Bus. Ethics 5-7

Ethics are primarily based on religious beliefs. T or F

Ethical ideas are present in all societies, all organizations, and all individual persons. T or F

If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree. T or F

Business must develop its own definition of what is right and wrong, apart from ethics. T or F

Business cannot expect to be profitable while adhering to ethical principles of conduct. T or F

The U.S. Corporate Sentencing Guidelines provide a strong incentive for businesses to promote their ethics at work. T or F

The Sarbanes-Oxley Act requires that firms maintain good financial practices, apart from high ethical standards, in how they conduct and monitor business operations. T or F

An ethical egoist acts for the benefit of others and sacrifices self-interest. T or F

Because managers make major decisions, they have limited opportunity to influence the ethical tone of the firm. T or F

Only in the last few years have scholars found a positive relationship between an organization's economic performance and attention to spiritual values. T or F

Managers in the same company are likely to be at the same stages of moral reasoning at any given time. T or F

For managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass. T or F

According to utilitarian reasoning, an action is ethically preferred when its benefits outweigh its costs. T or F

Business managers should use all four methods of ethical reasoning—virtues, utility, rights, and justice—to better understand ethical issues at work. T or F

Moral intensity refers to the perception of how illegal an ethical issue is. T or F

A conception of right and wrong is: Impossible to know. The definition of ethics. Determined by power. Based on stakeholder dialogue.

People's ethical beliefs come from: Legislative action and judicial decisions. Reading the company's profit and loss statements. Their religious background, family, and education. The organization's code of ethics.

People everywhere depend on ethical systems to tell them whether their actions are: Legal or illegal. Right or wrong. Financially attainable or not. Logical and reasonable judgment.

Businesses are expected to be ethical in their relationships with: Stockholders. Customers. Competitors. All of these answers are correct.

Why should business be ethical, according to Figure 5.1? Most people want to act in ways that are consistent with their own sense of right and wrong. Ethical behavior protects business firms from abuse by unethical employees and competitors. Society's stakeholders expect it from businesses. All of these answers are correct.

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: Increased. Reduced. Unaffected. Decided by the company.

Under the Sarbanes-Oxley Act, corporations are required to: Have executives vouch for the accuracy of a firm's financial reports. Have their audit committee comprised of only executives employed by the firm. Collect reimbursements from the U.S. government if financial restatements occur. All of these answers are correct.

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of: Conflict of interest. Ethical relativism. Moral development. Egotism.

Cross-cultural contradictions arise due to: The emergence of a developing country's economic power. Religious differences practiced by business executives. Differences between home and host countries' ethical standards. All of these are correct.

An ethics issue based on cross-cultural contradictions is best illustrated by which example? Legally marketing a pesticide abroad that has been banned in the U.S. Circumventing government regulations to ensure company profits. Hiring child workers in violation of civil law. False and misleading advertising claims.

As business becomes increasingly global: It must turn to national laws for guidance. Ethical issues become issues of free trade. A global code of conduct will emerge for businesses. Cross-cultural contradictions will increase.

A recent study found that, compared to the 1980s, managers today place what importance on moral values, such as honesty and forgiveness? Less important. About the same importance. Slightly more important. Triple the importance.

According to a 2017 survey, Americans hold a dim view of: Nurses. The Supreme Court. Churches. Business executives.

According to an annual Gallup poll, which occupation was consistently ranked the highest for honesty and ethics? Congressional members. Car salespeople. Nurses. Clergy.

Scholars found that spirituality affects employee and organizational performance in what way? Negatively. Positively. Has no affect. Only affects not-for-profit organizations

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of: Philosophers. Chaplains. Financial advisors. Ombudspersons.

Which statement characterizes the moral reasoning typically found in a child? "When in Rome, do as the Romans do." "I'll let you play with my toy if I play with yours." "Seek the greatest good for the greatest number." "Respect the rights of others."

Mature adults typically base their ethical reasoning on broad principles and relationships such as: Human rights and constitutional guarantees of human dignity. Universal principles of justice. Customs and traditions show by their peers. Both of these answers are correct: Human rights and constitutional guarantees of human dignity; and universal principles of justice.

All of the following values are present in most ethical decisions except: Be fair and just. Be kind. Act responsibly. Be honest.

Business managers need a set of ethical guidelines to help them: Understand the changing customs throughout the world. Justify the resolution which best helps themselves. Identify and analyze the nature of ethical problem. None of these answers is correct.

