Business Ethics
Course Business Ethics FHNW (Business Administration IM)
Course Business Ethics FHNW (Business Administration IM)
All of these are ways of reducing pollution, except:
Chapter 12, p. 362
What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production?
Chapter 10, p. 280
Only 10% of employees observe abusive behavior in the workplace.
Chapter 3, Check your EQ
According to Table 3-1, 21% of employees observe abusive behavior in the workplace
To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except ...
p. 232
Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
Chapter 2, p. 32
Which of the following is not a conflict management style?
p. 319
The stakeholder perspective is useful in managing social responsibility and business ethics.
Chapter 2, Check your EQ
The six steps to implement this approach were provided in this chapter
Which of the following is not a way to avoid groupthink in small-group decision making?
p. 325
According to Kohlberg's model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she
Chapter 6, p. 170
For an ethical compliance program to properly function,
Chapter 8, p. 230
Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has
Which-one(s) of the following statement(s) is(are) correct?
An important part of leadership is the implementation of employee-centred leadership. Employee-centred leadership recognizes that while not everyone will be a manager, every employee can and should practice leadership skills to support ethical decision making.
An essential component of employee-centred leadership is communication. Without communication all attempts at maintaining an ethical culture fail.
Evidence suggests that most firms understand the importance of communication in connection to leadership and that top management puts special emphasis on getting feedback from employees, listening to their concerns.
Chapter 11
Which-one(s) of the following statement(s) is(are) correct?
Moral intensity and ethical issue intensity are similar concepts because they both relate to the individual’s perception of social or organisational pressure and the harm they believe their decisions will have on others.
Moral intensity is different from ethical issue intensity because the former relates to a company’s moral obligations regarding its corporate citizenship, and the latter relates to the importance of an event in the eyes of an individual person.
Regarding ethical issue intensity, it can be argued that senior employees and those with administrative authority play an important role as they typically dictate an organisation’s stance on ethical issues.
pp. 129-130
Sustainability is the potential for the long-term well-being of the natural environment including all biological entities, as well as the mutually beneficial interactions among nature and individuals, organizations, and business strategies.
Chapter 12, Check your EQ
Sustainability is the potential for the long-term well-being of the natural environment, including all biological entities, as well as the mutually beneficial interactions among nature and individuals, organizations, and business strategies
Which-one(s) of the following statement(s) is(are) correct?
The prime goal of an ethical culture is the maximisation of the use of principles that contribute to ethical reasoning in difficult or new situations. Another, subordinate goal is to minimise the need for enforced compliance of rules.
Most ethical issues exist because of conflicts in values and belief patterns about right and wrong among and within stakeholder groups.
When unethical acts are discovered in organisations, in most instances cooperation or complicity facilitated the acceptance and perpetuation of the unethical conduct.
p. 15; p. 30
Among retail stores, _____ is a larger problem than customer shoplifting.
Chapter 3, p. 66
Which of the following leadership types has a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation?
Chapter 11, p. 331
An unconscious reference to one's own cultural values, experiences, and knowledge is referred to as the ...
p. 276
The leader demands instantaneous obedience and focuses on achievement, initiative, and self-control.
Chapter 11, p. 330-331
You work as the assistant to the CEO of an internationally active pharmaceutical company. In order to promote your products, you regularly invite medical doctors (MDs) to seminars and conferences that also help to exchange ideas and share insights gained from experience. In this context, it has been common practice that your company covers all the travelling expenses of the participants and their spouses and also pay a substantial fee if participants are willing to make a contribution in the discussion forums. As this has been a common practice within the pharmaceutical industry, your company has not considered this approach as ethically questionable so far.
However, recently, a new law was passed in one of the countries where you do business that prohibits the payment of a substantial fee merely for the agreement to participate in a discussion. Yet, it remains unclear exactly which sum could be considered substantial. At the same time, the parliament of the country where your head offices are located is preparing a new law making the payment of excessive compensation to participants of company-organised international conferences illegal. In this context, the CEO has asked you to come up with a plan of action, proposing, with an emphasis on sound corporate citizenship, an ethically viable and commercially sound approach to the new situation.
Given the above information, which-one(s) of the following statement(s) is(are) correct? See Visual with choices I, II, and III.
Chapters 1-3; 5, p. 300
Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _____.
Chapter 5
Business ethics deals with right or wrong behavior within a particular organization.
Chapter 1, Check your EQ
That stems from the basic definition
Three primary stakeholders are customers, special interest groups, and the media.
Chapter 2, Check your EQ
Although customers are primary stakeholders, special interest groups and the media are usually considered secondary stakeholders
Please fill in the missing part in a manner consistent with business ethics.
