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80 terms

Business ethics

Columbus state business ethics BMGT 2216
STUDY
PLAY
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.