Deck 4: The Institutionalization of Business Ethics

Question 1

The _____ was established after the latest financial crisis,in response to a situation that caused many consumers to lose their homes.

A)Environmental Protection Agency
B)World Bank
C)Consumer Financial Protection Bureau
D)World Trade Organization
E)Sarbanes-Oxley Act

Answer 1

C

Question 2

Which of the following acts can be classified as procompetitive legislation?

A)Equal Pay Act of 1963
B)Civil Rights Act of 1964
C)Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
D)Sherman Antitrust Act of 1890
E)Occupational Safety and Health Act of 1970

Answer 2

D

Question 3

The primary objective of U.S.antitrust laws is to

A)protect consumers from high prices and foreign products.
B)protect domestic businesses.
C)protect employees.
D)promote strategies that enhance business welfare over consumer welfare.
E)distinguish competitive strategies that enhance consumer welfare from those that reduce it.

Answer 3

E

Question 4

Which of the following acts,passed in response to public outrage over conditions described in Upton Sinclair's The Jungle,was the first consumer protection legislation?

A)Civil Rights Act of 1964
B)Sherman Antitrust Act of 1890
C)Magnuson-Moss Warranty Act of 1974
D)Consumer Product Safety Act of 1972
E)Pure Food and Drug Act of 1906

Question 5

The ________________ desires to find a solution to a social problem rather than to simply earn profits.

A)CEO
B)ethics officer
C)social entrepreneur
D)cause-related marketer
E)Consumer Financial Protection Bureau

Question 6

_____ focus(es)on developing sound organizational practices and integrity for financial and nonfinancial performance measures,rather than on an individual's morals.

A)The Dodd-Frank Wall Street Reform and Consumer Protection Act
B)Compliance
C)Organizational ethics
D)Core practices
E)The Sarbanes Oxley Act

Question 7

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

A)Increases the accountability and transparency of financial institutions
B)Creates a bureau to educate consumers in financial literacy
C)Creates an organization to pay the bills of low-income consumers
D)Create incentives for whistle-blowers to come forward
E)Increases oversight of the financial industry

Question 8

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

A)Because the large size creates economies of scale and they can charge lower prices
B)Because the selection in the stores is too large
C)Because large retailers attract crime to neighborhoods in which they are based
D)Because community leaders do not like the top management
E)Because large retailers almost never hire local workers as employees

Question 9

Which of the following acts exempted the insurance industry from antitrust legislation?

A)Equal Pay Act of 1963
B)Civil Rights Act of 1964
C)McCarran-Ferguson Act of 1944
D)Sherman Antitrust Act of 1890
E)Occupational Safety and Health Act of 1970

Question 10

_____ law not only prohibits specific actions in business such as fraud,theft,or securities trading violations,but also imposes fines or imprisonment as punishment for breaking the law.

A)Civil
B)Criminal
C)Competitive
D)Administrative
E)Regulatory

Question 11

Which of the following groups is not a group that receives special legal protections?

A)The elderly
B)Children
C)Senior citizens
D)The highly educated
E)Young consumers

Question 12

_____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

A)Social responsibility
B)Business ethics
C)Corporate philanthropy
D)Strategic philanthropy
E)Cause-related marketing

Question 13

Which is not one of the four sources of criminal and civil laws?

A)Judicial law
B)Common law
C)Constitutional law
D)Administrative law
E)Statutory law

Question 14

Which of the following is not an aspect of the institutionalization of social responsibility?

A)Voluntary practices
B)Legal responsibilities
C)Core practices
D)Familial responsibilities
E)Strategic philanthropy

Question 15

_____ law defines the rights and duties of individuals and organizations (including businesses).

A)Civil
B)Criminal
C)Competitive
D)Administrative
E)Regulatory

Question 16

The _____ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."

A)Consumer Financial Protection Bureau
B)Federal Reserve
C)World Trade Organization
D)Department of Justice
E)Federal Trade Commission

Question 17

The _____ regulates tobacco,dietary supplements,vaccines,veterinary drugs,medical devices,cosmetics,products that give off radiation,and biological products.

