Business Ethics - Chapter 1

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Flashcards	35
Language	English
Category	Micro-Economics
Level	University
Created / Updated	07.01.2024 / 15.01.2025
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Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct?

Council on Economic Priorities' Social Accountability 8000

Ethical Trading Initiative

U.S. Apparel Industry Partnership

United States Sentencing Commission

World Trade Organization

Council on Economic Priorities' Social Accountability 8000

Ethical Trading Initiative

U.S. Apparel Industry Partnership

United States Sentencing Commission

World Trade Organization

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

ethics officers

ethics programs

codes of ethics

legal counsel

accountants

ethics officers

ethics programs

codes of ethics

legal counsel

accountants

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

Profits

Dividends

Trust

Hubris

Codes of ethics

Profits

Dividends

Trust

Hubris

Codes of ethics

The Dodd-Frank Wall Street Reform and Consumer Protection Act

was very popular among Wall Street bankers.

represented only modest reform.

came out of theological discussions in the 1920s.

was designed to make the financial services industry more responsible.

made it mandatory for public corporations to hire ethics officers.

was very popular among Wall Street bankers.

represented only modest reform.

came out of theological discussions in the 1920s.

was designed to make the financial services industry more responsible.

made it mandatory for public corporations to hire ethics officers.

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

self-regulation rather than regulation by government.

decreasing the number of mergers.

decreasing the multinational presence in the U.S. marketplace.

increasing government influence on the economic arena.

improving business ethics.

self-regulation rather than regulation by government.

decreasing the number of mergers.

decreasing the multinational presence in the U.S. marketplace.

increasing government influence on the economic arena.

improving business ethics.

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

Better Business Bureau ethical guidelines.

the Federal Sentencing Guidelines for Organizations.

the Ethical Trading Initiative.

the Federal Trade Commission compliance requirements.

the Sarbanes-Oxley Act.

Better Business Bureau ethical guidelines.

the Federal Sentencing Guidelines for Organizations.

the Ethical Trading Initiative.

the Federal Trade Commission compliance requirements.

the Sarbanes-Oxley Act.

Ethical culture is defined as

rules, standards, and moral principles regarding what is right or wrong in specific situations.

the establishment and enforcement of ethical codes throughout the organization.

the development of rules and norms that are socially enforced.

the codification of laws to reward organizations for taking action to prevent misconduct.

acceptable behavior as defined by the company and industry.

rules, standards, and moral principles regarding what is right or wrong in specific situations.

the establishment and enforcement of ethical codes throughout the organization.

the development of rules and norms that are socially enforced.

the codification of laws to reward organizations for taking action to prevent misconduct.

acceptable behavior as defined by the company and industry.

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

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

forcing all organizations to develop mandatory reporting systems.

eliminating most of the federal legislation that created inefficient and time-consuming activities for businesses.

providing a study of moral philosophies.

providing an examination of company codes of ethics.

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

forcing all organizations to develop mandatory reporting systems.

eliminating most of the federal legislation that created inefficient and time-consuming activities for businesses.

providing a study of moral philosophies.

providing an examination of company codes of ethics.

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.

They strive to prevent misconduct.

They encourage companies to develop standards and procedures capable of detecting and preventing misconduct.

They utilize a carrot and stick approach by taking preventive action against misconduct.

They encourage the appointment of high-level personnel responsible for oversight of the compliance program.

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

They strive to prevent misconduct.

They encourage companies to develop standards and procedures capable of detecting and preventing misconduct.

They utilize a carrot and stick approach by taking preventive action against misconduct.

They encourage the appointment of high-level personnel responsible for oversight of the compliance program.

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

Greater employee commitment

A high degree of employee dissent

Improved customer trust and satisfaction

Increased investor loyalty

Better financial performance

Greater employee commitment

A high degree of employee dissent

Improved customer trust and satisfaction

Increased investor loyalty

Better financial performance

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

lack of focus on goals.

greater focus on education.

increased community involvement.

improved relationships with competitors.

enhanced performance.

lack of focus on goals.

greater focus on education.

increased community involvement.

improved relationships with competitors.

enhanced performance.

Employees feel less pressure to compromise ethically, observe less misconduct, are more satisfied with their organizations, and feel more valued when

they are new at their jobs.

they are paid to ignore problems in the workplace.

they do not agree with an organization’s values.

they have very high compensation.

they see honesty, respect, and trust applied in the workplace.

they are new at their jobs.

they are paid to ignore problems in the workplace.

they do not agree with an organization’s values.

they have very high compensation.

they see honesty, respect, and trust applied in the workplace.

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

foster stability.

improve employee commitment.

improve customer loyalty.

lower stock value and prices.

complicate business financial reporting.

foster stability.

improve employee commitment.

improve customer loyalty.

lower stock value and prices.

complicate business financial reporting.

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

customers'

employees'

stockholders'

suppliers'

distributors'

customers'

employees'

stockholders'

suppliers'

distributors'

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

Employee ethics training

Hiring a compliance officer

Ignoring potential ethical issues

Writing a code of ethics

Conducting an ethics and compliance audit.

Employee ethics training

Hiring a compliance officer

Ignoring potential ethical issues

Writing a code of ethics

Conducting an ethics and compliance audit.

Principles are

laws and regulations that guide behavior in the world of business.

mores, values, and customs that guide behavior in general.

