Punishment and obedience (1st stage)
b. Mutual interpersonal expectations, relationships, and conformity (3rd stage)
c. Social system and conscience maintenance (4th stage)
d. Prior rights, social contract, or utility (5th stage)
e. Universal ethical principles (6th stage)
d. Prior rights, social contract, or utility (5th stage)
_____ deals with the issue of what individuals feel they are due based on their rights and performance in the workplace, and therefore is more likely to be based on deontological moral philosophies than on teleological or utilitarian ones.
a. Rights
b. Virtue ethics
c. Justice
d. Relativism
e. Egoism
c. Justice
A central problem with relativism is
a. that it emphasizes people’s differences, not similarities.
b. that few people believe that these principles are important.
c. that they are very complicated.
d. that they represent unattainable goals.
e. that many feel that virtue ethics only works in theory.
a. that it emphasizes people’s differences, not similarities.
Which is not considered a white collar crime?
a. Corporate tax evasion
b. Credit card fraud
c. Insider trading
d. Identity theft
e. Mugging someone
e. Mugging someone
An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of
Kohlberg’s stages of development?
a. Universal ethical principles (6th stage)
b. Mutual interpersonal expectations, relationships, and conformity (3rd stage)
c. Social system and conscience maintenance (4th stage)
d. Punishment and obedience (1st stage)
e. Prior rights, social contract, or utility (5th stage)
b. Mutual interpersonal expectations, relationships, and conformity (3rd stage)
Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind.
Which moral philosophy most closely represents his viewpoint?
a. Egoism
b. Relativism
c. Humanitarianism
d. Utilitarianism
e. Individualism
d. Utilitarianism
In Kohlberg’s model, the stage of mutual interpersonal expectations, relationships, and conformity (Stage 3) differs from the stage of individual instrumental purpose and exchange (Stage 2) in terms of the individual’s motives in
a. considering fairness to others.
b. maintaining the social order.
c. considering duty to society.
d. upholding the basic values of society.
e. maintaining obedience to authority
a. considering fairness to others.
The elements of______ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness. a. egoism
b. utilitarianism
c. deontology
d. moral philosophy
e. virtue
e. virtue
______ justice considers the processes and activities that produce the outcome or results.
a. Disruptive
b. Procedural
c. Interactional
d. Communications
e. Evaluative
b. Procedural
1. Which of the following is not an aspect of the institutionalization of social responsibility?
a. Voluntary practices
b. Legal responsibilities
c. Core practices
d. Familial responsibilities
e. Strategic philanthropy
d. Familial responsibilities
2. Which of the following acts can be classified as procompetitive legislation?
a. Equal Pay Act of 1963
b. Civil Rights Act of 1964
c. McCarran-Ferguson Act of 1944
d. Sherman Antitrust Act of 1890
e. Occupational Safety and Health Act of 1970
d. Sherman Antitrust Act of 1890
. Which of the following acts exempted the insurance industry from antitrust legislation?
a. Equal Pay Act of 1963
b. Civil Rights Act of 1964
c. McCarran-Ferguson Act of 1944
d. Sherman Antitrust Act of 1890
e. Occupational Safety and Health Act of 1970
c. McCarran-Ferguson Act of 1944
Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair’s The
Jungle, was the first consumer protection legislation?
a. Civil Rights Act of 1964
b. Sherman Antitrust Act of 1890
c. Magnuson-Moss Warranty Act of 1974
d. Consumer Product Safety Act of 1972
e. Pure Food and Drug Act of 1906
e. Pure Food and Drug Act of 1906
The ________ was established after the latest financial crisis, in response to a situation that caused many consumers to
lose their homes.
a. Environmental Protection Agency
b. World Bank
c. Consumer Financial Protection Bureau
d. World Trade Organization
e. Sarbanes-Oxley Act
c. Consumer Financial Protection Bureau
Which of the following is not a provision of the Sarbanes-Oxley Act?
a. Strengthens penalties for corporate fraud
b. Discourages the creation of ethical and legal compliance programs
c. Requires codes of ethics for financial reporting in corporations
d. Makes fraudulent financial reporting a criminal offense e. Requires greater transparency in financial reporting
b. Discourages the creation of ethical and legal compliance programs
Which of the forces of the business environment involves the rivalry among businesses for customers and profits?
