Test Bank Docx Ch4 Business Ethics And Social Responsibility - Contemporary Business 19e | Practice Test Bank by Louis E. Boone. DOCX document preview.
Package Title: Chapter 4, Testbank
Course Title: Boone, Contemporary Business, 19th Edition
Chapter Number: 4
Question type: Multiple Choice
1) A formal statement that defines how an organization expects its employees to resolve ethical issues is a(n) _____.
a) False Claims Act
b) business ethics
c) code of conduct
d) regulation FD
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
2) Some companies measure social performance by conducting a(n)_____ that identifies and evaluates the company’s activities that relate to social issues.
a) social audit
b) social responsibility analysis
c) business ethics audit
d) code of conduct assessment
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
3) The main federal regulatory agency in setting workplace safety and health standards is the _____.
a) Securities and Exchange Commission (SEC)
b) Occupational Safety and Health Administration (OSHA)
c) False Claims Department
d) FD agency
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
4) The _____ requires publicly traded companies to announce major information to the general public, rather than first disclosing the information to selected investors.
a) Securities and Exchange Commission (SEC)
b) Occupational Safety and Health Administration (OSHA)
c) False Claims Act
d) Regulation FD
Difficulty: Easy
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
5) Management’s acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the company’s performance is _____.
a) social responsibility
b) business ethics
c) code of conduct
d) product liability
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
6) When a publicly traded company is suspected of unethical or illegal behavior, the _____ will conduct an investigation.
a) Securities and Exchange Commission (SEC)
b) Occupational Safety and Health Administration (OSHA)
c) False Claims Department
d) FD agency
Difficulty: Easy
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
7) Inappropriate actions of a sexual nature in the workplace is _____.
a) social irresponsibility
b) business ethics avoidance
c) sexual harassment
d) code of conduct violations
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
8) The standards of conduct and moral values governing actions and decisions in the work environment are _____.
a) social responsibilities
b) business ethics
c) code of conducts
d) product liability compliance
Difficulty: Easy
Learning Objective 1: 04-01: Explain the concern for ethical and societal issues.
Section Reference 1: Concern for Ethical and Societal Issues
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
9) A person in the _____ of ethical development is able to move beyond self-interest and take into account the larger needs of society.
a) social responsibility stage
b) business ethics stage
c) postconventional stage
d) whistle-blowing stage
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
10) A strategy that emphasizes a company’s commitment to environmentally safe products and production is _____.
a) social responsibility
b) business ethics
c) product liability
d) green marketing
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
11) The _____ is a law that protects whistle-blowers who file a lawsuit on behalf of the government if they believe that a company has somehow defrauded the government.
a) Securities and Exchange Act
b) Occupational Safety and Health Act
c) False Claims Act
d) FD act
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
12) _____ is an employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices of his or her employer.
a) Social responsibility
b) Business ethics
c) Code of conduct
d) Whistle-blowing
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
13) _____ refers to the responsibility of manufacturers for injuries and damages caused by their goods.
a) False Claims Act
b) Social responsibility
c) Business ethics
d) Product liability
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
14) When management at ABC Manufacturing considers societal, consumer, and profit issues in decision making, the company is practicing _____.
a) gatekeeping
b) consumerism
c) social responsibility
d) altruism
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
15) Businesses have responsibilities to which of these?
a) Investors and customers only
b) Investors, customers, employees, and society
c) Investors, customers, and government
d) Investors only
Difficulty: Easy
Learning Objective 1: 04-01: Explain the concern for ethical and societal issues.
Section Reference 1: Concern for Ethical and Societal Issues
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
16) Which of the following statements is correct?
a) Ethical conflicts usually arise in trying to serve the needs of separate constituents.
b) Setting ethical standards is always clear-cut.
c) The ethical values of individual employees have no influence on the decisions and actions a business takes.
d) Setting ethical standards is easy.
Difficulty: Easy
Learning Objective 1: 04-01: Explain the concern for ethical and societal issues.
