MAN3065 Final exam practice test

The first step toward understanding business ethics is to Answer- develop ethical-issue awareness. The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was Answer- Adam Smith. Through _______________, it is possible to quantify the trade-offs to determine whether to accept or reject environmentally-related activities and programs. Answer- risk management Which of the following acts exempted the insurance industry from antitrust legislation? Answer- McCarran-Ferguson Act of 1944 Fostering ethical decision making within an organization requires improving the firm's ethical standards and Answer- terminating the "bad apples" in the organization. Which of the following is not associated with the stakeholder interaction model? Answer- Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders _____ allows for private ownership of property and features a large government equipped to offer such services as education and health care to its citizens Answer- Social democracy. These leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. Answer- Transactional When we discuss _____ approaches, we are talking about how organizational decision makers should approach an issue. Answer- Normative Retaliation against employees that report misconduct is a problem in _____ cultures. Answer- weak ethical Which is not considered a white collar crime? Answer- Mugging someone Critics of nuclear power are concerned about all of the following, except: Answer- Reduced emissions The four categories of communication include all of the following except Answer- Reporting Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of Answer- noise. Affirmative action programs Answer- involve the recruitment, hiring, promotion, and training of qualified individuals. The relationship between business ethics and age Answer- is complex, although experience helps older employees make ethical decisions Following the ethical directives of a superior relates to Answer- obedience to authority Ethics is a part of decision making Answer- at all levels of work and management. The process of verifying the results of an audit should involve standard procedures that control the _____ of the information. Answer- reliability and validity When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating are rationalizations business people sometimes offer for straying from their own ethical values when doing business abroad. This practice is called Answer- cultural relativism _____ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree Answer- Groupthink Which of the following statements about multinational corporations (MNCs) is false? Answer- MNCs are inherently unethical and always do harm in the countries in which they operate. A _____-based culture encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts. Answer- Values _____ involves tricking individuals into revealing their passwords or other valuable corporate information. Answer- Social engineering All of the following are true regarding institutions except Answer- There is no clear link between institutional theory and the stakeholder orientation of management. The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s. Answer- Sarbanes-Oxley Act The _______________ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use. Answer- Pollution Prevention Act Which of the following is not a benefit to businesses of engaging in voluntary responsibilities? Answer- Improve employee compensation and retention _____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants. Answer- Rational economics This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company. Answer- Leader-follower congruence No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent Answer- informal expressions of an organization's culture. Although limiting urban sprawl creates disadvantages for ____________, many businesses can benefit from urban renewal movements that reduce sprawl. Answer- car and oil companies Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives? Answer- The relativist perspective ___ law defines the rights and duties of individuals and organizations (including businesses). Answer- Civil Strong ethical leaders have a passion for all of the following except to Answer- satisfy shareholders before other stakeholder groups What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production? Answer- Socialism Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights? Answer- Rule deontology _____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals. Answer- Core practices Which of the following is a major ethical concern among corporate boards of directors? Answer- Compensation Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct? Answer- Compliance orientation _____ are used to obtain or retain business and are not generally considered illegal in the U.S. Answer- Facilitation payments _____ justice is based on the evaluation of outcomes or results of the business relationship. Answer- Distributive Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief? Answer- Milton Friedman Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead. Answer- board of directors Business ethics, as a field, has passed through which of the following states? Answer- Theological discussion to recognition of social issues to a field of study External and internal rewards relate to which part of the ethical decision-making framework? Answer- Opportunity _____ occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources. Answer- Bimodal wealth distribution A code of ethics that does not address specific high-risk activities within the scope of daily activities is Answer- inadequate Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer? Answer- Material resources and/or intangible knowledge _____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own. Answer- Corporate culture Which of the following statements about codes of conduct is false? Answer- They guarantee an ethical business climate. A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is Answer- to teach individuals intellectual skills that address the complexities of ethical issues in business. While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms Answer- ethical and legal conduct The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative. Answer- pacesetting Which two steps of the RADAR model occur when a firm is faced with an ethical conflict or dilemma. Answer- answer & recover The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation. Answer- Federal Sentencing Guidelines for Organizations Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as