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Business Ethics
Q:
Interface Carpets, a stellar example of sustainability in action, lists seven fronts of Mount Sustainability. Which is NOT one of the firm's goals to meet its total sustainability status?
a. Redesigning commerce
b. Sensitizing stakeholders
c. Using renewable energy
d. Ensuring benign emissions
e. Eliminating waste
f. Competing through cost
Q:
Government licensing is generally administered at the federal level in the United States.
a. True
b. False
Q:
Reference: Matching Key Terms and Definitionsa) Stakeholdersb) Primary stakeholderc) Secondary stakeholderOwners, customers, and employees.
Q:
The term __________ is sometimes used to represent harmony among three dimensions of economic, social and environmental impacts.
a) philanthropic
b) ethics
c) bottom-line
d) sustainability
Q:
Vendor certifications require passing a written exam, which usually contains multiple-choice questions because of legal concerns about whether other types of exams can be graded objectively.
a. True
b. False
Q:
Referring to the Corporate Social Responsibility (CSR) pyramid, how do legal responsibilities differ from ethical responsibilities? Provide specific examples to support your distinction.
Q:
_____ frequently include a set of formal, written statements about the purpose of an organization, its values, and the principles that should guide its employees' actions.
Q:
According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is a societal expectation that is not necessarily codified into law.
a) economic
b) ethical
c) legal
d) philanthropic
Q:
Certification indicates that a professional possesses a particular set of skills, knowledge, or abilities, in the opinion of the certifying organization.
a. True
b. False
Q:
_____ acts conform to what an individual believes to be the right thing to do.
Q:
According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is considered to be of primary importance to organizations.
a) economic
b) ethical
c) legal
d) philanthropic
Q:
Laws provide a complete guide to ethical behavior.
a. True
b. False
Q:
The moral corruption of people in power, which is often facilitated by a tendency for people to look the other way when their leaders act inappropriately has been given the name _____ .
Q:
Corporate social responsibility (CSR) consists of which four kinds of responsibilities:
a) Economic, ethical, societal, and altruistic
b) Economic, legal, ethical, and altruistic
c) Fiscal, legal, societal, and philanthropic
d) Economic, legal, ethical, and philanthropic
Q:
Currently no one IT professional organization has emerged as preeminent, so there is no universal code of ethics for IT workers.
a. True
b. False
Q:
Section 404 of the Sarbanes-Oxley Act (SOX) is credited with improving internal financial control systems in public companies even if the cost of doing so is thought to be exorbitant by small firms.
Q:
_____ is the practice of illegally making copies of software or enabling others to access software to which they are not entitled.
Q:
In the __________ perspective, social responsibility is seen as appropriate because it is "the right thing to do."
a) pragmatic
b) economic
c) ethical
d) strategic
Q:
Gifts come with no expectation of a future favor for the donor.
a. True
b. False
Q:
Since the passage of Sarbanes-Oxley few firms have been prosecuted and fewer high level executives have received jail terms proving convincingly that the legislation is flawed.
Q:
During the problem definition process, one must be extremely careful not make _____ about the situation.
Q:
The ______ reason, why corporations should care about social responsibility, is based upon the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible.
a) pragmatic
b) economic
c) ethical
d) strategic
Q:
The Social Investment Forum reported that socially responsible investing grew from $40 billion in 1984 to nearly $4 trillion in 2012.
Q:
Section 406 of the _____ requires public companies to disclose whether they have a code of ethics and to disclose any waiver of the code for certain members of senior management.
Q:
Over the long run, to be successful, firms with excellent socially responsible strategies need to worry less about their business strategies.
Q:
A firm's financial responsibility is primary and the bedrock of corporate social responsibility because without financial viability, the other responsibilities become moot issues.
Q:
A code of ethics cannot gain company-wide acceptance unless it is developed with _____ and fully endorsed by the organization's leadership.
Q:
Some analysts argue that the more stringent regulatory environment resulting in the post Sarbanes-Oxley period increases shareholder confidence in financial reporting.
