BUS-112 Chapter 4

Obeying the law is ________ ethical behavior. A. essentially the same as B. the first step toward C. the opposite of D. unlikely to lead to

________ refers to standards of moral behavior. A. Legality B. Responsibility C. Integrity D. Ethics

A recent study revealed that most Americans have: A. strong moral values. B. a strong desire to do what is right. C. few moral absolutes. D. a great desire to help their community.

Which of the following statements describes ethical behavior in the U.S.? A. Due to the diverse cultures that make up the U.S. it is difficult to identify common standards of ethical behavior. B. The only common standards of ethical behavior in the U.S. are reflected in religious teachings. C. We can find common moral values that many Americans uphold, including respect for human life, self-control, honesty, integrity, and courage. D. Americans will generally describe the golden rule as the only statement of value that they uphold.

The danger in writing new laws to correct behavior is that: A. people may begin to think that any behavior that is legal is acceptable. B. people will see the difference between ethics and legality. C. legal behavior will reflect the totality of people's relations with one another. D. there will not be enough jails to house those who break the law.

Given the ethical lapses that are prevalent today in our businesses, which of the following can be done to restore trust in the free-market system and leaders in general? A. Business leaders that have broken the law should be given another chance. B. New laws making accounting records transparent may help restore trust. C. Making the government accountable for business leader behavior will restore trust. D. It's up to the government to pass laws requiring ethical behavior of all leaders, business and otherwise.

Laws represent the standards of ________ behavior. A. ethical B. legal C. moral D. socially responsible

Ethical behavior covers a ________ range of conduct than legal behavior. A. wider B. more limited C. smaller D. less demanding

Many individuals today believe that ethical behavior is determined by what is best for them at the time. This is an example of: A. situational ethics. B. moral absolutes. C. the Golden Rule. D. new age realism.

Considering the potential impact on others prior to making a decision is consistent with ________ behavior. A. legal B. anti-social C. ethical D. self-motivated

Many Americans define ethical behavior according to the situation in which they find themselves. This suggests that there may be situations where ________ to cheat, steal, or lie. A. it is absolutely wrong B. it might be okay C. business people are expected D. capitalism forces people

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm. Enron and WorldCom participated in inappropriate accounting methods. According to the Making Ethical Decisions box: A. The notion that the financial system is complicated and difficult to understand often perpetuates these crimes. B. Madoff was convicted for his crime because he was a "lone ranger" in white-collar crime, whereas Enron and WorldCom were part of the "too big to fail" corporations. The government was compelled to protect them due to the fact that too many people would lose their jobs. C. Ponzi schemes are not illegal. This was a case of "buyer beware." The investor must take the majority of the responsibility for not performing due diligence prior to investing with Madoff. D. Enron's and WorldCom's executives were acquitted of crime because they were using generally accepted accounting principles, and no whistleblowers came forward to attest to any wrongdoing.

Purposefully understating your firm's income to avoid paying higher taxes is an example of: A. an accepted business practice. B. tax accountants doing their job. C. illegal behavior. D. a firm's responsibility to its owners.

The purpose of sobriety checkpoints that are set up by community and state police is to deter drunk driving and ultimately save lives. While not mandated, the makers of Blackberry have complied with the public request of several legislators and have obediently removed apps that permit smartphone users to navigate around the checkpoints. Google and Apple have elected not to honor such requests. After studying about ethics and social responsibility, which of the following statements applies to this situation? A. Laws represent the minimum guidelines that companies must follow, whereas a firm's ethical stance may venture beyond the minimum level of compliance. B. Google and Apple are showing corporate social responsibility because they demonstrate concern for their investors, which is exactly where their focus should be. C. Blackberry is acting philanthropically toward government. D. Google and Apple are showing their distrust for big government, and their avoidance of contributing toward philanthropic causes.

When WorldCom used intentional accounting irregularities to make the company look more profitable than it actually was, it: A. provided its stockholders profit through a tax loophole. B. acted in an acceptable business manner. C. engaged in illegal behavior. D. executed its responsibility to its owners.

Cigarette producers refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is: A. the intended approach. B. the desired approach. C. not the desired approach. D. not really a concern.

When Angela graduated with a degree in computer science and started her software company, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated: A. her commitment to high ethical standards of behavior. B. her commitment to respect the law. C. her expectation that all employees follow the laws that apply to the business. D. her aversion to cheating, stealing, and dishonesty.

After a few years of being in business, employees who worked for a start-up software company noticed that the owner overlooked certain questionable actions of high billing associates, versus other employees who worked hard but only brought in an average number of new clients each month. With respect to what you learned in this chapter about the ethical behavior of many Americans, which of the following statements applies here? A. This story indicates that moral absolutes are very prevalent today in business settings. B. The owner will continue to operate this way until someone blows the whistle. C. We cannot expect people in the U.S. to all follow similar ethical patterns because there are too many cultures to deal with. Businesses are no different. D. As is often the case today, some leaders will look at each situation individually when making value judgments.

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical? A. Can I do this without getting caught? B. Is it balanced? C. Has it been done before? D. Is there a desirable alternative?

When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with ___________________. A. schools B. religious institutions C. law enforcement officers D. each of us

The first step when facing an ethical dilemma is to ask: A. "Is it legal?" B. "Is it balanced?" C. "How will it make me feel about myself?" D. "Is it ethical?"

Which of the following questions can help us avoid a decision that would injure our self-esteem? A. Is it legal? B. Is it balanced? C. How will it make me feel about myself? D. How can I avoid taking the blame?

Ethical dilemmas in business: A. force us to make poor choices. B. always end up bringing out the best in us. C. often force us to choose between equally unsatisfactory alternatives. D. define us as being moral absolutists or moral situationalists.