After identifying ethical risk areas, ethical leaders should develop policies and procedures for _____ and _____ misconduct. This process is an important part of risk management.
While companies might adopt risk management plans to deal with economic, marketing, and technological risks, they are less likely to consider _____ risks as a major area of concern.
pp. 332-333
Which-ones of the following terms belong to the same group (i.e., the same category)?
1) Egoism
2) Utilitarianism
3) Relativism
4) Consequentialism
5) Nonconsequentialism
Chapter 6
Please fill in the missing part in a manner consistent with business ethics. (p. 135/moderate)
A(n) _____ is a problem, situation, or opportunity that requires an individual, group, or organisation to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
p. 135
Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?
Chapter 11, p. 330
All of these are ways of reducing pollution, except:
p. 362
Which-one(s) of the following statement(s) is(are) correct?
In the context of business ethics, the notion “ethics” refers to the decisions made within the framework of an organisation’s values. However, it does not refer to the specific behaviour of members of an organisation.
In the context of business ethics, the notion “ethics” refers to both, to a specific behaviour of members of an organisation as well as to a person’s personal philosophies about what is right or wrong.
In the context of business ethics, there exists a difference between an ordinary decision and an ethical-one. For instance, contrary to an ordinary decision, an ethical decision requires the weighing of values in order to reach a judgement regarding a situation the decision maker has not faced before.
p. 5
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Chapter 1, p. 12
Act deontology requires a person use equity, fairness, and impartiality in making decisions and evaluating actions.
Chapter 6, Check your EQ
The rules serve only as guidelines, and past experience weighs more heavily than the rules
There exist positive links between environmental and economic performance. In connection thereto, a firm’s innovation strategy might lead to a better economic performance for all of the subsequent reasons except:
p. 367
_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the “invisible hand.”
Chapter 10, p. 279
Which-one(s) of the following statement(s) is(are) correct?
A company’s ethical culture has a positive effect on employee commitment and trust. However, investor loyalty is only marginally affected by a company’s ethical culture as investors are primarily interested in high returns on equity.
A company’s ethics and compliance program can support values and appropriate conduct. In this context, it is important to realise a company’s core values, which are derived from principles, might not be the same as an employee’s individual values.
A company’s value practices are distinct from its organisational practices, which are driven by technical or efficiency considerations.
p.16 and pp. 143
Which is the last of Kohlberg's stages of cognitive moral development?
Chapter 6, p. 170
There exist positive links between environmental and economic performance. In connection thereto, a firm’s innovation strategy might lead to a better economic performance for all of the subsequent reasons except:
p. 367
An unconscious reference to one's own cultural values, experiences, and knowledge is referred to as the ...
p. 276
Risk compartmentalization occurs when
Chapter 10, p. 278
An ethical compliance audit is designed to determine the effectiveness of ethics initiatives.
Chapter 8, Check your EQ
It helps in establishing the code and in making program improvements
Last year, your company, a supplier of electronic hard ware, adopted a new environmental strategy in which the long-term overlaps of shared values between the needs of the company and the needs of society and the environment receive special attention. In this context, your company has begun with the development of new technologies that should provide the means to extract, from electronic waste, the raw materials needed in the production of new units. In this sense, the company hopes both to better secure the supply of those needed raw materials in the future as well as comply with newly established legal environmental standards. However, the development of that technology proves to be more costly and more challenging than expected. And whilst the board of directors, at last year’s general assembly of shareholders, received great support for its decision to develop the new technologies, important shareholders have now voiced their serious concern that the strategy appears to be too costly, putting the company’s economic performance at risk.
The CEO is a much appreciated person; many consider him an ethical leader. However, he is not what one would call an authoritative, inspirational leader. Especially when it comes to communication, he appears to have trouble in bringing a message across in an inspiring manner. Many believe that it is because of this shortcoming that some shareholders don’t trust the companyto be able to successfully complete the development of the new technologies. Many believe that his resignation would solve that problem. He, however, does not seem to share that view.
In view of the above-described situation, which-one(s) of the following statement(s) is(are) correct? See visual for I, II, and III.
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Flashcards
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.
Chapter 1, p. 13
The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually
Chapter 8, p. 222
Which moral philosophy considers an act to be morally right if it produces some desired result?
p. 158
Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as
Chapter 2, p. 31
From an ethical standpoint, leaders should take time during this step of the RADAR model to fix any weaknesses in the ethics program and develop improved ways of detecting misconduct.
p. 335
Which-one of the following statements is least likely to be correct?
p. 15 and pp. 22-23
In the absence of ethics programs, employees are likely to make decisions based on
Chapter 8, p. 218
Please fill in the missing part in a manner consistent with business ethics.
