Deck 3: Ethics in Business

Question 1

Unethical behavior is defined as behavior that does not conform to a set of approved standards of ________ behavior.

A) amoral
B) diplomatic
C) social
D) religious
E) international

Answer 1

C

Question 2

In business relations all of the following are influenced by our personal ethics EXCEPT ________.

A) actions
B) job titles
C) thoughts
D) words
E) behavior

Answer 2

B

Question 3

Situational ethics was considered very controversial when it was established by Joseph Fletcher because it challenged the idea that ________.

A) universal rules exist and can be applied to every situation
B) people make decisions based on a specific situation no matter what the consequences are
C) people make decisions based on a specific situation instead of universal laws
D) most people act in their own self interest when making decisions
E) some people have no sense of right and wrong

Answer 3

A

Question 4

Since goods are more widely manufactured and sold in the global marketplace,this has caused U.S.companies to ________.

A) have more control over ethical standards in other countries since governments are eager to meet the expectations of companies that wish to operate within their borders
B) close down offshore manufacturing facilities because of different ethical standards
C) respect and care for their employees in the U.S. with higher ethical standards
D) face difficult decisions about ethical standards on tough issues such as child labor, pollution, fair wages, and human rights
E) ignore ethical standards in their U.S. facilities to make them more competitive

Question 5

According to moral relativism ________.

A) gossiping creates a more divisive workplace
B) everyone is equal in the eye of the law
C) no single view is more valid than any other
D) people make decisions based on specific situation instead of universal laws
E) applying the Golden Rule is more important than complex sets of moral rules

Question 6

"Nice guys finish last." and "Hard work always pays off" are examples of ________.

A) goals
B) beliefs
C) virtues
D) behaviors
E) belief origins

Question 7

Cindy is a popular actress and has won countless acting awards in her 15 years in the industry.People always ask her what her secret is,and Cindy tells them,"Hard work always pays off!" She adds that each time she acts she's giving her all.Cindy's belief is most likely in line with her ________.

A) social ethics
B) personal ethics
C) political ethics
D) religious ethics
E) situational ethics

Question 8

Which of the following questions enables a person to BEST understand her behavior from an ethical perspective?

A) What are the most important beliefs you hold and use to make decisions in your life?
B) What characteristics would others use to describe you?
C) How do your relationships reflect your character and beliefs?
D) Where did your beliefs and your view of your character come from?
E) How can an ethical life get me ahead?

Question 9

Situational ethics encourages people to ________.

A) create a personal code of ethics based on their family background
B) make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws
C) evaluate how they can best meet their individual needs in any particular situation
D) apply the basic values shared by all major religious traditions to a variety of situations
E) have no interest in the moral consequences of their actions

Question 10

A new school of psychology,established by Dr.Martin Seligman of the University of Pennsylvania,addresses the causes of happiness instead of looking into treatments for mental dysfunctions.This area of psychology is called ________.

A) evaluative therapy
B) positivism
C) the happiness factor
D) positive psychology
E) moral relativism

Question 11

Which of the following would LEAST likely be a source of a company's values and principles?

A) the company's code of ethics
B) the company's marketing campaign
C) the company's mission statement
D) the owner's behaviors and priorities
E) the company's record of legal compliance

Question 12

When the wife of Mark Whitacre,who was involved in illegal activities at Archer Daniels Midland (ADM),threatened to divorce him if he did not end his involvement with the price fixing,she demonstrated an example of ________.

A) flexible ethical standards
B) strong personal ethics
C) compromised business ethics
D) legal oversight
E) ethical ambiguity

Question 13

Corporate social responsibility can be defined as a company's obligation to ________.

A) blend its activities into the social fabric of whatever country it conducts business in
B) include social networking and society events that bring in prominent members of the community
C) conduct its activities with the aim of achieving social, environmental, and economic development
D) behave in whatever manner is necessary to earn the highest profit for owners
E) be flexible with its ethics in the workplace in order to maintain profitability

Question 14

If you are developing your own personal ethical system,which of the following would NOT be appropriate to include in your evaluation?

A) your beliefs
B) your age
C) your behavior
D) your character
E) your belief origins

Question 15

Patricia often acts without thinking of the consequences.She usually comes home late and even skips her turn to do household chores.When someone asks her if she thinks what she does is right or wrong,she says she doesn't really know and she doesn't really care.Patricia's behavior can be classified as ________.

A) amoral
B) unethical
C) ethical
D) moral
E) Judeo-Christian

Question 16

Victor is using the Internet to research past charges that have been filed against the pharmaceutical company Pharmacure.Victor is primarily trying to find out about Pharmacure's ________.

