Ethics - Final

An ethical issue is a problem, situation, or opportunity
a. that has no correct answer.
b. that harms the environment.
c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong.
d. requiring an individual, gr

D. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

Ethical issues in business typically arise because of conflicts between individuals & personal moral philosophies and values and the:
a. values and attitudes of the organization in which they work.
b. values and attitudes of the society in which they live

C. values and attitudes of the organization in which they work and the society in which they live.

_________ is an important element of virtue and means being whole, sound, and in unimpaired condition.
a. Optimization
b. Ethical issue
c. Honesty
d. Trust
e. Integrity

E. Integrity

A court found an oil company guilty of placing profits over the safety and well-being of its employees. This situation can be classified as
a. ethical.
b. unethical.
c. an ethical issue.
d. a dilemma.
e. a justice issue.

C. an ethical issue.

A person uncomfortable with his employer & unspoken policy of hiring only white men is experiencing
a. a conflict of interest.
b. an ethical issue.
c. a feeling of guilt.
d. cognitive dissonance.
e. a moral attribute.

B. an ethical issue.

Issues related to fairness and honesty may arise because business is sometimes regarded as a:
a. legal case, where everything must be done to the letter of the law.
b. contest, with the most ethical firm "winning."
c. guerrilla war where anythin

D. game governed by its own rules rather than those of society.

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because:
a. it may lead executives to become violent.
b. it may foster the idea that honesty is unnecessary in business.
c. it may lead organizations to be ex

B. it may foster the idea that honesty is unnecessary in business.

Conflicts of interest exist when employees must choose whether to:
a. advance their own personal interests, those of the organization, or those of some other group.
b. advance the interests of the organization or those of society.
c. accept bribes or not.

A. advance their own personal interests, those of the organization, or those of some other group.

____________ is the offering of something of value in order to gain an illicit advantage.
a. Shoulder surfing
b. Hacking
c. Gift exchange
d. Conflicts of interest
e. Bribery

E. Bribery

Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
a. Conflict of interest
b. Honesty
c. Communications
d. Discrimination
e. Intellectual property rights

e. Intellectual property rights

__________ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
a. Stealing
b. Lying
c. Fraud
d. Misappropriation
e. Accounting fraud

c. Fraud

In marketing communications, lying causes predicaments for companies because it destroys:
a. trust.
b. honor.
c. confidence.
d. integrity.
e. products.

a. trust.

When a commercial states that a product is superior to any other on the market, the marketer risks accusations of:
a. concealed facts.
b. false labeling.
c. deceptive advertising.
d. concealed facts.
e. puffery.

e. puffery.

Optimization is defined as:
a. the quality of being just, equitable, and impartial.
b. a trade-off between equity and efficiency.
c. an interchange of giving and receiving in social relationships.
d. how wealth or income is distributed between employees w

b. a trade-off between equity and efficiency.

Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?
a. Discrimination
b. Bullying
c. Lying
d. Misuse of company resources
e. Sexual harassment

d. Misuse of company resources

An activity is probably ethical if it:
a. is approved of by most individuals in the organization and is customary in the industry.
b. is approved of by no one in the organization, but has been carried out in the industry before.
c. is customary in the ind

a. is approved of by most individuals in the organization and is customary in the industry.

The first step toward understanding business ethics is to:
a. know your company & ethical policies.
b. know your own morals and philosophies.
c. know society & ethical policies.
d. develop ethical-issue awareness.
e. develop a set of decision-making rules

d. develop ethical-issue awareness.

Among retail stores, is a larger problem than customer shoplifting.
a. poor stock performance
b. weak leadership
c. internal employee theft
d. misuse of merchandise
e. employee dissatisfaction

c. internal employee theft

The ethical decision-making process begins
a. with a conflict of interest.
b. when an individual experiences a conflict between his or her values and those of his or her firm.
c. when stakeholders trigger ethical issue awareness and individuals openly dis

c. when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.

Which of the following is not a side-effect of being the victim of workplace bullying?
a. Increased productivity
b. Sleep disturbance
c. Depression
d. Increased sick days
e. Stomach problems

a. Increased productivity

Accountants must abide by a strict code of ethics that defines their responsibilities to
a. their clients only.
b. their clients and the public interest.
c. the public only.
d. their investors and shareholders.
e. government regulators.

b. their clients and the public interest.

Which of the following statements is most correct?
a. Affirmative action programs require quotas to govern employment decisions.
b. Affirmative action programs have eliminated discrimination in employment.
c. Affirmative action programs are required in al

d. 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 question you need to ask when you suspect that workplace bullying has occurred?
a. Is your boss treating you well and compensating you adequately?
b. Is your boss asking obviously impossible things from you without training

a. Is your boss treating you well and compensating you adequately?