Section Reference 1: Concern for Ethical and Societal Issues
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
17) According to the Global Business Ethics Survey, what percentage of workers feel pressure to compromise their organization’s ethics standards, policies, or the laws?
a) 10%
b) 15%
c) 20%
d) 25%
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
18) Sam routinely takes or borrows his company goods without his manager’s knowledge. This undermines Sam’s _____.
a) integrity
b) loyalty
c) truthfulness
d) morals
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
19) Riya and her husband Giovanni work full-time jobs and are struggling to manage their time efficiently. They have a five-year-old child and are also responsible for caring for Giovanni’s father, who needs to be taken to physical therapy every day. Which of the following do Riya and Giovanni best exemplify?
a) The silent generation
b) The sandwich generation
c) The baby boomer generation
d)Generation X
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
20) Which of the following is an example of workplace discrimination?
a) Nate, a young manager, is passed over for a promotion in favor of John, who has worked with the company for 30 years.
b) Bob is ignored when the manager selects female employees as project leads as the manager prefers that female employees lead teams.
c) Roy has to work more hours a week than Kara, a working mother.
d) Employees who drive electric or hybrid cars in Lee's company get better parking spots than employees who drive other cars.
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
21) ABC Tools, a publicly traded company, did not reveal the performance of its stocks to the public. Under which rule or act can the company be investigated?
a) The Civil Rights Act of 1991
b) The Wheeler-Lea Act
c) The Civil Rights Act of 1964
d) Regulation FD (Fair Disclosure)
Difficulty: Medium
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
22) When Samone has to audit a restaurant owned by her brother-in-law, which of the following ethical challenges does she face?
a) Conflict of interest
b) Loyalty versus truth
c) Breach of trust
d) Honesty and integrity
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
23) Felicity discovers that At Home Pharma, the pharmaceutical company she works for, is marketing a drug that has no effect on the disease it is supposed to treat. What should ideally be her first action?
a) She should resign from her job on ethical grounds.
b) She should report it to the media.
c) She should file a legal suit against the company.
d) She should report it to the company's higher officials.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
24) Who are responsible for conducting employee training programs that help spot potential fraud and abuse within a company?
a) Department supervisors
b) Ethics compliance officers
c) Human Resource managers
d) Social behaviorists
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
25) Which of the following is NOT a minimum requirement for ethics compliance programs?
a) High-level personnel responsible for compliance
b) Government regulations
c) Consistent enforcement
d) Consistent improvement
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
26) All of the following are examples of unethical or illegal acts in the workplace EXCEPT _____.
a) misreporting time on the job
b) internet abuse
c) whistle-blowing
d) safety violations
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
27) Technology has _____ ethical issues.
a) expanded the range of
b) further complicated
c) made little difference on the range of
d) eliminated most
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
28) Which of the following is NOT a factor in determining an individual’s ethical development?
a) Experiences
b) Religion
c) Culture
d) Social audit
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
29) Many people rationalize unethical acts at work because they _____.
a) feel pressured on their jobs to meet performance goals
b) know they can always get away with it
c) have no personal or moral values
d) are fundamentally unethical
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
30) Gurdeep decides not to cheat on his exam because he fears he will be caught and receive no credit if he is caught. Gurdeep is in the _____ stage of his ethical development.
a) postconventional
b) preconventional
c) traditional
d) conventional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
31) Anthony is a reckless driver and always jumps the red light in the absence of any patrol officers, but he refrains from speeding on highways as he is fearful of paying up hefty fines to patrol officers. Anthony is most likely to be in the _____ stage of ethical development.
a) preconventional
b) postconventional
c) conventional
d) unconventional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
32) Neha has moved beyond her own needs and desires and takes the needs of society into consideration when making decisions. In which stage of ethical development is Neha?
a) Preconventional
b) Conventional
c) Postconventional
d) Traditional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
33) Individuals who focus only on their own interests when making decisions are at the _____ stage of ethical development.
a) preconventional
b) conventional
c) postconventional
d) unconventional
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
34) Which of these defines the strategic business approach used by companies to evaluate performance by placing equal value on financial, social, and environmental factors?
