In which of the following situations is the distinction between compliance-based and values-based corporate cultures most evident?
Accounting and auditing
How is an ethical, effective leader different from an effective leader?
An ethical, effective leader empowers the employees in decision making unlike an effective leader.
Identify a true statement about corporate cultures.
Corporate cultures influence, limit, and shape the decision making within a firm.
Which of the following statements is true about value-based cultures?
These cultures are perceived to be more flexible and far-sighted corporate environments.
Identify an effective way of creating clear and successful reporting schemes.
Reinforcing the organization's values through its compensation and reward structure
Which of the following situations could result in the business culture becoming a determining factor in ethical decision making?
Law providing incomplete answers
Which of the following statements is true about the revised Federal Sentencing Guidelines for Organizations?
It included the requirement that organizations periodically measure the effectiveness of their program.
A true statement about corporate culture is that _____.
it provides stability that can be a benefit at one time and can be a barrier to success at another
A true statement about an effective internal mechanism of whistle-blowing is that:
it must strive to protect the rights of the accused party.
Which of the following is a necessary part of being an ethical business leader?
Creating a corporate culture in which employees are empowered and expected to make ethically responsible decisions
The means used to motivate others and achieve one's goals plays a key role in distinguishing between:
effective leaders and ethical leaders.
Which of the following is a traditional approach to corporate culture?
Compliance-based
Which of the following is an essential element in establishing an ethical leadership?
The end or objective toward which the leader leads
Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing?
Whistle-blowing
The final step in the development of corporate codes of conduct or mission statements is to:
believe that the culture is actually possible and achievable.
Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes?
A compliance-based culture
Like ethics, social sciences such as psychology and sociology also examine human decision making and actions. However, these fields differ from ethics because they are ____.
descriptive in nature
Which of the following is an approach advocated while teaching ethics?
Teachers should challenge students to think for themselves
Morality is the aspect of ethics that we can refer to by the phrase "_____.
personal integrity
The failure of personal ethics among companies like Enron and WorldCom led to the creation of the:
Sarbanes-Oxley Act
Which of the following statements is true about ethical decision making in business?
At some point, every worker will be faced with an issue that will require ethical decision making.
_____ establish the guidelines or standards for determining what one should do, how one should act, what type of person one should be.
Norms
Which of the following best describes a business stakeholder?
Anyone who affects or is affected by decisions made within a firm.
Which of the following statements is true about ethical decision making in business?
Ethical decision making should rely on the personal values and principles of the individuals involved.
Practical reasoning is reasoning about:
what we should do.
Which of the following are beliefs and principles that provide the ultimate guide to a company's decision making?
Core values
Which of the following best describes ethics?
The study of how human beings should properly live their lives.
Which of the following raises questions about justice, law, civic virtues, and political philosophy?
Social Ethics
Which of the following helps identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives?
Risk assessment
_____ is that aspect of ethics that is referred to by the phrase "personal integrity.
Morality
Identify the bill that was passed in April 2009 to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 to prohibit unreasonable and excessive compensation not based on performance standards.
Grayson-Himes Pay for Performance Act
Theoretical reasoning is reasoning about:
what we should believe.
Dramatic examples from history, including Nazi Germany and apartheid in South Africa, demonstrate that:
one's ethical responsibility may run counter to the law.
Which of the following is the objective of the Grayson-Himes Pay for Performance Act?
To ban future "unreasonable and excessive" compensation at companies receiving federal bailout money.
In a general sense, a business _____ is anyone who affects or is affected by decisions made within the firm, for better or for worse.
stakeholder
Which of the following are underlying beliefs that cause us to act or to decide one way rather than another?
Values
_____ establish the guidelines or standards for determining what one should do, how one should act, what type of person one should be.
Norms
Which of the following statements is true about ethical decision making in business?
Ethical decision making is not limited to the type of major corporate decisions with dramatic social consequences.
_____ reasoning is reasoning about what we <i>should</i> do.
Practical
According to the tradition of theoretical reason, _____ is the great arbiter of truth.
science
Which of the following observations is true?
The law cannot anticipate every new dilemma that business might face.
Which of the following best describes the norms that guide employees, implicitly more often than not, to behave in ways that the firm values and finds worthy?
