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Columbus state business ethics BMGT 2216

Societies that value individual freedom will be reluctant to legally require acts of charity, personal integrity, and common decency.

True

Like ethics, social sciences such as psychology and sociology also examine human decision making and actions. However, these fields differ from ethics because they are:

descriptive in nature.

Which of the following best describes a business stakeholder?

Anyone who affects or is affected by decisions made within a firm.

The topic of 'social ethics' raises questions of justice, public policy, law, civic virtues, organizational structure, and political philosophy.

True

Morality is the aspect of ethics that we can refer to by the phrase:

personal integrity

Ethics mainly refers to the academic discipline, further confined to teachings of historical ethicists such as Aristotle, John Stuart Miller, and Immanuel Kant.

False

Technically speaking, values need not all be positive or ethical in nature.

True

In business, every decision can be covered by economic, legal, or company rules and regulations.

False

The failure of personal ethics among companies like Enron and WorldCom led to the creation of the:

Sarbanes-Oxley Act

In civil law, there is minimum room for ambiguity of the law because much of the law is established by past precedent.

False

Which of the following is an example of an institutional role?

Teacher

Business decisions and ethical decisions are mutually exclusive

False

In the ethical decision-making process, the issue identification step always follows the fact gathering step

False

In the ethical decision-making process, once we have examined the facts, identified the ethical issues involved, and identified the stakeholders, we need to next:

consider the available alternatives

According to Socrates, this aspect leads to an unexamined life not worth living.

Passivity

_____ include all of the groups and/or individuals affected by a decision, policy or operation of a firm or individual

Stakeholders

Which of the following elements distinguish good people who make ethically responsible decisions from good people who do not?

Moral imagination

Consequences or justifications are the only means for comparing alternatives.

False

Identify the first step in an ethical decision-making process

Determine the facts

Jim resides in the vicinity of a steel manufacturing firm. Any changes in the pollution control or waste treatment policy of the firm indirectly affects Jim. In this sense Jim is a:

stakeholder

Philosophical ethics provides justifications that must be applicable to all people regardless of their religious starting points.

True

Deontological ethical traditions direct us to consider the moral character of individuals and how various character traits can contribute to, or obstruct, a happy and meaningful human life.

False

Utilitarianism has been called a consequentialist approach to ethics and social policy.

True

An ethics of virtue shifts the focus from questions about who a person is, to what that person should do.

False

Ethical reasoning falls into three major categories. Identify them.

Personal character, consequences, and principles

An ethical tradition that directs us to decide based on overall consequences of our acts is:

utilitarianism

Which of the following traditions is commonly identified with the principle of producing "the greatest good for the greatest number"?

Utilitarianism

Lawyers, accountants, auditors, financial analysts, bankers have important roles to play within political and economic institutions. These roles insure the integrity and proper functioning of the economic, legal, or financial system and are termed as:

gatekeeper functions

According to Immanuel Kant, there is essentially one fundamental moral duty:

respect the dignity of each individual.

Identify the view which holds that people act only out of a self-interest.

Egoism

In the classic 1970 New York Times article, "The Social Responsibility of Business Is to Increase Its Profits," Milton Friedman ignores ethical responsibilities and suggests that decision makers are fulfilling their responsibility if they follow their firm's self-interest in pursuing profit.

False

If a firm creates a good image for itself, consumers or other stakeholders seem to give it some slack if they hear something negative about the firm

True

Identify the theory that begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

Stakeholder theory

An individual who points out that all economic activity exists within a biosphere that supports all life, and argues that the present model of economics is already running up against the limits of the biosphere's capacity to support life is a strong defender of the:

sustainability version of CSR

While we are all familiar with examples of unethical decisions leading to high profits, there is general agreement that, in the long run, ethics pays off. What is the challenge associated with ethical pay offs?

It is very difficult to measure the ethical pay off.

The definition of insider trading is trading by shareholders who hold private inside information that would materially impact the value of the stock and that allows them to benefit from buying or selling stock.

True

The Social Web model views business as a citizen of the society in which it operates and, like all members of a society, business must conform to the normal ethical duties and obligations that we all face.

True

Integration theory begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

False

Identify the model of CSR that views business as a citizen of the society in which it operates, and like all members of a society, business must conform to the normal ethical duties and obligations that we all face.