a) Socioeconomic model
b) Economic model
c) Social audits
d) Triple bottom line
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
35) Alejandro avoids using his office computer for personal use, even though his company does not have a specific policy forbidding it. Alejandro is at the _____ stage of ethical development.
a) preconventional
b) unconventional
c) postconventional
d) conventional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
36) At Home Pharma, a pharmaceutical company, has developed a drug to manage multiple sclerosis. If the company wishes to uphold the customer's right to choose, which of the following actions should it take?
a) It should sell the drug for a low price.
b) It should mention the drug's side effects on the label.
c) It should set up a forum for customers to lodge complaints about the drug.
d) It should perform stringent pre-clinical trials to ensure the drug's safety.
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
37) If an individual follows personal principles for resolving ethical dilemmas and considers personal, group, and societal interests, he or she is at the _____ stage of ethical development.
a) preconventional
b) conventional
c) postconventional
d) concentrations
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
38) If a company wants to improve its employees' quality of life, which of the following should it do?
a) Provide safety gear to all employees
b) Allow employees to take 12 weeks of leave when sick or injured
c) Increase diversity in its workforce
d) Provide special health insurance plans to its senior employees
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
39) _______ refers to the unwelcome and inappropriate actions of a sexual nature in the workplace.
a) Triple bottom line
b) Whistle blowing
c) Sexual harassment
d) Consumerism
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
40) Fariba does not make personal long-distance phone calls at work because it will cost her employer money. Fariba is in the _____ stage of ethical development.
a) conventional
b) traditional
c) postconventional
d) preconventional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
41) Fabio makes a point of turning off the lights in his office when he is not using it because it saves his company money and saves energy for the environment. Fabio is in the _____ stage of ethical development.
a) conventional
b) postconventional
c) preconventional
d) traditional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
42) Camila focuses on her duty to family and work, and bases her actions on the expectations of various groups in her life. Camila is in _____ stage of ethical development.
a) postconventional
b) traditional
c) conventional
d) preconventional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
43) Jeffrey Wigand, a former executive of Brown & Williamson who exposed his company’s practice of intentionally manipulating the effect of nicotine in cigarettes on the CBS news program 60 Minutes, had moved beyond self-interest and company duty to which stage of individual ethics?
a) preconventional
b) postconventional
c) unconventional
d) conventional
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
44) Glafira is an investment advisor and wants to recommend a stock she happens to own. How should Glafira best deal with this potential conflict of interest?
a) She should not make the recommendation.
b) She should make a negative recommendation.
c) She should make a positive recommendation and then sell the stock.
d) She should disclose the fact that she owns the stock while making the recommendation.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
45) Branka is a diabetes educator at a local clinic. Recently, she was offered a lavish trip by a sales representative who has been pushing the clinic to use his company’s diabetes supplies. Branka declined the gift. Which ethical challenge did she face?
a) Whistle-blowing
b) Honesty and integrity
c) Culture shock
d) Conflict of interest
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
46) How should a businessperson deal with a conflict of interest?
a) Ignore it
b) Send an email to the superior
c) Disclose it or avoid it
d) Report it only to close friends
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
47) External auditors are examining Benito’s company’s financial records. Benito knows there may be an error and will tell them about it but only if they ask. They do not ask. In this scenario, Benito’s _____ is most likely to be questioned.
a) integrity
b) social responsibility
c) truthfulness
d) loyalty
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
48) During a meeting with government regulators, Vivian voluntarily points out a potential problem with a new product her company is testing. Vivian has shown _____.
a) honesty
b) loyalty
c) truthfulness
d) integrity
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
49) Daichi takes responsibility for an error made by his assistant on a project. Daichi has shown _____.
a) loyalty
b) honesty
c) integrity
d) truthfulness
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
50) Katia is a new employee at Nexus International, an IT company. Soon she learns of the unethical practices done by her superiors and other employees at the company. She immediately informs such instances and behaviors to the upper management and other officials at Nexus. This act by Katia is known as _____.