Organizational Culture
Which of the following can be thought of as the answer to the fundamental questions of theoretical reason?
The scientific method
Speaking on a cell phone while driving, and as a result, missing a highway turn-off by mistake is an example of ____.
in-attentional blindness
According to Socrates, which of the following aspects leads to an unexamined life not worth living?
Passivity
Which omission occurs when decision makers fail to notice gradual variations over time?
Change Blindness
_____ is one element that distinguishes good people who make ethically responsible decisions from good people who do not.
Moral Imagination
Which of the following is true of normative myopia?
It refers to the shortsightedness about values.
Consequences, justifications, principles, rights, or duties are all methods to:
compare and weigh alternatives.
In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical.
considering the available alternatives
Kathy, your best friend and class mate, asks you to help her with a challenging ethical predicament. Which of the following would be your first step in the decision making process?
Identifying the ethical issue
Which of the following is true of in-attentional blindness?
It results from focusing failures.
The Arthur Andersesn auditors did not notice how low Enron had fallen in terms of its unethical decisions over a period of time. According to Bazerman and Chugh, this omission is an example of ____.
change blindness
The inability to recognize ethical issues is known as ____.
normative myopia
Which of the following elements distinguish good people who make ethically responsible decisions from good people who do not?
moral imagination
Which of the following is the second step of the ethical decision-making process?
Identifying the ethical issue involved
Which of the following is true of change blindness?
It occurs when decision makers fail to notice gradual variations over time.
Which of the following statements reflects the concept of normative myopia?
I may have exaggerated the features of the product to get this sale. You knew how important this deal was for me.
Which of the following is true of moral imagination?
It distinguishes good people who make ethically responsible decisions from good people who do not.
The first step in making decisions that are ethically responsible is to:
Determine the facts.
Which of the following is the final step in the ethical decision-making process?
Monitoring and learning from outcomes
Which of the following cognitive barriers, when used, might appear to relieve us of accountability for the decision, even if it may not be the best possible decision?
Using a simple decision rule
If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as ____.
in-attentional blindness
_____" include all of the groups and/or individuals affected by a decision, policy, or operation of a firm or individual.
Stakeholders
When faced with a situation that suggests two clear alternative resolutions, we often consider only those two clear paths, missing the fact that other alternatives might be possible. Considering limited alternatives is a stumbling block to responsible act
Cognitive Barrier
Which of the following explains the term "satisfying?
Selecting the alternative that meets minimum decision criteria
Which of the following is a cognitive barrier to responsible, ethical decision-making?
Following simplified decision rules
According to Bazerman and Chugh, inattentional blindness results from ____.
focusing failures
Consequences, justifications, principles, rights, or duties are all methods to:
compare and weigh alternatives
A critical element of this step in the ethical decision-making process will be the consideration of ways to mitigate, minimize, or compensate for any possible harmful consequences." Which step is this?
Comparing and weighing alternatives.
In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical.
Considering the available alternatives
In the ethical decision-making process, identify the steps that might arise in reverse order, depending on the circumstance.
Determining the facts; identifying the ethical issues
Which of the following terms refers to shortsightedness about values?
Normative Myopia
Identify the barrier where individuals or groups select the option that meets the minimum decision criteria, the one that people can live with, even if it might not be the best.
Satisfying
The _____ tradition claims that our fundamental human rights, and the duties that follow from them , are derived from our nature as free and rational beings.
Kantian
Which of the following approaches shifts the focus from questions about what a person should do, to focus on who that person is?
Virtue Ethics
A rights-based ethical framework would object to child labor because:
such practices violate our duty to treat children with respect.
_____ ensure the integrity and proper functioning of the economic, legal, or financial systems.
Gatekeeper functions
Which of the following traditions is commonly identified with the rule of producing "the greatest good for the greatest number"?
Utilitarianism
Which of the following is true of a market version of utilitarianism?
Social science determines policies to maximize the overall good.
Virtue ethics emphasizes the more _____ side of our character.
affective
Identify the ethical tradition that directs us to act on the basis of moral principles.
Principle-based ethics
Utilitarianism has been called a(n):
consequentialist approach to ethics.