A) code of ethics
B) corporate vision
C) record of legal compliance
D) mission statement
E) corporate culture

Question 17

Living ethically can provide all of the following benefits EXCEPT ________.

A) reduced stress-related ailments
B) improved personal happiness
C) heightened agreement between personal and communal values
D) improved capability of dealing with challenging situations
E) avoidance of a variety of kinds of mental and physical damage

Question 18

Which of the following ethical issues should be of the LEAST concern to a business?

A) A customer has failed to report all of her income to the IRS.
B) An employee uses recreational drugs on the weekends.
C) A manager is having a romantic relationship with one of his team members.
D) An employee who operates equipment drinks several beers while offsite eating lunch.
E) An employee spends time shopping online and on Facebook when he should be working.

Question 19

Which of the following is NOT an example of how corporate social responsibility can be consistent with profitability?

A) using recycled styrofoam as cups in a coffee shop
B) offering bonuses to employees who embellish profit and loss statements
C) paying employees in a developing nation more than the minimum
D) encouraging employees to volunteer within the local community
E) improving environmental practices in their factories and plants

Question 20

When Shell Oil works toward reducing emissions of nitrous oxide and sulfur dioxide from its facilities,this is NOT an example of which of the following pillars of corporate social responsibility?

A) community and "good neighbor" policies
B) marketing and consumer issues
C) ethical sourcing and procurement
D) environmental, health, and safety concerns
E) human rights and employment standards in the workplace

Question 21

Which of the following is NOT a benefit of corporate social responsibility?

A) Sales increase through environmentally and ethically conscious labeling.
B) Costs for materials and labor are lower.
C) Efficiency increases when companies use materials efficiently and minimize waste.
D) The best available talent is retained.
E) A company enjoys strong recruitment and retention of the best available talent.

Question 22

Which of the following best defines the essential task of self-reporting?

A) to define values and ethical standards in the workplace
B) to report the company's actions regarding corporate social responsibility to its stockholders
C) to donate profits or resources to socially conscious and environmental organizations
D) to submit all financial accounts to public scrutiny
E) to use social media to raise awareness of and funds for worthy causes

Question 23

When Gary Erickson,the founder of Clif Bar,Inc.,was about to accept an offer of $120 million for the company,he changed his mind because ________.

A) the offer was too high
B) the offer was too low
C) the purchasers were planning to move Clif Bar out of state and fire all current employees
D) the purchasers were not intending to use renewable energy as the main power source for the company
E) the purchasers were not going to use exclusively organic ingredients to manufacture the energy bars

Question 24

Which of the following is NOT a legal right?

A) the right to be heard
B) the right to bear witness
C) the right to safety
D) the right to choose
E) the right to information

Question 25

When a community gives Walmart subsidies to attract them to the area and then the workers are paid so poorly that they have to apply for public assistance,this is an example of the failure of which of the pillars of corporate social responsibility?

A) community and "good neighbor" policies
B) human rights and employment standards in the workplace
C) environmental, health, and safety concerns
D) marketing and consumer issues
E) ethical sourcing and procurement

Question 26

When a magazine refuses to accept advertisements featuring "size zero" models on the grounds that it could encourage eating disorders in young women,this is an example of paying attention to which pillar of corporate social responsibility?

A) marketing and consumer issues
B) human rights and employment standards in the workplace
C) community and good neighbor policies
D) ethical sourcing and procurement
E) environmental, health, and safety concerns

Question 27

Conducting a business within the boundaries of all laws that govern that industry is referred to as legal ________.

A) excellence
B) compliance
C) adaptation
D) integrity
E) regulation

Question 28

The Calvert Company assigns companies scores between 1 and 5 on which of the following categories?

A) freedom of information
B) transparency
C) community relations
D) truth in advertising
E) consumer privacy

Question 29

________ are the specific laws that govern the products and processes of an industry.

A) Legal regulations
B) Ethical standards
C) Ethical codes
D) Social standards
E) Legal violations

Question 30

Socially responsible investing (SRI)is defined as investing only in companies that have met a certain standard of ________.

A) social acceptability
B) global impact
C) corporate social responsibility
D) financial transparency
E) social media usage

Question 31

The practice of reporting to stockholders about corporate social responsibility and the ethical advances of a company is known as ________.

A) a corporate watchdog analysis
B) self-reporting
C) a social audit
D) public ratings and rankings
E) corporate philanthropy

Question 32

Which of the following is NOT an environmentally based corporate social responsibility issue?

A) allowing chemical contaminants to enter the local groundwater system
B) trucking toxic substances to Mexico to regions where it is legal to recycle them
C) exposing employees to potentially hazardous materials
D) allowing a negative corporate culture to adversely affect employees
E) moving a "dirty industry" overseas where environmental regulation is lacking

Question 33

When the banana supplier Chiquita begins to improve conditions for its workers by constructing schools for employees' families,this is an example of which of the pillars of corporate social responsibility?