a) whistle-blowing
b) scaremongering
c) auditing
d) fear mongering
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
51) Embellishing one’s résumé shows a lack of ______ and ______.
a) honesty, loyalty
b) honesty, integrity
c) integrity, loyalty
d) competence, loyalty
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
52) Dembe knows of a defect in a product his company sells. He will disclose the defect but only if the customer specifically asks about it. Dembe’s _____ could be called into question.
a) altruism
b) integrity
c) loyalty
d) truthfulness
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
53) Kanai learns that her company is secretly dumping untreated waste into the city sewer systems, and she informs the local EPA office. Which of the following does NOT describe Kanai's ethical situation?
a) She is acting as a whistle-blower.
b) She has a conflict of interest.
c) She is showing integrity.
d) She is showing loyalty.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
54) Veata’s supervisor asks her to conceal information from external auditors examining the company’s financial records. What is Veata’s ethical challenge?
a) Loyalty versus truth
b) Conflict of interest
c) Honesty and integrity
d) No ethical challenge
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
55) Rangsey was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Rangsey was worried about his family’s financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Rangsey’s action is called _____.
a) ethical compliance
b) whistle-blowing
c) ethical allegations
d) fear mongering
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
56) Development of a corporate culture to support business ethics occurs on each of the following levels EXCEPT ethical _____.
a) success
b) awareness
c) education
d) leadership
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
57) The _____ requires that companies in the private sector provide procedures for anonymous reporting of accusations of fraud.
a) Americans with Disabilities Act
b) Sarbanes-Oxley Act
c) Consumer Rights Act
d) Genetic Information Nondiscrimination Act of 2008
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
58) Macrozine Inc. provides support for employees faced with ethical dilemmas. An ethics compliance officer is available in the Human Resources office or through an employee hotline. This is an example of ethical _____.
a) reasoning
b) awareness
c) whistle-blowing
d) action
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
59) After meeting with employees, Jade realizes she has set performance goals unrealistically high for her department’s employees. If she makes employee performance goals more realistic, what will likely happen to the department’s ethical climate?
a) It will stay about the same.
b) It will improve.
c) It will create uncertainty among employees.
d) It will deteriorate.
Difficulty: Medium
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
60) Ethical _____ challenges executive employees personally to uphold the company’s core values and be willing to base their actions on them.
a) leadership
b) awareness
c) action
d) reasoning
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
61) Jumeriah, the sales manager at Toddler Toys, decides to double each salesperson’s monthly quota. What impact is this action likely to have on the company’s ethical climate?
a) It will improve.
b) It will remain the same.
c) It will deteriorate.
d) It will generate healthy competition.
Difficulty: Medium
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
62) Jack Welch, former CEO of The General Electric, is respected in business circles for focusing his company on the welfare of its customers and investors and for ensuring that GE would thrive in the long run. This type of environment is an example of ethical _____.
a) action
b) reasoning
c) awareness
d) leadership
Difficulty: Medium
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
63) Which of the following would be LEAST likely to be a factor in evaluating a company’s social performance?
a) Providing a safe, healthy workplace
b) Respecting the cultural diversity of employees
c) Holding company-sponsored social events
d) Producing safe, high-quality products
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
64) ABC Manufacturing Company removes a profitable product from the market because it may be dangerous. ABC is demonstrating _____.
a) ethical behavior
b) green marketing
c) conflict of interest
d) contango
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
65) Businesses exercise social responsibility for all of the following reasons EXCEPT _____.
a) stakeholders expect it
b) profits are guaranteed
c) the company’s image is enhanced
d) management believes it is the ethical course of action
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
66) When Target Inc. donates 5 percent of its federally taxable income to non-profit groups, the company is highlighting its _____.
a) social responsibility
b) code of conduct
c) social audit
d) altruism
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
67) A formal procedure that identifies and evaluates all company activities relating to social issues is known as a(n) _____.