Which ethical framework goes against the ethical principle of obeying certain duties or responsibilities, no matter the end result?
Utilitarian framework of ethics
Which of the following focuses on the concept of business practices and what type of people these practices are creating?
Virtue Ethics
How is a market version of utilitarianism different from an administrative version?
The market version produces those goods that the customers want.
Identify the view which holds that people act only out of a self-interest.
Egoism
Which among the following is a legal right?
Thew right to bargain collectively as part of a union
What is the difference between a principle-based framework of ethics and utilitarianism?
Ethics of principles is based on rules, whereas utilitarianism is based on consequences.
Which of the following traditions seeks a full and detailed description of those character traits that would constitute a good and full human life?
Virtue Ethics
The three major categories of an ethical framework are:
consequences, principles, and personal character.
The Kantian tradition claims that humans do not act only out of instinct and conditioning; they make free choices about how they live their lives, about their own ends. In this sense, humans are said to have a fundamental human right of:
Dignity
Which of the following traditions is commonly identified with the rule of producing "the greatest good for the greatest number"?
Utilitarianism
We ought to stop at a red light, even if no cars are coming and I could get to my destination that much sooner." Identify the ethical approach that follows this line of thought.
Ethics of Principles
Which of the following approaches conceives of practical reason in terms of deciding how to act and what to do?
Utilitarianism
What is the difference between virtue ethics and principle-based ethics?
Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules.
Which of the following is true of a market version of utilitarianism?
Social science determines policies to maximize the overall good.
The essence of utilitarianism is its:
reliance on consequences.
The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of ____.
Virtue Ethics
Which of the following approaches emphasizes the need to follow legal rules regardless of unfavorable consequences?
Principle-based
Which of the following is emphasized by a compliance-based culture?
Obedience to rules as the primary responsibility of ethics.
Which of the following is true about a compliance-based culture and/or a value-based culture?
Values-based organizations include a compliance structure.
Which of the following statements is true about the Federal Sentencing Guidelines for Organizations?
They provide uniformity and fairness to the judiciary system.
Identify the most determinative element in integration, without which, there is no clarity of purpose, priorities, or process.
Communication
What is the role of an ethical leader in corporate cultures?
A leader must clearly advocate and model ethical behavior.
Which of the following allows organizations to uncover silent vulnerabilities that could pose challenges later to the firm, serving as a vital element in risk assessment and prevention?
Ongoing ethics audit
The _____ servers as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment.
Mission Statement
Which of the following is true about corporate cultures?
Corporate cultures can hinder individuals in making the "right" decisions.
Which of the following is true about value-based cultures?
These cultures are perceived to be more flexible and far-sighted corporate environments.
Which of the following is true about the Sarbanes-Oxley Act?
It required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist.
Which of the following should an organization do in order to have an effective compliance and ethics program?
The organization should communicate its standards and procedures to all members.
Which of the following directed the USSC to consider and to review its guidelines for fraud relating to securities and accounting, as well as to obstruction of justice, and specifically asked for severe and aggressive deterrents in sentencing recommendati
Sarbanes-Oxley Act
According to the _____ ethics tradition, people act out of habit than out of deliberations.
Virtue
Which of the following is true about compliance-based culture and/or value-based culture?
Values-based organizations include a compliance structure.
An effective internal mechanism of Whistleblowing:
occurs when employees report wrongdoing to legal authorities.
Which of the following is true about communicating unethical behavior in a corporate structure?
Reporting individuals can face retaliation from superiors.
The first step in constructing a personal code or mission for a firm is to:
ask oneself what one stands for or what the firm stands for.
Which of the following is true about an integrity-based culture?
It reinforces a particular set of values.
Which of the following is true about ethical leaders?
They expect others to say no to them.
Which of the following statements is true of ethical cultures?
Employees are expected to act in responsible ways, even if the law does not require it.
Which of the following is true about the Sarbanes-Oxley Act?
It requires public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist.
Which of the following is an example of a firm that is failing its fundamental social responsibility?
A firm that has its loss margins exceeding its profit margins
When a firm engages in socially responsible activities with a prime focus on reputation:
social responsibility tend to become a form of social marketing.