Answer- stakeholders. A _____ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes. Answer- compliance orientation Which moral philosophy is based on the premise that equal respect must be given to all persons? Answer- Deontology During the data-collection phase of the audit, the primary objective is to generate a variety of opinions about how the company is perceived and whether it is Answer- fulfilling stakeholders' expectations. _____ is an important element of virtue and means being whole, sound, and in unimpaired condition. Answer- Integrity The concept of ethics auditing emerged from the movement to audit and report on companies' broader _____ initiatives. Answer- social responsibility _____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace. Answer- Obedience to authority Issues related to fairness and honesty may arise because business is sometimes regarded as a Answer- game governed by its own rules rather than those of society. Which attribute of ethical leaders will not be effective unless the leader is personally involved in the organization's key ethical decisions? Answer- Transparency The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as Answer- dumping. Stakeholders' power over businesses stems from their Answer- ability to withdraw or withhold resources _____ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree. Answer- Groupthink Top managers tend to focus on _____ because their jobs and personal identity are often connected to quarterly returns. Answer- financial performance Employees feel less pressure to compromise ethically, observe less misconduct, are more satisfied with their organizations, and feel more valued when Answer- they see honesty, respect, and trust applied in the workplace The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is Answer- whistle- blowers might be tempted to report to the SEC with their reports and not report the misconduct to the company's internal compliance program. Which of the following statements about corporate culture is false? Answer- The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture. People who believe in _____, go with the flow because they feel the events in their lives are uncontrollable. Answer- external locus of control For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt? Answer- This is in keeping with my personal morals and the code of conduct, so it is okay. Research concerning nationality and the ability to make ethical decisions Answer- is hard to interpret in a business context because of cultural differences. Because researchers have defined culture so many different ways, _____ and _____ are often used interchangeably. Answer- cultural values; culture Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as Answer- any practice is permitted that does not substantially reduce competition and harm consumers or society. _____ are satisfied by social and interpersonal relationships, and _____ are satisfied by creative or productive activities. Answer- Relatedness needs; growth needs Major corporate governance issues normally involve _____ decisions. (Choose the response that is most correct) Answer- strategic-level Optimization is defined as Answer- a trade-off between equity and efficiency. While ideally the board of directors financial audit committee conducts ethics audits, in most firms they are conducted by Answer- managers or ethics officers When a group is more likely to move toward a more extreme position than the group members might have done individually, this is referred to as Answer- Group polarization Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues? Answer- Imposing export taxes to force MNCs to share more of their profits The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control. Answer- coercive Motivation is defined as Answer- a force within the individual that focuses his or her behavior on achieving a goal Which of the following statements is most correct? Answer- Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics. Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as Answer- differential association Public health and safety and support of local organizations are issues most relevant to which stakeholder group? Answer- Community In ascending order, Caroll's four levels of social responsibility are Answer- economic, legal, ethical, philanthropic. stakeholder orientation is not complete unless it includes Answer- activities that actually address stakeholder issues. Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements. Answer- Sarbanes-Oxley Act _____ provide(s) important guidelines for employees on how to act in different situations. Answer- Codes of ethics Companies that _____ will most likely be found in violation of procompetitive legislation. Answer- establish monopolies _____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives. Answer- Relativists Which is the last of Kohlberg's stages of cognitive moral development? Answer- Universal ethical principles The Kyoto Protocol created in 1997 is an international treaty meant to curb global _____. Answer- greenhouse gas emissions Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint? Answer- Utilitarianism The 1960s saw a rise of consumerism. What is consumerism? Answer- Activities undertaken by independent individuals, and groups to protect their rights as consumers Principles are Answer- specific and pervasive boundaries for behavior that are universal and absolute. Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent. Answer- organizational or social forces _____ culture involves values and norms that prescribe a wide range of behavior for organizational members, while _____ culture reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior. Answer- Corporate, ethical Geothermal energy provides _______________ and is a more dependable energy source than some other forms of alternative energy. Answer- a constant source of heat Power distance dimension refers to the "power inequality" between superiors and subordinates. Which of the following countries probably ranks high on the power distance scale? Answer- Saudi Arabia What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework? Answer- Economic, social, and environmental indicators _____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits. Answer- Strategic philanthropy The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing. Answer- Public Company Accounting Oversight Board Which of the following is not a key area of global ethical risk, as outlined by the Eurasia Group? Answer- Unequal levels of