Aristotle argued: Self-control is the most virtuous of values. Faith is a road to charity and modesty. Moral virtue is a mean between two virtues. High-mindedness delivers human integrity.

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to: Utilitarian reasoning. Virtue ethics. Theological reasoning. Plato and Aristotle.

The main drawback to utilitarian reasoning is that: The majority may override the rights of those in the minority. Managers using this reasoning process often fail to consider the means taken to reach the end. It is difficulty to accurately measure both costs and benefits. Cost-benefit calculations can only be provided by accountants.

At the core of rights reasoning is the belief that: The company's right to a profit must be protected. Respecting others is the essence of human rights. The right to join a union is no longer universally accepted. Economic and political powers determine who is right.

Which of the following is not true about justice reasoning? The reasoner is interested in the net value of benefits. The reasoner considers who pays the costs and who receives the benefits. The reasoner seeks a fair distribution to all affected. The reasoner relies upon some accepted rule or standard.

A just or fair ethical decision occurs when: The rights of all affected are considered. The greatest good for those with power is achieved. Benefits and burdens are distributed in fair proportions. Benefits exceed costs.

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups: May honestly and genuinely use different sources of information. May rank various rights in different ways. May not share the same meaning of justice. All of these answers are correct.

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as: Temporal immediacy. Social consensus. Proximity. Probability.

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which of the following? A manager used company funds to pay for personal expenses. Sexual harassment has become less socially acceptable since the "#MeToo" movement. An employee stole paper clips from the supply closet. A food product contaminated with salmonella was distributed to stores.

In the case Lafarge-Holcim and ISIS in Syria, a utilitarian benefit of keeping the plant open was: Worker lives were in danger. Operations were under threat. Employees received paychecks. The local community lost jobs.

Personal values and moral character play key roles in improving a company's ethical performance. T or F

In most companies, a moral atmosphere cannot be detected. T or F

In a benevolence ethical climate, the interests of the company's employees and external stakeholders most likely would be given high priority. T or F

Managers, as major decision-makers, are one of the keys to whether a company will act ethically or unethically. T or F

It is impossible for multiple ethical climates to exist within one organization. T or F

The Principles and Standards of Ethical Supply Chain Management Conduct focuses on integrity, value, and loyalty. T or F

Honesty, integrity, and accuracy are absolute requirements of the accounting function. T or F

The American Institute of Certified Public Accountants Code directs accountants to be steadfast in honorable behavior, but not to the point of personal sacrifice. T or F

Marketing ethics include having concern for consumer health and safety issues. T or F

The majority of large U.S. corporations do not have codes of ethics. T or F

In the United States, most ethics policies are based primarily on the company's mission and vision. T or F

Ethics training is typically the most costly element of an ethics program. T or F

Today, more companies than ever are turning to formal ethics audits to measure the quality of their ethics programs. T or F

According to a recent Transparency International survey, Denmark and New Zealand are two countries that are least likely to be subjected to bribery. T or F

Bribery is found in nearly every sector of the global marketplace, but can be worse in some parts of the world. T or F

The core components upon which a company's ethical performance depends include: The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture. All of these answers are correct.

The unspoken understanding among employees of what is and is not acceptable behavior is called: Ethical climate. Corporate image. Ethical relativism. Rites and rituals.

Which of the following is not an example of an ethical criterion? Egoism. Concern for others. Principle. Corporate driven.

If a manager approaches ethics with benevolence in mind, he or she would stress what? Friendly relations with an employee. Company rules and procedures. Laws and professional codes. Economic efficiency.

Which ethical criterion is described by the idea that a company should strive for efficiency? Egoism. Benevolence. Principle. Business-centered.

By law, the financial records of publicly held companies are required to be: Managed by an accounting department of at least five CPAs. Summarized in the employee manual for new hires. Reviewed quarterly by the IRS. Audited by a certified professional accounting firm.

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except: The Public Interest. Objectivity and Independence. Due Process. Due Care.

A member of the Chartered Financial Analyst Institute (CFA) must: Promote the integrity of and uphold the rules governing global capital markets. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. Maintain and improve their professional competence. All of these answers are correct.

All of the following are considered to be ethical issues for marketing professionals except: Fostering trust in the marketing system. Embracing ethical values. Doing no harm. Ignoring market fair dealing.

Ethical challenges for information technology employees include: Data privacy. Laptop speed. Copyright protection. Data privacy and copyright protection.