According to the economic model of corporate social responsibility, the pursuit of profit will continuously work toward the optimal satisfaction of consumer demand which, in one interpretation of _____ is equivalent to maximizing the overall good.
Utilitarianism
The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by:
pursuing social ends as the very core of an organization's mission.
The _____ model of CSR holds that, like individuals, business is free to contribute to social causes as a matter of philanthropy, and business has no strict obligation to contribute to social causes; but it can be a good thing when they do so.
philanthropic
Which of the following is true about the economic model of CSR?
It contends that the goal of business managers should be to pursue profit within the law.
According to the philosopher Norman Bowie, the contractual duty that managers have to stockholder-owners:
overrides their responsibility to prevent harm or to do good.
Which of the following ethical requirements is the type of responsibility established by the precedents of tort law?
Duty to not cause avoiodable harm to the society
Corporate social responsibility refers to:
those things that businesses ought, or should, do, even if they would rather not.
Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility?
Philanthropy done for financial reasons is ethically responsible.
Which of the following models of corporate social responsibility holds pursuit of profit as the sole duty of a business?
Economic model of corporate social responsibility
Which of the following is the most demanding social responsibility?
A business should engage in charitable work for the development of the society.
Enlightened self-interest, an important justification offered for corporate social responsibility, presumes that:
good ethics can also be good business.
The practice of attending to the "image" of a firm is referred to as:
Reputation Management
The form of business that limits the liability of individuals for the risks involved in business activities is known as _____.
corporation
Sustainability holds that:
a firm's financial goals must be balanced against environmental considerations.
The philanthropic model in which businesses support for a social cause is done because it is the right thing to do differs from the reputational version only in terms of the:
underlying motivation
Which of the following versions of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment?
Sustainability
An individual who argues that firms should be managed for the sole benefit of stockholders is defending the:
economic model of CSR.
According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they:
respect human rights and cause no harm.
The for-profit organizations that prioritize social entrepreneurship and sustainability as a central part of their strategic mission are pursuing the _____ model of CSR.
integrative
Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods. But, just as charity is a good thing and something that we all want to enc
The philanthropic model
Which of the following theories recognizes the fact that every business decision affects a wide variety of people - benefiting some and imposing costs on others?
Stakeholder theory
A narrow view of corporate social responsibility is expressed by the:
economic model of corporate social responsibility.
According to David Vogel, which of the following should a firm be most cautious about when engaging in CSR activities?
Investing in CSR when consumers are not willing to pay higher prices to support that investment.
A claim which states that people who 'pay' for wrongs are unfairly burdened and should not bear the responsibility for the acts of others, is opposing _____.
affirmative action
Enlightened self-interest would be a valuable theory to introduce and apply in the ----- approach to health and safety.
market controlled
Identify the approach that allows the Occupational Safety and Health Administration (OSHA) to make tradeoffs between health and economics.
Feasibility approach
Comparison of the probabilities of harm involved in various activities would determine the ____.
relative risks
The issue of workplace bullying is more predominant in the service sector because:
that work relies significantly on interpersonal relationships and interaction.
The 'Tripartite' part of the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy refers to critical cooperation necessary from all of the following except:
the suppliers and agents associated with the firm.
The life of one who dies in a workplace accident has _____ value that can be measured, in part, by the lost wages that would have been earned had that person lived.
instrumental
Some employers might decide to treat employees well as a means to produce greater workplace harmony and productivity. This approach is reminiscent of _____ ethics.
utilitarian
Which of the following statements about the doctrine of employment at will (EAW) is true?
The ethical rationale for EAW has both utilitarian and deontological elements.
The law relating to affirmative action applies only to about 20% of the workforce who are subject to Executive Order 11246, which requires affirmative action efforts to ensure equal opportunity. Which of the following is required by courts in order to rem
In legal contexts, due process refers to the procedures that police and courts must follow in exercising t heir authority over citizens.
An organization, in an attempt to avoid discrimination suits filed against it, intentionally hires a lot of African-American women, and a few disabled people. Which of the following is most likely to occur?
A white man or woman will file a reverse discrimination suit.
Which of the following affirmative action plans would include training plans and programs, focused recruiting activity, or the elimination of discrimination?
