Business Ethics

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

Federal Sentencing Guidelines for Organizations

Social responsibility is

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

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

Principles are

Defense Industry Initiative on Business Ethics and Conduct

More than a compliance program, business ethics is becoming

a management issue to achieve competitive advantage.

Which of the following is not one of the benefits of being ethical and socially responsible in business?

A high degree of employee dissent

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.

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

Ignoring potential ethical issues

Ethics is a part of decision making

at all levels of work and management.

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

the Federal Sentencing Guidelines for Organizations.

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

Corporate hierarchy

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

Sarbanes-Oxley Act

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

enhanced performance.

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

Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?

They use a routine mechanical approach that forces all firms to use the same means to avert serious penalties.

Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct?

United States Sentencing Commission

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.

The Foreign Corrupt Practices Act outlawed

bribery of officials in other countries.

Because of Sarbanes-Oxley, publicly traded companies must develop _____ to assist in maintaining transparency in financial reporting.

codes of ethics

A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments.

stakeholder interaction model

Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?

Guessing

The degree to which a firm understands and addresses stakeholder demands can be referred to as

a stakeholder orientation.

A stakeholder orientation can be viewed as a(n)

continuum.

Which of the following is a major ethical concern among corporate boards of directors?

Compensation

Why do critics argue that high compensation for boards of directors is a bad thing?

It could cause conflicts of interest between the directors and the organization.

In corporate governance, _____ is the process of auditing and improving organizational decisions and actions.

control

The specific steps for implementing the stakeholder perspective do not include which of the following?

Identifying and gaining government feedback

Accountability, oversight, and control all fall under the definition and implementation of corporate

governance.

Which of the following is not a benefit that primary stakeholders tend to provide to organizations?

Pro-bono bookkeeping

What is the first step in implementing a stakeholder perspective in an organization?

Assessing the corporate culture

Which of the following are not typically primary stakeholders?

Trade associations

Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most c

Milton Friedman.

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

Community

What are the four levels of social responsibility?

Legal, economic, ethical, and philanthropic

The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was

Adam Smith.

Stakeholders' power over businesses stems from their

ability to withdraw or withhold resources.

Which of the following are not typically secondary stakeholders?

Customers

Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

Secondary stakeholders

Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?

Environmental groups

The Dodd-Frank Wall Street Reform and Consumer Protection Act

was designed to make the financial services industry more responsible.

More than a compliance program, business ethics is becoming

a management issue to achieve competitive advantage.

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

Sarbanes-Oxley Act.

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

customers'

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

The right to be ethical

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.

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

health care and consumer protection.

What is the first step in implementing a stakeholder perspective in an organization?

Assessing the corporate culture

The _____ model is founded in classic economic precepts.

shareholder

The degree to which a firm understands and addresses stakeholder demands can be referred to as

a stakeholder orientation.

Which of the following industries tends to generate a high level of trust from consumers and stakeholders?

Technology

Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer?

Material resources and/or intangible knowledge

In corporate governance, _____ is the process of auditing and improving organizational decisions and actions.

control

_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.

Fraud

_____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.

Bullying

_____ involves tricking individuals into revealing their passwords or other valuable corporate information.

Social engineering

The first step toward understanding business ethics is to

develop ethical-issue awareness.

An ethical issue is a problem, situation, or opportunity

An ethical issue is a problem, situation, or opportunity

Accountants must abide by a strict code of ethics that defines their responsibilities to

their clients and the public interest.

Issues related to fairness and honesty may arise because business is sometimes regarded as a

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

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

Among retail stores, _____ is a larger problem than customer shoplifting.

internal employee theft

_____ is an important element of virtue and means being whole, sound, and in unimpaired condition.

Integrity

The ethical decision-making process begins

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

Which of the following is not a consequence of ethical misconduct?

Increased sales

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

noise.

When a commercial states that a product is superior to any other on the market, the marketer risks accusations of

puffery.

Affirmative action programs

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

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.

U.S. Foreign Corrupt Practices Act (FCPA)

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?

Performance probation

Which of the following acts can be classified as procompetitive legislation?

Sherman Antitrust Act of 1890

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as

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

The primary objective of U.S. antitrust laws is to

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?

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

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates

a conflict of interest.

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

Pure Food and Drug Act of 1906

Which of the following groups is not a group that receives special legal protections?

The highly educated

Title VII of the Civil Rights Act of 1964

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

The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes.

Consumer Financial Protection Bureau

Cause related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.

buying patterns

____ tie(s) an organization's product(s) directly to a social concern through a marketing program.

Cause-related marketing

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?

The competitive dimension

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

Discourages the creation of ethical and legal compliance programs

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

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

Companies that _____ will most likely be found in violation of procompetitive legislation.

establish monopolies

The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.

institutionalization

Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred?

