Deck 4: Ethical and Social Responsibility in Marketing

Question 1

Ethics refers to the

A)religious tenets of the country or ethnic region in which you reside.
B)social norms of a nation, community, or family.
C)laws of society that define a person's beliefs and behaviors.
D)moral principles and values that govern the actions and decisions of an individual or group.
E)universal laws of man that go beyond individual beliefs of nations or religions.

Answer 1

D

Question 2

When the owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company's copy of Microsoft WORD on the new business's computer, it was an example of

A)an activity that is legal and ethical.
B)caveat emptor.
C)an activity that is illegal but ethical.
D)an activity that is illegal and unethical.
E)a strategic alliance.

Answer 2

D

Question 3

Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group.Culture also serves as a socializing force that dictates what is morally right and just.The important thing to remember is

A)moral standards are relative to particular societies.
B)moral standards must be universal in order for marketing to occur.
C)moral standards are fluid and very easy to change.
D)moral standards are cyclical so it is important to change with the times.
E)moral standards are concrete; something is either right or wrong.

Answer 3

A

Question 4

The current low perception of ethical business behavior can be explained by a number of reasons including the increased pressure on business people to make decisions in a society with diverse value systems, a growing tendency for business decisions to be judged publicly by groups with different values and interests, an increase in the public's expectations of ethical business behavior, and

A)the decline of ethical business behavior.
B)a desire to enter the global market at all costs.
C)the realization that unless you behave unethically, your business cannot compete.
D)the realization that although the government has laws regarding ethical behavior, the laws cannot be enforced.
E)a fiscal necessity in times of a stressed economy.

Question 5

Which of the following statements accurately distinguishes between laws and ethics?

A)Laws reflect the beliefs of the majority, and ethics reflect the beliefs of smaller individual segments of society.
B)Ethics deal with religious and moral beliefs, and laws deal with social, economic, and environmental behaviors.
C)Ethics deal with internal (personal) issues, and laws deal with external (social) issues.
D)Ethics deal with personal and moral principles whereas laws are society's values and are enforceable in the courts.
E)There is no significant difference; these terms can be used interchangeably.

Question 6

Which of the following is a socializing force that dictates what is morally right and just?

A)federal agencies
B)legislation
C)Supreme Court
D)societal culture and norms
E)organizational structures

Question 7

Laws refer to

A)a specific set of behaviors a given society considers to be ethical.
B)society's values and standards that are enforceable in the courts.
C)the agreed upon code of behavior for a given nation, community, religious group, or family unit.
D)written documentation of a prescribed set of behaviors.
E)a legislated code of ethics defining both what may and may not be done in specific circumstances.

Question 8

Enron's Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company's expense.He ordered an employee to fake financing to fool an adviser to the California Public Employees' Retirement System.The employee resisted, but Fastow, in his tenure with Enron, was acting

A)ethically but illegally.
B)ethically and legally.
C)unethically and illegally.
D)unethically but legally.
E)in none of the above ways.

Question 9

In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as __________.

A)ideals
B)morals
C)ethics
D)culture
E)diversity

Question 10

China is the world's largest tobacco-producing country and has 300 million smokers.Approximately 700,000 Chinese die annually from smoking-related illnesses.This figure is expected to rise to more than 2 million by 2025.China restricts tobacco imports.U.S.trade negotiators advocate free trade, thus allowing U.S.tobacco companies to market their products in China.The U.S.trade negotiators are acting

A)ethically but illegally.
B)ethically and legally.
C)unethically and illegally.
D)unethically but legally.
E)in ways that cannot be determined by the information provided.

Question 11

By preserving the natural environment Anheuser-Busch is appealing to the environmentalists; by its alcohol awareness initiatives it is appealing to people who drink beer and protecting children from thinking drinking beer would make them cool.Anheuser-Busch is exhibiting which of the following?

