truecolorsChat The study of business ethics is important to better understand all of the following except A that a person's own moral philosophies and decision-making experiences may not be sufficient to guide him or her in the business world.B how and why people make ethical or unethical decisions.C how to cope with conflicts between a person's own values and those of the organization in which he or she works.D that business ethics is merely an extension of an individual's own personal ethics.E how to identify ethical issues that arise in the business world. Social responsibility is A an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.B principles and standards that guide behavior in the world of business.C a business's responsibility not to pollute the environment.D a business's responsibility to manufacture products that function properly without harming consumers.E charitable contributions made by a business to enhance its image. Which of the following was (were) developed in the 1980s to encourage corporate support for ethical conduct by establishing a method for discussing "best practices?" A Federal Sentencing Guidelines for OrganizationsB Defense Industry Initiative on Business Ethics and ConductC Corporate Codes of ConductD United States Sentencing CommissionE MERCOSUR The _______________ was (were) enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s. A Defense Industry Initiative on Business Ethics and ConductB Federal Sentencing Guidelines for OrganizationsC Sarbanes-Oxley ActD Foreign Corrupt Practices ActE Ferrell-Fraedrich Act In the history of business ethics, the 1990s can best described as a time when business ethics was A formalized.B consolidated.C institutionalized.D popularized.E marginalized. Which of the following is not one of the rewards for being ethical and socially responsible in business? A Greater employee commitmentB Greater employee turnoverC Improved customer trust and satisfactionD Increased investor willingness to entrust fundsE Better financial performance When employees see honesty, respect, and trust applied frequently in the workplace, they A feel less pressure to compromise ethical standards.B observe less misconduct.C are more satisfied with their organizations overall.D feel more valued as employees.E All of these. Most strong organizational climates focus on the value of placing _________ interests first. A customers'B employees'C stockholders'D suppliers'E distributors' To be successful, relationships with investors must rest on dependability, ________, and commitment. A profitsB dividendsC confidenceD trustE code of ethics The rise of consumerism occurred during the A 1940sB 1950sC 1960sD 1970sE 1980s C A Being socialized into the firm's corporate cultureB Applying a personal moral philosophyC Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrongD Soliciting the opinions of others in the work group and the overall businessE Enforcing the firm's ethical standards with rewards and punishment Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue? A EducationB WorkplaceC FamilyD Legal systemE Community Which statement best describes the relationship between those who believe in external control (externals) and those who believe in internal control (internals)? A Externals believe that they control events in their lives by their own effort and skill, while internals believe in going with the flow.B Both groups believe in going with the flow.C Both groups believe that they are in control of their destinies.D Externals believe in going with the flow, while internals believe that they control events in their lives by their own effort and skill.E Both groups believe that they control events in their lives by their own effort and skill. Obedience to authority is part of which of the following components of the ethical decision-making framework? A Moral philosophyB Cognitive moral developmentC Individual variablesD OpportunityE Superiors External rewards and internal rewards relate to which part of the ethical decision-making framework? A Individual factorsB OpportunityC Cognitive moral developmentD IntentionsE Significant others It is impossible to agree on ________ judgments about what is ethical. A normativeB descriptiveC regularD acceptableE typical The role of leadership in developing an ethics program includes all of the following except A maintaining commitment from top managers.B providing timely training to reinforce knowledge.C ensuring consistent implementation.D carefully archiving and not distributing the ethical policies of the firm.E communicating ethical standards through multiple channels. The ________ leader values people, their emotions, and their needs, and relies on friendship and trust to promote flexibility, innovation, and risk-taking. A coerciveB pacesettingC democraticD authoritativeE affiliative What is the difference between transactional leaders and transformational leaders? A The former are emotional leaders, whereas the latter are stoic leaders.B The former attempt to create employee satisfaction through negotiating or bartering, while the latter strive to raise employees' level