Related Questions
Q5:
War metaphors are common in business.This kind of mindset can be dangerous for business leaders because A)it may lead executives to become violent. B)it may foster the idea that honesty is unnecessary in business. C)it may lead organizations to be excessively aggressive. D)business is not like warfare and the metaphors are not appropriate. E)business is more like a game than a war.
Q6:
Which of the following is not a side-effect of being the victim of workplace bullying? A)Increased productivity B)Sleep disturbance C)Depression D)Increased sick days E)Stomach problems
Q7:
In marketing communications,lying causes predicaments for companies because it destroys A)trust. B)honor. C)confidence. D)integrity. E)products.
Q8:
When a commercial states that a product is superior to any other on the market,the marketer risks accusations of A)concealed facts. B)false labeling. C)deceptive advertising. D)concealed facts E)puffery.
Q9:
is an important element of virtue and means being whole,sound,and in unimpaired condition. A)Optimization B)Ethical issue C)Honesty D)Trust E)Integrity
Q11:
An ethical issue is a problem,situation,or opportunity A)that has no correct answer. B)that harms the environment. C)requiring society as a whole to choose among several actions that must be evaluated as right or wrong. D)requiring an individual,group,or organization to choose among several actions that must be evaluated as right or wrong,ethical or unethical. E)requiring an individual,group,or organization to choose between harming consumers or the environment and earning more profits.
Q12:
Concerns involving copyright infringement on books,movies and music,and other illegally produced goods relate to which type of ethical issue? A)Conflict of interest B)Honesty C)Communications D)Discrimination E)Intellectual property rights
Q13:
Issues related to fairness and honesty may arise because business is sometimes regarded as a A)legal case,where everything must be done to the letter of the law. B)contest,with the most ethical firm "winning." C)guerilla war where anything goes in the fight for consumers' dollars. D)game governed by its own rules rather than those of society. E)game governed by the rules of society.
Q14:
Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations? A)Discrimination B)Bullying C)Lying D)Misuse of company resources E)Sexual harassment
Q15:
The first step toward understanding business ethics is to A)know your company's ethical policies. B)know your own morals and philosophies. C)know society's ethical policies. D)develop ethical-issue awareness. E)develop a set of decision-making rules.
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Chapter questions
| How has business ethics developed over time? | prior to 1960 questioned capitalism; 1930's the New Deal; 1950's The Fair Deal by President Harry Truman-civil rights and environmental responsibility; 1970s Ethics as an Emerging Field; 1980s DII; 1990s FSGO; 2000s Sarbanes-Oxley Act |
| What is involved in developing an ethical culture in an organization? | absence of abusive behavior, safe work environment, competitive salaries, fulfillment of all contractual obligations toward employees. |
| What are three benefits to business of a clear ethical framework? | employee commitment and trust; investor loyalty and trust; customer satisfaction and trust (all equal profits) |
| What are various stakeholder roles in business ethics? | stakeholders: customers, investors and shareholders, employees, suppliers, government agencies, communities,a nd many other who have a "stake" or claim in same aspect of a company's products, operations, markets, industry and outcomes. |
| What is an accepted definition of social responsibility? | organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact |
| Describe relationships between stakeholder orientation and social responsibility. | stakeholder orientation: the degree to which a firm understands stakeholers' concerns. |
| What should be the role of corporate governance in structuring ethics and social responsibility in business? | x |
| List the steps involved in implementing a stakeholder perspective in social responsibility and business ethics. | organization wide distribution of data bout stakeholder groups; distribution of this information, organization's response as a whole. |
| Describe ethical issues in the context of organizational ethics. | x |
| How do ethical issues relate to basic values of honesty, fairness, and integrity? | x |
| Delineate and identify unethical behaviors as business ethics issues. | x |
| What are three challenges of determining an ethical issue in business? | x |
| What is ethics auditing and how is it performed? | x |
| What are the benefits and limitations of ethics auditing? | x |
| What are the challenges of measuring nonfinancial performance in an organization? | x |
| What are the stages of an ethics auditing process? | x |
| What is the strategic role that the ethics audit can play? | x |
| Business ethics focuses mostly on personal ethical issues? | No. Business ethics focuses on organizational concerns (legal and ethical - employees, customers, suppliers, society). |
| Business ethics deals with right or wrong behavior within a particular organization? | Yes. That stems from the basic definition. |
| The 1990s could be characterized as the period when ethics programs were greatly influenced by government legislation. | Yes, the impact of the FSGO means that the 1990s are seen as the period in which business ethics were institutionalized. |
| The trend is away from cultural or ethically based initiatives to legal initiatives in organizations. | No. Many businesses are communicating their core values to their employees by creating ethics programs and appointing ethics officers to oversee them. |
| Social responsibility in business refers to maximizing the visibility of social involvement. | No. Social responsibility refers to an organization's obligation to maximize its positive impact on society and minimize the negative impact. |
| Stakeholders provide resources that are more or less critical to a firm's long-term success | Yes. These resources are both tangible and intangible. |
| Three primary stakeholders are customers, special-interest groups, and the media. | No. Although customers are primary stakeholders, special-interest gropus are usually considered secondary stakeholders. |
| The most significant influence on ethical behavior in the organization is the opportunity to engage in unethical behavior. | No. Ignorant others have more impact on ethical decisions within the organization. |