A)stockholder responsibility
B)profit responsibility
C)utilitarianism
D)social responsibility
E)cause marketing

Question 12

Anheuser-Busch's commitment to saving the environment indicates that it would act in accordance with __________, the view that an organization should discover and satisfy the needs of its consumers in a way that provides for society's well-being.

A)utilitarianism
B)social responsibility
C)Consumer Bill of Rights
D)the BBB merchant pledge
E)cause marketing

Question 13

A recent poll by Environics International, a public-opinion research firm, found that 67 percent of North Americans are willing to boycott products on ethical grounds.This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on real fact.Which of the following statements describe a conclusion that should be drawn from this information?

A)If you are an ethical person, you should act according to your instincts.
B)Realistically speaking, in order to stay in business, all businesses must occasionally behave unethically.
C)All businesses will act unethically unless forced by consumers to act morally.
D)There is nothing consumers can do to stop unethical business activities.
E)Boycotting a product without knowing the facts can be viewed as unethical.

Question 14

There has been a public outcry about the ethical practices of businesspeople.Public opinion surveys show that 90 percent of U.S.adults think that white-collar crime

A)is extremely uncommon.
B)is somewhat uncommon.
C)is typical of businesspeople around the world.
D)is very or somewhat common.
E)is simply a part of American culture.

Question 15

Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its

A)development of a low-carb beer.
B)annual sponsorship of the Super Bowl.
C)exclusive use of ingredients from American manufacturers and suppliers.
D)alcohol awareness and education programs.
E)commitment to maintaining the lowest prices possible without sacrificing taste.

Question 16

The Consumer Awareness and Education Department was established within Anheuser-Busch to

A)counteract negative publicity while promoting the positive aspects of moderate beer consumption.
B)encourage recycling of both aluminum cans and glass bottles not only by ultimate consumers but by suppliers as well.
C)educate employees about the importance of serving as role models for their firm by drinking responsibly themselves.
D)promote responsible drinking and deter underage drinking and alcohol abuse.
E)promote Anheuser-Busch as more socially responsible than its competitors, to promote brand loyalty.

Question 17

Culture refers to

A)the set of values, ideas, and attitudes that are learned and shared among members of a group.
B)the music, art, theater, etc.that reflects the values of an entire nation.
C)the learned behaviors of a specific racial, ethnic, or religious group based on ethics and protected by laws.
D)the combination of beliefs and behaviors accepted as correct regardless of a person's age, sex, race, or religion.
E)the music, art, theater, etc.that expresses the diverse backgrounds of a nation's subcultures.

Question 18

The Family Talk About Drinking guidebook developed by Anheuser-Busch to help parents address the topic of underage drinking is an example of

A)consumerism.
B)pre-emptive marketing.
C)ethical behavior in marketing.
D)the social marketing concept.
E)cause marketing.

Question 19

The Family Talk About Drinking guidebook developed by Anheuser-Busch serves as a guideline on how to act responsibly when faced with a moral dilemma such as underage drinking and is an example of

A)ethical behavior in marketing.
B)negative advertising.
C)the societal marketing concept.
D)consumerism.
E)legal responsibility in marketing.

Question 20

More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs.All physicians were required to adhere to this schedule as a condition for membership in the society.The U.S.Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing.This example illustrates that the physician's actions were

A)ethical but illegal.
B)ethical and legal.
C)unethical and illegal.
D)unethical but legal.
E)altruistic but naïve.

Question 21

Ethical exchanges between sellers and buyers should result in

A)the seller making a profit.
B)the buyer getting the product for the best price.
C)both parties to the exchange being better off after a transaction.
D)the seller reducing their inventory substantially.
E)the buyer forming a relationship with the seller.

