Contemporary business 15th edition boone test bank

The standards of conduct and moral values governing actions and decisions in the work government if they believe that a company has somehow defrauded the government... ANS: At the most b

Chapter 2—Business Ethics and Social Responsibility

MATCHING

Complete the following using the terms listed

2 Some companies measure social performance by conducting a(n) _ that identifies and

evaluates the company’s activities that relate to social issues

3 The main federal regulatory agency in setting workplace safety and health standards is the _

4 _ requires publicly traded companies to announce major information to the general public, rather than first disclosing the information to selected investors

5 A situation where a business decision may be influenced by the potential for personal gain is a(n) _

6 Management’s acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance is _

7 When a publicly traded firm is suspected of unethical or illegal behavior, the _ will conduct

an investigation

8 Inappropriate actions of a sexual nature in the workplace is _

9 Having _ means adhering to deeply felt ethical principles in all business situations

10 The standards of conduct and moral values governing actions and decisions in the work

government if they believe that a company has somehow defrauded the government

14 _ is an employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices of his or her employer.

15 _ refers to the responsibility of manufacturers for injuries and damages caused by their goods

DIF: EASY LO: 2.1 Concern for Ethical and Societal Issues

17 List and describe three possible guidelines for business etiquette

ANS:

Responses will vary The following are three examples:

 Stay focused on your business purpose If you develop a close personal relationship with

a client or supplier, you may risk a conflict of interest

mini-vacations, but if your company distinguishes between these breaks, you should too

 Live your values Few people are brought up to be untrustworthy Even if no one knows

about it, an unethical choice that betrays your personal values weakens your self-respect and reduces your contribution to the workplace

es The next stage is the conventional stage Individuals are aware of and act in response to their duties to others (family or an organization, for example) Self-interest still plays a role The final stage is the postconventional stage In this stage, the individual is able to move beyond self-interest and take the larger needs of society into account as well

with you A recent news report details how a college football coach resigned after information on

Others steal from their employers by taking home supplies or products without permission or by carrying out personal business during the time they are being paid to work For example, Internet misuse during the work day is increasing Employees use the Internet for personal shopping, email, gaming, and social networking This misuse costs U.S companies an estimated $85 billion annually in lost productivity

23 What might a company’s code of conduct include?

ANS:

At the most basic level, a code of conduct may simply specify ground rules for acceptable

behavior, such as identifying the laws and regulations that employees must obey Other nies use their codes of conduct to identify key corporate values and provide frameworks that guide employees as they resolve moral and ethical dilemmas Some companies use these to guide employees’ online behavior

at suitable decisions Ethical action involves the structures and procedures that firms establish to enable their employees to follow ethical behavior Companies encourage ethical action by

providing support for employees faced with dilemmas, such as an employee hotline Ethical leadership charges each employee at every level with the responsibility for being an ethical leader This principle requires that all employees be personally committed to the company’s core values and be willing to base their actions on them.

DIF: EASY LO: 2.4 Acting Responsibly to Satisfy Society

to be informed, the right to choose, and the right to be heard

consequences for their makers

Many companies put their products through rigorous testing to avoid safety problems Still, testing alone cannot foresee every eventuality Companies must try to consider all possibilities and provide adequate warning of potential dangers

DIF: MEDIUM LO: 2.4 Acting Responsibly to Satisfy Society

companies to announce major information to the general public, rather than first disclosing the information to selected major investors The agency also operates an Office of Internet Enforce-ment to target fraud in online trading and online sales of stock by unlicensed sellers

a investors and customers

38 Which of the following statements best justifies why a company should act in an ethical manner?

act ethically

short run

in the long run

expensive alternative

39 Businesses should

doing what is profitable

40 Which of the following statements is correct?

Social and ethical problems affect only a few companies

the needs of separate constituents

ANS: a DIF: EASY LO: 2.2 The Contemporary Ethical Environment

43 are responsible for conducting employee training programs that help spot potential fraud and abuse within a firm

44 Which of the following is not a minimum requirement for ethics compliance programs?

45 Which of the following is not an example of unethical or illegal acts in the workplace?

46 Technology has ethical issues

48 Many people rationalize unethical acts because they

goals

49 Roberto decides not to cheat on his exam because he fears he will be caught and receive no credit

if he is caught In which stage of ethical development is Roberto?