| The stakeholder perspective is useful in managing social responsibility and business ethics. | Yes. The six steps to implement the approach were provided in this chapter. |
| Business can be considered a game people play like backetball or boxing? | No. People are not economically self-sufficient and cannot withdraw from the game of business. |
| Key ethical issues in an organization relate to fraud, discrimination, honesty and fairness, conflicts of interest and technology | Yes. Figure 3-2 indicates observed misconduct by employees. |
| Fraud occurs when a false impression exists, which conceals facts. | No. Fraud must be purposeful, rather than accidental, and exists when deception and manipulation of facts are concealed to create a false impression that causes harm. |
| The most observed form of misconduct is fraud. | No. The most observed form of misconduct in Table 3-1 is abuse or intimidating behaviour toward employees. |
| business ethics | principals and standards that guide behavior in the world of business |
| Consumers' Bill of Rights | Four basic consumer rights: right to safety, right to be informed, right to choose, right to be heard. |
| social responsibility | an organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact. |
| Defense Industry Initiative on Business Ethics and COnduct | 1980s 1, supports codes of conduct; 2 ethics training for employees; 3 create atmosphere so can report violations without fear; 4 extensive internal audits/internal reporitng; 5 members preserve the integrity of DII; 6 philosophy of public accountability |
| Federal Sentencing Guidelines for Organizations FSGO | 1991 carrot and stick approach - mitigate penalities for businesses that strive to root out misconduct and establish high ethical and legal standards |
| Sarbanes-Oxley Act | passed in 2002 - made securities fraud a criminal offense and stifened penalties for corporate fraud. |
| ethical culture | character or decision making process that employees use to determine whether their responses to ethical issues are right or wrong |
| honesty | to tell the truth to the best of your knowledge and not to hide anything |
| fairness | quality of being just, equitable and impartial |
| equality | relates to how wealth is distributed between employees, within a company or a country, or globally |
| reciprocity | return of small favors that are approximately equal in value |
| optimization | making something as perfect or effective as possible |
| integrity | a person's character and made up of two parts: a formal relation that one has to oneself and a person's set of terminal or enduring values from which he or she does not deviate. |
| ethical issue | problem, situation or opportunitu that requires an individual, etc., to choose among several actions that must be evaluated as right or wrong, ethical or unethical |
| ethical dilemma | has no right or ethical choice |
| abusive/intimidating behavior | x |
| lying | x |
| conflict of interest | x |
| bribery | practice of offering something (usually money) in order to gain an illicit advantage. |
| active bribery | person who gives the bribe |
| passive bribery | person who receives bribe |
| facilitation payment | payment for routine governmental action - not illegal, but is a bribe, blurry line |
| corporate intelligence | collection and analysis of information on markets, technologies, customers and competitors as well as socioeconomic and external political trends |
| hacking | intentionally accessing a computer without authorization |
| system hacking | assumes that the attacker already has access to a low-level, privileged user account. |
| remote hacking | involves attempting to penetrate remotely a system across the internet |
| physical hacking | requires that the CI agent enter a facility personally. |
| social engineering | someone is tricked into revealing valuable corporate information or password |
| shoulder surfing | look over employees shoulder while he or she types the password |
| password guessing | easy social engineering technique. If a person can find out personal things, i.e., child's name, birthday, etc., passwords can be guessed |
| dumpster diving | searching thru trash to find items that might be useful; successful for acquiring trade secrets |
| whacking | wireless hacking. eavesdrop on wireless networks; cell phones |
| phone eavesdropping | a person with a digital recording device can monitor and record a fax line |
| discrimination | race, color, religion, sex, marital status, sexual orientation, public-assistance status, disability, age, national origin, or veteran status. |
| Equal Employment Opportunity Commission | race, color, religion, sex, marital status, sexual orientation, public-assistance |
| Age Discrimination in Employment Act | can discriminate against people between the ages of 49 and 69, as well as those that require employees to retire before age 70 |
| affirmative action program | efforts to recruit, hire, train and promote individuals from groups that have traditionally been discriminated against based on race, gender, or other characteristics |
| sexual harassment | sex discrimination |
| hostile work environment | x |
| dual relationship | x |
| unethical dual relationship | x |
| environmental issue | negative aspect of human activity on the biophysical environment. |
| Kyoto Protocol | international agreement to reduce greenhouse gases |
| water pollution | addition of harmful chemicals to rivers and lakes |
| fraud | any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression |
| accounting fraud | deliberate and improper manipulation of sales revenue and/or expenses to make the company look better than it is |
| marketing fraud | ad must be truthful and not misleading |
| puffery | undue or exaggerated praise |
| implied falsity | a claim that is literally true or ambiguous, but conveys a message that is false |
| literally false | a lie |
| labeling issue | x |
| slamming | the switching of a customers long-distance telephone company or other public utility without authorization |
| consumer fraud | when consumers attempt to deceive businesses for their own gain. |
| insider trading | An insider is someone who owns 10% or more of company; illegal is buying or selling of stocks by insiders who possess material that is still not public; legal is buying and selling stock in an insider's own company, but not all the time |
| intellectual property right | the legal protection of intellectual properties such as music, books and movies |
| privacy issue | monitoring of employees' use of available technology and consumer privacy. |