Q:
The economic responsibilities of a firm involve its primary function of producing goods and services that consumers need and want, while making an acceptable profit.
Q:
Decisions and policies that use the _____ approach to decision making attempt to implement social systems, institutions, and environments that everyone depends on and that benefit all people.
Q:
A(n) _____ is a clear, concise statement of an issue that needs to be addressed.
Q:
Even if socially responsible business practices are costly, firms must perform them anyway.
Q:
The _____ approach to ethical decision making fits easily with the concept of value in economics and the use of cost-benefit analysis in business.
Q:
An effective _____ helps ensure that employees abide by the law, follow necessary regulations, and behave in an ethical manner.
Q:
The pragmatic approach is more proactive and affirmative than the strategic approach because it asks companies to identify and acknowledge company activities that can do harm and encourages firms to scrutinize their practices and address potential harms by focusing on their own value-chain activities.
Q:
In the decision-making process of implementing the decision, a(n) _____ plan must be defined to explain to people how they will move from the old way of doing things to the new way.
Q:
The principle that the ethical choice treats everyone the same and shows no favoritism or discrimination is most closely associated with the _____ approach to dealing with moral issues.
Q:
The most strategic CSR initiatives are those that remove the social dimension from the firm's overall competitive strategy.
Q:
A(n) _____ is a statement that highlights an organization's key ethical issues and identifies the overarching values and principles that are important to the organization and its decision making.
Q:
The _____ led to significant reforms in the content and preparation of disclosure documents by public companies.
Q:
Employees who perceive that they have been unfairly treated are less satisfied, less likely to go the extra mile, and more likely to steal from the organization.
Q:
According to Harvard Professor Michael Porter, the strategic reason for having CSR play a prominent role in a firm is that in evaluating the firm's CSR, executives should begin by scrutinizing the social impacts of the company's value chain.
Q:
A(n) _____ is a habit that inclines people to do what is acceptable.
Q:
Constructive engagement of stakeholders, including critics, is replacing the "just trust us" plea of yesteryear as executives conclude that the plea rarely works in a world of regular corporate scandals.
Q:
The Equal Employment Opportunity Commission (EEOC) received more than 93,000 workplace discrimination complaints in 2011, and monetary relief for victims totaled more than $376 million.
Q:
_____ are one's personal beliefs about right and wrong.
Q:
An organization that does not fulfill its philanthropic responsibilities is acting unethically.
Q:
Unfortunately, people do not want to believe that the world operates on the principles of fairness.
Q:
The goal of the _____ approach to ethical decision making is to find the single greatest good by balancing the interests of all affected parties.
Q:
Fortunately, those who survive company layoffs rarely exhibit negative behaviors (such as decreased productivity or low morale).
Q:
The _____ approach to decision making suggests that when faced with a complex ethical dilemma, people do either what they are most comfortable doing or what they think a person they admire would do.
Q:
To make it easy to terminate a subordinate, ensure that you are being fair, that you deliver the news in a way that is aligned with your organization's values, and allow the employee to maintain his personal dignity.
Q:
In an environment where employees are encouraged to do "whatever it takes" to get the job done, employees may feel pressure to engage in _____ conduct to meet management's expectations.
Q:
Discipline is important to ensure worker productivity, set standards of acceptable behaviors, and meet the requirements of the U. S. Sentencing Guidelines.
Q:
A person who acts with _____ acts in accordance with a personal code of principles.
Q:
Turkey farming is the fine art of placing poor performers alongside strong performers so that the organization benefits.
Q:
The _____ is responsible for the careful and responsible management of an organization.
Q:
Given that performance evaluations have little effect on employee performance, evaluating employee performance once every 18 months is sufficient.
Q:
Interestingly, according to a survey of executives, most respondents would rather lie to employees about performance than confront them about performance problems.
Q:
Which of the following is false?
a) Sexual harassment is any unwelcome sexually oriented behavior that makes someone feel uncomfortable.
b) Sexual harassment is objective.
c) Sexual harassment is determined from the point of view of a "reasonable" person regardless of the harasser's intentions.
d) Sexual harassment generally involves issues of power and not romance.