child labor laws A company can be sued for discrimination if it Answer- uses age as a hiring or firing criterion. For an ethical compliance program to properly function, Answer- consistent enforcement and disciplinary action are essential. What type of fraudulent activity could involve a consumer staging an accident to seek damages? Answer- Duplicity Which of the following is not a form of retaliation commonly experienced by whistle- blowers? Answer- Praise by supervisors for their honesty Two useful indicators for assessing employee issues are Answer- staff turnover and employee satisfaction. Which industry invests the most in alternative clean energy sources? Answer- The automobile industry Which of the following is not something a firm might do to encourage organizational ethics and compliance? Answer- Ignoring potential ethical issues These values were developed by a reverend and the UN Secretary General. They express support for universal human rights. Answer- The Global Sullivan Principles The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization Answer- corporate culture _____ relates to individuals' perceptions of social pressure and the harm they believe their decisions will have on others. Answer- Moral intensity Which of the following statements about training is false? Answer- It can dictate personal ethics on the job. Which of the following is the first step in the ethical decision making process? Answer- Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong _____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity. Answer- Geert Hofstede Which option includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment? Answer- Sustainability Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result? Answer- Teleology Board members being linked to more than one company is an example of Answer- interlocking directorate. Which of the following is not a way to avoid groupthink in small-group decision making? Answer- Discourage team members from discussing the group's ideas with people outside the group. Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program? Answer- Comply with ISO 14000 guidelines in the United States, ____________ provides only 7% of total output but provides 19% of total electricity production worldwide, making it the largest form of renewable energy. Answer- hydroelectric power Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the second level Answer- define right as that which conforms to the expectations of good behavior of the larger society. Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue? Answer- Intellectual property rights From an ethical standpoint, leaders should take time during this step of the RADAR model to fix any weaknesses in the ethics program and develop improved ways of detecting misconduct. Answer- Recovery Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements: Answer- Culture is shared, relatively stable, and is formed over a long period of time Title VII of the Civil Rights Act of 1964 Answer- prohibits discrimination on the basis of race, color, sex, religion, or national origin _____ refers to how members of a society respond to ambiguity. A high score means that a culture tends to minimize risk-taking. Answer- Uncertainty avoidance Which of the following is not an aspect of the institutionalization of social responsibility? Answer- Familial responsibilities Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct? Answer- United States Sentencing Commission An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n) Answer- relativist. An advantage of the decentralized organization is that Answer- it is adaptable and can quickly respond to external change. Which of the following has the power to enact legally binding ground rules for international commerce and trade policy? Answer- World Trade Organization _____ leaders communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences. Answer- Transformational _____ argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate. Answer- Virtue ethics Risk compartmentalization occurs when Answer- various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole. Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking? Answer- Affiliative leadership Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the action, with rules serving as guidelines in the decision- making process? Answer- Act deontology A(n) _____ is a financial accounting firm that offers social auditing services or a nonprofit special interest group with auditing experience that verifies the results of ethics auditing data analysis Answer- ethics audit consultant Which of the following is not a benefit that primary stakeholders tend to provide to organizations? Answer- Pro-bono bookkeeping What is the AACSB? Answer- An international organization that promotes a set of principles promoting the teaching of responsible management in business schools According to Kohlberg's model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she Answer- may change his/her values and ethical behavior. A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a(n) _____ because he believes in the rights of all individuals. Answer- deontologist The _____ includes the motivational "carrots and sticks" superiors use to influence employee behavior. Answer- Immediate job context This step of the RADAR model involves responding to the discovery of an ethical dilemma through communication both internally and externally. Answer- answer An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except Answer- employee compensation _____ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. Answer- Authentic Both individual ethics and organizational ethics have an impact on an employee's Answer- ethical intention In the absence of ethics programs, employees are likely to make decisions based on Answer- their observations of how their coworkers and superiors behave. Enlightened egoism Answer- centers on one's long-term self-interest but takes others' well-being into account Investors are concerned about business ethics because they know that misconduct can Answer- lower stock value and prices. _____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused. Answer- Bullying Which of the following industries tends to generate a high level of trust from consumers and stakeholders? Answer- Technology When Devon looked at what another employee was typing in order to get a password, he committed Answer- shoulder surfing What is not a common mistake when designing and implementing an ethics program? Answer- Having top management take ownership of the