Voluntary affirmative action
Identify the doctrine which holds that employers are free to fire an employee at any time and for any reason, unless an agreement specifies otherwise.
The doctrine of employment at will
Identify the correct statement about government standards in the government-regulated ethics approach to health and safety.
Standards can overcome market failures that result from insufficient information.
Some employers emphasize the rights and duties of all employees, and treat employees well simply because "it is the right thing to do." Identify the ethical approach for this perspective.
Deontological ethics
From a utilitarian perspective, individual rights to privacy or right to control information about oneself may be outweighed in cases where:
public safety is at risk.
Two general and connected understandings of privacy have been identified: privacy as a right to be 'left alone' within a personal zone of solitude, and privacy as the:
right to control information about oneself.
Which of the following about the regulation of off-work acts in the U.S. is true?
Laws that protect employees against discrimination based on marital status exist in just under half of the states.
Name the legal violation that occurs when someone intentionally interferes on the private affairs of another when the interference would be "highly offensive to a reasonable person.
Intrusion into seclusion
If an employee's weight is evidence of or results from a disability, the employer must explore whether the worker is otherwise qualified for the position. Under the Americans with Disabilities Act (ADA0, the individual is considered "otherwise qualified
can perform the functions of the position with or without reasonable accommodations.
The Constitution's Fourth Amendment protection against an unreasonable search and seizure governs only the public sector workplace because:
the Constitution applies only to the state action.
Some companies have a(n) _____ policy under which an employer refuses to hire or terminates a worker on the basis of the spouse's working at the same firm.
anti-nepotism
According to Donaldson and Dunfee, examples of hypernorms include the right to:
personal freedom.
Title II of the USA PATRIOT Act provides roving surveillance authority under the:
Foreign Intelligence Surveilance Act to track individuals.
Which of the following states in the U.S. requires employers to notify workers when they are being monitored?
Connecticut
The impact of the ECPA is to punish electronic monitoring only by third parties and not by employers because courts have ruled that "interception" applies only:
the message in transit
The desire to place workers in appropriate positions, to ensure compliance with affirmative action requirements, or to administer workplace benefits is sufficient reason for employers to undertake employee _____.
monitoring
Which of the following statements about hte Electronic Communications Privacy Act of 1986 is true?
A firm that secures employee consent to monitoring at the time of hire is immune from ECPA liability.
An employer can resolve the concerns related to the "Hawthorne Effect" through:
random, anonymous monitoring.
Which of the following is true about privacy?
Privacy can be legally protected by the constitution.
According to Donaldson and Dunfee, the right to _____ is an example of a hypernorm.
Physical movement
_____ refers to the body of law comprised of the decisions handed down by courts, rather than specified in any particular statutes or regulations.
Cinnib kAw
If the basis for finding an invasion of privacy is often the employee's legitimate and reasonable expectation of privacy, then a situation where there is no real expectation of privacy occurs when the:
employee has actual notice.
When we do not get to know someone because we do not have to see that person in order to do our business, we often do not take into account the impact of our decisions on him or her. This is the challenge posed by the:
facelessness that results from the use of a new technology accessible in the workplace.
Which of the following is true about the USA PATRIOT Act?
The act expands states' rights with regard to Internet surveillance technology.
Which of the following is an advantage of monitoring?
Monitoring increases the level of worker autonomy and respect, as well as workers' right to control their environment.
Which of the following statements about the Electronic Communications Privacy Act of 1986 is true?
A firm that secures employee consent to moonitoring at the time of hire is immune from ECPA liability.
Employees will be on their best behavior during phone calls if they know that those calls are being monitored. Identify this effect of employee monitoring.
The Hawthorne effect
Which of the following acts stipulates that employers cannot use "protected health information" in making employment decisions without prior consent?
The Health Insurance Portability and Accountability Act
Which of the following statements is true about monitoring?
It does not have a negative impact on performance.
Consumers are vulnerable when they are not aware that they are subject to a marketing campaign. This type of campaign is called:
undercover marketing
Labeling products with such terms as "environmentally friendly," "natural," "eco," "energy efficient," "biodegradable" and the like can help promote products that have little or no environmental benefits. This practice is known as:
greenwashing
Greater consumption is likely to lead to unhappiness, a condition termed _____.
affluenza
Which of the following is true about strict product liability?
