Question 1

Business ethics refers to principles and standards that define acceptable conduct in business organizations.

Accepted Answer

A) True 
 B)False  True

Question 2

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  True

Question 3

What five actions can a Board of Directors do to create a culture of ethical behaviour and financial integrity?

Accepted Answer

For Boards to effectively create a culture of ethical behaviour and financial integrity,they must commit to the following specific actions:
1.The Board must clearly define and establish boundaries of acceptable behaviour and financial integrity,and create performance standards to evaluate adherence to these parameters.
2.These boundaries must be clearly understood and communicated to all employees in the form of a policy or code of conduct.
This code of conduct is not limited to financial integrity only,but should clearly identify boundaries associated with ethical behaviour,both internal and external,and the consequences for failure to adhere to such a policy or code of conduct.
A key requirement at this level is that the senior management team of the organization fully buys into the development process and the integration of this code of conduct into the organization's policies,protocols,and overall culture.
3.The Board of Directors must appoint a representative (individual or committee),at the Board level,whose responsibility is to audit managerial and employee performance and action in critical areas of this policy or code of conduct.
This representative or committee would also be a key participant in the reviewing of compensation packages and other personnel-related policies to ensure that these are not designed in a way which would encourage unethical behaviour.
4.The Board of Directors must create and support a mechanism for the reporting of ethical concerns (whistle-blowing)within the organization,with such a process designed in a way which ensures that employees who utilize such a process are not penalized or ostracized.
5.The Board of Directors,and/or its representative,must interact with senior management and external agencies monitoring the organization's activities in order to discuss issues which could arise,with respect to management and/or employees,and represent the best interests of the organization and its shareholders,with respect to questions of ethical behaviour and/or financial integrity.

Question 4

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

Question 5

The concept of social responsibility is universally accepted.

Accepted Answer

A) True 
 B)False

Question 6

Designing an employee incentive program based on increasing sales can lead to unethical behaviour.

Accepted Answer

A) True 
 B)False

Question 7

Determining what is involved for a firm to be socially responsible:

Accepted Answer

A)  is easy. 
B)  varies even among those who are interested in corporate responsibility. 
C)  helps government officials develop appropriate legislation. 
D)  varies from industry to industry. 
A)  is easy. 
B)  varies even among those who are interested in corporate responsibility. 
C)  helps government officials develop appropriate legislation. 
D)  varies from industry to industry.

Question 8

Increasingly,consumers are choosing not to patronize businesses that receive negative publicity concerning misconduct.

Accepted Answer

A) True 
 B)False

Question 9

The "philanthropy" level of corporate social responsibility is at the top of the CSR pyramid.

Accepted Answer

A) True 
 B)False

Question 10

Businesses recognize that pressure to violate ethical standards can come from either inside or outside of the firm.

Accepted Answer

A) True 
 B)False

Question 11

Managers consider social responsibility on an annual basis.

Accepted Answer

A) True 
 B)False

Question 12

Ethical behaviour will allow a firm to meet its corporate social responsibility.

Accepted Answer

A) True 
 B)False

Question 13

One strategy guaranteed to displease your customers is to:

Accepted Answer

A)  delight them with a quality product at a fair price. 
B)  focus on cost and quality control systems within your organization. 
C)  practice deception regarding product safety issues. 
D)  shift the production of goods to foreign facilities and layoff Canadian workers. 
A)  delight them with a quality product at a fair price. 
B)  focus on cost and quality control systems within your organization. 
C)  practice deception regarding product safety issues. 
D)  shift the production of goods to foreign facilities and layoff Canadian workers.

Question 14

In order to be successful,efforts to improve the ethical behaviour of businesses must begin with top management's support of a corporate code of conduct.

Accepted Answer

A) True 
 B)False

Question 15

What is the common thread that allows managers to manage and motivate their employees within successful organizations?

Accepted Answer

The common thread is trust.
Trust is fun

Question 16

When managers appear to disregard ethical concerns,the likely results would include:

Accepted Answer

A)  reduced employee turnover. 
B)  improved manager morale. 
C)  reduced lawsuits. 
D)  mistrust between workers and management. 
A)  reduced employee turnover. 
B)  improved manager morale. 
C)  reduced lawsuits. 
D)  mistrust between workers and management.