_________ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.
a. A code of conduct
b. Sexual harassment
c. Coercive power
d. Bullying
e. Rewards

d. Bullying

Which of the following is not a consequence of ethical misconduct?
a. Decreased reputation
b. Shaken customer loyalty
c. Reduced investor confidence
d. Increased sales
e. Legal actions by wronged parties

d. Increased sales

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people
a. who are under the age of 18.
b. who are between 16 and 20.
c. who are between 39-69.
d. who are past retirement age.
e. who are younger than

c. who are between 39-69.

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
a. Physical threats
b. False accusations
c. Being annoying
d. Profanity
e. Performance probation

e. Performance probation

The _________ makes it illegal for individuals, firms, or third parties doing business in American markets to "make payments to foreign government officials to assist in obtaining or retaining business."
a. U.S. Foreign Corrupt Practices Act (FCPA)
b. Kyo

a. U.S. Foreign Corrupt Practices Act (FCPA)

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. Sm

d. noise.

________________ involves tricking individuals into revealing their passwords or other valuable corporate information.
a. Shoulder surfing
b. Remote hacking
c. Social engineering
d. Physical hacking
e. Dumpster diving

c. Social engineering

When Devon looked at what another employee was typing in order to get a password, he committed:
a. shoulder surfing.
b. whacking
c. discrimination
d. password guessing
e. hacking

a. shoulder surfing.

A company can be sued for discrimination if it:
a. hires minorities.
b. maintains reasonable minority standards.
c. discharges a minority individual, but has a just cause for doing so.
d. uses age as a hiring or firing criterion.
e. has more men than wome

d. uses age as a hiring or firing criterion.

Affirmative action programs:
a. involve the promotion of unqualified employees.
b. are not imposed by federal law on employers.
c. are not very commonly used anymore because there is no need to protect minorities.
d. only involve the training of individua

e. involve the recruitment, hiring, promotion, and training of qualified individuals.

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair
economic advantage over an organization?
a. Channel
b. Integrative
c. Consumer
d. Product
e. Conventional

c. Consumer

What type of fraudulent activity could involve a consumer staging an accident to seek damages?
a. Whacking
b. Duplicity
c. Guile
d. Defamation
e. Collusion

b. Duplicity

What type of fraudulent activity involves an employee who assists a consumer in fraud?
a. Whacking
b. Duplicity
c. Guile
d. Defamation
e. Collusion

e. Collusion

Prior to the financial meltdown, bond ratings agencies were accused of having ________ because they were paid by the
organizations that they rated. The organizations would shop around for the agency that gave them the best rating.
a. high ethical standard

d. conflicts of interest

__________ are used to obtain or retain business and are not generally considered illegal in the U.S.
a. Facilitation payments
b. Bribes
c. Gifts
d. Coercive techniques
e. Threats

a. Facilitation payments

Principles are

c. specific and pervasive boundaries for behavior that are universal and absolute.

Social responsibility is

a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.

The ______ was/were enacted to restore confidence in financial reporting and business ethics after the accounting
scandals of the early 2000s.

b. Sarbanes-Oxley Act

The term business ethics is best described by the following statement:

e. It comprises the principles, values, and standards that guide behavior in the world of business.

Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"?

d. The right to be ethical

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

Federal Sentencing Guidelines for Organizations

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 1960s saw a rise of consumerism. What is consumerism?

Activities undertaken by independent individuals, and groups to protect their rights as consumers

Ethics is a part of decision making

at all levels of work and management.

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

The _______ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with
government regulation.

Federal Sentencing Guidelines for Organizations

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.

According to the role of ethical culture in performance, all of these are drivers of profit except

opportunity for misconduct.

More than a compliance program, business ethics is becoming

a management issue to achieve competitive advantage.

. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has

limited business experience.

One of the major ethical issues President Obama's administration focused on was

health care and consumer protection.

Which of the following is generally not considered a business ethics issue?

Corporate hierarchy

Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?

Sarbanes-Oxley Act.

The Foreign Corrupt Practices Act outlawed

bribery of officials in other countries.

Which of the following was not a provision of the Sarbanes-Oxley Act?

It outlawed bribery of officials in other countries.

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 financial reporting.

code of ethics

______is essential in building long-term relationships between businesses and consumers.

trust

The Dodd-Frank Wall Street Reform and Consumer Protection Act

was designed to make the financial services industry more responsible.

In the Reagan/Bush eras, the major focus of the business world was on

self-regulation rather than regulation by government.

The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for

. the Federal Sentencing Guidelines for Organizations

Ethical culture is defined as

acceptable behavior as defined by the company and industry.

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by

codifying into law incentives for organizations to take action such as developing ethical compliance programs
to prevent misconduct.

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 one of the benefits of being ethical and socially responsible in business?

A high degree of employee dissent

Employees' perceptions of their firm as having an ethical climate leads to

enhanced performance.

