Deck 2: Business Ethics and Social Responsibility

Question 1

A code of ethics is an individual firm's behavior standard for employees.

Answer 1

True

Question 2

Situational ethics is also known as moral relativism.

Answer 2

True

Question 3

"I was just following orders," is a defense in law and a test for ethical behavior.

Answer 3

False

Question 4

Whether everyone else does it is one method for evaluating the ethics of a particular course of action.

Question 5

The "front page of the newspaper test" is an application of whether conduct gives the appearance of impropriety.

Question 6

An employee's actions away from the job has no relevance to his or her employer.

Question 7

Natural law and positive law are one and the same theories of ethical standards.

Question 8

A lack of business ethics can result in a lack of business goodwill.

Question 9

Condoning unethical behavior is an ethical breach.

Question 10

Milton Friedman's standard for business social responsibility is one that requires a company to do all that it can for its community.

Question 11

Waiting your turn, while not a statute, is typically an ordinance.

Question 12

Business ethics provides a guarantee of profitability.

Question 13

A government employee releasing personal tax information about an individual is an ethical breach.

Question 14

Business ethics is the application of standards for moral reasoning to business dilemmas.

Question 15

The first question of the Blanchard/Peale model for resolving ethical dilemmas is whether the conduct is legal.

Question 16

Unethical behavior is not necessarily illegal behavior.

Question 17

Natural law, unlike other rules, does not change.

Question 18

Giving a false impression, although not actually an untruth, is still an ethical violation.

Question 19

A company with a code of ethics has no further concern with regard to the tone at the top for the ethical behavior of the company's employees.

Question 20

A company, such as Nike, can have no affect on the work environment in a foreign country.

Question 21

"That's the way it has always been done," is a phrase that often signals ethical difficulties.

Question 22

The least corrupt countries have the most stable economies.

Question 23

In the Parable of the Sadhu , the hikers are certain the religious pilgrim survived.

Question 24

A relativist asks why someone is engaged in unethical or illegal conduct before determining whether the conduct is right or wrong.

Question 25

The level of cheating in high schools and colleges is declining.

Question 26

The Parable of the Sadhu emphasizes the importance of focusing on survival rather than others.

Question 27

"Everybody else does it" is a valid test for determining whether conduct is ethical.

Question 28

Compliance with the law meets all ethical standards.

Question 29

An ethics officer and/or ethics hotline are both critical to an ethical culture in a company.

Question 30

Warren Buffett follows the Front-Page-of-the-Newspaper test as a guide for his businesses.

Question 31

The Federal Sentencing Commission is concerned only with corporate ethical processes and not ethical corporate cultures.

Question 32

Having a code of ethics does not reduce a company's sentence under the federal sentencing guidelines.

Question 33

Ethics can provide a strategic advantage for companies.

Question 34

In the Parable of the Sadhu , the hikers' climb is successful.

Question 35

Training employees in ethics is a factor that reduces a company's sentence under the federal sentencing guidelines.

Question 36

A company that self-reports a legal violation risks a higher penalty.

Question 37

An anonymous reporting system is a requirement for companies under Sarbanes-Oxley.

Question 38

Rationalization is an effective means of analysis for ethical issues.

Question 39

Sarbanes-Oxley is extensive congressional reform of federal laws that apply to corporations.

Question 40

The first question of the Wall Street Journal model is whether the conduct complies with the law.

Question 41

Ethics consists of the unwritten rules we apply in both business and personal lives.

Question 42

Moral relativists would say that stealing is always immoral and illegal.

Question 43

To obtain the protections and benefits of the sentencing guidelines, companies must have some form of anonymous reporting.

Question 44

Cheating on a test in college will result in a criminal prosecution because it is considered a crime.

Question 45

In Douglas Brown's opinion, economic growth requires the lack of corruption to succeed.

Question 46

Immanuel Kant's categorical imperative is a similar idea to the Golden Rule of treating others like you would want to be treated.

Question 47

"It's a gray area," if it applies, means that the conduct you are evaluating is ethical, so long as you stay in the gray area.

Question 48

Downloading music using peer-to-peer file sharing is not an ethical breach.

Question 49

Long-term corruption affects a nation's economy.

Question 50

To obtain the protections and benefits of the sentencing guidelines, companies must have a code of ethics.

Question 51

"When in Rome, do as the Romans do," is an example of moral relativism.

Question 52

The cost of a climb in the Himalayas is a point of pressure in the life and death ethical dilemmas climbers face.

Question 53

Christian and Judaism principles concerning ethical behavior are radically different.

Question 54

One cause of corruption and hyperinflation in Brazil is the country's strong observance of ethical processes to a point that is not required.

Question 55

Ethics are key to the success of economic systems.

Question 56

The social contract requires people to act in the way that everyone would agree is "the right thing to do."

Question 57

Trust is not critical to investment or economic success.

Question 58

Normative standards are measured by reaction to conduct that is not illegal, but creates outrage.