Is your boss treating you well and compensating you adequately?

What type of fraudulent activity involves an employee who assists a consumer in fraud?

Collusion

A company can be sued for discrimination if it

uses age as a hiring or firing criterion.

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

an ethical issue.

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because

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

An activity is probably ethical if it

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

Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?

Misuse of company resources

A person uncomfortable with his employer's unspoken policy of hiring only white men is experiencing

an ethical issue.

_____ is the offering of something of value in order to gain an illicit advantage.

Bribery

Which of the following statements is most correct?

Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.

_____ responsibilities relate to a business's contributions to stakeholders.

Voluntary

The _____ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.

The Food and Drug Administration

_____ 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.

Strategic philanthropy

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

free samples.

Which of the following acts exempted the insurance industry from antitrust legislation?

McCarran-Ferguson Act of 1944

The _____ was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression.

Dodd-Frank Wall Street Reform and Consumer Protection Act

Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except

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

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate

conflicts of interest.

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

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

Donation of computer equipment to schools by Toshiba would be associated with _____ responsibilities.

voluntary

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

Veil of ignorance

_____ 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.

Corporate culture

Following the ethical directives of a superior relates to

obedience to authority.

The _____ includes the motivational "carrots and sticks" superiors use to influence employee behavior.

Immediate job context

_____ is the first sign that an unethical decision has occurred.

Guilt

_____ have been found to decrease unethical practices and increase positive work behavior.

Good personal values

____ is the ability to perceive whether a situation or decision has an ethical dimension.

Ethical awareness

Which of the following would not be considered a negative reinforcement of employee behavior?

Ignoring the behavior

Companies take basic _____ and translate them into core _____.

Customs, values

The _____ states that economic and social equalities should be arranged to provide the most benefit to the least-advantaged members of society.

Difference principle

If management fails to identify and educate employees about ethical problem areas, ethical issues may not reach the critical

awareness level.

Which of the following is not considered a significant other group in the workplace?

Spouses

_____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.

Obedience to authority

Employees that see themselves as going with the flow because that's all they can do have a(n)

external locus of control.

Which of the following is not an issue that helps in business ethics evaluations and decisions?

Personal guilt

All of the following are true with regards to opportunity and ethical decision making except

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

Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue?

Educational attainment

External and internal rewards relate to which part of the ethical decision-making framework?

Opportunity

Codes, rules, and compliance are essential in organizations. However, an organization built on _____ is more likely to develop a high integrity corporate culture.

informal relationships

All of the following are true regarding institutions except

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

Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives?

The relativist perspective

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?

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

Which moral philosophy focuses on the rights of individuals and on the intentions associated with a particular behavior, rather than its consequences?

Deontology

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?

Utilitarianism

Which is the last of Kohlberg's stages of cognitive moral development?

Universal ethical principles

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.

deontologist

Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?

The relativist perspective

According to Kohlberg's model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she

may change his/her values and ethical behavior.

___ believe that no one thing is intrinsically good.

Pluralists

____ 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.

Justice

_____ are person-specific, whereas _____ are based on decisions made by groups or when carrying out tasks to meet business objectives.

Moral philosophies; business ethics

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

considering fairness to others.

Enlightened egoism

centers on one's long-term self-interest but takes others' well-being into account.

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?

Act deontology

Moral philosophy refers to

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

Kant's categorical imperative and the Golden Rule are examples of which moral philosophy?

Deontology

The elements of _____ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness.

virtue

Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result?

Teleology

A central problem with relativism is

that it emphasizes people's differences, not similarities.

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?

Social system and conscience maintenance

Management's sense of the organization's culture

may be quite different from employees' perceptions.

An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is

decentralized.

Although both structures can create opportunities for unethical conduct, which organizational structure tends to be more ethical?

Centralized

The ability to influence the behavior of others by offering them something desirable is best described as

reward power.

Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements:

Culture is shared, relatively stable, and is formed over a long period of time.

When a foreman orders an assembly-line employee to carry out a task, which the employee perceives as unethical yet the employee feels compelled to complete, the foreman is exercising

legitimate power.

Which of the following is not a form of retaliation commonly experienced by whistle-blowers?

Praise by supervisors for their honesty

The Sarbanes-Oxley Act

has institutionalized internal whistle-blowing.

A values-based ethics approach to ethical corporate cultures relies on a(n) _____ that defines the firm as well as how customers and employees should be treated

explicit mission statement

No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent

informal expressions of an organization's culture.

Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as

differential association.

The apathetic organizational culture exhibits

minimal concern for people and performance.

The exacting organizational culture is interested in

performance but has little concern for employees.

Marcus is the top-performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development d

expert power

Expert power usually stems from

a superior's credibility with his or her subordinates.