a) ethical profile
b) social audit
c) social inventory
d) mission analysis
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
68) In addition to financial assessments, Dominic has arranged for his company to conduct a(n) _____ to evaluate activities that relate to social issues such as employment practices, environmental protection, and philanthropy.
a) EEOC evaluation
b) code of conduct
c) social audit
d) social responsibility inventory
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
69) The Bristianie Corp. uses a company-wide team of employees to identify company activities related to social issues, report on how the company is responding to those issues, and evaluate how effectively the company has met those issues. The Bristianie team is conducting a(n) _____.
a) environmental impact audit
b) government-mandated audit
c) internal accounting audit
d) social audit
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
70) The _____ of Green Mountain, a coffee-growing company, usually include its employees, customers, investors, and the community members where the company is located.
a) social responsibility
b) corporate philanthropy
c) social audit
d) stakeholders
Difficulty: Medium
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
71) Which of these describes reprocessing used materials so that they can be reused?
a) Rotation
b) Reinvigoration
c) Recycling
d) Ecology
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
72) A strategy that promotes environmentally friendly products and production methods is called _____.
a) consumerism
b) recycling
c) ethical awareness
d) green marketing
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
73) Timbonei Inc. allows its employees to take paid six-month sabbatical leaves to work for non-profit organizations. This is an example of _____.
a) corporate philanthropy
b) green marketing
c) whistle-blowing
d) consumerism
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
74) Which of the following is NOT an example of corporate philanthropy?
a) Supporting the local public radio station
b) Sponsoring a Red Cross blood drive
c) Paying local property taxes
d) Giving employees release time to participate in volunteer activities
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
75) Roderick works in an organization that manufactures goods that is in compliance with the standards set by the Federal Trade Commission. All of its products have little or no ill effect on the environment and hence has earned itself a nice reputation in the industry. The company’s marketing strategy is therefore developed on its reliance on safer and cleaner uses of resources. The company is practicing _____ marketing.
a) green
b) guerrilla
c) loyalty
d) freebie
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
76) During the Olympics, several Nike ads were aired that demonstrated the company’s sponsorship of various events. Nike was using _____ to align their marketing efforts with charitable giving.
a) cybersquatting
b) cause-related marketing
c) social responsibility
d) ethical awareness
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
77) The public demand that businesses give proper consideration to consumer wants and needs in making its decisions is known as _____.
a) conservation
b) political activism
c) ethics
d) consumerism
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
78) Consumer Rights include all of the following EXCEPT the right to _____.
a) boycott
b) choose
c) be heard
d) be informed
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
79) Owing to the vast devastation caused by a hurricane in Gyvenopolis, Pandaal Inc., a food company, decided to supply 1,000 cartons of food products for free to the affected region. This is an example of _____.
a) corporate philanthropy
b) cross-selling
c) upselling
d) corporate disinvestment
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
80) According to _____ standards, when a drug company purchases a television ad, the company is required to describe potential side effects of the drug, or at least provide a phone number or Web site address for additional information.
a) Occupational Safety and Health Administration (OSHA)
b) Food and Drug Administration (FDA)
c) Consumer Compliance
d) Securities and Exchange Commission (SEC)
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
81) Which federal agency is responsible for ensuring the safety of prescription drugs?
a) FDA
b) FTC
c) SEC
d) FCC
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
82) The doctrine of “the right to be heard” would be best reflected by _____.
a) product safety
b) disclosure of true annual interest rates on revolving charge accounts
c) disclosure of sodium content on labels of processed foods
d) a company establishing a consumer appeals board
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
83) Which federal agency is responsible for setting workplace health and safety standards?
a) FCC
b) FDA
c) FTC
d) OSHA
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
84) All of the following are current social issues related to business’s responsibilities to employees EXCEPT _____.
a) sexual harassment
b) discrimination against workers over 40 years of age
c) discrimination against workers under 40 years of age
d) quality of life issues
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
85) Matt was diagnosed with a serious illness that requires aggressive treatment. Because his company employs 50 or more people, it must allow Matt up to 12 weeks unpaid time off in one year, as granted by the _____.