a. The economic dimension b. The legal dimension
c. The competitive dimension
d. The technological dimension
e. The voluntary responsibilities dimension
c. The competitive dimension
The ______ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.
a. World Trade Organization
b. Consumer Financial Protection Agency
c. Department of Justice
d. Environmental Protection Agency
e. The Food and Drug Administration
e. The Food and Drug Administration
Which of the following groups is not a group that receives special legal protections?
a. The elderly
b. Children
c. Senior citizens
d. The highly educated
e. Young consumers
d. The highly educated
The _____ was called “a sweeping overhaul of the financial regulatory system…on a scale not seen since the
reforms that followed the Great Depression.”
a. Equal Pay Act
b. Americans with Disabilities Act
c. Dodd-Frank Wall Street Reform and Consumer Protection Act
d. Age Discrimination in Employment Act
e. VII of the Civil Rights Act
c. Dodd-Frank Wall Street Reform and Consumer Protection Act
_______ law defines the rights and duties of individuals and organizations (including businesses).
a. Civil
b. Criminal
c. Competitive
d. Administrative
e. Regulatory
Civil
law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.
a. Civil
b. Criminal
c. Competitive
d. Administrative e. Regulatory
Criminal
Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
a. Increases the accountability and transparency of financial institutions
b. Creates a bureau to educate consumers in financial literacy
c. Creates an organization to pay the bills of low-income consumers
d. Create incentives for whistle-blowers to come forward
e. Increases oversight of the financial industry
c. Creates an organization to pay the bills of low-income consumers
is the synergistic and mutually beneficial use of an organization’s core competencies and resources to deal
with key stakeholders so as to bring about organizational and societal benefits.
a. Social responsibility
b. Business ethics
c. Corporate philanthropy
d. Strategic philanthropy
e. Cause-related marketing
d. Strategic philanthropy
Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
a. sustained price cuts.
b. free samples.
c. discriminatory pricing.
d. price collusion.
e. corporate espionage.
b. free samples.
Which is not one of the four sources of criminal and civil laws?
a. Judicial law
b. Common law
c. Constitutional law
d. Administrative law
e. Statutory law
a. Judicial law
. The _________is an independent agency within the Federal Reserve System that “regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws.”
a. Consumer Financial Protection Bureau
b. Federal Reserve
c. World Trade Organization d. Department of Justice
e. Federal Trade Commission
a. Consumer Financial Protection Bureau
The primary objective of U.S. antitrust laws is to
a. protect consumers from high prices and foreign products.
b. protect domestic businesses.
c. protect employees.
d. promote strategies that enhance business welfare over consumer welfare.
e. distinguish competitive strategies that enhance consumer welfare from those that reduce it.
e. distinguish competitive strategies that enhance consumer welfare from those that reduce it.
What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or
Home Depot?
a. Because the large size creates economies of scale and they can charge lower prices
b. Because the selection in the stores is too large
c. Because large retailers attract crime to neighborhoods in which they are based
d. Because community leaders do not like the top management
e. Because large retailers almost never hire local workers as employees
a. Because the large size creates economies of scale and they can charge lower prices
________focus(es) on developing sound organizational practices and integrity for financial and nonfinancial
performance measures, rather than on an individual’s morals.
a. The Dodd-Frank Wall Street Reform and Consumer Protection Act
b. Compliance
c. Organizational ethics
d. Core practices
e. The Sarbanes Oxley Act
d. Core practices
Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?
a. Develop a code of conduct
b. Provide oversight by high-ranking personnel
c. Create a communication system for disseminating standards and procedures
d. Monitor and audit systems designed to detect misconduct
e. Comply with ISO 14000 guidelines
e. Comply with ISO 14000 guidelines
The Sarbanes-Oxley Act created the establish rules and standards for auditing.