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 workplace.

Investors are concerned about business ethics because they know that misconduct can

lower stock value and prices.

Most organizations with strong ethical climates usually focus on the core value of placing ________ interests first.

customers'

Which of the following is not something a firm might do to encourage organizational ethics and compliance?

Ignoring potential ethical issues

1. Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as
a. shareholders.
b. stockholders.
c. stakeholders.
d. claimholders.
e. special-interest groups

C

2. Stakeholders' power over businesses stems from their
a. ability to withdraw or withhold resources.
b. ability to generate profits.
c. media impact.
d. political influence.
e. stock ownership.

A

3. Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
a. Employees
b. Secondary stakeholders
c. Primary stakeholders
d. Investors
e. Customers

B

4. 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.
a. stakeholder model of corp

D

5. The degree to which a firm understands and addresses stakeholder demands can be referred to as
a. a stakeholder orientation.
b. a shareholder orientation.
c. the stakeholder interaction model.
d. a two-way street.
e. a continuum.

A

6. Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
a. Insurance
b. Technology
c. Banks
d. Mortgage lenders
e. Financial services

B

7. Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
a. Supplies of capital and resources.
b. Expertise and leadership
c. Word-of-mouth promotion
d. Infrastructure
e. Pro-bono bookkeeping

E

8. A stakeholder group that is absolutely necessary for a firm's survival is defined as
a. direct.
b. tertiary.
c. secondary.
d. special-interest.
e. primary.

E

9. When unethical acts are discovered in a firm, in most instances
a. they are caused by unwilling participants.
b. the cause is due to external stakeholders.
c. the perpetrators are caught and prosecuted.
d. there was knowing cooperation or complicity fr

D

10. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
a. Surveys
b. Focus groups
c. Internet searches
d. Press reviews
e. Guessing

E

11. A stakeholder orientation can be viewed as a(n)
a. necessity for business success.
b. continuum.
c. polarizing concept.
d. good marketing ploy.
e. expensive proposition.

B

12. Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?
a. The promise of customer loyalty
b. Material resources and/or intangible knowledge
c. Infras

B

13. Which of the following is not associated with the stakeholder interaction model?
a. Involves a two-way relationship between firm and stakeholders
b. Recognizes the input of investors, employees, and suppliers
c. Explicitly acknowledges dialogue with a

E

14. The first of the three activities that are associated with the stakeholder orientation is the
a. organization-wide generation of data.
b. organization's responsiveness to intelligence.
c. set of consumer attributes identified.
d. organizational strate

A

15. Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
a. Investors
b. Community
c. Suppliers
d. Customers
e. Employees

B

16. Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?
a. Environmental groups
b. Suppliers
c. Employees
d. Industry leaders
e. Investors

A

17. 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
a. Adam Smith.
b. Theodore Levitt.
c. Norman Bowie.
d. Herman Miller
e. Milton Friedman.

E

18. The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
a. Adam Smith
b. Theodore Levitt.
c. Norman Bowie.
d. Herman Miller
e. Milton Friedman.

A

19. 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 mo

E

20. In ascending order, Carroll's four levels of social responsibility are
a. ethical, legal, economic, philanthropic.
b. economic, ethical philanthropic, legal.
c. economic, legal, ethical, philanthropic.
d. legal, ethical, economic, philanthropic.
e. et

C

21. The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is
a. reputation.
b. corporate citizenship.
c. corporate ethical audit.
d. ethical citizenship.
e. fiduciary dut

B

22. In corporate governance, _ is the process of auditing and improving organizational decisions and actions.
a. profit
b. loyalty
c. accountability
d. control
e. diligence

D

23. Accountability, oversight, and control all fall under the definition and implementation of corporate
a. profit.
b. loyalty.
c. care.
d. governance.
e. diligence.

D

24. Major corporate governance issues normally involve _______ decisions.
a. strategic-level
b. tactical-level
c. divisional-level
d. marketing-level
e. accounting-level

A

25. Which of the following is a major ethical concern among corporate boards of directors?
a. Compensation
b. The non-traditional directorship approach
c. Dividend reporting
d. Corporate social audits
e. Debt swaps

A

26. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _________
a. there should be no limit on what top executives can earn.
b. managers should earn no more than twenty times the pay of other employees.
c. top

B

27. The specific steps for implementing the stakeholder perspective do not include which of the following?
a. Identifying stakeholder groups
b. Identifying stakeholder issues
c. Identifying and gaining stakeholder feedback
d. Identifying and gaining gover

D

28. What are the four levels of social responsibility?
a. Financial, religious, ethical, and philanthropic
b. Ethical, philanthropic, selfish, and short-sighted
c. Economic, long-term, ethical, and philanthropic.
d. Legal, economic, ethical, and philanthr

