Business Ethics Chapter 1 example #40717

31 December 2023
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What will happen to a firm found to be in violation if the company had proactively tried to prevent misconduct from occurring?
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Penalties or fines may be reduced.
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More than a compliance program, business ethics is becoming
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a management issue to achieve competitive advantage.
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Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
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Sarbanes-Oxley Act.
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Investors are concerned about business ethics because they know that misconduct can
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lower stock value and prices.
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Most organizations with strong ethical climates usually focus on the core value of placing _____ interests first.
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customers'
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​Every organization has the potential for unethical behavior, even if it is not a business.
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True
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Business ethics is a part of decision making
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at all levels of work and management.
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Corporate social responsibility is
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an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
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​Morals are enduring beliefs and ideals that are socially enforced.
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False
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Which of the following statements is true about business ethics?
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There is no conflict between profits and business ethics.
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Values are
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enduring beliefs and ideals that are socially enforced.
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Employees' perceptions of their firm as having an ethical climate leads to
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enhanced outcomes.
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Why is the public more tolerant of consumer misconduct than business misconduct?
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There are big differences in wealth and success between businesses and consumers.
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What happens when society deems a particular business action as wrong or unethical? ​
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​Legislation usually follows.
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_____ is essential in building long-term relationships between businesses and consumers.
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Trust
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The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
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Federal Sentencing Guidelines for Organizations
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Employees who view their organizational culture as ethical are more likely to
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make personal sacrifices for the organization.
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Principles are
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specific and pervasive boundaries for behavior that are universal and absolute.
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Many consumers are willing to pay more money for socially responsible products.
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True
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Ethical culture is defined as
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acceptable behavior as defined by the company and industry.