a) Family and Medical Leave Act
b) Equal Employment Opportunity Commission
c) Occupational Safety and Health Administration
d) Vocational Rehabilitation Act
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
86) Jennifer, an employee at a leading IT company, is subjected to sexual harassment on a regular basis. She also learns that there are other such cases in the company, and that very few people have reported them to the appropriate authority. Which of the following laws will best protect employees from such harassment?
a) Civil Rights Act of 1991
b) Americans with Disabilities Act of 1990
c) Equal Pay Act of 1963
d) Vocational Rehabilitation Act of 1973
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
87) Jose’s boss has offered him a raise if Jose agrees to spend the night with her. This is an example of _____.
a) red tape
b) sexual harassment
c) nepotism
d) whistle-blowing
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
88) On average, women with a college degree earn less money than men with a college degree. This demonstrates _____.
a) social responsibility
b) nepotism
c) sexism
d) whistle-blowing
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
89) At the federal level, the _____ investigates suspicions of unethical or illegal behavior by publicly traded companies.
a) SEC
b) EEOC
c) FDA
d) OSHA
Difficulty: Easy
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
90) Age Discrimination in Employment Act of 1967 prohibits discrimination in employment against anyone age _________ in hiring, promotion, compensation, training, or dismissal.
a) 20 or under
b) 21 to 30 years old
c) 40 or older
d) 31 to 39 years old
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
91) Which of these best describes a biased treatment of a job candidate or employee?
a) Discrimination
b) Consumerism
c) Triple bottom line
d) Social audits
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
92) Which of the following was created to increase job opportunities for women and minorities and to help end discrimination based on race, color, religion, disability, gender, or national origin in any employment practice?
a) The EEOC
b) The FDA
c) The ADEA
d) The FTC
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
93) ______ refers to situation in which an employee must choose between a business’s welfare and personal gain.
a) Integrity
b) Conflict of interest
c) Truthfulness
d) Morals
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
94) ______ refers to adhering to deeply felt ethical principles in business situations.
a) Integrity
b) Conflict of interest
c) Truthfulness
d) Morals
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
95) _______ is a formal statement that defines how the organization expects employees to resolve ethical questions.
a) A mission statement
b) A vision statement
c) Green marketing
d) A code of conduct
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
96) _____ is management’s acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating performance.
a) Social responsibility
b) Code of conduct
c) Social audit
d) Altruism
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
97) Under which of these, the belief is that business, as part of its role, owes its existence to improving the society in which it operates?
a) The socioeconomic model
b) The social audit
c) The social inventory
d) The economic model
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
98) Which of these holds the belief that businesses sole role is to maximize profits and increase value to shareholders—and that society will further benefit when business is left alone to produce and market profitable products needed by society?
a) The socioeconomic model
b) The social audit
c) The social inventory
d) The economic model
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
Question type: True/False
99) Yogini discovered unlawful conduct at her company and notified authorities. Under the Sarbanes-Oxley Act of 2002, anyone who retaliates against Yogini can be prosecuted.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
100) “What is profitable” is the first and foremost consideration of ethical corporations.
Difficulty: Easy
Learning Objective 1: 04-01: Explain the concern for ethical and societal issues.
Section Reference 1: Concern for Ethical and Societal Issues
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
101) Today, codes of conduct are playing an increasingly important role in business ethics.
Difficulty: Easy
Learning Objective 1: 04-01: Explain the concern for ethical and societal issues.
Section Reference 1: Concern for Ethical and Societal Issues
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
102) The Sarbanes-Oxley Act aims to punish corporate fraud and corruption.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
103) Individual employees have a major influence over ethical expectations and behavior.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
104) The U.S. Sentencing Commission was created to protect employees who claim that they were unaware of ethical violations that they were accused of committing.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
105) Some employees rationalize questionable or unethical behavior by saying, “Everyone does it.”