Question 22

In 1962, President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right (1) __________, (2) to be informed, (3) to choose, and (4) to be heard. A.to privacy
B)to be informed
C)to be treated with respect
D)be treated without prejudice
E)to safety

Question 23

As the use of the Internet grows around the world, understanding between countries must be reached so that there can be an easy exchange of ideas and information.One important issue is opt-in versus opt-out.In general, European websites have opt-in policies, and U.S.websites have opt-out policies.Opt-in means customers must ask to be involved in data collection and marketing while opt-out companies automatically include customers in data collection unless the customer specifically asks not to be included.Europeans and European businesses believe it is unethical to invade someone's privacy.American businesses do it all the time because Americans are not nearly as protective of their right to privacy.What ethical factor is illustrated by this example?

A)industry practices
B)social legislation
C)societal culture and norms
D)changes it international law
E)organizational culture and expectations

Question 24

Factors influencing personal, moral, philosophy, and ethical behavior include societal culture and norms, business culture and industry practices, and

A)religious beliefs and practices.
B)corporate culture and expectations.
C)national and regional legislation.
D)personal moral philosophy and ethical behavior.
E)the universal concept of good vs.evil.

Question 25

The unauthorized use of intellectual property can severely affect the owners of that property; it can also

A)level the playing ground for less developing nations by eliminating years of research time.
B)accelerate innovation in that industry, as new and improved versions enter the marketplace.
C)have a negative impact on the economy through the loss of jobs, wages, or tax revenue.
D)have a negative impact on an entire nation's cultural value system.
E)enhance a product's legitimate sales by generating unpaid-for public interest.

Question 26

The unauthorized use of intellectual property can severely affect the owners of that property; it can also result in lost jobs, royalties, wages, and tax revenue.What percentage of American college students consider these practices to be unethical?

A)15%
B)33%
C)60%
D)90%
E)75% of college students report that the degree of "ethicality" depends upon the size of the firm and the relative cost of the product.

Question 27

In 1962, President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right (1) to safety, (2) to __________, (3) to choose, and (4) to be heard.

A)privacy
B)be informed
C)be treated with respect
D)be treated without prejudice
E)fair prices

Question 28

Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well.Personal claims and property damage from consumer product safety incidents cost companies more than __________ annually.

A)$138 million
B)$900 million
C)$300 billion
D)$500 billion
E)$700 billion

Question 29

Which of the following is considered one of the major factors that influence ethical behavior?

A)organizational structures
B)societal culture and norms
C)national and local legislation
D)Supreme Court
E)Internal Revenue Service (I.R.S.)

Question 30

In 1962, President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right (1) to be safe, (2) to be informed, (3) to __________, and (4) to be heard.

A)legal representation in a court of law
B)exchange or return of goods within a reasonable period of time
C)fair prices for both goods and services
D)demand "rain checks" if advertised goods are out of stock
E)choose among different product offerings

Question 31

The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from changing their books to give a better financial picture.Yet, in the end, it is up to the investor to research the company in which they want to invest because __________ is the norm in the stock market.

A)modus operandi
B)caveat emptor
C)de facto marketing
D)ab asino lanam
E)anguis in herba

Question 32

Dell Inc.learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers.The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted.Dell was most likely concerned with consumers'

A)right to choose.
B)right to be informed.
C)right to be treated courteously.
D)right to safety.
E)right to happiness.

Question 33

In marketing, the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings are referred to as

A)societal norms.
B)societal mores.
C)business cultures.
D)fair trade practices.
E)corporate values.

Question 34

The Consumer Bill of Rights refers to

A)a law that codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safety, to be informed, and to be heard.
B)a law that codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safe working conditions, fair pay, and, a voice in decision making.
C)a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.
D)a law that guarantees consumers the right to be compensated through replacement, repair, or reimbursement for products that fail to perform as promised by the manufacturer.
E)a law that guarantees consumers the right to be compensated through replacement, repair, or reimbursement for products or services that fail to perform or meet the expectations promised by the manufacturer or service provider.

Question 35

The legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960's is referred to as __________.