Q:
One of a manager's most important responsibilities is to bring good people into the organization.
Q:
Which of the following is true?
a) Discrimination is an intentional bias that affects behavior.
b) Discrimination occurs whenever something other than qualifications affects how an employee is treated.
c) Discrimination is prohibited under Title VII of the Civil Rights Act of 1964 against individuals who are under 40 years old against age discrimination.
d) Discrimination is always overt and clear.
Q:
Unfortunately, given diverse activities that managers are responsible for, they play a limited role in increasing employee engagement and building an ethical culture.
Q:
___________ refers to the fairness of exchanges: "You did this for me and I'll do that for you."
a) Reciprocity
b) Equality
c) Impartiality
d) Shared resources
Q:
Which of the following is true?
a) Cognitive biases are the result of trying to reduce uncertainty and simplify the world.
b) Cognitive biases are an individual difference and do not affect all human beings in the same way.
c) Business executives and students are generally reserved about their knowledge of the facts.
d) People are generally good at thinking of the consequences of their decisions outside of their immediate family and friends.
Q:
Which of these terms is used to describe individuals who act in self-interested, opportunistic, deceptive, and manipulative ways to win no matter what the cost or how it affects other people?
a) Relativism
b) Idealism
c) Locus of control
d) Machiavellianism
Q:
Those with higher __________ are more likely to avoid pressure to violate social norms because _____________.
a) internal locus of control; they typically act at the postconventional level of moral reasoning.
b) external locus of control; they believe in luck.
c) internal locus of control; they believe they are in charge of their own fate.
d) external locus of control; they typically act at the postconventionl level of moral reasoning.
Q:
Which of the following is true?
a) People's locus of control is relatively stable, but can change over time.
b) People are born with a particular locus of control.
c) People are either internal or external. Locus of control is not a continuum.
d) People with high external locus of control believe their life is a product of their own efforts.
Q:
Roger believes that his success at work is primarily the result of his own efforts and hard work. Roger can be characterized by:
a) high internal locus of control
b) high external locus of control
c) Stage 2 moral reasoning
d) Stage 4 moral reasoning
Q:
Reference: Matching Kohlberg's Levels of Moral Reasoning
a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
e) Stage 5
f) Stage 6
"You scratch my back, I'll scratch yours."
Q:
Sally attributes her success at work to luck. Sally can be characterized by:
a) high internal locus of control
b) high external locus of control
c) Stage 2 moral reasoning
d) Stage 4 moral reasoning
Q:
Reference: Matching Kohlberg's Levels of Moral Reasoning
a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
e) Stage 5
f) Stage 6
Focused on following the rules or laws that are designed to promote the common good.
Q:
Which of the following is false?
a) Moral reasoning can be increased through training.
b) A more-principled individual is less likely to cheat.
c) When an organization's leader is characterized by high moral development, the entire ethical climate of the organization is stronger.
d) Employee satisfaction and commitment are not related to the leader's moral development.
Q:
Reference: Matching Kohlberg's Levels of Moral Reasoning
a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
e) Stage 5
f) Stage 6
Focused on avoiding punishment.
Q:
Most adults are at the ____________ level of cognitive moral development and their action is ____________.
a) Conventional; based on avoidance of punishment.
b) Conventional; based on what others think, say, and do.
c) Postconventional; based on the best outcome for society.
d) Postconventional; based on their religion or guiding principles.
Q:
Reference: Matching Kohlberg's Levels of Moral Reasoning
a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
e) Stage 5
f) Stage 6
Focused on interpersonal trust and social approval.
Q:
An effective way to avoid decision-making weaknesses and biases is to become aware of them and to incorporate steps into decision-making that are explicitly aimed at reducing their impact.
Q:
In organizations, individuals high on Machiavellianism are significantly more likely to have unethical intentions and to engage in unethical behavior including accepting kickbacks.
Q:
An organization led by a leader high in cognitive moral development establishes a much stronger ethical climate in the organization.
Q:
Kohlberg argued that the higher the reasoning stage, the more ethical the decision.