_____ to oversee the accounting firms that audit public corporations and toa. Public Company Accounting Oversight Board b. Corporate Accounting Oversight Commission
c. Enron Accounting Fraud Administration
d. Occupational Health and Safety Administration e. Equal Employment Opportunity Commission

Public Company Accounting Oversight Board
______ responsibilities relate to a business’s contributions to stakeholders.
a. Economic
b. Legal
c. Ethical
d. Voluntary
e. Social responsiveness
d. Voluntary
Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.
a. Sarbanes-Oxley Act
b. U.S. Sentencing Commission’s Guidelines for Ethical Compliance
c. Ethical Compliance Act
d. Social Responsiveness Compliance Act
e. Federal Sentencing Guidelines for Organizations
e. Federal Sentencing Guidelines for Organizations
Donation of computer equipment to schools by Toshiba would be associated with responsibilities.
a. economic
b. voluntary
c. legal
d. ethical
e. minimum
b. voluntary
By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate
a. conflicts of interest.
b. cronyism.
c. reporting transparency.
d. corporate espionage.
e. dual reporting.
a. conflicts of interest.
Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?
a. Help create an ethical culture and values that can act as a buffer to organizational misconduct
b. Reduce government involvement by providing assistance to stakeholders
c. Develop employee leadership skills
d. Improve employee compensation and retention e. Improve the quality of life in communities
d. Improve employee compensation and retention
Companies that will most likely be found in violation of procompetitive legislation.
a. pollute waterways
b. knowingly harm consumers
c. contract with sweatshops
d. establish monopolies
e. help consumers
d. establish monopolies
_________ tie(s) an organization’s product(s) directly to a social concern through a marketing program.
a. Voluntary contributions
b. Cause-related marketing
c. Strategic philanthropy
d. Corporate giving
e. Employee benefits
b. Cause-related marketing
Title VII of the Civil Rights Act of 1964
a. prohibits discrimination on the basis of race, color, sex, religion, or national origin.
b. penalizes the top executives in an organization for misconduct.
c. is basically the same as the Sarbanes-Oxley Act.
d. discourages whistle-blowers from reporting misconduct.
e. prohibits pay discrimination on the basis of gender.
a. prohibits discrimination on the basis of race, color, sex, religion, or national origin.
Cause related marketing can affect consumer _________ if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.
a. individual ethics
b. tastes
c. perceptions
d. budgets
e. buying patterns
e. buying patterns
Who provides information to managers, investors, tax authorities, and other stakeholders who make resource allocation decisions for corporations?
a. Accountants
b. Federal regulators
c. The Securities and Exchange Commission
d. The Department of Justice
e. Human Resources departments
Accountants
The ______ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.
a. institutionalization
b. rationalization
c. commercialization
d. mobilization
e. enforcement
a. institutionalization
Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?
a. Institutionalization of ethics is now mandated for all organizations by governments around the world
b. Stakeholders have recognized the need for improving business ethics
c. The government has stepped in when scandals and misconduct have damaged key constituents of businesses
d. Gatekeepers have been questioned as to their contributions to major scandals
e. Highly ethical companies tend to be more profitable than those suffering from misconduct issues
a. Institutionalization of ethics is now mandated for all organizations by governments around the world
Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of
2008 was because they were paid by the firms that they rank, which creates
a. economies of scale.
b. synergy.
c. a conflict of interest.
d. cooperation.
e. efficiency.
c. a conflict of interest.
Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except
a. analysts cut corners when faced with less time to perform due diligence.
b. analysts’ ratings were inaccurate.
c. many high ratings were based on inadequate historical data.
d. analysts were overwhelmed with the volume and complexity of trades.
e. most analysts were completely untrained and unprepared to do their jobs.
e. most analysts were completely untrained and unprepared to do their jobs.
Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation
a. is excessively complex and financially burdensome.
b. is not necessary.
c. is fair to all firms.
d. has reduced restatements of financial reports.
e. is too simplistic.
a. is excessively complex and financially burdensome.
An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except
a. values.
b. norms.
c. artifacts.
d. legal compliance.
e. employee compensation
e. employee compensation
Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?
a. Department of Justice and Open Compliance Ethics Group
b. Department of Justice and the Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act d. Food and Drug Administration and the Sarbanes-Oxley Act
e. Securities and Exchange Commission and the Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act
Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
a. any practice is permitted.
b. any practice is permitted that does not substantially reduce competition and harm consumers or society.
c. any practice is permitted that does not substantially harm consumers or society, but this applies only within the
United States.
d. any practice is permitted that does not harm the environment.
e. any practice is permitted that does not break the law.
b. any practice is permitted that does not substantially reduce competition and harm consumers or society.

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