A)ad nauseum
B)mea culpa
C)quid pro quo
D)causa sine qua non
E)caveat emptor

Question 36

Making counterfeit copies of Gucci purses, Hilfiger sportswear, and other international brands is pervasive in China because it is so easy to get away with it.Laws protecting intellectual property are unclear and sporadically enforced.Even when they are applied, sanctions are minimal, typically consisting of confiscation, a warning, a public apology, and perhaps a fine (negotiated, of course).Moreover, copying enjoys a long tradition in China and does not carry a stigma.Copying a masterpiece was historically considered an art form in its own right, and Chinese students have been taught for centuries to copy their teachers as accurately as possible before attempting to create.A business introducing a product into China needs to know that __________ may lead to trademark infringements.

A)religious precepts
B)antecedent states
C)organizational culture and expectations
D)societal culture and norms
E)global legislation

Question 37

A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard is referred to as the

A)Lanham Act.
B)Fair Practices Act.
C)Caveat Emptor Decree.
D)Consumer Bill of Rights.
E)Customer Consent Decree.

Question 38

In 1962, President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right (1) to be safe, (2) to be informed, (3) to choose, and (4) to __________.

A)legal representation in a court of law
B)exchange or return of goods within a reasonable period of time
C)fair prices for both goods and services
D)demand "rain checks" if advertised goods are out of stock
E)be heard

Question 39

Investors should understand that when purchasing stock the principle of __________ is in effect.It benefits the investor to do research on the company so that they will make a wise purchase.

A)modus operandi
B)e pluribus unum
C)de facto marketing
D)corpus delecti
E)caveat emptor

Question 40

Caveat emptor refers to

A)the marketing concept of " be first or be last" implying that the first company to the marketplace wins.
B)the Latin term meaning all is fair in love and war, an attitude that was held by most marketers prior to the 1990s.
C)the legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960's.
D)the legal concept "you wash my back; I'll wash yours" which created many illegal as well as legal but unethical business practices during the 1980s.
E)the Latin phrase meaning "empty promises", a charge placed upon many firms during the period after WWII when products failed to meet their marketing claims.

Question 41

Business culture affects ethical behavior in competition.Two kinds of unethical behavior are most common:

A)price fixing and copyright infringement.
B)economic espionage and bribery.
C)bribery and extortion.
D)price fixing and economic espionage.
E)economic espionage and anti-trust infractions.

Question 42

Two laws specifically intended to curb economic espionage and bribery in international marketing are the:

A)Economic Espionage Act and Foreign Corrupt Practices Act.
B)Establishment of Transparency International and the Internet Piracy Act.
C)Global Rights Protection Act and the Corrupt Practices Act.
D)Cola Wars Act and the Economic Espionage Act.
E)Fair Trade Practices Law and the Privacy Protection Act.

Question 43

When shopping on the Internet, most consumers assume the personal information they give out is confidential.Subscribers to America Online (AOL) were upset when AOL proposed giving member information to partners without telling the subscribers.This is related most directly to the consumer's

A)right to choose.
B)right to be informed.
C)right to be treated courteously.
D)right to safety.
E)right to happiness.

Question 44

Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and it could be reclined to make an infant bed.Its design could be made and sold for $49.The marketing manager in consultation with other middle managers decided to have the prototypes checked out by Cosco employees who had small children.This was the only product testing performed on the product.Before Cosco pulled the unsafe chair from the market, several children were injured and some died as a result of using the chair.Cosco was charged with being unconcerned about consumers'

A)right to choose.
B)right to be informed.
C)right to be treated courteously.
D)right to safety.
E)right to happiness.

Question 45

Bribery is most likely to occur when

A)industries experience little competition.
B)the country has reached a high level of economic development.
C)the country's citizens come from diverse backgrounds.
D)the industry is operating in an oligarchic competitive environment.
E)the industry is experiencing intense competition.

Question 46

Economic espionage includes such activities as illegal trespassing, theft, fraud, misrepresentation, wiretapping, __________, and violations of written and implicit employment agreements with noncompete clause.

