TEST BANK For Business Ethics Ethical Decision Making
and Cases, 13th Edition By O. C. Ferrell, John Fraedrich
Ethics - ANSWER: Choices and judgments about acceptable standards of conduct
that guide the behavior of individuals and groups
Business Ethics - ANSWER: Principles and standards that guide the behavior of
individuals and groups in the business world
Principles - ANSWER: Specific and pervasive boundaries for behavior that are
universal and absolute and often form the basis for rules
Example: freedom of speech
Values - ANSWER: Used to develop norms that are socially enforced
Example: integrity
The most basic of business ethical standards have been codified as - ANSWER: laws &
regulations
___ creates and fosters trust and stakeholder relationships. - ANSWER: business
ethics
Legal system - ANSWER: Provides formal means to resolve ethical and legal disputes
Strong personal morals may be insufficient to prevent laws being broken because... -
ANSWER: laws are complex and can be hard to define
What is the best approach to avoiding criminal and civil litigation? - ANSWER:
Recognizing ethical issues and standards of conduct that include legal and ethical
concerns
Ethical standards need to be outlined in - ANSWER: Corporate policies
T/F
Business decisions are complex and may not be clear-cut - ANSWER: TRUE
Reasons why employees participate in unethical/ illegal behavior - ANSWER: - trying
to advance in positions
- maximize profits
- attempting to achieve organizations goals
Why is it important for organization to create shared vision of acceptable behavior -
ANSWER: People's personal experiences, interests, and values may conflict with
organization's
, 3 Ways to determine if a specific behavior or situation has an ethical component: -
ANSWER: 1. Ask individuals in the business for feedback and guidance
2. Determine whether the organization has adopted specific policies
3. Identify potential legal ramifications
Ethical Issue - ANSWER: Problem, situation, or opportunity that requires a person,
group, or organization to choose among different alternatives that must be
evaluated as right or ethical vs. wrong or unethical
Ethical issues in business - ANSWER: - Abusive or intimidating behavior
- Misuse of company time and resources
- Conflict of interest
- Bribery
- Discrimination and sexual harassment
- Fraud
- Privacy issues
Abusive or intimidating behavior - ANSWER: - Physical threats
- false accusations
- annoying a coworker
- profanity
- insults
- yelling
- harshness
- ignoring someone to the point of being unreasonable and the meaning of these
words can differ by person
• Falls along a continuum
• Consider the intent and the way a word is spoken (voice inflection)
3 of the most fundamental ethical issues in business: - ANSWER: 1. abusive behavior
2. Lying to employees
3. Conflicts of interest
Misuse of company time and resources includes: - ANSWER: - stealing money or
merchandise
- taking office supplies
- using company credit card for personal purchases
- personal use of company computer (most common)
Average employee "steals" more than _____ hrs. per week. - ANSWER: 10
How do employees steal time? - ANSWER: • Late arrivals
• Long lunch breaks
• Leaving early
• Daydreaming
and Cases, 13th Edition By O. C. Ferrell, John Fraedrich
Ethics - ANSWER: Choices and judgments about acceptable standards of conduct
that guide the behavior of individuals and groups
Business Ethics - ANSWER: Principles and standards that guide the behavior of
individuals and groups in the business world
Principles - ANSWER: Specific and pervasive boundaries for behavior that are
universal and absolute and often form the basis for rules
Example: freedom of speech
Values - ANSWER: Used to develop norms that are socially enforced
Example: integrity
The most basic of business ethical standards have been codified as - ANSWER: laws &
regulations
___ creates and fosters trust and stakeholder relationships. - ANSWER: business
ethics
Legal system - ANSWER: Provides formal means to resolve ethical and legal disputes
Strong personal morals may be insufficient to prevent laws being broken because... -
ANSWER: laws are complex and can be hard to define
What is the best approach to avoiding criminal and civil litigation? - ANSWER:
Recognizing ethical issues and standards of conduct that include legal and ethical
concerns
Ethical standards need to be outlined in - ANSWER: Corporate policies
T/F
Business decisions are complex and may not be clear-cut - ANSWER: TRUE
Reasons why employees participate in unethical/ illegal behavior - ANSWER: - trying
to advance in positions
- maximize profits
- attempting to achieve organizations goals
Why is it important for organization to create shared vision of acceptable behavior -
ANSWER: People's personal experiences, interests, and values may conflict with
organization's
, 3 Ways to determine if a specific behavior or situation has an ethical component: -
ANSWER: 1. Ask individuals in the business for feedback and guidance
2. Determine whether the organization has adopted specific policies
3. Identify potential legal ramifications
Ethical Issue - ANSWER: Problem, situation, or opportunity that requires a person,
group, or organization to choose among different alternatives that must be
evaluated as right or ethical vs. wrong or unethical
Ethical issues in business - ANSWER: - Abusive or intimidating behavior
- Misuse of company time and resources
- Conflict of interest
- Bribery
- Discrimination and sexual harassment
- Fraud
- Privacy issues
Abusive or intimidating behavior - ANSWER: - Physical threats
- false accusations
- annoying a coworker
- profanity
- insults
- yelling
- harshness
- ignoring someone to the point of being unreasonable and the meaning of these
words can differ by person
• Falls along a continuum
• Consider the intent and the way a word is spoken (voice inflection)
3 of the most fundamental ethical issues in business: - ANSWER: 1. abusive behavior
2. Lying to employees
3. Conflicts of interest
Misuse of company time and resources includes: - ANSWER: - stealing money or
merchandise
- taking office supplies
- using company credit card for personal purchases
- personal use of company computer (most common)
Average employee "steals" more than _____ hrs. per week. - ANSWER: 10
How do employees steal time? - ANSWER: • Late arrivals
• Long lunch breaks
• Leaving early
• Daydreaming