Because researchers have defined culture so many different ways, _____ and _____ are often used interchangeably.

cultural values; culture

Ethical concerns in centralized structures can occur because of very little

upward communication.

_____ bring together the functional expertise of employees from several different areas of the organization on a single project.

Teams

The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role-sets is referred to as

differential association.

Which of the following statements about group norms is false?

Group norms never conflict with the overall organization's culture.

Which of the following is not a main goal of successful ethics programs?

Allow employees to solve ethical issues themselves using their best judgment.

Which of the following is the most comprehensive?

Code of ethics

Organizations can become "bad barrels" not because of unethical individuals but because

the pressure to succeed creates opportunities that reward unethical decisions.

Which of the following is a common mistake made in implementing an ethics program?

Developing materials that do not address the needs of the average employee

Which of the following is an advantage of a values-based ethics program over a compliance-based one?

Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.

The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and

reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct.

One of the main reasons employees do not report observed misconduct is

fear of retaliation.

Which of the following is not an advantage of having a comprehensive code of conduct?

To help employees fight for satisfactory levels of compensation and benefits.

A strong ethics program includes all of the following elements except

a clause promising good stock market performance.

Which of the following statements about training is false?

It can dictate personal ethics on the job.

All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except

firing.

In the long run, a(n) ______ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work.

values

What is not a common mistake when designing and implementing an ethics program?

Having top management take ownership of the ethics program

A(n) _____ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) _____ orientation strives to develop shared standards.

compliance; values

Fostering ethical decision making within an organization requires improving the firm's ethical standards and

terminating the "bad apples" in the organization.

At the heart of the Federal Sentencing Guidelines for Organizations is a

carrot-and-stick philosophy that rewards efforts to improve ethics.

The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually

tolerate misconduct.

For an ethical compliance program to properly function,

consistent enforcement and disciplinary action are essential.

With regard to ethics, training and communication initiatives should reflect

the unique characteristics of an organization.

Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?

Sarbanes-Oxley Act

During which of the following steps of the ethics auditing process does an organization identify the tools or methods for measuring progress in improving employees' ethical decisions and conduct?

Collect and analyze relevant information

Which of the following statements about ethics audits is false?

Social audits and ethics audits perform basically the same function, so organizations can use them interchangeably.

Which of the following is probably the best way for a manager to provide good ethics leadership?

Set a good example

The process of verifying the results of an audit should involve standard procedures that control the _____ of the information.

reliability and validity

During the data-collection phase of the audit, the primary objective is to generate a variety of opinions about how the company is perceived and whether it is

fulfilling stakeholders' expectations.

Which of the following does not have a significant impact on the success of an ethics program?

The size of the company

What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework?

Economic, social, and environmental indicators

Which of the following is a possible unintended consequence of an organization's focusing more on ethics planning than on implementation?

Unethical conduct is viewed as acceptable behavior.

Two useful indicators for assessing employee issues are

staff turnover and employee satisfaction.

Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations?

Unqualified opinion

Which of the following is not a technique for collecting evidence during the ethics audit?

Publishing the results of the audit

What should be the first step in the auditing process?

Secure the commitment of top executives and directors

A(n) _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders.

ethics audit

Which of the following is not a step in the ethics auditing process?

Report the results to the U.S. Sentencing Commission.

At which stage of the ethics auditing process would a hospital conduct focus groups with management, doctors, nurses, related health professionals, support staff, and patients?

Collect and analyze relevant information

A(n) _____ is a financial accounting firm that offers social auditing services or a nonprofit special interest group with auditing experience that verifies the results of ethics auditing data analysis

ethics audit consultant

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a

ethical and legal conduct.

While ideally the board of directors financial audit committee conducts ethics audits, in most firms they are conducted by

managers or ethics officers.

Because ethics and social audits are _____, there are few standards that a company can apply with regard to reporting frequency, disclosure requirements, and remedial actions that it should take in response to results.

voluntary

Which of the following is not a phase of escalation during an ethical disaster?

The firm's decision to conduct an ethics audit

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to

multinational corporations.

As business facilitates exchanges, consumption beyond basic needs will increase globally. The important issues related to consumerism include all but which of the following?

What are the impacts of poor countries' consumption patterns on wealthy countries?

_____ refers to how members of a society respond to ambiguity. A high score means that a culture tends to minimize risk-taking.

Uncertainty avoidance

Risk compartmentalization occurs when

various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.

Which of the following is not an article in the UN Human Rights Declaration?

The right to electricity and running water

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as

dumping.

_____ assume(s) that a the market, through its own inherent mechanisms, will keep commerce in equilibrium.

Laissez-faire economics

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

Imposing export taxes to force MNCs to share more of their profits

Who argued during the 1930s that the state could stimulate economic growth and improve stability in the private sector?