of commitment and foster trust and motivation.C The former set low standards for employees, whereas the latter set high standards.D The former set high standards for employees, whereas the latter set low standards.E The former strive to raise employees' level of commitment and foster trust and motivation, while the latter attempt to create employee satisfaction through negotiating or bartering. Which of the following statements is false regarding strong ethical leaders? A Strong ethical leaders are reactive.B Strong ethical leaders are proactive.C Strong ethical leaders have strong personal character.D Strong ethical leaders are role models for the organization's values.E Strong ethical leaders are competent managers who take a holistic view of the firm's ethical culture. A A cultural reference criterion.B unconscious cultural criterion.C cultural-self criterion.D self-reference criterion.E unconscious cultural-self criterion. Cultural differences in _______ may result in international ethical issues if a businessperson stands far away from a customer during negotiations and the customer regards it as a personal insult. A price negotiationsB local discriminationC multinational corporationsD time perceptionE body language The defense of paying bribes and other questionable practices in other countries is called A relativism.B corporate relativism.C cultural relativism.D adaptability.E cultural malaise. Which of the following created an international ethics code? A Federation of Korean IndustriesB Organization of Petroleum Exporting CountriesC U.S. Foreign Corrupt Practices ActD Omnibus Trade and Competitiveness ActE Caux Round Table Which of the following is not a criticism of or charge against multinational corporations? A They transfer jobs overseas, where wage rates are lower.B They increase the gap between rich and poor nations.C They pay high taxes everywhere.D They exploit the labor market of host countries.E They have an unfair advantage when competing with local businesses. Discrimination in international business A is often justified on the basis of local cultural norms and values.B does not exist.C is never justified on the basis of cultural norms and values.D is wrong because it violates U.S. laws.E reduces conflict between cultures. Gouging is A different prices charged to different groups of customers.B a price increase that exceeds the costs of additional expenditures, such as transportation and taxes.C selling products for high prices in domestic markets while selling the same products in foreign markets for low prices that do not cover all the costs of exporting the products.D ethical.E the international price of a specific product. All of the following are listed as steps that companies can take to address discrimination issues except A establish a company policy on discrimination.B develop an action plan.C take action.D list all possible discrimination acts in the policy.E identify indicators of possible noncompliance. Which of the following prohibits U.S. companies from offering or providing payments to officials of foreign governments for the purpose of obtaining or retaining business abroad? A Sullivan ActB Eckhardt AmendmentC Foreign Corrupt Practices ActD Omnibus Trade and Competitiveness ActE Sarbanes-Oxley Act Traditionally safe and adequately tested products may still harm consumers and thus create ethical issues because A they discriminate against some types of customers.B of illiteracy, unsanitary conditions, or cultural values.C of chemical reactions with local water supplies.D of improper advertising and sales promotion.E they may boost a nation's military advantage. ___________ means using or transferring illegally received funds in a financial transaction to conceal their source or ownership or to facilitate an illegal activity. A Money launderingB Electronic funds transferC CounterfeitingD Unethical funds transferE Gouging Which of the following has the power to enact legally binding ground rules for international commerce and trade policy? A Caux Round TableB Global Sullivan OrganizationC Federal Trade CommissionD Global Commerce AssociationE World Trade Organization E A the investors.B the government.C the management board.D the employees.E the customers. How can a company align the interests of its owners with those of its managers through executive compensation? A By significantly reducing executive pay across the boardB By basing compensation on performance and achievement of goalsC By setting executive compensation at a level equal to the industry averageD By capping executive compensation at ten times that of the lowest-paid employeeE By basing salaries on seniority within the company The agency problem, wherein ownership and control of a corporation are separate, is associated with A the shareholder model of corporate governance.B the stakeholder model of corporate governance.C the ethical model of corporate governance.D the agency model of corporate governance.E the investor model of corporate governance. Which of the following are typically not secondary stakeholders? A The mediaB Special-interest