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

the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.

the mores, values, and customs that parents teach their children.

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laws and regulations that guide behavior in the world of business.

mores, values, and customs that guide behavior in general.

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

the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.

the mores, values, and customs that parents teach their children.

Social responsibility is

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

principles and standards that guide behavior in the world of business.

a business's responsibility not to pollute the environment.

a business's responsibility to manufacture products that function properly.

charitable contributions made by a business to enhance its image.

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

principles and standards that guide behavior in the world of business.

a business's responsibility not to pollute the environment.

a business's responsibility to manufacture products that function properly.

charitable contributions made by a business to enhance its image.

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

Defense Industry Initiative on Business Ethics and Conduct

Sarbanes-Oxley Act

Federal Sentencing Guidelines for Organizations

Foreign Corrupt Practices Act

Dodd-Frank Wall Street Reform and Consumer Protection Act

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Defense Industry Initiative on Business Ethics and Conduct

Sarbanes-Oxley Act

Federal Sentencing Guidelines for Organizations

Foreign Corrupt Practices Act

Dodd-Frank Wall Street Reform and Consumer Protection Act

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

It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.

It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct."

It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession."

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

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

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It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.

It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct."

It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession."

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

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

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

The right to choose

The right to safety

The right to be informed

The right to be ethical

The right to be heard

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The right to choose

The right to safety

The right to be informed

The right to be ethical

The right to be heard

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

Sarbanes-Oxley Act

Federal Sentencing Guidelines for Organizations

Dodd-Frank Wall Street Reform and Consumer Protection Act

Foreign Corrupt Practices Act

Global Sullivan Principles

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Sarbanes-Oxley Act

Federal Sentencing Guidelines for Organizations

Dodd-Frank Wall Street Reform and Consumer Protection Act

Foreign Corrupt Practices Act

Global Sullivan Principles

Business ethics, as a field, has passed through which of the following states?

A field of study to theological discussion to recognition of social issues

Recognition of social issues to a field of study to theological discussion

A field of study to recognition of social issues to theological discussion

Recognition of social issues to theological discussion to a field of study

Theological discussion to recognition of social issues to a field of study

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A field of study to theological discussion to recognition of social issues

Recognition of social issues to a field of study to theological discussion

A field of study to recognition of social issues to theological discussion

Recognition of social issues to theological discussion to a field of study

Theological discussion to recognition of social issues to a field of study

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

An increase in consumer rights by organizations and governments

The growth of international retail chain stores

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

The widespread adoption of consumer oriented marketing strategies among businesses

Organizations’ tendency to seek ways to take advantage of consumers

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An increase in consumer rights by organizations and governments

The growth of international retail chain stores

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

The widespread adoption of consumer oriented marketing strategies among businesses

Organizations’ tendency to seek ways to take advantage of consumers

Ethics is a part of decision making

at all levels of work and management.

primarily at the upper management levels of an organization.

mostly for policy makers.

at is less important than other decision making processes.

only at that lower levels of organizational management.

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at all levels of work and management.

primarily at the upper management levels of an organization.

mostly for policy makers.

at is less important than other decision making processes.

only at that lower levels of organizational management.

Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices?

Federal Sentencing Guidelines for Organizations

Defense Industry Initiative on Business Ethics and Conduct

Corporate codes of conduct

United States Sentencing Commission

MERCOSUR

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Federal Sentencing Guidelines for Organizations

Defense Industry Initiative on Business Ethics and Conduct

Corporate codes of conduct

United States Sentencing Commission

MERCOSUR

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

United States Sentencing Commission

Defense Industry Initiative on Business Ethics and Conduct

World Trade Organization

United Nations Global Compact

Federal Sentencing Guidelines for Organizations

United States Sentencing Commission

Defense Industry Initiative on Business Ethics and Conduct

World Trade Organization

United Nations Global Compact

Federal Sentencing Guidelines for Organizations

The study of business ethics is important to better understand all of the following except

that a person's own moral philosophies and decision-making experience may not be sufficient to guide him or her in the business world.

how and why people make ethical or unethical decisions.

how to cope with conflicts between a person's own values and those of the organization in which he or she works.

that business ethics is entirely an extension of an individual's own personal ethics.

how to identify ethical issues arising in the business world.

that a person's own moral philosophies and decision-making experience may not be sufficient to guide him or her in the business world.

how and why people make ethical or unethical decisions.

how to cope with conflicts between a person's own values and those of the organization in which he or she works.

that business ethics is entirely an extension of an individual's own personal ethics.

how to identify ethical issues arising in the business world.

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

trust.

investor loyalty.

employee commitment.

customer satisfaction.

opportunity for misconduct.

trust.

investor loyalty.

employee commitment.

customer satisfaction.

opportunity for misconduct.

More than a compliance program, business ethics is becoming

a management issue to achieve competitive advantage.

less accepted by society.

mainly a government regulatory issue.

an initiative led by nonprofit organizations.

a program that decreases profits but increases societal benefits.

a management issue to achieve competitive advantage.

less accepted by society.

mainly a government regulatory issue.

an initiative led by nonprofit organizations.

a program that decreases profits but increases societal benefits.

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

family concerns.

an unethical boss.

limited business experience.

financial training.

a marketing background.

family concerns.

an unethical boss.

limited business experience.

financial training.

a marketing background.

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