Question 59

Corruption impedes economic development.

Question 60

Rationalization is one form of ethical analysis.

Question 61

A stakeholder is anyone:

A)but a shareholder.
B)who has an interest in a business.
C)but a firm's employees.
D)except the community where a firm is located.

Question 62

The "front page of the newspaper test":

A)was developed by Laura Nash.
B)is the same as the Wall Street Journal test.
C)was developed by Blanchard/Peale.
D)uses the perspective of an objective reporter.

Question 63

A magazine rating car performance that receives the bulk of its advertising revenue from one particular auto manufacturer without disclosing that fact is an example of:

A)false impression.
B)conflict of interest.
C)divulging information.
D)interpersonal abuse.

Question 64

Which of the following models has a question that requires analysis of the effect of a decision on stakeholders?

A)Blanchard/Peale
B)Wall Street Journal model
C)Does the conduct comply with the law?
D)All of the above

Question 65

Which of the following actions would be permitted under the Friedman philosophy of business involvement in social issues?

A)A corporate contribution to a shelter program for runaway teenagers
B)A corporate contribution to a pro-choice organization
C)A corporate contribution to Mother Teresa's worldwide organization
D)A corporate contribution to a mass transit system that will serve the offices of the company throughout the city

Question 66

Which of the following statements is true about an ethical business?

A)It will always be profitable.
B)It will always satisfy all stakeholders.
C)It will always survive over the long run.
D)It will avoid the consequences of unethical behavior.

Question 67

Which of the following is not an ethical breach?

A)Taking things that do not belong to you
B)Giving or allowing false impressions
C)Perpetrating interpersonal abuse
D)All of the above are ethical breaches.

Question 68

Which of the following is not a question for the Blanchard/Peale test for ethical behavior?

A)Is it legal?
B)Does it follow industry code?
C)Is it balanced?
D)How does it make me feel?

Question 69

Which of the following is not a part of the language of rationalization?

A)"Everyone else does it."
B)"It really doesn't hurt anyone."
C)"I was just following orders."
D)"We'll wait until the government tells us it's wrong."

Question 70

Who suggests that a corporation best serves by serving its shareholders?

A)Andrew Cuomo
B)Warren Buffett
C)Milton Friedman
D)Immanuel Kant

Question 71

An unclear situation that has potential legal and ethical issues can be referred to as a ____ area.

A)green
B)gray
C)black-and-white
D)gratuitous

Question 72

A manager at a chemical weapons plant discovered that toxic by-products from chemical manufacturing at the plant are simply put in barrels and stacked near the boundary lines of the plant property. Children in the homes near these boundaries have an unusually high rate of kidney disease. The manager does not want to disclose the barrels' contents because he will lose his job and the town will lose its major employer. Which of the following ethical tests would support the manager's decision?

A)Wall Street Journal model
B)Ethical relativism
C)Blanchard/Peale model
D)"Front Page of the Newspaper Test"

Question 73

In the example of 1980s musical hits on CDs performed by "The Original Artists", the group's name is an example of creating a:

A)relative impression.
B)personal decadence.
C)false impression.
D)organizational abuse.

Question 74

"How would I view the issue if I stood on the other side of the fence?" is one question in the process to analyze an ethical dilemma developed by:

A)Milton Friedman.
B)Laura Nash.
C)Norman Vincent Peale.
D)Kenneth Blanchard.

Question 75

Milton Friedman's philosophy on corporate behavior is:

A)a business serves its shareholders best by serving the community.
B)a business serves its shareholders best by serving society at large.
C)a business serves its shareholders best by serving regulatory interests.
D)a business serves its shareholders best by serving shareholders.

Question 76

The policy on travel reimbursement at Public Service Company is that receipts for meals under $25.00 are not required. Internal auditors at Public Service have recently discovered that 80 percent of all meal submissions are in a range from $12.50 to $12.99. When one manager is questioned about his submissions and those of his employees he responds, "So, they make a little bit on meals - it helps their miserable salaries." The manager's evaluation:

A)demonstrates an ethical commitment to his employees.
B)is ethical since no one is really harmed.
C)demonstrates a lapse in the company's ethical culture.
D)is an example of Christian consequentialism.

Question 77

Ethical decisions based on whether or not an activity is legal or not is based on the _____ theory.

A)positive
B)negative
C)relativism
D)fairness

Question 78

Which of the following is not always a result of unethical behavior?

A)Loss of trust
B)Loss of goodwill
C)Loss of profits
D)Strained relations with regulators

Question 79

Which of the following is not a consequence of poor ethical choices by a company?

A)Loss of reputation
B)Loss of earning power
C)Additional regulation
D)All of the above are consequences of poor ethical choices.

Question 80

Which of the following is not necessarily a benefit of using ethics as a business strategy?

A)Firm's profits increase
B)Affords opportunity for planning
C)Creates goodwill in the community
D)All of the above are benefits.