The Principles and Standards of Ethical Supply Chain Management Conduct includes the principle: Protect confidentiality. Promote competitive relationships with suppliers. Be true to yourself. Social competence.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches: Institutional and Legal. Legal and Practical. Compliance and Integrity. Value-based and Consequentialism.

Building ethical safeguards into a company's everyday routines is called: Change management. Justifying ethics. Institutionalizing ethics. Ethical awareness.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is: Operating under the compliance-based approach. Practicing "tone at the top." Operating under the integrity-based approach. Operating under the instrumental policy approach.

Integrity-based ethics programs: Seek to avoid legal sanctions Combine concern for the law with an emphasis on employee responsibility. Threaten employees with punishment for noncompliance with the ethics program. Are predominately implemented within the European Union.

A giant step is taken toward improving ethical performance throughout the company when: The firm hires a university ethics professor to lecture employees on moral philosophy. The Justice Department launches an investigation of the firm's pricing practices. Senior-level managers signal to employees that they believe ethics is a high priority. A consumer hot line is created and staffed 24 hours a day.

Business managers need a set of ethical guidelines to help them: Understand the changing customs throughout the world. Justify the resolution which best helps them. Identify and analyze the nature of the ethical problem. None of these answers is correct.

Ethics policies typically cover all of the following issues except: Developing guidelines for accepting or refusing gifts from suppliers. Encouraging discriminatory personnel practices. Avoiding conflict of interest. Maintaining the security of proprietary information.

Most ethics or compliance officers are entrusted to: Act as a liaison between the company and their temporary employees. Reduce the risks to the company of employee misconduct. Audit the company's financial records. Arrange customer training courses at a nearby university.

The most effective ethics programs utilize which of the following: Written policy. Posters. Quick reference guides. All of these answers are correct.

Which type of employee is most likely to report ethical issues in the workplace? Rank and file. Middle managers. Executives. Part-time workers.

The critical component in installing an effective ethics program is: To allow all employees the freedom to act as they wish. In hiring an expensive ethics consultant. The integration of various ethics safeguards into a comprehensive program. Maintaining the position as the industry sales leader.

Which company ethics safeguard is commonly implemented as an employee "helpline"? Top management commitment. Code of ethics. Reporting mechanisms. Compliance tracking.

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs? The financial bottom line. Top management commitment. Training programs. Ethical policies.

A company that has ranked amongst the most ethical firms from 2007 to 2017, according to Forbes magazine, is: Amazon.com Walmart AFLAC Equifax

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates? The USA Patriot Act. The UK Bribery Act. The Corruption of Foreign Officials Act. The U.S. Foreign Corrupt Practices Act.

Which of these statements is true about the U.K. Bribery Act? Provides an exemption for "facilitating payments." Contains a strict liability offense for failure to prevent bribery by commercial organizations. Prohibits bribery only for government officials. Requires that improper actions be made "corruptly."

Which country passed major anti-corruption reforms in 2016? Russia. Mexico. Brazil. India.

In the case Equifax's Data Breach, which ethical climate dominated during the data breach? Benevolence. Integrity. Egoism. Team approach.

Government and business together establish the regulatory rules under which business operates in society. T or F

In Europe, unions are prohibited by law to be on businesses' administrative boards. T or F

A cooperative government-business relationship on one issue does not guarantee cooperation on another issue. T or F

Public policy is a plan of action undertaken by business to influence the government. T or F

In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority. T or F

Monetary policies refer to policies that affect the supply, demand, and value of the nation's currency. T or F

A national health care policy is an example of an economic policy. T or F

New improved mining equipment that was found to increase cases of black lung disease because it generated higher levels of dust in the mines is an example of negative externalities. T or F

Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand. T or F

Predatory pricing is a violation of antitrust laws. T or F

Cost-benefit analysis is often used to determine the costs of regulation. T or F

Regulatory activity is often cyclical. T or F

Regulation cannot be applied to international business behavior. T or F

Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries. T or F

The United Nations oversees all international agreements concerning regulations between nations. T or F

Managers' understanding of government regulations is: Both a domestic and international issue. Primarily a domestic issue. Primarily an international issue. An international issue only for large firms.

European Union regulators accused Uber of engaging in: Price-fixing. False advertising. Unfair competition. Unhealthy working conditions

Government's role is to create and enforce laws that: Control businesses' actions in society. Protect businesses' interest in society. Protect society from business. Balance the relationship between business and society.