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
106) An employee’s disclosure to the media or government authorities of illegal, immoral, or unethical practices of the organization refers to the term preconventional behavior.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
107) Samira refrains from “padding” her expense account because it will hurt the company. Samira is at the preconventional stage of moral and ethical development.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
108) Batzorig is a lawyer whose work habits help his company, as well as society in general. Batzorig is at the postconventional stage of moral and ethical development.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
109) On-the-job ethical dilemmas are common.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
1110) An advertising agency representing two companies that compete with one another has an obvious conflict of interest.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
111) A decision for an individual in which an action will harm one individual or group while benefiting another describes a conflict of interest.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
112) Developing a close personal relationship with a client or supplier is only a conflict of interest if others find out about the relationship.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
113) The only safe way to handle a potential conflict of interest is to avoid situations in which one might occur.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
114) Loyalty refers to adhering to deeply felt ethical principles in business situations.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
115) Employers expect employees to generally act in the best interests of the organization.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
116) In the business world, loyalty and truthfulness often conflict with one another.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
117) Every business person places the highest value only on loyalty, even at the expense of truth.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
118) An employee who “goes public” with the evidence of improper actions by his or her employer is known as a whistle-blower.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
119) With the cooperation of higher-level managers, whistle-blowing can be effective.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
120) Under the Sarbanes-Oxley Act of 2002, anyone who retaliates against an employee for taking concerns of unlawful conduct to a public official can be prosecuted.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
121) Some people resort to whistle-blowing because they believe the unethical behavior is causing significant damage that outweighs the risk that the company will retaliate against the whistle-blower.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
122) A code of conduct is an formal statement that defines how the organization expects employees to resolve ethical questions.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
123) The best way to describe a code of conduct is a formal document that must be printed.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
124) If companies provide a code of conduct and ethical training, there is no need to hire a compliance officer or to provide an anonymous employee hotline to report unethical behavior they have witnessed.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
125) Formally stating that employees must not discriminate on the basis of race, gender, or age in their dealings with customers is something that could be found in a company code of conduct.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
126) An example of something that might be found in a company’s code of conduct is “maintaining an atmosphere of cultural integrity.”
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
127) A code of conduct is part of the ethical awareness stage of ethical development.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
128) Starbucks’ efforts to go green with recyclable cups is an example of social responsibility.
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
129) A manager who doubles employee performance goals every quarter most likely will see an increase in the number of ethically questionable actions by employees.
Difficulty: Medium
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
130) Some companies issue a code of conduct or statement of values in the form of a small card that employees and managers can carry with them.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
131) Social responsibility, in a general sense, is management’s acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the company’s performance.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
132) For any company, the primary social responsibility is to its customers.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
133) One solution to the problems of pollutants that companies use is recycling.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
134) Social audits measure the level of volunteer work conducted in communities.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
135) Social audits conducted internally are of no value because they are always biased in favor of the company.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
136) To demonstrate their social responsibility, many corporations highlight charitable contributions and community service in their annual reports and on their websites.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
137) Informal business surveys that report customer satisfaction with a company’s products are called social audits.
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
138) Corporate philanthropy is the belief that businesses should put the needs of society over the needs of managers and employees.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
139) An example of a social responsibility revolving around public health is helping employees stop smoking.
Difficulty: Medium
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
140) Historically, a company’s social performance has been measured by its contribution to the overall economy and the employment opportunities it provides.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
141) A “green” product that claims to be environmentally friendly must be substantiated in accordance with guidelines presented by the Federal Trade Commission.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
142) In developed countries, most job positions prefer to hire applicants with college degrees.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
143) Paying corporate taxes is an example of corporate philanthropy.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
144) Consumerism is the public demand that a business consider the wants and needs of its customers in making decisions.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
145) Employers have a responsibility to their employees to provide a safe working environment.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
146) The Occupational Safety and Health Administration (OSHA) sets standards for workplace safety and investigates workplace accidents.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
147) The Equal Employment Opportunity Commission focuses on individual situations rather than systemic discrimination.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
148) There are more male victims of sexual harassment than females.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
149) Sexual harassment is divided into two categories: pressure to comply with unwelcome advances and requests for sexual favors for job security and a hostile work environment.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
150) Publicly traded companies, under the Security and Exchange Commission (SEC), are required to announce major information to the general public, rather than first disclosing the information to selected major investors.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
151) Sexism is a form of sex discrimination that violates the Civil Rights Act of 1964, which gives both men and women the right to file lawsuits for intentional sexual harassment.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
152) The principal federal agency responsible for protecting investors from financial misdeeds is the Federal Trade Commission.