Ethical behavior will result in which of the following? A. Mistrust between employees and managers. B. Agreements that create benefits for only the shareholders. C. Negative publicity from the news media. D. Improved self-esteem making us feel good about our decision.

Business relationships often present ethical dilemmas that are: A. not easily resolved. B. easily resolved by following the relevant laws. C. best resolved by creating a win-lose situation. D. irrelevant and therefore require no action.

An ethical dilemma refers to a situation where you must: A. treat someone unfairly. B. choose between equally unsatisfactory alternatives. C. choose between a correct and an incorrect option. D. balance the concerns of profit and legality.

A U.S. government official has indicated that for a generous contribution to his reelection fund, he would ignore your firm's apparent violation of several anti-pollution laws. Which of the following "ethics check questions" would you consider first? A. Is it legal? B. Is it fair and balanced? C. How will it make me feel about myself? D. Is it a generous amount?

A friend offers to share with you a term paper previously prepared for her Introduction to Business class last semester. When you tell her that it wouldn't be fair, she reminds you of your habit of reading an entire Harry Potter book at the local bookstore without paying for the book. Which ethics-based question would be most helpful in evaluating these situations? A. Is it legal? B. Is it balanced? C. Who wins and who loses? D. Will I get caught?

A high-level manager gathers his team of supervisors together to create a new office policy that will affect all employees at the company. After receiving a verbal okay from the supervisors, he then proceeds to pass around a written form of the new policy and asks all members of the team to initial it. He explains to the supervisors that the new policy will be posted in the break rooms on each floor of corporate headquarters. If you were a part of this work team, which question would you ultimately ask yourself before initialing your approval of this policy? A. Is it legal? B. Is it balanced? C. How will it make me feel about myself? D. Is it a lose-lose situation?

The majority of CEOs blame unethical employee conduct on: A. the breakdown of traditional religious institutions. B. a failure of leadership to establish ethical standards. C. the increase in lawsuits used to avoid personal responsibility. D. the nation's business schools that tolerate unethical behavior in students.

Ethical behavior at work is learned by: A. attending corporate responsibility seminars. B. tracking the failures of those who are caught in business scandals. C. reading about why others were fired from the job. D. observing the actions of others.

Which of the following is a reason why a business should be managed ethically? A. It is the right thing to do. B. Strict global regulations require it. C. It is the law in the U.S. D. Employees demand it.

Relationships between businesses and among nations: A. should be based on international law, exclusively. B. should be based on fairness, honesty, openness, and moral integrity. C. should be scrutinized carefully to make some determination as to whether both sides have the same type of leader behavior when it comes to assigning work. D. will be adversarial because seldom does either side believe in win-win situations.

Corporate values are: A. a personal matter to be determined by each employee. B. taught by attending company-sponsored seminars. C. instilled by the leadership of outside consultants. D. learned by observing the actions of others in the organization.

When managers disregard ethical concerns, the likely result is: A. a reduction in employee turnover. B. an improvement in overall manager morale. C. a reduction in lawsuits. D. a general mistrust between workers and management.

Creating competition between employees within the corporation: A. can encourage employees to deceive customers. B. should focus on improving corporate profit. C. must be ignored when corporate ethics are developed. D. can bring out the best in employees.

Following an ethics-based approach to decision making will normally lead to higher: A. profits. B. trust and cooperation. C. prices. D. employee turnover.

Following an ethics-based approach to decision making will normally lead to: A. higher profits. B. lower employee turnover. C. lower prices. D. more competition.

The Hum-dinger Corporation recently instituted a corporate ethics code. The president of the company realizes that ethical relationships are based on: A. fairness and honesty. B. strict penalties for illegal activities. C. a full-time compliance officer monitoring employee behavior. D. watchdogs and whistleblowers.

Which of the following would most likely involve ethical concerns? A. Overstating an expense report. B. Forecasting sales for the next year. C. Developing the marketing plan for the next year. D. Improving working conditions.

With respect to business ethics, it can be said that "it takes two to tango." This indicates that: A. dancing around issues should be part of a firm's code of ethics. B. an individual's behavior is influenced by the behavior of others. C. teamwork eliminates a need for personal ethics. D. management is insensitive to ethical issues.

Establishing a formal code of ethics is: A. more common with small businesses than large businesses. B. unnecessary given the level of government regulation. C. growing in popularity. D. mandated by the Corporate and Criminal Fraud Accountability Act.

A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers. A. legal B. corporate responsibility C. compliance D. integrity

Which of the following terms describes someone who reports illegal or unethical behavior? A. whistleblower B. horn blower C. watch tower sentinel D. integrity watchdog

A(n) ________-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees. A. social B. corporate responsibility C. compliance D. integrity

Compliance-based ethics codes: A. conform to laws and regulations. B. enable responsible employee conduct. C. use education, leadership, and accountability to reinforce the code. D. create a "do-it-right" climate that emphasizes core values.

To improve America's business ethics: A. Congress must pass an ethics bill. B. ethics must be taught in every business school around the globe. C. a company's suppliers must be thoroughly investigated for ethical violations. D. company leaders should adopt and support a corporate code of ethics.

After developing a code of ethics, it should be communicated to: A. everyone with whom the business has dealings. B. the Attorney General in jurisdictions where the business has operations. C. all levels of management. D. stockholders.

A whistleblower is a person who: A. monitors employees who work overtime. B. reports illegal or unethical behavior in the corporation. C. reports health or other corporate emergencies to 911. D. works in the human resource department.

Which of the following is a characteristic of an effective ethics officer? A. (S)he has a background in human resource management. B. (S)he is exceptionally organized. C. (S)he has a capacity to serve as a counselor and an investigator. D. (S)he communicates primarily via e-mail.