ethics program According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior. Answer- opportunity Among retail stores, _____ is a larger problem than customer shoplifting. Answer- internal employee theft Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word. Answer- auditing Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually? Answer- Rule utilitarianism _____ and reporting are two major dimensions of ethical communication. Answer- Transparency _____ law defines the rights and duties of individuals and organizations (including businesses). Answer- Civil Congress passed the ____________ to empower the EPA with the ability to track the 75,000 industrial chemicals currently produced or imported into the United States. Answer- Toxic Substances Control Act What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot? Answer- Because the large size creates economies of scale and they can charge lower prices Which of the following is a possible unintended consequence of an organization's focusing more on ethics planning than on implementation? Answer- Unethical conduct is viewed as acceptable behavior. Employees that see themselves as going with the flow because that's all they can do have a(n) Answer- external locus of control Which of the items below represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense? Answer- Sarbanes-Oxley Act. Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to Answer- multinational corporations. All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except Answer- firing A ___________ business attempts to avoid dealing with environmental issues and hopes nothing bad happens or no one ever finds out about an environmental accident or abuse. Answer- low-commitment Which of the following is not an advantage of having a comprehensive code of conduct? Answer- To help employees fight for satisfactory levels of compensation and benefits Trying to pinpoint who is responsible for environmental degradation is not always easy, especially when it involves __________ . Answer- different countries All of these are examples of social responsibility concerns, except: Answer- Product price The _____ states that economic and social equalities should be arranged to provide the most benefit to the least-advantaged members of society. Answer- Difference principle _____ is essential in building long-term relationships between businesses and consumers. Answer- Trust Which of the following is not a side-effect of being the victim of workplace bullying? Answer- Increased productivity During which of the following steps of the ethics auditing process does an organization identify the tools or methods for measuring progress in improving employees' ethical decisions and conduct? Answer- Collect and analyze relevant information In corporate governance, _____ is the process of auditing and improving organizational decisions and actions. Answer- control Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept? Answer- Performance probation One of the major ethical issues President Obama's administration focused on was Answer- health care and consumer protection _____ is considered the father of free market capitalism. He believed that business was and should be guided by the morals of good men. Answer- Adam Smith A stakeholder orientation is not complete unless it includes Answer- activities that actually address stakeholder issues. According to the World Trade Organization, which of the following products and services are most vulnerable to protectionism? Answer- Shoes, cars, and steel What is a major role of the International Monetary Fund (IMF)? Answer- It makes short- term loans to member countries that have deficits and provides foreign currencies for its members In marketing communications, lying causes predicaments for companies because it destroys Answer- trust _____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior. Answer- Codes of conduct The establishment of an ethics committee within an organization Answer- might raise ethical concerns or resolve ethical dilemmas The first Earth Day, increasing stakeholder awareness of environmental concerns and the creation of the Environmental Protection Agency brought ________ to the forefront. Answer- sustainability The benefit of healthcare is being debated as to whether it is a right or privilege. Which of the following countries does not consider health care to be a right? Answer- The United States _____ is the ability to perceive whether a situation or decision has an ethical dimension. Answer- Ethical awareness Which of the following is generally not considered a business ethics issue? Answer- Corporate hierarchy Those who have influence in a work group are referred to as significant others and include Answer- peers, managers, coworkers, and subordinates Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations? Answer- Unqualified opinion Social responsibility is Answer- an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. _____ culture involves values and norms that prescribe a wide range of behavior for organizational members, while _____ culture reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior. Answer- Corporate, ethical The acronym RADAR stands for Answer- Recognize, Avoid, Detect, Answer, & Recover Many businesses responded to sustainability by adopting a triple-bottom line approach; taking into consideration social and environmental performance variables in addition to _______________. Answer- economic performance Which two developing countries are expected to generate some of the largest increases in consumption in the future? Answer- China and India Which of the following are not typically secondary stakeholders? Answer- Customers Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs. Answer- Federal Sentencing Guidelines for Organizations Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extra-national body? Answer- International Monetary Fund By incorporating _____ objectives into corporate core values, companies begin to view _____ as significant. Answer- shareholder, stakeholders _____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression. Answer- Fraud A cultural audit may be used to identify Answer- an organization's culture Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except Answer- free samples _____ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law. Answer- Criminal An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is Answer- decentralized When unethical acts are discovered in a firm, in most instances Answer- there was knowing cooperation or complicity from within