D

29. The _____ model is founded in classic economic precepts.
a. economic
b. shareholder
c. stakeholder
d. board
e. ISO

B

30. Which of the following are not typically secondary stakeholders?
a. Television news anchors
b. Special-interest groups
c. Customers
d. Trade associations
e. Journalists

C

31. Which of the following are not typically primary stakeholders?
a. Customers
b. Trade associations
c. Employees
d. Shareholders
e. Suppliers

B

32. Why do critics argue that high compensation for boards of directors is a bad thing?
a. It is too expensive for the organization.
b. It could cause conflicts of interest between the directors and the organization.
c. It is not fair to poorly compensate

B

33. Board members being linked to more than one company is an example of
a. strategic philanthropy.
b. stakeholder commitment.
c. interlocking directorate.
d. conflict of interest.
e. an illegal activity.

C

34. What is the first step in implementing a stakeholder perspective in an organization?
a. Identifying resources and determining urgency
b. Identifying stakeholder groups
c. Identifying stakeholder issues
d. Assessing the corporate culture
e. Assessing o

D

35. A stakeholder orientation is not complete unless it includes
a. clear accounting procedures.
b. major financing activities.
c. marketing strategy.
d. feedback from special-interest groups.
e. activities that actually address stakeholder issues.

E

Which of the following is the first step in the ethical decision making process?
a. Being socialized into the firm's corporate culture
b. Applying a personal moral philosophy in order to individualize the ethical decision making process
c. Recognizing tha

c. Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong

Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue?
a. Educational attainment
b. Workplace
c. Family
d. Legal system
e. Community

a. Educational attainment

The perceived relevance or importance of an ethical issue to the individual, work group, or organization is
a. organizational culture.
b. immediate job context.
c. ethical issue intensity.
d. leadership.
e. locus of control.

c. ethical issue intensity.

Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _____.
a. stakeholder expectations and pressures. b. pressures to satisfy customers.
c. pressures from the government to perform at a

d. internal pressures and ambiguity surrounding internal organizational rules.

According to the ethical decision-making framework, the absence of punishment provides a(n)______ for unethical
behavior.
a. reason
b. significant other
c. individual factor
d. opportunity
e. ethical issue intensity

d. opportunity

_______have been found to decrease unethical practices and increase positive work behavior.
a. High educational attainment levels
b. High levels of community involvement
c. Charismatic leaders
d. Strong religious beliefs
e. Good personal values

e. Good personal values

_________ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.
a. Obedience to authority
b. Locus of control
c. Opportunity
d. Transactional

a. Obedience to authority

Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing,
________can alter this intent.
a. cognitive dissonance
b. familial expectations
c. religious beliefs
d. the desire for financial gain
e.

e. organizational or social forces

If management fails to identify and educate employees about ethical problem areas, ethical issues may not reach the critical
a. awareness level.
b. aptitude level.
c. ethical level.
d. organizational level.
e. individual level.

a. awareness level.

The ______can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization.
a. corporate culture
b. intentions of a corporate
c. ethical issue awareness
d. determination of a corporation
e. i

a. corporate culture

Which of the following would not be considered a negative reinforcement of employee behavior?
a. Demotions
b. Firings
c. Ignoring the behavior
d. Reprimands
e. Pay penalties

c. Ignoring the behavior

Codes, rules, and compliance are essential in organizations. However, an organization built on_______ is more likely to develop a high integrity corporate culture.
a. a charismatic leader
b. the preferences of the CEO
c. the grapevine
d. formal relationsh

e. informal relationships

Following the ethical directives of a superior relates to
a. an internal locus of control.
b. obedience to authority.
c. moral intensity.
d. gender.
e. ethical issue intensity.

b. obedience to authority.

Which of the following is not considered a significant other group in the workplace?
a. Peers
b. Managers
c. Spouses
d. Coworkers
e. Subordinates

c. Spouses

Studies have shown that _______ within the organization have more impact on a worker's decisions on a daily basis than any other factor.
a. significant others
b. religion
c. education
d. chief executive officers
e. ethical issues

a. significant others

External and internal rewards relate to which part of the ethical decision-making framework?
a. Individual factors
b. Significant others
c. Cognitive moral development
d. Obedience to authority
e. Opportunity

e. Opportunity

Which of the following is not an issue that helps in business ethics evaluations and decisions?
a. Ethical issue intensity
b. Individual factors
c. Organizational factors
d. Personal guilt
e. Opportunity

d. Personal guilt

_______ is the first sign that an unethical decision has occurred.
a. Guilt
b. Reward
c. Punishment
d. Cognitive dissonance
e. Happiness

a. Guilt

People who believe in________, go with the flow because they feel the events in their lives are uncontrollable.
a. ethical decision making
b. internal locus of control
c. an ethical culture
d. external locus of control
e. significant others.