A)World Trade Organization
B)Consumer Financial Protection Agency
C)Department of Justice
D)Environmental Protection Agency
E)The Food and Drug Administration

Question 18

Which of the following is not a provision of the Sarbanes-Oxley Act?

A)Strengthens penalties for corporate fraud
B)Developed the Consumer Financial Protection Bureau
C)Requires codes of ethics for financial reporting in corporations
D)Makes fraudulent financial reporting a criminal offense
E)Requires greater transparency in financial reporting

Question 19

The _____ was called "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression."

A)Equal Pay Act
B)Americans with Disabilities Act
C)Dodd-Frank Wall Street Reform and Consumer Protection Act
D)Age Discrimination in Employment Act
E)VII of the Civil Rights Act

Question 20

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

A)sustained price cuts.
B)free samples.
C)discriminatory pricing.
D)price collusion.
E)corporate espionage.

Question 21

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?

A)Department of Justice, Sarbanes-Oxley Act, and Open Compliance Ethics Group
B)Department of Justice, Dodd-Frank Act, and Sarbanes-Oxley Act
C)Federal Sentencing Guidelines for Organizations, tSarbanes-Oxley Act, and Dodd-Frank Act
D)Food and Drug Administration, Federal Sentencing Guidelines for Organizations, and Sarbanes-Oxley Act
E)Securities and Exchange Commission and Sarbanes-Oxley Act

Question 22

Which of the following is one of the seven steps that the U.S.Sentencing Commission requires for an effective compliance program?

A)Engage in cause-related marketing
B)Provide oversight by high-ranking personnel
C)Develop a system of voluntary practices
D)Submit to periodic privacy audits
E)Comply with ISO 14000 guidelines

Question 23

Title VII of the Civil Rights Act of 1964

A)prohibits discrimination on the basis of race, color, sex, religion, or national origin.
B)penalizes the top executives in an organization for misconduct.
C)is basically the same as the Sarbanes-Oxley Act.
D)discourages whistle-blowers from reporting misconduct.
E)prohibits pay discrimination on the basis of gender.

Question 24

Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 1 to 3 percent of fines if their reports result in convictions of more than $1 million in penalties? 

A)Title VII of the Civil Rights Act.
B)The Sherman Antitrust Act.
C)The Federal Sentencing Guidelines for Organizations.
D)The Sarbanes-Oxley Act.
E)The Dodd-Frank Act. 

Question 25

_____ tie(s)an organization's product(s)directly to a social concern through a marketing program.

A)Voluntary contributions
B)Cause-related marketing
C)Strategic philanthropy
D)Corporate giving
E)Employee benefits

Question 26

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?

A)Institutionalization of ethics is now mandated for all organizations by governments around the world
B)Stakeholders have recognized the need for improving business ethics
C)The government has stepped in when scandals and misconduct have damaged key constituents of businesses
D)Gatekeepers have been questioned as to their contributions to major scandals
E)Highly ethical companies tend to be more profitable than those suffering from misconduct issues

Question 27

How do violations of the law usually start? 

A)When businesspeople blatantly engage in misconduct
B)When organizational stakeholders are not prioritized
C)When the organization lacks an code of ethics
D)When businesspeople stretch the limits of ethical standards
E)When organizations engage in activities that are clearly illegal

Question 28

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission,the Sarbanes-Oxley Act is attempting to eliminate

A)conflicts of interest.
B)cronyism.
C)reporting transparency.
D)corporate espionage.
E)dual reporting.

Question 29

____________ must be trusted to make business work properly and includes accountants.

A)Gatekeepers
B)Federal regulators
C)Ethics officers
D)The buying center
E)The legal department

Question 30

A major purpose of the Federal Sentencing Guidelines for Organizations,the Sarbanes-Oxley Act,and the Dodd-Frank Act is to 

A)guard against anticompetitive behaviors.
B)create synergy among businesses to improve the economy.
C)encourage employees to report misconduct.
D)discourage businesses from taking risks.
E)mandate that companies engage in self-regulation.