Question 17

Corporate social responsibility refers to the concern businesses have for their employees.

Accepted Answer

A) True 
 B)False

Question 18

Organizational ethics are learned by:

Accepted Answer

A)  attending corporate responsibility seminars. 
B)  tracking the failures of those who are caught in business scandals. 
C)  attending business classes and regularly taking notes. 
D)  observing the actions of others. 
A)  attending corporate responsibility seminars. 
B)  tracking the failures of those who are caught in business scandals. 
C)  attending business classes and regularly taking notes. 
D)  observing the actions of others.

Question 19

All else held equal,socially responsible firms:

Accepted Answer

A)  are viewed more favourably by consumers. 
B)  enjoy significantly higher profits. 
C)  often experience customer loyalty problems. 
D)  fail to earn sufficient profits for their owners. 
A)  are viewed more favourably by consumers. 
B)  enjoy significantly higher profits. 
C)  often experience customer loyalty problems. 
D)  fail to earn sufficient profits for their owners.

Question 20

All of the following are reasons why a business should be managed ethically except:

Accepted Answer

A)  because it is the right thing to do. 
B)  because strict global regulations require it. 
C)  to attract new customers and retain existing customers. 
D)  to please customers, employees, and society. 
A)  because it is the right thing to do. 
B)  because strict global regulations require it. 
C)  to attract new customers and retain existing customers. 
D)  to please customers, employees, and society.

Business ethics refers to principles and standards that define acceptable conduct in business organizations.

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

What five actions can a Board of Directors do to create a culture of ethical behaviour and financial integrity?

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

The concept of social responsibility is universally accepted.

Designing an employee incentive program based on increasing sales can lead to unethical behaviour.

Determining what is involved for a firm to be socially responsible:

Increasingly,consumers are choosing not to patronize businesses that receive negative publicity concerning misconduct.

The "philanthropy" level of corporate social responsibility is at the top of the CSR pyramid.

Businesses recognize that pressure to violate ethical standards can come from either inside or outside of the firm.

Managers consider social responsibility on an annual basis.

Ethical behaviour will allow a firm to meet its corporate social responsibility.

One strategy guaranteed to displease your customers is to:

In order to be successful,efforts to improve the ethical behaviour of businesses must begin with top management's support of a corporate code of conduct.

What is the common thread that allows managers to manage and motivate their employees within successful organizations?

When managers appear to disregard ethical concerns,the likely results would include:

Corporate social responsibility refers to the concern businesses have for their employees.

Organizational ethics are learned by:

All else held equal,socially responsible firms:

All of the following are reasons why a business should be managed ethically except:

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Technology and Operations Management

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters

Exam 5: Ethics and Corporate Social Responsibility

Business ethics refers to principles and standards that define acceptable conduct in business organizations.

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

What five actions can a Board of Directors do to create a culture of ethical behaviour and financial integrity?

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

The concept of social responsibility is universally accepted.

Designing an employee incentive program based on increasing sales can lead to unethical behaviour.

Determining what is involved for a firm to be socially responsible:

Increasingly,consumers are choosing not to patronize businesses that receive negative publicity concerning misconduct.

The "philanthropy" level of corporate social responsibility is at the top of the CSR pyramid.

Businesses recognize that pressure to violate ethical standards can come from either inside or outside of the firm.

Managers consider social responsibility on an annual basis.

Ethical behaviour will allow a firm to meet its corporate social responsibility.

One strategy guaranteed to displease your customers is to:

In order to be successful,efforts to improve the ethical behaviour of businesses must begin with top management's support of a corporate code of conduct.

What is the common thread that allows managers to manage and motivate their employees within successful organizations?

When managers appear to disregard ethical concerns,the likely results would include:

Corporate social responsibility refers to the concern businesses have for their employees.

Organizational ethics are learned by:

All else held equal,socially responsible firms:

All of the following are reasons why a business should be managed ethically except:

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Technology and Operations Management

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters