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ethics exam 1

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Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"?
the right to be ethical
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.
Sarbanes-Oxley Act
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
he 1960s saw a rise of consumerism. What is consumerism?
Activities undertaken by independent individuals, and groups to protect their rights as consumers
The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
Federal Sentencing Guidelines for Organizations
The ____ model is founded in classic economic precepts
shareholder
Why do critics argue that high compensation for boards of directors is a bad thing?
It could cause conflicts of interest between the directors and the organization
One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that ____
managers should earn no more than twenty times the pay of other employees
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.
stakeholder interaction model
In corporate governance, ____ is the process of auditing and improving organizational decisions and actions.
control
Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?
Improve employee compensation and retention
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
conflicts of interest.
________ law defines the rights and duties of individuals and organizations (including businesses).
Civil
__________ tie(s) an organziation's product(s) directly to a social concern through a marketing program.
Cause-related marketing
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?
Pure Food and Drug Act of 1906
___ is essential in building long-term relationships between businesses and consumers.
Trust
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 work place.
The Dodd-Frank Wall Street Reform and Consumer Protection Act
was designed to make the financial services industry more responsible
The six principles of the Defense industry initiative on Business Ethics and Conduct became the foundation for
the Federal Sentencing Guidelines for Organizations
The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
Adam Smith
What are the four levels of social responsibility?
Legal, economic, ethical and philanthropic
The first of the three activities that are associated with the stakeholder orientation is the
organization wide generation of data
A stakeholder orientation is not complete unless it includes
activities that actually address stakeholder issue
A firm that makes use of a ____ recognizes other stakeholders, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments
stakeholder interaction model
The ethical decision making process begins
when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.
Which of the following is not a consequence of ethical misconduct
increased sales
The following are consequences of ethical misconduct
decreased reputation
shaken customer loyalty
reduced investor confidence
legal actions by wronged parties
____ are used to obtain or retain business and are not generally considered illegal in the US
Facilitation payments
___ is an important element of virtue and means being whole, sound, and in unimpaired condition.
Integrity
When Devon looked at what another employee was typing in order to get a password, he committed
shoulder surfing
Which of the following acts exempted the insurance industry from antitrust legislation?
McCarran-Ferguson Act of 1944
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
employee compensation
Donation of computer equipment to schools by Toshiba would be associated with ____ responsibilities.
voluntary
The ____ was called a "sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression"
Dodd-Frank Wall Street Reform and Consumer Protection Act
Part of the reason why credit ratings firms fit 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 conflict on interest
Investors are concerned about business ethics because they know that misconduct can
lower stock value and prices
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
One of the major ethical issues President Obama's administration focused on was
health care and consumer protection
The Foreign Corrupt Practices Act outlawed
bribery of officials in other countries
A stakeholder group that is absolutely necessary for a firm's survival is defined as
primary
The corporate governance, ___ is the process of auditing and and improving organizational decisions and actions.
control
Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?
Material resources and/or intangible knowledge
Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
Community
The degree to which a firm understand and addresses stakeholder demands can be referred to as
a stakeholder orientation
Optimization is defined as
a trade-off between equity and efficiency
___ involves tricking individuals intro revealing their passwords or other valuable corporate information.
social engineering
Ethical issues in business typically arise because of conflicts between individual's personal moral philosophies and values and the
values and attitudes of the organization in which they work and the society in which they live
Issues related to fairness and honesty may arise because business is sometimes regarded as a
game governed by its own rules rather than those of society
Which of the following statements in most correct?
Affirmative action programs involve efforts to recruit, hire, train and promote qualified individuals from groups that have traditional been discriminated against on the basis or race, gender, or other characteristics
Which of the following is not a reason why the institutionalization of business ethics has progresses in recent decades?
Institutionalization of business ethics is now mandated for all organizations by governments around the world
Which of the following is not an aspect of the institutionalization of social responsibility?
familial responsibilities
Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?
Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act
The 1960s saw a rise of consumerism. What is consumerism?
Activities undertaken by independent individuals, and groups to protect their rights as consumers
The Foreign Corrupt Practices Act outlawed
Bribery of officials in other countries
Ethics is a part of decision making
At all levels of work and management
Ethical culture is defined as
Acceptable behavior as defined by the company and industry
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 degree to which a firm understands and addresses stakeholder demands can be referred to as:
A stakeholder orientation.
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?
Milton Friedman.
When unethical acts are discovered in a firm, in most instances
There was knowing cooperation or complicity from within the company
Those who have a claim in some aspect of a firm's products operations, markets, industry and outcomes are known as
Stakeholders
The first step toward understanding business ethics is to
Develop ethical-issue awareness.
________is the offering of something of value in order to gain an illicit advantage
Bribery
Which of the following is not a consequence of ethical misconduct?
Increased sales
When a commercial states that a product is superior to any other on the market, the marketer risks accusations of
Deceptive advertising
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
noise
______ responsibilities relate to a business's contributions to stakeholders.
Voluntary
Which of the forces of the business environment involves the rivalry among businesses for customers and profits?
The competitive dimension
Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except :
Free samples.
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."
Consumer Finanacual Protection Bureau
In the Reagan/Bush eras, the major focus of the business world was on
self-regulation rather than regulation by government
Most organizations with strong ethical climates usually focus on the core value of placing _____ interests first.
customers'
More than a compliance program, business ethics is becoming
a management issue to achieve competitive advantage
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Federal Sentencing Guidelines for Organizations
In ascending order, Carroll's four levels of social responsibility are
economic, legal, ethical, philanthropic
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
Milton Friedman
Which of the following is not associated with the stakeholder interaction model?
Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders
Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
Pro-bono bookkeeping
Accountants must abide by a strict code of ethics that defines their responsibilities to
their clients and the public interest.
Affirmative action programs
involve the recruitment, hiring, promotion, and training of qualified individuals
The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people
who are between 39-69.
Which of the following is not an aspect of the institutionalization of social responsibility?
Familial responsibilities
Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except :
free samples
Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
any practice is permitted that does not substantially reduce competition and harm consumers or society.
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 conflict of interest.
The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
he Federal Sentencing Guidelines for Organizations
Which of the following was not a provision of the Sarbanes-Oxley Act?
It outlawed bribery of officials in other countries
Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
Sarbanes-Oxley Act.
A stakeholder orientation can be viewed as a(n):
continum
Accountability, oversight, and control all fall under the definition and implementation of corporate
governance.
In corporate governance, ___ is the process of auditing and improving organizational decisions and actions.
control
Which of the following is not a side-effect of being the victim of workplace bullying?
increased productivity
When a commercial states that a product is superior to any other on the market, the marketer risks accusations of
puffery.
A company can be sued for discrimination if it
uses age as a hiring for firing criterion
Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
Creates an organization to pay the bills of low-income consumers
____ responsibilities relate to a business's contributions to stakeholders.
voluntary
_______ 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.
Strategic philanthropy
The __________ of ethics involves embedding values, norms, and artifiacts in organizations, industries, and society.
institutionalization