A)hiring of the same musician by two firms to write their company jingle
B)hiring anyone who ever worked in an executive capacity at a competitor's firm, especially if they did not have a non-compete clause
C)offering to accept all competitors' coupons (even if they are outdated) making their effectiveness as a promotional tool negligible
D)searching through a competitor's trash
E)marrying someone in an executive position if that person is a company's chief competitor

Question 47

The FTC established to Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls.Today, a telemarketer can be fined up to __________ for each call made to a telephone number posted on the registry.

A)$500
B)$750
C)$1,250
D)$8,750
E)$16,000

Question 48

The right to be heard means that

A)the U.S.Department of Commerce has the right to hear consumer complaints.
B)the American Advertising Federation has the right to hear both retailer and customer complaints.
C)consumers should have access to public-policy makers regarding complaints about products and services.
D)companies should have access to public-policy makers regarding complaints about consumers.
E)consumers should have access to public-policy makers regarding new product ideas.

Question 49

The FTC is concerned about the amount of personal information that is collected through Web sites because the consumer is not made aware of how this information is being used.Over 92 percent of Web sites polled collect personal information, yet only about __________ of Web sites make their customer aware of how that information is being used.

A)25%
B)33%
C)50%
D)66%
E)75%

Question 50

A current practice whereby retailers may demand cash or free goods in exchange for shelf space for new products is referred to as

A)taking kickbacks.
B)economic espionage.
C)tying arrangements.
D)slotting allowances.
E)industrial bribes.

Question 51

Recently certain toys that were manufactured in China were found to have unsafe levels of lead in the paint and were recalled.This action protected the consumers' right to

A)choose.
B)be informed.
C)happiness.
D)safety.
E)be treated courteously.

Question 52

Mattel's Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn in to the doll's motorized mouth.However, despite extensive testing, the doll was found to "eat" the child's hair and was subsequently recalled and discontinued.Mattel discontinued the item because of the consumer's

A)right to choose.
B)right to be informed.
C)right to be treated courteously.
D)right to safety.
E)right to happiness.

Question 53

is a law designed to protect consumers'

A)right to choose.
B)right to be informed.
C)right to be treated courteously.
D)right to safety.
E)right to happiness.

Question 54

Corporate culture refers to

A)a formalized method for controlling the marketing environment.
B)the set of accepted standards and practices, within a given industry, by its principal members.
C)the description of both ethical and behavioral attributes of "white collar" versus "blue collar" workers in the United States business environment.
D)a set of values, ideas, and attitudes that is learned and shared among the members of an organization.
E)the formal statement of ethical principles and rules of conduct adopted by an organization.

Question 55

Economic espionage is most likely to occur in which types of industries?

A)fashion design and textiles
B)entertainment and television
C)high tech electronics and aerospace
D)intellectual property (print)
E)beverage industry (alcoholic and non-alcoholic)

Question 56

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as __________.

A)economic espionage
B)industrial espionage
C)marketplace espionage
D)industrial surveillance
E)marketplace surveillance

Question 57

More than __________ of the largest firms in the U.S.have uncovered espionage in some form, costing them $300 billion annually in lost sales.

A)20 percent
B)35 percent
C)50 percent
D)75 percent
E)90 percent

Question 58

Jay Bloom's Pet Assure, a national pet health-care provider network based in Dover, N.J., recently took advantage of a rival's naiveté.When a West Coast provider of catastrophic pet coverage "pre-announced" the addition of a wellness component (Pet Assure's specialty) in an interview with a tiny community newsweekly, six months prior to launching it, Bloom was notified immediately through a Web-based news monitoring service.This not only gave him time to add catastrophic benefits to one of his own wellness products, but it also got his offering to market first.Jay Bloom relied on __________ to keep him abreast of his competitors' activities.