d. external locus of control

Which of the following is not an individual factor that affects business ethics?
a. Nationality
b. Age
c. Religion
d. Significant others
e. Education

d. Significant others

___________is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.
a. Oversight
b. Significant others
c. Corporate culture
d. Th

c. Corporate culture

22. An ethical corporate culture needs __________ along with _________
to establish an ethics program and monitor the complex ethical decisions being made by employees .
a. individual ethics; ethical issue intensity
b. ethical issue intensity; ethics trai

e. shared values; proper oversight

Those who have influence in a work group are referred to as significant others and include
a. peers, managers, coworkers, and subordinates.
b. family members, peers, and coworkers. c. spouses and friends.
d. employees in similar job situations.
e. employe

a. peers, managers, coworkers, and subordinates.

Research concerning nationality and the ability to make ethical decisions
a. shows no relationship between the two.
b. is hard to interpret in a business context because of cultural differences.
c. suggests that organizations should be very concerned abou

b. is hard to interpret in a business context because of cultural differences.

The relationship between business ethics and age
a. shows a negative correlation.
b. is simple. Greater experience leads to better ethical decision making.
c. is complex, although experience helps older employees make ethical decisions.
d. suggests that e

suggests that employees with less experience have a greater ability to deal with complex industry-specific ethical issues.

Employees that see themselves as going with the flow because that's all they can do have a(n)
a. external locus of control.
b. moral intensity
c. obedience to authority
d. opportunity
e. internal locus of control.

a. external locus of control.

For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?
a. I need a paycheck and can't afford to quit right now. b. Those around me are doing it so why shou

e. This is in keeping with my personal morals and the code of conduct, so it is okay.

______ is the ability to perceive whether a situation or decision has an ethical dimension.
a. Ethical issue intensity
b. Locus of control
c. Ethical awareness
d. Moral intensity
e. Opportunity

c. Ethical awareness

______ relates to individuals' perceptions of social pressure and the harm they believe their decisions will have on others
a. Ethical awareness
b. Moral intensity
c. Individual factors
d. Ethical issue intensity
e. Social awareness

b. Moral intensity

The ethical decision making process in business includes all of the following except
a. Individual factors
b. Opportunity
c. Ethical issue intensity
d. Making ethical decisions
e. Organizational factors

d. Making ethical decisions

________culture involves values and norms that prescribe a wide range of behavior for organizational members, while ________ culture reflects the integrity of decisions made and is a function of many factors, including corporate policies,
top management's

c. Corporate, ethical

All of the following are true with regards to organizational factors except
a. Employees approach ethical issues on the basis of what they learned from others in the organization.
b. An alignment between a person's own values and the values of the organiz

a. Employees approach ethical issues on the basis of what they learned from others in the organization.

The ______-includes the motivational "carrots and sticks" superiors use to influence employee behavior.
a. Obedience to authority
b. Immediate job context
c. Locus of control
d. Normative approach
e. Descriptive approach

b. Immediate job context

All of the following are true with regards to opportunity and ethical decision making except
a. Despite the existence of rules, misconduct can still occur without proper oversight.
b. The opportunities that employees have for unethical behavior in an orga

d. The opportunity for unethical behavior can be eliminated with aggressive enforcement of codes and rules.

When we discuss _______approaches, we are talking about how organizational decision makers should approach an issue
a. Normative
b. Individual
c. Descriptive
d. Organizational
e. Values-based

a. Normative

By incorporating __________objectives into corporate core values, companies begin to view ____________ as significant.
a. shareholder, stakeholders
b. stakeholder, shareholders
c. CEO, CEOs
d. customer, customers
e. stakeholder, stakeholders

a. shareholder, stakeholders

Normative business ethics takes into account the___________realities outside the legal realm in the form of industry standards.
a. Descriptive
b. Political
c. Social
d. Economic
e. Normative

b. Political

__________ institutions include religion, education, and individuals such as the family unit.
a. Social
b. Conservative
c. Economic
d. Liberal
e. Political

a. Social

All of the following are true regarding institutions except
a. Stakeholders closely align with institutions.
b. The regulatory system aligns with political institutions.
c. There is no clear link between institutional theory and the stakeholder orientatio

c. There is no clear link between institutional theory and the stakeholder orientation of management.

High levels of ______create a higher probability that firms cut corners because margins are usually low.
a. Profit
b. Return
c. Cooperation
d. Competition
e. Loss

d. Competition

The thought experiment used by John Rawls that examined how individuals would formulate principles if they did not know what their future position in society would be is called
a. Equality principle
b. Utilitarian veil
c. Liberty principle
d. Universal pr

a. Equality principle

Moral philosophy refers to
a. a subject that most business people do not consider very important.
b. the morality of business activities.
c. the principles or rules that people use to decide what is right and wrong.
d. the legality of business activities.

c. the principles or rules that people use to decide what is right and wrong.