Question 31

Cause related marketing can affect consumer _____,if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.

A)individual ethics
B)tastes
C)attitudes
D)budgets
E)buying patterns

Question 32

The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.

A)Public Company Accounting Oversight Board
B)Corporate Accounting Oversight Commission
C)Consumer Financial Protection Bureau
D)Occupational Health and Safety Administration
E)Equal Employment Opportunity Commission

Question 33

Companies that _____ will most likely be found in violation of procompetitive legislation.

A)pollute waterways
B)knowingly harm consumers
C)contract with sweatshops
D)establish monopolies
E)help consumers

Question 34

Passed by Congress in 1991,the _____ created incentives for organizations to develop and implement ethical compliance programs.

A)Sarbanes-Oxley Act
B)U.S. Sentencing Commission's Guidelines for Ethical Compliance
C)Ethical Compliance Act
D)Social Responsiveness Compliance Act
E)Federal Sentencing Guidelines for Organizations

Question 35

The _____ of ethics involves embedding values,norms,and artifacts in organizations,industries,and society.

A)institutionalization
B)rationalization
C)commercialization
D)mobilization
E)enforcement

Question 36

_____ responsibilities relate to a business's contributions to stakeholders.

A)Economic
B)Legal
C)Ethical
D)Voluntary
E)Social responsiveness

Question 37

Some,especially those in business,complain that the Sarbanes-Oxley Act and similar legislation

A)is excessively complex and financially burdensome.
B)is not necessary.
C)is fair to all firms.
D)has reduced restatements of financial reports.
E)is too simplistic.

Question 38

Laws and regulations change over time; however,in the United States the thrust of most business legislation can be summed up as

A)any practice is permitted.
B)any practice is permitted that does not substantially reduce competition and harm consumers or society.
C)any practice is permitted that does not substantially harm consumers or society, but this applies only within the United States.
D)any practice is permitted that does not harm the environment.
E)any practice is permitted that does not break the law.

Question 39

Donation of computer equipment to schools by Toshiba would be associated with _____ responsibilities.

A)economic
B)voluntary
C)legal
D)ethical
E)minimum

Question 40

An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders.The key elements of an organizational culture include all of the following except

A)values.
B)norms.
C)artifacts.
D)behavior.
E)employee compensation

Question 41

Cause-related marketing is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.?

Question 42

What ethical issues affecting consumers and society as a whole are created by unfair competition?

Question 43

Society often expects a lot from business.Do you think that it is possible to balance profit and other business objectives with the goals and desires of society? Why or why not?

Question 44

In 25 the Supreme Court ruled that the federal sentencing guidelines were not mandatory but should serve only as recommendations judges should use in their decisions.?

Question 45

One of the steps the U.S.Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm must develop and disseminate a code of conduct that communicates required standards and identifies key risk areas for the organization.?

Question 46

The primary method for resolving conflicts and serious business disputes is through the use of self-regulation.?

Question 47

This is a leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases.?

A)?Consumer Financial Protection Bureau
B)?Federal Trade Commission
C)?Better Business Bureau
D)?Open Compliance Ethics Group
E)?Occupational Safety and Health Administration

Question 48

Sarbanes-Oxley is considered to be the most sweeping financial overhaul of the regulatory system since the Great Depression.?

Question 49

Why do you think the costs of compliance with Sarbanes Oxley go down over time?

Question 50

Externally imposed boundaries of conduct,such as laws,rules,regulations,and other requirements are known as ?

A)?Mandated boundaries
B)?Core practices
C)?Voluntary boundaries
D)?Civil law
E)?Philanthropy

Question 51

According to the text,the opinions of society,as expressed through legislation,can change over time,and different courts and government legislatures may take different views about the acceptability of specific business activities.Why is this so?