A)legal data collection
B)economic espionage
C)the use of kickbacks
D)corporate piracy
E)primary market research

Question 59

Economic espionage refers to

A)the destruction of a competitor's goods or services through physical damage of property or damage to their reputation.
B)knowledge of wrongdoing within a firm that goes unreported in order to better a worker's personal standing in the firm.
C)fraudulent activities by a firm whereby the consumer is intentionally sold inferior goods or provided with inferior services for the sake of a larger profit.
D)the clandestine collection of trade secrets from foreign countries.
E)the clandestine collection of trade secrets or proprietary information about a company's competitors.

Question 60

When Toysmart.com filed for bankruptcy in June 2000, it listed its customer database as one of its assets even though it had assured its customers it would never disclose their information to any third party.People who had purchased from Toysmart and were a part of its database were upset when they learned that their private information was being treated as property that was for sale.These customers believed that according to the Consumer Bill of Rights they should know how their private information would be used.In other words, Toysmart's former customers had a

A)right to choose.
B)right to be informed.
C)right to be treated courteously.
D)right to safety.
E)right to happiness.

Question 61

FIGURE 4-1
, an employee of Competitor A (Coca-Cola) attempted to share its marketing plan with an employee of Competitor B (Pepsi) for a "fee" of $10,000.What should the Pepsi employee do?

A)buy the marketing plan if assured there would be no repercussions
B)ignore the offer to buy the marketing plan and hope it would go away
C)immediately contact Coca-cola to advise them of the plot to sell the marketing plan
D)immediately report the offer to the Better Business Bureau
E)advise the Pepsi employee that it would be unfair and unethical to buy the plan

Question 62

Why did 33 percent of Pepsi's marketing and advertising executives say they would decline an offer to buy one of Coke's marketing plans and samples? Most said

A)they thought they might go to work for Coke one day and didn't want to spoil their chances.
B)they would prefer competing ethically and so they could sleep at night.
C)they were afraid the media would find out.
D)they knew they would get fired.
E)they didn't want to disappoint their children.

Question 63

Corporate culture manifests itself in many different ways: the ethical behavior of top management, expectations for ethical behavior present in formal codes of ethics, and

A)contracts and agreements between members of the same industry.
B)state and local laws regarding ethical business behavior.
C)the dress codes, team work, and sayings of its employees.
D)compensation plans linked not only to sales but to community service.
E)hands on involvement of shareholders with day to day marketing decisions.

Question 64

A code of ethics is a formal statement of rules of conduct and

A)legal restrictions.
B)moral reservations.
C)cultural values.
D)rules of engagement.
E)ethical principles.

Question 65

Employees who report unethical or illegal actions of their employers are referred to as

A)whistle-blowers.
B)scabs.
C)cronies.
D)corporate snitches.
E)ombudsman.

Question 66

HomeWorRx Referral Network profiles home service companies for homeowners looking for a contractor or handyman.To assure the companies they work with are reliable, they check licenses and insurance coverage, their record with the Better Business Bureau, and three trade references.The home service company also has to agree to a __________, which includes maintaining professionalism and guaranteeing the quality of work.

A)statement of cultural values
B)statement of values and beliefs
C)an industry endorsement
D)code of ethics
E)contract of vigilance

Question 67

Suppose you are a senior executive at Pepsi-Cola and that a Coca-Cola employee offers to sell you the marketing plan and sample for a new Coke product at a modest price.When asked this question __________ percent of marketing and advertising executives said they would buy the plan and product sample if there were no repercussions.

A)15
B)36
C)52
D)67
E)89

Question 68

Which of the following is one of the major reasons for the violation of ethics codes?

A)government regulation
B)family influence
C)lack of religious beliefs
D)fear of disciplinary action
E)lack of specificity of the ethics code

Question 69

Whistle-blowers refer to

A)employees who are simultaneously employed by competing firms and who trade company secrets.
B)employees who blackmail or extort money from their employers.
C)employees who are coerced by their employers to participate in illegal or unethical activities.
D)customers who report unethical or illegal actions of their employers.
E)employees who report unethical or illegal actions of their employers.