the company Which of the following is not considered a significant other group in the workplace? Answer- Spouses The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society. Answer- institutionalization Normative business ethics takes into account the _____ realities outside the legal realm in the form of industry standards. Answer- Political The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with Answer- Milton Friedman Which of the following is not one of the benefits of being ethical and socially responsible in business? Answer- A high degree of employee dissent An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg's stages of development? Answer- Mutual interpersonal expectations, relationships, and conformity (3rd stage Which moral philosophy evaluates the morality of an action on the basis of its consequences for everyone affected (seeks the greatest good for the greatest number)? Answer- Utilitarianism The _____ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics. Answer- leadership style The _____ model is founded in classic economic precepts. Answer- shareholder _____ can cause markedly shorter life spans, along with chronic respiratory problems in humans and animals. Answer- Air pollution A(n) _____ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) _____ orientation strives to develop shared standards. Answer- compliance; values Which of the following is not one of the top challenges facing CEOs today? Answer- Gaining adequate compensation ____ is the offering of something of value in order to gain an illicit advantage. Answer- Bribery The term business ethics is best described by the following statement: Answer- It comprises the principles, values, and standards that guide behavior in the world of business. Marcus is the top-performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development department staff. Answer- expert power When developing an ethical culture, there has to be a(n) _____ element because every organization has employees that will try to take advantage if there is an opportunity for misconduct. Answer- compliance During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility? Answer- Review organizational mission, goals, values, and policies Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue? Answer- Educational attainment Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"? Answer- The right to be ethical Which of the following was not a provision of the Sarbanes-Oxley Act? Answer- It outlawed bribery of officials in other countries Studies have shown that _____ within the organization have more impact on a worker's decisions on a daily basis than any other factor. Answer- significant others A strong ethics program includes all of the following elements except Answer- a clause promising good stock market performance. Which option includes the assessment and improvement of business strategies, economic ectors, work practices, technologies, and lifestyles while maintaining the natural environment? Answer- Sustainability What is not a necessity for strong ethical leaders to make good decisions? Answer- The ability to coerce subordinates The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes Answer- Consumer Financial Protection Bureau A(n) _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders Answer- ethics audit The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually Answer- tolerate misconduct. Why do critics argue that high compensation for boards of directors is a bad thing? Answer- It could cause conflicts of interest between the directors and the organization. Which of the following leadership types has a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation? Answer- Transformational leaders Which of the following is not a technique for collecting evidence during the ethics audit? Answer- Publishing the results of the audit Leaders having an accommodating conflict management style are Answer- Highly cooperative but non-assertive. _____ is an independent assessment of the quality, accuracy, and completeness of a company's social or ethics report. Answer- Verification ____ serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case. Answer- Hotlines Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations? Answer- Misuse of company resources Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting? Answer- Sarbanes-Oxley Act One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _____ Answer- managers should earn no more than twenty times the pay of other employees. Melinda is a very popular executive. She inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Melinda has helped to create a(n) _____ culture. Answer- integrative Expert power usually stems from Answer- a superior's credibility with his or her subordinates. When a person defines right and wrong on the basis of legal contracts, he or she is using which of Kohlberg's stages of development? Answer- Prior rights, social contract, or utility (5th stage) All of these are true about feedback except Answer- Most companies recognize the need for organizational leaders to get feedback from their employees. The _____ was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression." Answer- Dodd- Frank Wall Street Reform and Consumer Protection Act Which of the following is not an individual factor that affects business ethics? Answer- Significant others _____ involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards. Answer- Global business Wind power holds great promise for the United States because of the _____________, and experts believe wind energy could meet as much as 20 percent of the nation's energy needs Answer- Rocky Mountains A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n) Answer- utilitarian. Which of the following is a common mistake made in implementing an ethics program? Answer- Developing materials that do not address the needs of the average employee All of the following are true with regards to organizational factors except Answer- Ethical choices in organizations are most often made individually. The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent. Answer- A court found an oil company guilty of placing profits over the safety and well-being of its employees. This situation can be classified as Answer- an ethical issue The world's forests are being destroyed at a rate of nearly 50,000 square miles annually. The reasons for this wide-scale destruction are varied and include all except: Answer- The soil is great for farming Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation? Answer- Pure Food and Drug Act of 1906