Which moral philosophy evaluates the morality of an action on the basis of its consequences for everyone affected
(seeks the greatest good for the greatest number)?
a. Act deontology
b. Rule deontology
c. Egoism
d. Utilitarianism
e. Hedonism

d. Utilitarianism

Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result?
a. Teleology
b. Deontology
c. The relativist perspective
d. Ethical formalism
e. Hedonism.

a. Teleology

Which moral philosophy focuses on the rights of individuals and on the intentions associated with a particular behavior, rather than its consequences?
a. Deontology
b. The relativist perspective
c. Teleology
d. Egoism
e. Utilitarianism

a. Deontology

_____are person-specific, whereas _______ are based on decisions made by groups or when carrying out tasks to meet business objectives
a. Organizational factors; business ethics
b. Codes of conduct; individual factors
c. Individual factors; codes of condu

e. Moral philosophies; business ethics

According to Kohlberg's model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she
a. is unlikely to change his/her values and ethical behavior.
b. may change his/her values and ethical behavior

b. may change his/her values and ethical behavior.

An individual who defines what is right by considering his/her duty to society, not just to other specific people, is in which of Kohlberg's stages of cognitive moral development?
a. Punishment and obedience
b. Individual instrumental purpose and exchange

d. Social system and conscience maintenance

Which is the last of Kohlberg's stages of cognitive moral development?
a. Individual instrumental purpose and exchange
b. Need achievement
c. Social system and conscience maintenance
d. Punishment and obedience
e. Universal ethical principles

e. Universal ethical principles

A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)
a. egoist.
b. teleologist.
c. utilitarian.
d. relativist.
e. humanitarian.

c. utilitarian.

Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights?
a. The relativist perspective
b. Act utilitarianism
c. Rule utilitarianis
d. Act deontology
e. Rule de

e. Rule deontology

_______is considered the father of free market capitalism. He believed that business was and should be guided by the morals of good men.
a. John Maynard Keynes
b. Henry Kissinger
c. George Washington
d. Adam Smith
e. Lawrence Kohlberg

d. Adam Smith

________ believe that no one thing is intrinsically good.
a. Hedonists
b. Pluralists
c. Relativists
d. Deontologists
e. Teleologists

b. Pluralists

Kant's categorical imperative and the Golden Rule are examples of which moral philosophy?
a. Teleology
b. Deontology
c. The relativist perspective
d. Egoism
e. Utilitarianism

b. Deontology

A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a(n) _______ because he believes in the rights of all individuals.
a. egoist
b. utilitarian
c. deontologist
d. relativist
e

c. deontologist

Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually?
a. Rule utilitarianism b. Act utilitarianism c. Rule deontolo

a. Rule utilitarianism

Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the action, with rules serving as guidelines in the decision-making process?
a. Rule utilitarianism
b. Act utilitarianism
c. Rule deontolo

d. Act deontology

Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?
a. Virtue ethics
b. Egoism
c. The relativist perspective
d. Absolutism
e. Justice

c. The relativist perspective

Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives?
a. The relativist perspective
b. Teleology
c. Deontology
d. Egoism
e. Rule deontology

a. The relativist perspective

________-typically focuses on the end result of actions and happiness created by them, whereas_________ emphasizes the means and motives by which actions are justified.
a. Pragmatism; hedonism
b. Deontology; pragmatism
c. Utilitarianism; deontology
d. Uti

e. A goodness theory; an obligation theory

An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)
a. utilitarian.
b. relativist.
c. teleologist.
d. deontologist.
e. egoist.

b. relativist.

Enlightened egoism
a. is when an individual puts spiritual feelings above all others. b. centers completely on the short-term well-being of others.
c. centers on one's short-term self-interest.
d. centers on one's longterm selfinterest but takes others' w

d. centers on one's longterm selfinterest but takes others' wellbeing into account.

Which moral philosophy is based on the premise that equal respect must be given to all persons?
a. The relativist perspective
b. Deontology
c. Egoism
d. Teleology
e. Utilitarianism

b. Deontology

______ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.
a. Relativists
b. Hedonists
c. Pragmatists
d. Deontolo

a. Relativists

_______ justice is based on the evaluation of outcomes or results of the business relationship. a. Procedural
b. Interactional
c. Distributive
d. Ethical
e. Egotistical

c. Distributive

Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level
a. define right as that which conforms to the expectations of good behavior of the larger society.
b. see beyond the norms,

a. define right as that which conforms to the expectations of good behavior of the larger society.