Difficulty: Easy
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
153) According to research, ethical standards are not proven to affect a company’s stock prices.
Difficulty: Easy
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
Question type: Essay
154) Define business ethics. Why are they important?
Difficulty: Easy
Learning Objective 1: 04-01: Explain the concern for ethical and societal issues.
Section Reference 1: Concern for Ethical and Societal Issues
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
155) Briefly describe the three stages of moral and ethical development.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
156) Identify and briefly describe the factors that influence an individual’s business ethics.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
157) Describe examples of honesty and integrity violations in the workforce.
Difficulty: Medium
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
158) Does loyalty versus truth create an ethical dilemma for a businessperson? Explain.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
159) Describe the State and federal laws that protect whistle-blowers.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
160) What might a company’s code of conduct include?
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
161) The development of a corporate culture to support business ethics happens on four levels. Explain each of the four levels.
Difficulty: Easy
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
162) Briefly describe social responsibility.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
163) What is a social audit?
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
164) Define green marketing. How do regulatory bodies oversee green marketing?
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
165) Explain the concept of consumerism.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
166) Explain product liability and briefly describe what this means in terms of social responsibility.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
167) Explain how the Food and Drug Administration (FDA) promotes the consumers’ right to be informed.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Comprehension
168) Do investors expect a company to act ethically and exhibit social responsibility? Why or why not?
Difficulty: Medium
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
169) Explain, using examples of specific organizations and agencies, how state and federal agencies carry out their responsibilities of protecting investors from financial misdeeds.
Difficulty: Easy
Learning Objective 1: 04-05: Explain the ethical responsibilities of businesses to investors and the financial community.
Section Reference 1: Responsibilities to Investors and the Financial Community
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
170) Identify the guidelines established by the Federal Trade Commission (FTC) concerning environmental claims in green marketing.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
171) Describe the reasons why Starbucks is ranked number one in the area of ethics by the Ethisphere Institute.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
172) ABC Consulting has been hired to help an educational institution in an underprivileged neighborhood raise funds to build fully equipped laboratories for students. Describe the responsibilities of someone who works in the role of a fundraiser.
Difficulty: Easy
Learning Objective 1: 04-02: Describe the contemporary ethical environment.
Section Reference 1: The Contemporary Ethical Environment
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
173) What are the ethical ways to handle conflicts of interest? What are some examples of conflicts of interest?
Difficulty: Medium
Learning Objective 1: 04-03: Discuss how organizations shape ethical conduct.
Section Reference 1: How Organizations Shape Ethical Conduct
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Application
174) Why are consumers increasingly seeking out non-GMO foods?
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
175) Explain how the toy company Hasbro improved its social and environmental performance.
Difficulty: Easy
Learning Objective 1: 04-04: Describe how businesses can act responsibly to satisfy society.
Section Reference 1: Acting Responsibly to Satisfy Society
Standard 1: AACSB || Ethics
Standard 2: Bloom’s || Knowledge
Document Information
Connected Book
Explore recommendations drawn directly from what you're reading
Chapter 2 Economic Challenges Facing Business Today 29
DOCX Ch. 2
Chapter 3 International Business And Competing In World Markets 58
DOCX Ch. 3
Chapter 4 Business Ethics And Social Responsibility 87
DOCX Ch. 4 Current
Chapter 5 Small Business Ownership
DOCX Ch. 5
Chapter 6 Entrepreneurship And Starting A Business 150
DOCX Ch. 6