Question 70

Unfortunately, a study of business executives reported that __________ had been implicitly or explicitly rewarded for engaging in ethically troubling behavior.

A)7%
B)12%
C)25%
D)40%
E)62%.

Question 71

Code of ethics refers to

A)a formal statement of moral and ethical business behaviors.
B)a formal statement of ethical principles and rules of conduct.
C)a legally binding code of ethical principles and moral conduct.
D)the written document stating a firm's beliefs and values in terms of its business activities.
E)a firm's itemized list of business activities that are and are not consistent with the company's ethics and business mission.

Question 72

A firm's formal statement of ethical principles and rules of conduct is called a

A)corporate business mission.
B)Employee Bill of Rights.
C)code of ethics.
D)executive mission statement.
E)values statement.

Question 73

A formal statement of ethical principles and rules of conduct is referred to as a(n)

A)ethical mission.
B)moral code.
C)moral manifest.
D)code of conduct.
E)code of ethics.

Question 74

Recently, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling of undocumented foreign workers into the U.S.to work at Tyson plants.Tyson's violations are the result of __________, one of the major reasons why some companies fail to establish ethical behavior.

A)too ambiguous a mission statement
B)the absence of an executive summary
C)the absence of whistle-blowing protocol
D)top management's behavior
E)the absence of an adequate employee compensation program

Question 75

What was the consequence to the Coca-Cola employee who tried to sell classified information to Pepsi?

A)The employee was fired and no other legal action was taken since the practice is unfortunately too common place.
B)The employee was given the choice of quitting or working on the assembly line for a period of three years at minimum wage.
C)The employee was arrested for espionage and sentenced to 20 years in Federal penitentiary housing white collar criminals.
D)The employee was sentenced to eight years in prison and ordered to pay $40,000 in restitution.
E)The employee was permitted to keep the original job (minus any bonuses), but had to undergo personal psychiatric counseling and attend a seminar on ethical behavior.

Question 76

The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as

A)mission statement.
B)operational vision.
C)socialization process.
D)corporate ideals.
E)corporate culture.

Question 77

Lava.com is an Internet company that helps other organizations put concepts that they hope will let them dominate the market in their industry into action.In its promotion, it states, "We ignore the rules, and we let no obstacle stand in your company's way-no matter how bold or impossible your idea may seem." The company is composed of eighteen bright young Internet experts.They work in one large room, which also contains dartboards, a pool table, and a meditation center.If you were to walk into the office, it would be next to impossible to tell the company owners from its lowest ranking employee.This is a description of the Internet company's

A)modus operendi.
B)mission environment.
C)socialization process.
D)corporate environment.
E)corporate culture.

Question 78

Home Works Referral Network is a premier home service referral network of dependable, highly skilled home improvement professionals who profile home service companies for homeowners looking for a contractor or handyman.To assure the companies they work with are reliable, they check licenses and insurance coverage, their record with the Better Business Bureau, and three trade references.The home service company also has to agree to a __________, which includes maintaining professionalism and guaranteeing the quality of work.

A)statement of cultural values
B)statement of values and beliefs
C)an industry endorsement
D)code of ethics
E)contract of vigilance

Question 79

Which of the following statements describes one of the major reasons why codes of ethics are violated?

A)Most companies do not have a formal code of ethics and for those that do, there is no way for the codes to be enforced.
B)Most companies overlook infractions if the action is unethical but legal, and little action is taken if the unethical behavior results in a profit for the firm.
C)Many codes of ethics lack specificity, and a problem exists with the perceived behavior of top management and coworkers.
D)There is often a discrepancy between the code of ethics of a firm and the code of ethics of labor unions, and there is often a discrepancy between the code of ethics of a firm and the personal and moral beliefs of an individual employee.
E)There are very few violations in firms who have written codes of ethics.

Question 80

A code of ethics is a formal statement of ethical principles and

A)legal restrictions.
B)moral reservations.
C)cultural values.
D)rules of engagement.
E)rules of conduct.