__________ argues that ethical behavior involves not only adhering to conventional moral standards but also considering
what a mature person with a "good" moral character would deem appropriate.
a. Act utilitarianism
b. Virtue ethics
c. Reciprocity d. Hed

b. Virtue ethics

When a person defines right and wrong on the basis of legal contracts, he or she is using which of Kohlberg's stages of development?
a. Punishment and obedience (1st stage)
b. Mutual interpersonal expectations, relationships, and conformity (3rd stage)
c.

d. Prior rights, social contract, or utility (5th stage)

_____ deals with the issue of what individuals feel they are due based on their rights and performance in the workplace, and therefore is more likely to be based on deontological moral philosophies than on teleological or utilitarian ones.
a. Rights
b. Vi

c. Justice

A central problem with relativism is
a. that it emphasizes people's differences, not similarities.
b. that few people believe that these principles are important.
c. that they are very complicated.
d. that they represent unattainable goals.
e. that many f

a. that it emphasizes people's differences, not similarities.

Which is not considered a white collar crime?
a. Corporate tax evasion
b. Credit card fraud
c. Insider trading
d. Identity theft
e. Mugging someone

e. Mugging someone

An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of
Kohlberg's stages of development?
a. Universal ethical principles (6th stage)
b. Mutual interpersonal expectations, relationships, and c

b. Mutual interpersonal expectations, relationships, and conformity (3rd stage)

Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind.
Which moral philosophy most closely represents his viewpoint?
a. Egoism
b. Relativism
c. Humanitarianism
d. Utilitarianism
e. Individualism

d. Utilitarianism

In Kohlberg's model, the stage of mutual interpersonal expectations, relationships, and conformity (Stage 3) differs from the stage of individual instrumental purpose and exchange (Stage 2) in terms of the individual's motives in
a. considering fairness t

a. considering fairness to others.

The elements of______ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness. a. egoism
b. utilitarianism
c. deontology
d. moral philosophy
e. virtue

e. virtue

______ justice considers the processes and activities that produce the outcome or results.
a. Disruptive
b. Procedural
c. Interactional
d. Communications
e. Evaluative

b. Procedural

1. Which of the following is not an aspect of the institutionalization of social responsibility?
a. Voluntary practices
b. Legal responsibilities
c. Core practices
d. Familial responsibilities
e. Strategic philanthropy

d. Familial responsibilities

2. Which of the following acts can be classified as procompetitive legislation?
a. Equal Pay Act of 1963
b. Civil Rights Act of 1964
c. McCarran-Ferguson Act of 1944
d. Sherman Antitrust Act of 1890
e. Occupational Safety and Health Act of 1970

d. Sherman Antitrust Act of 1890

. Which of the following acts exempted the insurance industry from antitrust legislation?
a. Equal Pay Act of 1963
b. Civil Rights Act of 1964
c. McCarran-Ferguson Act of 1944
d. Sherman Antitrust Act of 1890
e. Occupational Safety and Health Act of 1970

c. McCarran-Ferguson Act of 1944

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?
a. Civil Rights Act of 1964
b. Sherman Antitrust Act of 1890
c. Magnuson-Moss Warran

e. Pure Food and Drug Act of 1906

The ________ was established after the latest financial crisis, in response to a situation that caused many consumers to
lose their homes.
a. Environmental Protection Agency
b. World Bank
c. Consumer Financial Protection Bureau
d. World Trade Organization

c. Consumer Financial Protection Bureau

Which of the following is not a provision of the Sarbanes-Oxley Act?
a. Strengthens penalties for corporate fraud
b. Discourages the creation of ethical and legal compliance programs
c. Requires codes of ethics for financial reporting in corporations
d. M

b. Discourages the creation of ethical and legal compliance programs

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?
a. The economic dimension b. The legal dimension
c. The competitive dimension
d. The technological dimension
e. The voluntary responsibilities

c. The competitive dimension

The ______ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.
a. World Trade Organization
b. Consumer Financial Protection Agency
c. Department of Just

e. The Food and Drug Administration

Which of the following groups is not a group that receives special legal protections?
a. The elderly
b. Children
c. Senior citizens
d. The highly educated
e. Young consumers

d. The highly educated

The _____ was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the
reforms that followed the Great Depression."
a. Equal Pay Act
b. Americans with Disabilities Act
c. Dodd-Frank Wall Street Reform and Consumer Pro

c. Dodd-Frank Wall Street Reform and Consumer Protection Act

_______ law defines the rights and duties of individuals and organizations (including businesses).
a. Civil
b. Criminal
c. Competitive
d. Administrative
e. Regulatory

Civil

law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.
a. Civil
b. Criminal
c. Competitive
d. Administrative e. Regulatory

Criminal

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
a. Increases the accountability and transparency of financial institutions
b. Creates a bureau to educate consumers in financial literacy
c. Create

c. Creates an organization to pay the bills of low-income consumers

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.
a. Social responsibility
b. Business ethics
c. Corporate philanthr

d. Strategic philanthropy

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
a. sustained price cuts.
b. free samples.
c. discriminatory pricing.
d. price collusion.
e. corporate

b. free samples.