_____ is based upon the assumption that people act irrationally, partially because of emotions, genetics, and heuristics.
p. 281
The self-refrence criterion is an unconscious reference to one's own cultural values, experience, and knowledge.
Chapter 10, Check your EQ
We react based on what we have experienced over our lifetimes
Which-one of the following statements is most likely to be correct?
p. 233
Which of the following is the most comprehensive?
Chapter 8, p. 223
Please fill in the missing part in a manner consistent with business ethics.
A stakeholder orientation involves activities and processes within a system of social institutions that facilitate and maintain value through exchange relationships with _____.
p. 33
Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
Chapter 2, p. 35
Last year you were promoted to lead a department with 80 associates. In your new function, you had to introduce the newly established company code of ethics serving as the basis for rules of conduct. Your associates receive regular training and the feedback you get is mostly positive. However, James, a 64-year-old associate, who will retire in a few months, isn’t at all happy with the idea that associates are now expected to implement and follow what he considers a set of unnecessary rules.
In a way, you’d prefer not bother about James. However, he is very popular and, over the years, has become an opinion leader. Many of your associates look up to him and see him as a sort of unofficial boss.
In view of the above-described situation, which-one(s) of the following statement(s) is(are) correct?
Chapter 8 + 11
Optimization is defined as
Chapter 3, p. 65
The 1960s saw a rise of consumerism. What is consumerism?
Chapter 1, p. 10
Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to
Chapter 10, p. 283-284
Please fill in the missing part in a manner consistent with business ethics.
_____ is the concept that morality varies from one culture to another and that “right” and “wrong” are defined differently.
p. 287
Which-one of the following statements is least likely to be true?
p. 329
Stakeholders' power over businesses stems from their
Chapter 2, p. 32
_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Chapter 3, p. 76
To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except ...
p. 232
A stakeholder group that is absolutely necessary for a firm’s survival is defined as
Chapter 2, p. 32
Obedience to authority relates to the influence of corporate culture.
Chapter 5, Check your EQ
Obedience to authority relates to the influence of significant others and supervisors
Please fill in the missing part in a manner consistent with business ethics.
_____ is based on the assumption that people are predictable and will maximise the utility of their choices relative to their needs and wants.
p. 280
A coaching leader builds a positive climate by
Chapter 11, p. 331
The most significant influence on ethical behavior in an organization is the opportunity to engage in unethical behavior.
Chapter 2, Check your EQ
Other influences such as corporate culture have more impact on ethical decisions within an organization
The first step toward understanding business ethics is to
Chapter 3, p. 61
A stakeholder orientation can be viewed as a(n)
Chapter 2, p. 36
Which of the following is not a way to avoid groupthink in small-group decision making?
p. 325
At the heart of the Federal Sentencing Guidelines for Organizations is a
Chapter 8, p. 220
Which-one(s) of the following statement(s) is(are) correct?
As more and more countries are adopting policies of state financed national healthcare programs, including associates in a company healthcare program is no longer an important issue in business ethics.
It is in many cases in the long-term interest of a company to also include potentially difficult issues related to different and differing religious beliefs in an ethics program.
The failure to include the issue of living wages in a company’s ethics program can possibly damage a company’s reputation if the public perceives the company as paying foreign workers unfair wages.
Chapter 10
Which-one(s) of the following statement(s) is(are) correct?
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 utilitarian.
A person who offers a facilitation payment in order to secure a personal career advancement may be a teleologist.
A person who absolutely declines to offer a facilitation payment even if it helped to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a rule deontologist.
p. 223
Please fill in the missing part in a manner consistent with business ethics.
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.
p. 370
More than a compliance program, business ethics is becoming
Chapter 1, p. 19
What is the AACSB?
p. 287
Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
Chapter 2, p. 32
The accountability and responsibility for appropriate business conduct rests with top management.
Chapter 8, Check your EQ
Executives in an organization determine the culture and initiatives that support ethical behaviour
Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _____.
Chapter 5, p. 130
Which-one(s) of the following statement(s) is(are) correct?
Fraud is the engagement of one or more individuals in intentional deceptive practices to advance their own interests over those of the organisation or some other group.
Commission lying is creating a perception or belief by words that intentionally deceive the receiver of the message.
Omission lying is intentionally not informing others of any differences, problems, safety warnings, or negative issues relating to the product or company that significantly affect awareness, intention, or behaviour.
p. 64, p. 69 and p. 76