Around the world, government: Tends to cooperate with business. Tends to be in conflict with business. Sometimes cooperates and sometimes is in conflict with business. Tends to be controlled by business.

Cooperation between business and government often occurs when: They encounter a common problem or enemy. Business can afford it. Business operates at arm's length from the government. Government has the support of the people.

When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called: Government bailouts. Political sanctions. Economic sanctions. Government stop-orders.

Past decisions of the courts, the original basis for the U.S. legal system, are called: Torts. Amendments. Legitimate actions. Common laws.

The Mullahs in Iran is an example of the power of government derived from: A monarchy. A military dictatorship. A religious authority. A democracy.

Governments being asked to regulate driving distractions are examples of a public policy: Input. Goal. Effect. Tool.

Public policy tools involve a combination of: Incentives and political favors. Penalties and prison terms. Incentives and penalties. Political favors and prison terms.

Patterns of government taxing and spending that are intended to stimulate or support the economy are: International standards policies. Social assistance policies. Fiscal policies. Monetary policies.

Policies that affect the supply, demand, and value of a nation's currency are: International standards policies. Social assistance policies. Fiscal policies. Monetary policies.

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank: Influences the size of the nation's money supply. Influences the value of the dollar. Minimizes investor confidence about the nation's future. Both of these answers are correct: Influences the size of the nation's money supply; and influences the value of the dollar.

The primary way of accomplishing public policy is through: Waiting for businesses to act. Lobbying Congress. Regulation. Writing your politician.

When the market fails to adjust for the full costs of a firm's behavior, this is called: Negative externalities. Deregulation. Market failure. Re-regulation.

Which of the following are examples of natural monopolies? Electric utilities and railroads. Cable television and the media. Internet services and trucking. None of these answers are correct.

Government regulations help balance negative externalities such as: No smoking rules enforced to mitigate the effects of second-hand smoke. Gender controls over alcohol purchases and consumption. Drug testing at private businesses. Age restrictions for Social Security recipients.

Regulation can be argued as justified based on: Collective market theory. Utilitarian and justice grounds. The life cycle of regulation. Tradition.

Economic regulations are illustrated by which action? Allowing market forces to set prices. Preventing anticompetitive business practices. Providing protection of pension benefits. Ensuring safe working conditions.

An example of an economic regulatory agency is: Consumer Product Safety Commission. Equal Employment Opportunity Commission. National Highway Traffic Safety Administration. National Labor Relations Board.

An example of a regulatory agency charged with enforcing social regulation is: Federal Aviation Administration. Federal Trade Commission. Federal Communications Commission. Internal Revenue Service.

Total social regulation costs are: Slightly higher than total economic regulation costs. Slightly less than total economic regulation costs. Significantly higher than total economic regulation costs. Equal to total economic regulation costs.

Deregulation has occurred in the following industries: Commercial airlines, sheet metal, and interstate trucking. Commercial airlines, railroads, and financial institutions. Commercial airlines, interstate trucking, and silicon chip manufacturing. Financial institutions, railroads, and silicon chip manufacturing.

Reregulation is: The adoption of regulation in another country to promote trade. Necessary since all regulation has a time limit. The increase or expansion of government regulation. The shifting of regulation to the state level from the national level.

Antitrust laws protect consumers from: Anticompetitive practices by business. Selling products above cost to drive away rivals. Conspiring with business partners to increase competition. Firms using market dominance to expand commerce.

The antitrust enforcement agencies in the United States have the legal authority to: Legalize and enforce fixed prices in the U.S. Fine EU firms unfairly operating in Europe. Block anticompetitive mergers in the U.S. Issue tariffs against a foreign nation involved in illegal business practices.

Which of the following represents a structural remedy for an antitrust violation? Paying a large fine. Breaking up a monopoly. Disclosure of company information to rivals. Agreeing to change a firm's conduct.

Economists reported that the costs of regulatory compliance were highest for: Vehicle safety. Antitrust issues. Worker safety. Consumer protection.

An example of a global regulation that mitigates the impact of jet fuel on the environment is: The Aviation Plan. The Clean Air Act. The Space Force Initiative. The International Space Station.

In the case Should Facebook be Regulated, the primary market failure was: Sales incentives to protect user data exceeded those of selling the data. Sales incentives to sell user data exceeded those of protecting user privacy. The market naturally disincentivized the sale of personal data and there was no market failure. Unplanned costs to distribute user data exceeded the costs of selling the data.