Which is not one of the four sources of criminal and civil laws?
a. Judicial law
b. Common law
c. Constitutional law
d. Administrative law
e. Statutory law

a. Judicial law

. 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."
a. Consumer Financial Protection Bureau
b. Federa

a. Consumer Financial Protection Bureau

The primary objective of U.S. antitrust laws is to
a. protect consumers from high prices and foreign products.
b. protect domestic businesses.
c. protect employees.
d. promote strategies that enhance business welfare over consumer welfare.
e. distinguish

e. distinguish competitive strategies that enhance consumer welfare from those that reduce it.

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or
Home Depot?
a. Because the large size creates economies of scale and they can charge lower prices
b. Because the selection in the stores is too

a. Because the large size creates economies of scale and they can charge lower prices

________focus(es) on developing sound organizational practices and integrity for financial and nonfinancial
performance measures, rather than on an individual's morals.
a. The Dodd-Frank Wall Street Reform and Consumer Protection Act
b. Compliance
c. Orga

d. Core practices

Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?
a. Develop a code of conduct
b. Provide oversight by high-ranking personnel
c. Create a communication system for dissemi

e. Comply with ISO 14000 guidelines

The Sarbanes-Oxley Act created the establish rules and standards for auditing.
_____ to oversee the accounting firms that audit public corporations and to
a. Public Company Accounting Oversight Board b. Corporate Accounting Oversight Commission
c. Enron A

Public Company Accounting Oversight Board

______ responsibilities relate to a business's contributions to stakeholders.
a. Economic
b. Legal
c. Ethical
d. Voluntary
e. Social responsiveness

d. Voluntary

Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.
a. Sarbanes-Oxley Act
b. U.S. Sentencing Commission's Guidelines for Ethical Compliance
c. Ethical Compliance Act
d. Social Re

e. Federal Sentencing Guidelines for Organizations

Donation of computer equipment to schools by Toshiba would be associated with responsibilities.
a. economic
b. voluntary
c. legal
d. ethical
e. minimum

b. voluntary

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
a. conflicts of interest.
b. cronyism.
c. reporting transparency.
d. c

a. conflicts of interest.

Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?
a. Help create an ethical culture and values that can act as a buffer to organizational misconduct
b. Reduce government involvement by providing assistance to

d. Improve employee compensation and retention

Companies that will most likely be found in violation of procompetitive legislation.
a. pollute waterways
b. knowingly harm consumers
c. contract with sweatshops
d. establish monopolies
e. help consumers

d. establish monopolies

_________ tie(s) an organization's product(s) directly to a social concern through a marketing program.
a. Voluntary contributions
b. Cause-related marketing
c. Strategic philanthropy
d. Corporate giving
e. Employee benefits

b. Cause-related marketing

Title VII of the Civil Rights Act of 1964
a. prohibits discrimination on the basis of race, color, sex, religion, or national origin.
b. penalizes the top executives in an organization for misconduct.
c. is basically the same as the Sarbanes-Oxley Act.
d.

a. prohibits discrimination on the basis of race, color, sex, religion, or national origin.

Cause related marketing can affect consumer _________ if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.
a. individual ethics
b. tastes
c. perceptions
d. budgets
e. buying patterns

e. buying patterns

Who provides information to managers, investors, tax authorities, and other stakeholders who make resource allocation decisions for corporations?
a. Accountants
b. Federal regulators
c. The Securities and Exchange Commission
d. The Department of Justice
e

Accountants

The ______ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.
a. institutionalization
b. rationalization
c. commercialization
d. mobilization
e. enforcement

a. institutionalization

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?
a. Institutionalization of ethics is now mandated for all organizations by governments around the world
b. Stakeholders have recognize

a. Institutionalization of ethics is now mandated for all organizations by governments around the world

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. economies of scale.
b. synergy.
c. a conflict of interest.
d.

c. a conflict of interest.

Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except
a. analysts cut corners when faced with less time to perform due diligence.
b. analysts' ratings were inaccurate.
c. many high ratings

e. most analysts were completely untrained and unprepared to do their jobs.

Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation
a. is excessively complex and financially burdensome.
b. is not necessary.
c. is fair to all firms.
d. has reduced restatements of financial reports.
e. is to

a. is excessively complex and financially burdensome.

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
a. values.
b. norms.
c. artifacts.
d. legal c

e. employee compensation

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?
a. Department of Justice and Open Compliance Ethics Group
b. Department of Justice and the Sarbanes-Oxley Act
c. Fed

c. Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
a. any practice is permitted.
b. any practice is permitted that does not substantially reduce competition and harm consumers o

b. any practice is permitted that does not substantially reduce competition and harm consumers or society.