It insures that society creates a strong incentive for businesses to produce safer goods and services.
The _____ ethical tradition would take the two parties' agreement as evidence that both are better off than they were prior to the exchange and thus conclude that overall happiness has been increased by any exchange freely entered into.
utilitarian
A business will seek to limit its liability by explicitly disowning any promise or warranty by:
issuing a disclaimer of liability.
Which of the following do advertising and other marketing practices violate by creating consumer wants?
Consumer autonomy
Which of the following is one of the "Four Ps" of marketing?
Promotion
Which of the following statements about manipulation would a strong believer of the principle-based ethical tradition most likely to support?
even unsuccessful manipulations are guilty of ethical wrong.
The _____ ethical tradition would see a simple situation of an agreement for an exchange between two parties as upholding respect for individuals by treating them as autonomous agents capable of pursuing their own ends.
rights-based
Identify the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.
greenwashing
Greater consumption is likely to lead to unhappiness, a condition termed ____.
affluenza
The _____ ethical tradition would take the two parties' agreement as evidence that both are better off than they were prior to the exchange and thus conclude that overall happiness has been increased by an exchange freely entered into.
Utilitarian
A business will seek to limit its liability by explicitly disowning any promise or warranty by:
issuing a disclaimer of liability.
Which of the following statements about manipulation would a strong believer of the principle-based ethical tradition most likely support?
Even unsuccessful manipulations are guilty of ethical wrong.
UniCo - a multinational corporation that specializes in designing, developing, and selling consumer electronics - outsources manufacturing products to a third-world country company. Human rights activists have criticized UniCo for operating inhumane sweat
Respondent superior.
Which of the following is an often overlooked aspect of advertising?
Educational function
Identify one of the implications of the "dependence effect.
By creating consumer wants, advertising and other marketing practices violate consumer autonomy.
How does advertising distort the economy?
It creates irrational and trivial consumer wants.
Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the:
strict product liability standard.
The possibility that the economy cannot grow indefinitely is simply not part of the:
circular flow model.
Which of the following is true of the sustainability model in terms of environmental responsibilities?
The huge unmet market potential among the world's developing economies can only be met in sustainable ways.
Which of the following holds that a business is responsible for the entire life of its products, including the ultimate disposal even after the sale?
The cradle-to-grave model
Which of the following is involved in environmental problems according to the market-based approach to resolving environmental challenges?
Allocation and distribution of limited resources
Which of the following explains the statement "All resources are fungible"?
It means that all resources can be replaced by substitutes.
Which of the following would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill?
Cradle-to-grave" model
Reminiscent of the _____ tradition, it is suggested that some animals have the cognitive capacity to possess a conscious life of their own and people have a duty not to treat these animals as mere objects and means to their own ends.
Kantian
Which of the following is true of the conversation movement?
It recommended a more restrained and prudent approach to the natural world.
This conversation movement:
argued that the natural world has valued as a resource, providing humans with both direct benefits and indirect benefits.
Before the environmental legislation was enacted, the primary legal avenue open for addressing environmental concerns was:
tort law
Which of the following causes inadequacy in ad hoc attempts - internalizing external costs and assigning property rights to unowned goods such as wild species - to repair market failures?
The first-generation problem
The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the:
Three pillars of sustainability
According to the _____ law of thermodynamics (the conservation of matter/energy), neither matter nor energy can truly be "created," it can only be transferred from one form to another.
first
Cradle-to-grave and cradle-to-cradle responsibilities are part of the _____ sustainable business principle.
biomimicry
According to economist Herman Daly, neoclassical economics, with its emphasis on economic growth as the goal of economic policy will inevitably fail to meet these challenges:
the less it recognizes that the economy is but a subsystem within earth's biosphere.
Which of the following is true about the concept of sustainable development and sustainable business practice?
It suggests a radically new vision for integrating financial and environmental goals, compared to the growth model that preceded it.
Over the long term, resources and energy cannot be used, nor waste produced, at rates at which the biosphere cannot replace or absorb them without jeopardizing its ability to sustain life. These are what Herman Daly calls the:
biophysical limits to growth.
