Business Ethics

The study of business ethics is important to better understand all of the following except

A
that a person’s own moral philosophies and decision-making experiences may not be sufficient to guide him or her in the business world.
B
how and why people make ethical or unethical decisions.
C
how to cope with conflicts between a person’s own values and those of the organization in which he or she works.
D
that business ethics is merely an extension of an individual’s own personal ethics.
E
how to identify ethical issues that arise in the business world.

Social responsibility is

A
an organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders.
B
principles and standards that guide behavior in the world of business.
C
a business’s responsibility not to pollute the environment.
D
a business’s responsibility to manufacture products that function properly without harming consumers.
E
charitable contributions made by a business to enhance its image.

Which of the following was (were) developed in the 1980s to encourage corporate support for ethical conduct by establishing a method for discussing “best practices?”

A
Federal Sentencing Guidelines for Organizations
B
Defense Industry Initiative on Business Ethics and Conduct
C
Corporate Codes of Conduct
D
United States Sentencing Commission
E
MERCOSUR

The _______________ was (were) enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.

A
Defense Industry Initiative on Business Ethics and Conduct
B
Federal Sentencing Guidelines for Organizations
C
Sarbanes-Oxley Act
D
Foreign Corrupt Practices Act
E
Ferrell-Fraedrich Act

In the history of business ethics, the 1990s can best described as a time when business ethics was

A
formalized.
B
consolidated.
C
institutionalized.
D
popularized.
E
marginalized.

Which of the following is not one of the rewards for being ethical and socially responsible in business?

A
Greater employee commitment
B
Greater employee turnover
C
Improved customer trust and satisfaction
D
Increased investor willingness to entrust funds
E
Better financial performance

When employees see honesty, respect, and trust applied frequently in the workplace, they

A
feel less pressure to compromise ethical standards.
B
observe less misconduct.
C
are more satisfied with their organizations overall.
D
feel more valued as employees.
E
All of these.

Most strong organizational climates focus on the value of placing _________ interests first.

A
customers’
B
employees’
C
stockholders’
D
suppliers’
E
distributors’

To be successful, relationships with investors must rest on dependability, ________, and commitment.

A
profits
B
dividends
C
confidence
D
trust
E
code of ethics

The rise of consumerism occurred during the

A
1940s
B
1950s
C
1960s
D
1970s
E
1980s

C
Which of the following is the first step in the ethical decision-making process?

A
Being socialized into the firm’s corporate culture
B
Applying a personal moral philosophy
C
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
D
Soliciting the opinions of others in the work group and the overall business
E
Enforcing the firm’s ethical standards with rewards and punishment