A) human rights and employment standards in the workplace
B) environmental, health, and safety concerns
C) ethical sourcing and procurement
D) marketing and consumer issues
E) ethics training program

Question 34

A toy company regularly donates some of its profits to charitable organizations.This company is exercising ________.

A) self-reporting
B) corporate philanthropy
C) social audits
D) public ratings and rankings
E) socially responsible investing

Question 35

Which of the following is an example of ratings and rankings of the level of corporate social responsibility of companies?

A) A Time Warner press release discusses advances in corporate citizenship.
B) The founder of Clif Bar, Inc. won the Business Ethics Award given by Business Ethics magazine.
C) A regional heating fuel supplier performs a social audit of how resources such as funding and manpower have been applied to the goals of corporate social responsibility.
D) The Bill and Melinda Gates Foundation, started by Microsoft chairman Bill Gates, has begun an initiative for a malaria vaccine, which has had a positive impact on the public perception of Microsoft.
E) Wendy's used Twitter to fundraise for the Dave Thomas Foundation for adoption, contributing 50 cents for each retweet of their message #TreatItFwd.

Question 36

How do companies conduct a social audit?

A) They submit their corporate social responsibility portfolios to third-party companies that rate and rank them against other companies.
B) They file reports to their stockholders and investors about proposed corporate social responsibility activities related to social work and environmental conservation.
C) They partner with charitable organizations that interact with the local community and employee relations on their behalf.
D) They conduct an internal systematic examination that measures and monitors the progress of the company in meeting its corporate social responsibility goals.
E) They use Twitter to raise money for various charitable foundations and worthy causes.

Question 37

Which of the following is an internal examination by a company to measure its performance in relation to corporate social responsibility?

A) a corporate watchdog analysis
B) self-reporting
C) a social audit
D) public ratings and rankings
E) code of ethics

Question 38

Corporate social responsibility is mainly concerned with how a company affects the ________.

A) family
B) investor
C) community
D) vendors
E) stockholders

Question 39

Tools like the Hogan Personal Inventory assess a job candidate in areas such as ________.

A) math abilities
B) business background
C) stress tolerance
D) morning routines
E) hobbies

Question 40

What is a company's unique responsibility to its stockholders?

A) to make a profit
B) to produce products that the public will find useful
C) to provide jobs to workers
D) to create a stable balance sheet between income and expenses
E) to be a good corporate neighbor

Question 41

The environmental and social concerns of the Amazon Basin would be taken into consideration when a socially responsible U.S.manufacturer of furniture is making the decision about whether to purchase wood from that region.

Question 42

Moral relativism is a perspective that holds that there is a universal moral truth that is modified by individuals to suit differing circumstances.

Question 43

Educating the local workforce is part of a thorough corporate social responsibility commitment.

Question 44

Which of the following steps would be LEAST likely to improve the culture of ethical and responsible conduct in a business?

A) Calendars with the mission statement of the company can be printed and distributed for all employees to use at home and to give away at holiday time.
B) The mission statement can be posted throughout the workplace.
C) Managers can set clear examples for the standards of behavior expected.
D) Orientation programs can be offered to inform new employees of ethical standards in place and conduct expected of them.
E) Companies can employ ongoing ethics training programs designed to boost the awareness of their employees about ethics issues.

Question 45

A company's track record of legal compliance can be used to evaluate a company's ethical conduct.

Question 46

Jeremy is a telemarketer who is hearing impaired.His hearing aid helps him take calls at work and this compensates for his disability.He accidentally broke his hearing aid and did not have the money to replace it.He asked for an advance on salary and was refused.He asked for a loan and was refused.As a result,Jeremy was unable to take calls from customers and he was fired from his job because of "poor performance." Which government agency shall he call to help Jeremy in this situation?

A) the Securities and Exchange Commission
B) the Equal Employment Opportunity Commission
C) the United States Congress
D) the Department of Health and Human Services
E) the United States Department of Agriculture

Question 47

The production of toxic materials is moving at a far faster pace than the growth of proper storage facilities and techniques,so disposal becomes more and more expensive.

Question 48

Walmart's behavior demonstrates that it places great value on the importance of corporate social responsibility.

Question 49

Consumers have only a company's code of ethics and mission statement to evaluate the acts of responsibility and legal violations by any given company.

Question 50

Which of the following companies,formerly in the top 25 of Fortune magazine's 100 Best Companies to Work For,no longer is in business because of flagrant legal and ethical violations?

A) Verizon
B) Exxon-Mobil
C) Enron
D) Archer Daniels Midland
E) British Petroleum

Question 51

What does it mean when a firm goes "green"?

