Question 1

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?

Accepted Answer

A)  Can I do this without getting caught? 
B)  Is it balanced? 
C)  Has it been done before? 
D)  Is there a desirable alternative? 
A)  Can I do this without getting caught? 
B)  Is it balanced? 
C)  Has it been done before? 
D)  Is there a desirable alternative? B

Question 2

Corporate values are:

Accepted Answer

A)  a personal matter to be determined by each employee. 
B)  taught by attending company-sponsored seminars. 
C)  instilled by the leadership of outside consultants. 
D)  learned by observing the actions of others in the organization. 
A)  a personal matter to be determined by each employee. 
B)  taught by attending company-sponsored seminars. 
C)  instilled by the leadership of outside consultants. 
D)  learned by observing the actions of others in the organization. D

Question 3

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.

Accepted Answer

A) True 
 B)False  False

Question 4

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Accepted Answer

Compliance-based ethics codes emphasize

Question 5

Investors, today are realizing financial benefit by:

Accepted Answer

A)  investing in companies that only operate in stable environments. 
B)  investing in firms that have abundant resources for social initiatives. 
C)  investing in companies that are committed to a better environment. 
D)  investing in companies that are leaving a sizeable carbon footprint. 
A)  investing in companies that only operate in stable environments. 
B)  investing in firms that have abundant resources for social initiatives. 
C)  investing in companies that are committed to a better environment. 
D)  investing in companies that are leaving a sizeable carbon footprint.

Question 6

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.

Accepted Answer

A) True 
 B)False

Question 7

According to the Making Ethical Decisions box, after ex-cons have completed their sentences, they should not be allowed to start their own businesses.

Accepted Answer

A) True 
 B)False

Question 8

In recent years, progressive firms have embarked upon ____________, where they will commit company resources and expertise toward helping out in emergency type situations.

Accepted Answer

A)  corporate philanthropy 
B)  corporate social activism 
C)  social civility 
D)  corporate social initiatives 
A)  corporate philanthropy 
B)  corporate social activism 
C)  social civility 
D)  corporate social initiatives

Question 9

Sharon, a CPA for a large firm, noticed that the company's accounting records drastically overstated the amount of inventory on hand, which led to overstating the assets of the firm. Initially, she brought it to the attention of her supervisor, but when nothing was done to correct the mistake in a timely manner, she decided the best course of action was to report it to the appropriate government official. Although her actions took her outside the company, she was counting on current law, under the ____________, to protect her against company retaliation.

Accepted Answer

A)  Cellar-Kefauver Act 
B)  Sarbanes-Oxley Act 
C)  Robinson-Patman Act 
D)  Sherman Act 
A)  Cellar-Kefauver Act 
B)  Sarbanes-Oxley Act 
C)  Robinson-Patman Act 
D)  Sherman Act

Question 10

"Actions speak louder than words!" is an old saying that refers to the fact that people's actions-how they act as opposed to what they say-are often testament to their true ethical values.

Accepted Answer

A) True 
 B)False

Question 11

The position a firm takes on issues that affect the corporation as well as society is known as its:

Accepted Answer

A)  political philanthropy. 
B)  corporate policy. 
C)  target posturing. 
D)  structural positioning. 
A)  political philanthropy. 
B)  corporate policy. 
C)  target posturing. 
D)  structural positioning.

Question 12

An important step in improving U.S. business ethics is for companies to hire whistleblowers.

Accepted Answer

A) True 
 B)False

Question 13

Due to the complicated laws and ethical standards abroad, U.S. businesses are encouraged to adopt a "don't ask, don't tell" policy.

Accepted Answer

A) True 
 B)False

Question 14

Trust between workers and managers must be based on a foundation of fairness, honesty, openness, and moral integrity.

Accepted Answer

A) True 
 B)False

Question 15

Effective corporate values start with employees and develop throughout the organization to include top management.

Accepted Answer

A) True 
 B)False

Question 16

Management can create an environment in which unethical behavior can develop.

Accepted Answer

A) True 
 B)False

Question 17

Corporate ________ covers issues such as setting minority hiring practices, manufacturing safe products, and minimizing pollution.

Accepted Answer

A)  responsibility 
B)  philanthropy 
C)  diversity 
D)  structure and strategy 
A)  responsibility 
B)  philanthropy 
C)  diversity 
D)  structure and strategy

Question 18

"Hear no evil, see no evil, speak no evil" is the best policy for U.S. firms to follow in their dealings with corrupt foreign suppliers.

Accepted Answer

A) True 
 B)False

Question 19

A common form of cheating in schools today is plagiarizing online material.

Accepted Answer

A) True 
 B)False

Question 20

Following an ethics-based approach to decision making will normally lead to higher:

Accepted Answer

A)  profits. 
B)  trust and cooperation. 
C)  prices. 
D)  employee turnover. 
A)  profits. 
B)  trust and cooperation. 
C)  prices. 
D)  employee turnover.

Exam 4: Demanding Ethical and Socially Responsible Behavior

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?

Corporate values are:

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Investors, today are realizing financial benefit by:

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.

According to the Making Ethical Decisions box, after ex-cons have completed their sentences, they should not be allowed to start their own businesses.

In recent years, progressive firms have embarked upon ____________, where they will commit company resources and expertise toward helping out in emergency type situations.

"Actions speak louder than words!" is an old saying that refers to the fact that people's actions-how they act as opposed to what they say-are often testament to their true ethical values.

The position a firm takes on issues that affect the corporation as well as society is known as its:

An important step in improving U.S. business ethics is for companies to hire whistleblowers.

Due to the complicated laws and ethical standards abroad, U.S. businesses are encouraged to adopt a "don't ask, don't tell" policy.

Trust between workers and managers must be based on a foundation of fairness, honesty, openness, and moral integrity.

Effective corporate values start with employees and develop throughout the organization to include top management.

Management can create an environment in which unethical behavior can develop.

Corporate ________ covers issues such as setting minority hiring practices, manufacturing safe products, and minimizing pollution.

"Hear no evil, see no evil, speak no evil" is the best policy for U.S. firms to follow in their dealings with corrupt foreign suppliers.

A common form of cheating in schools today is plagiarizing online material.

Following an ethics-based approach to decision making will normally lead to higher:

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Managing the Marketing Mix: Product, Price, Place and Promotion

Extension: Working Within the Legal Environment

Extension: Using Technology to Manage Information

Extension: Managing Risk

Extension: Managing Personal Finances

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