John Maynard Keynes

_____ products encourage consumers to return and buy more. This approach is also known as planned obsolescence.

Made-to-break

The benefit of healthcare is being debated as to whether it is a right or privilege. Which of the following countries does not consider health care to be a right?

The United States

What is the purpose of the UN Global Compact?

To promote human rights, sustainability, and eradicate corruption

_____ allows for private ownership of property and features a large government equipped to offer such services as education and health care to its citizens

Social democracy.

_____ occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources.

Bimodal wealth distribution

Which of the following is not a key area of global ethical risk, as outlined by the Eurasia Group?

Unequal levels of child labor laws

Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?

World Trade Organization

Which two developing countries are expected to generate some of the largest increases in consumption in the future?

China and India

The _____ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations

World Trade Organization

Those who ascribe to consumerism

believe that consumers, not producers, should dictate the economic structure of a society.

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.

The Global Sullivan Principles

The acronym RADAR stands for

Recognize, Avoid, Detect, Answer, & Recover

_____ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

Authentic

Leaders whose decisions and actions are contrary to the firm's values send a signal

that the firm's values are trivial or irrelevant.

The four categories of communication include all of the following except

Reporting

Ethical leadership should be based on

holistic thinking that embraces the complex issues facing firms every day.

A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is

to teach individuals intellectual skills that address the complexities of ethical issues in business.

_____ provide(s) important guidelines for employees on how to act in different situations.

Codes of ethics

When a group is more likely to move toward a more extreme position than the group members might have done individually, this is referred to as

Group polarization

The most effective leaders possess the ability to manage themselves and their relationships with others effectively, a skill known as

Emotional intelligence

____ is the ability or authority to guide and direct others toward a goal.

Leadership

Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?

Affiliative leadership

____ and reporting are two major dimensions of ethical communication.

Transparency

The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative.

pacesetting

This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company.

Leader-follower congruence

_____ are a primary influence on employee's ethical behavior because they are role models for the organization's values.

Leaders

Gossip, manipulation, playing favorites, and taking credit for another's work are all examples commonly associated with

Organizational politics

_____ leaders communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences.

Transformational

Leaders with a(n) _____ conflict management style desire to meet the needs of stakeholders and strongly adhere to organizational values and principles.

Avoiding

Which of the following types of leaders attempts to create employee satisfaction through bartering or negotiating for desired behaviors or level of performance?

Transactional leaders

All of these are true about feedback except

Most companies recognize the need for organizational leaders to get feedback from their employees.

The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a ___________.

permit

Geothermal energy provides _______________ and is a more dependable energy source than some other forms of alternative energy.

a constant source of heat

Many businesses responded to sustainability by adopting a triple-bottom line approach; taking into consideration social and environmental performance variables in addition to _______________.

economic performance

All of these are ways of reducing pollution, except:

Greenwashing

Which industry invests the most in alternative clean energy sources?

The automobile industry

The world's forests are being destroyed at a rate of nearly 50,000 square miles annually. The reasons for this wide-scale destruction are varied and include all except:

The soil is great for farming

The Clean Air Act:

Established national air quality standards

__________ is one of the country's greatest sustainability success stories.

Recycling

Wind power holds great promise for the United States because of the _____________, and experts believe wind energy could meet as much as 20 percent of the nation's energy needs.

Rocky Mountains

One of the biggest factors in land pollution is the dumping of waste into landfills. _______ consumers are by far the world's biggest wasters.

American

A ___________ business attempts to avoid dealing with environmental issues and hopes nothing bad happens or no one ever finds out about an environmental accident or abuse.

low-commitment

_____ can cause markedly shorter life spans, along with chronic respiratory problems in humans and animals.

Air pollution

The first Earth Day, increasing stakeholder awareness of environmental concerns and the creation of the Environmental Protection Agency brought ________ to the forefront.

sustainability

in the United States, ____________ provides only 7% of total output but provides 19% of total electricity production worldwide, making it the largest form of renewable energy.

hydroelectric power

Perhaps the most controversial form of alternative energy after nuclear power is ___________.

ethanol

Critics of nuclear power are concerned about all of the following, except:

Reduced emissions

Because genetically modified seeds are _______, farmers cannot keep any of the seed themselves but must purchase seeds each year from companies such as Monsanto.

patented

All of these are examples of social responsibility concerns, except:

Product price

Which option includes the assessment and improvement of business strategies, economic ectors, work practices, technologies, and lifestyles while maintaining the natural environment?

Sustainability

The protection of air, water, land, biodiversity, and _____ emerged as a major issue in the twentieth century.

renewable natural resources