A) It becomes eco-friendly.
B) It becomes political.
C) The business shifts to bigger profit goals.
D) The type of product sold by the business changes.
E) It gets out of "the red" and starts making a profit.

Question 52

In effect,ethics are the guidelines you use to make daily decisions.

Question 53

United States companies that locate their operations in less developed parts of the world are required to enforce U.S.standards regarding child labor,pollution,fair wages,and human rights.

Question 54

Companies must uphold their moral and ethical obligations to consumers above their need to respond to investors.

Question 55

Several investors are looking for information about an up-and-coming soft drink company,Soft Sip.Which government agency ensures that the investors have access to this information?

A) the Equal Employment Opportunity Commission
B) the Securities and Exchange Commission
C) the United States Department of Agriculture
D) the United States Congress
E) the Department of Health and Human Services

Question 56

When shoppers boycotted Target because the chain had a policy of not allowing solicitors,including the Salvation Army,to collect money outside their doors,Target responded by ________.

A) donating $9 million to the Salvation Army
B) launching an advertising campaign claiming that the company supported a variety of charities and did not include the Salvation Army
C) creating a department in its stores for inexpensive used goods
D) allowing solicitors, including the indigent homeless, to solicit money just inside the front entrances to their stores
E) defensively pointing to the 5 percent of their income they had invested in local communities since 1946

Question 57

Telecommuting is one instance when a person's employer may influence how an employee behaves at home.

Question 58

Companies with a strong sense of corporate social responsibility are obligated to understand the ethical standards of their suppliers.

Question 59

The Sarbanes-Oxley Act requires that ________.

A) companies be held financially responsible for environmental damage caused by their actions
B) CEOs verify their companies' financial statements and vouch for their accuracy with the SEC
C) all food packaging displays complete nutritional information
D) investment bankers disclose the percentage of their assets that are considered high risk
E) companies uphold the ADA

Question 60

Sexual conduct outside the office will never impact the professional role of the employee involved.

Question 61

How can the creation of a personal ethical system be of assistance in making decisions?

Question 62

Legal compliance refers to conducting a business within the boundaries of all the legal regulations of that industry.

Question 63

A common strategy for companies recovering from scandals is to replace the CEO with someone who is regarded as trustworthy and ethical by the public.

Question 64

When enough people feel that a particular ethical standard is important,it eventually becomes law.

Question 65

A business can improve its culture of ethics by ensuring that a strict code of ethics and a meaningful and current mission statement is in place and that both are clearly communicated to employees when they start working at an organization.

Question 66

At the Kaplan Thaler advertising agency,one of the firm's ethical principles is that their employees be empathetic.

Question 67

What are some of the basic values of Judeo-Christian ethics,shared by both Jewish and Christian religious traditions?

Question 68

One example of a business opportunity created by a concern for ethics and human rights is a company that created a technology to access internet sites that have been censored by the Chinese government.

Question 69

The Bill and Melinda Gates Foundation work to upgrade public access to technology has had a positive impact on the public perception of Microsoft.

Question 70

It is ethically unadvisable to create a hotline for employees to anonymously report violations of the ethics code and make sure the allegations are followed up on.

Question 71

Betty's son Bobby is suffering from a sore throat and a runny nose.However,Betty has an important presentation to make at work today.So Betty decides to send Bobby to school.How does this situation relate to the discussion of ethics?

Question 72

The right to be heard is one of the four ethical standards made into a legal right by the 1962 Consumer Bill of Rights.

Question 73

The world's largest commercial carpet manufacturer,Interface,demonstrates its commitment for "green" by having a mission statement that reads "Our promise is to eliminate any negative impact Interface has on the environment by 2020."

Question 74

Describe the difference between unethical behavior and amoral behavior.

Question 75

Actions like purchasing energy from wind farms and choosing suppliers that are ecologically friendly to balance out the necessary carbon dioxide produced in other stages of manufacturing are examples of how socially responsible practices can threaten the profitability of a company.

Question 76

What are some ethical issues involved in price fixing?

Question 77

Sergeant Joseph Darby,who sent information to the U.S.Army Criminal Investigation Command that sparked an investigation that eventually revealed to the public the abuses at Abu Ghraib prison in Iraq,lives as a hero,celebrated for his good deeds and further contributing to the welfare of his community.

Question 78

Intel consistently scores high as an industry leader in its commitment to strong CSR practices because it supports many charitable groups and is responsive to the needs of the communities where it has facilities.

Question 79

Low-level employees at companies that have ongoing ethics training programs learn how to decide whether to follow the advice of their leaders.

Question 80

The Securities and Exchange Commission (SEC)makes sure that all investors have the same access to information about companies.