The Triple Bottom Line approach involves measuring business success of sustainable business and sustainable economic development in terms of:
economic, ethical, and environmental sustainability.
Which of the following holds that a business should be responsible for incorporating the end results of its products back into the productive cycle?
Cradle-to-cradle
Which of the following is true of the conservation movement?
It recommended a more restrained and prudent approach to the natural world.
Which of the following suggests that a business takes resources, makes products out of them, and discards whatever is left over?
The take-make-waste approach
Which of the following is true of the Brundtland Commission?
It defined sustainable development as development that meets the needs of the present without comprising the ability of future generations to meet their own needs.
Estimates suggest that with present technologies, businesses can readily achieve at least a fourfold increase in efficiency, and perhaps as much as tenfold increase. This can be achieved through the first principle of sustainability known as:
eco-efficiency
In economic terms, all resources:
are infinite because they can be replaced by substitutes.
The model of economy, in consistency with the second law of thermodynamics, implies that:
the amount of usable energy decreases over time.
Identify the gatekeepers who evaluate a company's financial prospects or creditworthiness, so that banks and investors can make informed decisions.
Analysts
Which of the following statements is true of the Committee of Sponsoring Organizations?
It describes control as encompassing those elements of an organization that, taken together, support people in the achievement of the organization's objectives.
Identify the gatekeepers who ensure that decisions and transactions conform to the law.
Attorneys
Which of the following duties of board members suggests that conflicts of interest are always to be resolved in favor of the corporation?
Duty of Loyalty
Which of the following statements is true of conflicts of interests?
Excessive executive compensation involves conflicts of interests.
Which of the following exemplifies insider trading?
Illegally evaded income taxes
A _____ exists where a person hold a position of trust that requires that he exercise judgment on behalf of others, but where his personal interests conflict with those of others.
Duty of Loyalty
Which of the following statements is true of the Sarbanes-Oxley Act?
It was passed by Congress because corporate boards failed to police themselves.
Identify the COSCO element that is directed at supporting the control environment through fair and truthful transmission of facts.
Information and communications
Which provision of the Sarbanes-Oxley Act prohibits various forms of professional services that are determined to be consulting rather than auditing?
Section 201
Which of the following rely on gatekeepers for fair and effective functioning of economic markets?
Bankers
Sara, an employee of PentaComp Inc., passed on confidential information of her company to her friend. Her friend benefitted from selling PentaComp's stock based on the information shared by Sara. In this scenario, Sara can be convicted of _____.
Insider trading
Tom, an employee of Electronixx, adjusted credits and debits of the company's ledger to show high profits. He also created false documents, underreported his income, and evaded paying taxes for a year. Tom can be convicted for _____.
Conflicts of interest in accounting
Which of the following is a criticism of the Sarbanes-Oxley Act?
It imposes extraordinary financial costs on the firms.
According to Kevin Bahr, which of the following is a cause for conflicts in the financial markets?
Self-regulation of the accounting profession
Identify the external mechanism that seeks to ensure ethical corporate governance.
The Sarbanes-Oxley Act
Which of the following gatekeepers guarantee that executives act on behalf of the stockholders' interests?
Board of directors
Which of the following scenarios gives rise to conflicts of interests in corporate governance?
Senior executives determining the compensation received by board members
Which of the following provisions of the Sarbones-Oxley Act requires lawyers to report concerns of wrongdoing if not addressed?
Section 307
The function of auditors as gatekeepers is to:
verify a company's financial statements so that investors' decisions are free from fraud and deception.
Which of the following is true of gatekeepers?
They serve as intermediaries between market participants.
Which of the following is true of the COSO controls and the Sarbanes-Oxley requirements?
They encourage greater accountability for financial stewardship.
Which of the following elements of COSO refers to policies and procedures that support the cultural issues such as integrity, ethical values, competence, philosophy, and operating style?
Control activities
_____ of the Sarbanes-Oxley Act addresses the disclosure of audit committee financial expert.
Section 407
Which of the following exemplifies insider trading?
Misappropriation of proprietary knowledge
Identify the COSO element that is directed at supporting the control environment through fair and truthful transmission of facts.
Information and communications
Which of the following is an internal mechanism that seeks to ensure ethical corporate governance?
The COSO framework