Question 1

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

Accepted Answer

A) True 
 B)False  True

Question 2

The Irish Plastering Corporation recently instituted a corporate ethics code. The president of the company, Seamus McHale, realized that ethical relationships are based on

Accepted Answer

A)  fairness and honesty. 
B)  strict penalties for illegal activities. 
C)  a full-time compliance officer monitoring employee behavior. 
D)  watchdogs and whistleblowers. 
A)  fairness and honesty. 
B)  strict penalties for illegal activities. 
C)  a full-time compliance officer monitoring employee behavior. 
D)  watchdogs and whistleblowers. A

Question 3

In the discussion of corporate social responsibility, stakeholders and stockholders refer to the same group.

Accepted Answer

A) True 
 B)False  False

Question 4

A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws. Which of the following "ethics check questions" would you consider first?

Accepted Answer

A)  Is it legal? 
B)  Is it fair and balanced? 
C)  How will it make me feel about myself? 
D)  Is it a generous amount? 
A)  Is it legal? 
B)  Is it fair and balanced? 
C)  How will it make me feel about myself? 
D)  Is it a generous amount?

Question 5

"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 6

U.S. businesses consider the Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Accepted Answer

A) True 
 B)False

Question 7

Recently, Bob was trying to choose among three mutual fund investments for his retirement account. As a socially conscious investor, he will prefer to invest in funds that hold the stocks of oil and coal companies, as opposed to wind-turbine and renewable energy companies.

Accepted Answer

A) True 
 B)False

Question 8

When working with international firms, U.S. businesses

Accepted Answer

A)  tend to ignore the ethics of their international partners. 
B)  expect socially responsible behavior from their business partners. 
C)  feel that their responsibility is limited to the United States. 
D)  try to avoid judging our international business partners by U.S. standards. 
A)  tend to ignore the ethics of their international partners. 
B)  expect socially responsible behavior from their business partners. 
C)  feel that their responsibility is limited to the United States. 
D)  try to avoid judging our international business partners by U.S. standards.

Question 9

People should look at each situation individually and decide for themselves if it is right or wrong.

Accepted Answer

A) True 
 B)False

Question 10

Punishing business leaders who have broken the law may help restore trust in the free-market system and leaders in general.

Accepted Answer

A) True 
 B)False

Question 11

According to the Reaching Beyond Our Borders box, which of the following is true?

Accepted Answer

A)  Corporate ethics are intended to be consistent with cultural ethics. 
B)  Corporate ethics have priority over corporate profit. 
C)  Corporate profits have priority over corporate ethics. 
D)  Corporate ethics can clash with cultural ethics. 
A)  Corporate ethics are intended to be consistent with cultural ethics. 
B)  Corporate ethics have priority over corporate profit. 
C)  Corporate profits have priority over corporate ethics. 
D)  Corporate ethics can clash with cultural ethics.

Question 12

Due to their significant economic power, large multinational firms can ignore the ethical standards of a society without consequences.

Accepted Answer

A) True 
 B)False

Question 13

We describe charitable donations by corporations to nonprofit organizations as ________.

Accepted Answer

A)  corporate philanthropy 
B)  corporate responsibility 
C)  corporate strategy 
D)  structural commitment 
A)  corporate philanthropy 
B)  corporate responsibility 
C)  corporate strategy 
D)  structural commitment

Question 14

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

Accepted Answer

A) True 
 B)False

Question 15

An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

Accepted Answer

A) True 
 B)False

Question 16

Legal behavior is directly related to our relationships with others, while ethical behavior is not.

Accepted Answer

A) True 
 B)False

Question 17

Since most ethics violations are small and rather insignificant in nature, employees need to understand that addressing these issues is secondary to making profits. CEOs may be justified in ignoring these small problems and waiting for more convenient moments to address them.

Accepted Answer

A) True 
 B)False

Question 18

A payoff for socially conscious behavior is

Accepted Answer

A)  new and loyal customers. 
B)  a large pool of investors. 
C)  a large pool of talented employees. 
D)  longevity due to a stable external environment. 
A)  new and loyal customers. 
B)  a large pool of investors. 
C)  a large pool of talented employees. 
D)  longevity due to a stable external environment.

Question 19

When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with

Accepted Answer

A)  schools. 
B)  religious institutions. 
C)  law enforcement officers. 
D)  each of us. 
A)  schools. 
B)  religious institutions. 
C)  law enforcement officers. 
D)  each of us.

Question 20

The objective of the Inter-American Convention Against Corruption document formulated and signed by the Organization of American States is to identify common global ethics.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

The Irish Plastering Corporation recently instituted a corporate ethics code. The president of the company, Seamus McHale, realized that ethical relationships are based on

In the discussion of corporate social responsibility, stakeholders and stockholders refer to the same group.

A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws. Which of the following "ethics check questions" would you consider first?

"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.

U.S. businesses consider the Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Recently, Bob was trying to choose among three mutual fund investments for his retirement account. As a socially conscious investor, he will prefer to invest in funds that hold the stocks of oil and coal companies, as opposed to wind-turbine and renewable energy companies.

When working with international firms, U.S. businesses

People should look at each situation individually and decide for themselves if it is right or wrong.

Punishing business leaders who have broken the law may help restore trust in the free-market system and leaders in general.

According to the Reaching Beyond Our Borders box, which of the following is true?

Due to their significant economic power, large multinational firms can ignore the ethical standards of a society without consequences.

We describe charitable donations by corporations to nonprofit organizations as ________.

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

Legal behavior is directly related to our relationships with others, while ethical behavior is not.

Since most ethics violations are small and rather insignificant in nature, employees need to understand that addressing these issues is secondary to making profits. CEOs may be justified in ignoring these small problems and waiting for more convenient moments to address them.

A payoff for socially conscious behavior is

When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with

The objective of the Inter-American Convention Against Corruption document formulated and signed by the Organization of American States is to identify common global ethics.

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 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

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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