groupsC CustomersD Trade associationsE None of the above Assessment of corporate culture will help with all of the following except A identifying the goal/mission of the organization.B identifying the values that underlie the organizational functioning.C determining the issues that need prioritized attention.D determining the line of business.E identifying key stakeholders. Those who have a claim on some aspect of a firm's products, operations, markets, industry, or outcomes are known as A shareholders.B stockholders.C stakeholders.D claimholders.E special-interest groups. A stakeholder orientation is not complete unless it includes A finance.B marketing.C special-interest groups.D activities that actually address stakeholder issues.E accounting. Which of the following is not one of the four hierarchical levels of social responsibility? A EthicalB EconomicC CommunalD PhilanthropicE Legal The reputation of a company as a good corporate citizen is influenced by A the extent of geographic coverage of the company's operations.B the width and depth of the product line offered.C whether the company is global or local.D the attitude and behavior of the company toward the community of which the company is part.E the industry the company is part of. Fiduciaries are persons in positions of ___________ who use _________ and _________ in acting on behalf of the best interests of the ______________. A control; strategy; decisions; consumersB trust; due care; loyalty; organizationC importance; power; market intelligence; shareholdersD senior management; information; intelligence; communityE decision making; caution; allegiance; stakeholders The three main components of corporate governance are A accountability, oversight, and control.B responsibility, formalization, and influence.C audits, omissions, and checks.D community welfare, employee benefits, and shareholder wealth maximization.E adherence to legal, ethical, and economic standards. A A conducting simulation exercises.B improving unethical persons.C terminating ethical persons.D terminating unethical persons.E securing ethical suppliers. Which of the following statements about codes of conduct is false? A They are formal statements of what an organization expects in the way of ethical behavior.B They guarantee an ethical business climate.C They help employees determine what behaviors are acceptable.D They provide rules and guidelines for employees to follow.E They should be specific enough to be reasonably capable of preventing misconduct. A(n) _____ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) _____ orientation strives to develop shared standards. A obedience; valuesB compliance; valuesC legal; valuesD values; complianceE values; obedience At the heart of the Federal Sentencing Guidelines for Organizations is the A “tit-for-tat” philosophy.B Golden Rule philosophy.C Iron Rule philosophy.D carrot-and-stick philosophy.E utilitarian philosophy. Which of the following places more pressure on ethics officers to monitor financial and sales reporting? A Sarbanes-Oxley ActB Federal Sentencing Guidelines for EmployeesC Ethics Officer Responsibility ActD Sherman Antitrust ActE Enron Financial Responsibility Act All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except A observation of employees.B internal audits.C firing.D surveys.E reporting systems. Which of the following is not a typical activity for an ethics officer? A Coordinating the U.S. Sentencing Commission annual ethics auditB Assessing needs and risks that the ethics program must addressC Developing and distributing a code of ethicsD Conducting ethics training programsE Monitoring and auditing ethical conduct Which of the following is a common mistake made in implementing an ethics program? A Setting realistic and measurable program objectivesB Developing materials that do not meet the needs of the average employeeC Adapting a firm's ethics program for its international operationsD Allowing employees to practice the skills they learn in ethics training through case studies and/or group exercisesE Management taking “ownership” of the ethics program One of the most effective methods of ethics training is A videos that demonstrate ethical decisions in the real world.B religious training.C surveys.D exercises in resolving ethical dilemmas that relate to actual situations employees may face on the job.E lectures. ______serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most capable of handling the specific case. A Training programsB Mission statementsC Codes of conductD Help linesE Boards of directors An organizational ethics program should help reduce the possibility of penalties and A positive public reaction to misconduct.B negative public reaction to ethical conduct.C negative public reaction to misconduct.D positive public reaction to ethical conduct.E indifferent public reaction to conduct. C BMAL 590 Business Ethics Multiple Choice Purchase the answer to view it 
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Which of the following is a typical activity for an ethics officer?
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