Social Web model

An individual who argues that firms should be managed for the sole benefit of stockholders is defending the:

economic model of CSR.

Identify the gatekeepers who should guarantee that executives act on behalf of the stockholders' interests.

Board of directors

When professionals have a professional and ethical obligation to their clients, duties that override their own personal interests, they are said to have:

fiduciary duties

Which of the following elements of COSO are policies and procedures that support the control environment?

Control activities

Which of the following legal duties suggests that a board member may never use information obtained through her or his position as a board member for personal gain, but instead must act in the best interests of the organization?

Duty of loyalty

The law has created a form of business that limits the liability of individuals for the risks involved in business activities. Identify the form of business.

Corporation

Auditors verify a company's financial statements so that investors' decisions are free from fraud and deception.

True

The Public Accounting Reform and Investor Protection Act of 2002 is commonly known as the Sarbanes-Oxley Act.

True

The duty of good faith requires board members to be faithful to the organization's mission.

True

The Federal Sentencing Guidelines (FSG) suggests that a board exercise 'reasonable oversight' with respect to the implementation and effectiveness of the ethics/compliance program.

True

Which of the following duties of board members suggests that conflicts of interest are always to be resolved in favor of the corporation?

Duty of loyalty

Due to diverse employee groups and management styles, the work culture of a large global firm in one country will differ significantly from the work culture of the same firm halfway around the world.

False

A values-based culture recognizes that where rules do not apply, the firm must rely on the personal integrity of its workforce during decision-making.

True

In the development of guiding principles for the firm, articulation of a clear vision regarding the firm's direction is a step that precedes the step of asking yourself what you stand for or what the company stands for.

False

One of the most determinative elements of integration is communication.

True

The United States Sentencing Commission is an independent agency that regulates sentencing policies in the federal court system.

True

Defining the specific culture within an organization is a difficult task. Which of the following is a factor that is partially responsible for this difficulty and impacts the organizational culture in a circular way?

Perception of participants

Which of the following is true about corporate culture?

A compliance culture is only as strong and as precise as the rules that workers are expected to follow.

Which of the following is a feature of an evolved and inclusive ethics program, as opposed to a traditional compliance-oriented program?

Helping to unify a firm's global operations

What serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment?

Mission statement

The second step in the development of guiding principles for the firm is:

the articulation of a clear vision regarding the firm's direction

Due to diverse employee groups and management styles, the work culture of a large global firm in one country will differ significantly from the work culture of the same firm halfway around the world.

False

Corporate culture shapes, and is shaped, by the people who are members of the organization.

True

In situations where an organization lacks strong leadership for ethical decision making despite the clarity of law, the business culture is likely to be the determining factor in the decision.

False

Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes?

Compliance-based culture

Which of the following is a feature of an evolved and inclusive ethics program, as opposed to a traditional compliance-oriented program?

Helping to unify a firm's global operations

The means used to motivate others and achieve one's goals plays a key role in distinguishing between:

effective leaders and ethical leaders.

Ethically appropriate methods of leadership alone are insufficient for establishing ethical leadership. Identify the other element.

The ends or objective towards which the leader leads.

Which of the following is usually the only "value" in an organization in the absence of any other established values?

Profit-at any cost

The second step in the development of guiding principles for the firm is:

the articulation of a clear vision regarding the firm's direction.

What is the term used to describe a potentially damaging or ethically challenged corporate culture?

"Toxic" culture

Identify the correct statement about Electronic Communications Privacy Act of 1986 (ECPA).

A firm that secures employee consent to monitoring at the time of hire is immune from ECPA liability.

Values that are fundamental across culture are called:

hypernorms.

The Constitution's Fourth Amendment protection against an unreasonable search and seizure governs only the private sector workplace.

False

Privacy is important because it serves to define one's individuality.

True

When we do not get to know someone because we do not have to see that person in order to do our business, we often do not take into account the impact of our decisions on him or her. This is the challenge posed by:

the facelessness that results from the use of new technology accessible in the workplace.

Discrimination laws do not protect individuals against discrimination on the basis of political involvement.

False

Which of the following states in the U.S. is the only one that requires employers to notify workers when they are being monitored?

Connecticut

The right to privacy, which is founded on a universal right to autonomy, is restricted by a prevalent social contract in our culture.

True

The most prevalent subject of monitoring is videotaping.

False

Privacy can be legally protected by all of the following except:

affirmative action.

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