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Ethics Exam Ch 1 - 4
Terms in this set (84)
more than a compliance program, biz ethics is becoming
a management issue to achieve competitive advantage
Most organizations with strong ethical climates usually focus on the core value of placing ____ interests first
The 1960s saw a rise of consumerism. What is consumerism
Activities undertaken by independent individuals, and groups to protect their rights as consumers
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
Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
The Foreign Corrupt Practices Act outlawed
bribery of officials in other countries.
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 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 _____ to assist in maintaining transparency in financial reporting.
codes of ethics
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 Dodd-Frank Wall Street Reform and Consumer Protection Act
was designed to make the financial services industry more responsible.
specific and pervasive boundaries for behavior that are universal and absolute.
Ethical culture is defined as:
acceptable behavior as defined by the company and industry
Investors are concerned about business ethics because they know that misconduct can:
lower stock value and prices
One of the major ethical issues President Obama's administration focused on was:
health care and consumer protection
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.
The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
Federal Sentencing Guidelines for Organizations
In the Reagan/Bush eras, the major focus of the business world was on
self-regulation rather than regulation by government.
Which of the following is generally not considered a business ethics issue?
Ethics is a part of decision making
at all levels of work and management.
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
Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
What are the four levels of social responsibility
Legal, economic, ethical, and philanthropic
A stakeholder group that is absolutely necessary for a firm's survival is defined as:
Which of the following are not typically secondary stakeholders?
When unethical acts are discovered in a firm, in most instances
there was knowing cooperation or complicity from within the company.
Which of the following is a major ethical concern among corporate
boards of directors?
A stakeholder orientation is not complete unless it includes
activities that actually address stakeholder issues.
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.
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:
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.
Which of the following are not typically primary stakeholders?
Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was:
The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is
Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?
What is the first step in implementing a stakeholder perspective in an organization?
Assessing the corporate culture
In corporate governance, _______ is the process of auditing and improving organizational decisions and actions.
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?
The degree to which a firm understands and addresses stakeholder demands can be referred to as.
A stakeholder orientation can be viewed as a(n):
The model is founded in classic economic precepts.
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?
Those who have claim on some aspect of the firms products, operations, markets, industry, and outcomes are known as:
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.
Ethical issues in business typically arise because of conflicts between individuals' personal moral philosophies and values and the:
values and attitudes of the organization in which they work and the society in which they live.
Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred?
Is your boss treating you well and compensating you adequately?
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
The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people
Affirmative action programs
involve the recruitment, hiring, promotion, and training of qualified
When a commercial states that a product is superior to any other on the market, the marketer risks accusations of
Which of the following statements is most correct?
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 side-effect of being the victim of workplace bullying?
Among retail stores, is a larger problem than customer shoplifting.
internal employee theft
Optimization is defined as:
trade-off beterrn equity and efficiency
______ involves tricking individuals into revealing their passwords or other valuable corporate information.
An activity is probably ethical if it
is approved of by most individuals in the organization and is customary in the industry.
Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
intellectual property rights
__________ tie(s) an organziation's product(s) directly to a social concern through a marketing program.
Which of the following acts exempted the insurance industry from antitrust legislation?
McCarran-Ferguson Act of 1944
Which of the following groups is not a group that receives special legal protections?
Which of the following acts can be classified as procompetitive legislation?
Sherman Antiturst Act of 1890
Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?
Institutionalization of 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?
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 primary objective of U.S. antitrust laws is to:
distinguish competitive strategies that enhance consumer welfare from those that reduce it.
The ___________ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.
The Food and Drug Administration
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:
The Sarbanes-Oxley Act created the _________ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.
Public Company Accounting Oversight Board
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
Which of the following is not a provision of the Sarbanes-Oxley Act?
Discourages the creation of ethical and legal compliance programs
The ___________ was established to prevent the type of risk-taking, deceptive practices,and lack of oversight that led to the 2008-2009 financial crisis.
Dodd-Frank Wall Street Reform and Consumer Protection Act
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.
Who provides information to managers, investors, tax authorities, and other stakeholders who make resource allocation decisions for corporations?
Which is not one of the four sources of criminal and civil laws?
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 Financial Protection Bureau
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
What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
Because the large size creates economies of scale and they can charge lower prices
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
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