52 Sean avoids using his office computer for personal use, even though his company does not have a specific policy forbidding it Sean is at the stage of ethical development

53 If an individual follows personal principles for resolving ethical dilemmas and considers

personal, group, and societal interests, he or she is at the stage of ethical development

57 Jeffrey Wigand, a former executive of Brown & Williamson who exposed his company’s practice

of intentionally manipulating the effect of nicotine in cigarettes on the CBS news program 60

Minutes, had moved beyond self-interest and company duty to which stage of individual ethics?

and then sell the stock

stock while making the recommendation

59 Tanisha is a diabetes educator at a local clinic Recently, she was offered a lavish trip by a sales representative who has been pushing the clinic to use his company’s diabetes supplies Tanisha declined the gift Which ethical challenge did she face?

61 Outside auditors are examining your company’s financial records You know there may be an error and will tell them about it but only if they ask They do not ask In this scenario, your could be questioned

ANS: b DIF: MEDIUM LO: 2.2 The Contemporary Ethical Environment

67 Mica learns that her company is secretly dumping untreated waste into the city sewer systems, and she informs the local EPA office All of the following describe Mica’s ethical situation EXCEPT:

68 Your supervisor asks you to conceal information from outside auditors examining the

company’s financial records What is your ethical challenge?

71 _ requires that firms in the private sector provide procedures for anonymous

reporting of accusations of fraud

76 After meeting with employees, a manager realizes she has set performance goals unrealistically high for her department’s employees If she makes employee performance goals more realistic, what will likely happen to the department’s ethical climate?

determine the effect

Conduct

77 Ethical charges each employee personally to uphold the company’s core values and

be willing to base their actions on them

determine the effect

Conduct

79 Jack Welch, former CEO of General Electric, is respected in business circles for focusing his company on the welfare of its customers and investors, and for ensuring GE would thrive in the long run This type of environment is an example of ethical

a providing a safe, healthy workplace

81 Businesses exercise social responsibility for all of the following reasons EXCEPT

85 The Wright Tire Co uses a company-wide team of employees to identify company activities related to social issues, report on how the firm is responding to those issues, and evaluate how effectively the firm has met those issues The Wright Tire team is conducting a(n)

a supporting the local public radio station

volunteer activities

91 During the Olympics, several Nike ads were aired that demonstrated the company’s sponsorship

of various events Nike was using to align their marketing efforts with charitable giving

94 According to standards, when a drug company purchases a television ad, the company

is required to describe potential side effects of the drug, or at least provide a phone number or Web site address for additional information

(OSHA)

95 Which federal agency is responsible for ensuring the safety of prescription drugs?

96 The doctrine of “the right to be heard” would be best reflected by

revolving charge accounts

processed foods

99 Matt was diagnosed with a serious illness that requires aggressive treatment Because his

company employs 50 or more people, it must allow Matt up to 12 weeks unpaid time off in one year, as granted by the

ANS: a DIF: MED LO: 2.4 Acting Responsibly to Satisfy Society

103 Companies that adhere to high ethical standards

ANS: a DIF: EASY LO: 2.4 Acting Responsibly to Satisfy Society

TRUE/FALSE

105 Social and ethical issues are a bigger concern in smaller companies than larger companies

106 Social responsibility is a concept that pertains only to small businesses

107 The Sarbanes-Oxley Act requires companies that have a code of ethics to publish them

109 Ethical corporations consider first and foremost what is profitable

111 Companies that put profits ahead of safety are using a stakeholder model of business ethics

112 Businesses must find a balance between doing what is right and doing what is profitable

113 Codes of conduct are playing an increasingly important role in business ethics

ANS: T DIF: EASY LO: 2.1 Concern for Ethical and Societal Issues

114 The Sarbanes-Oxley Act aims to punish corporate fraud and corruption

115 Individual employees have a major influence over ethical expectations and behavior

116 An individual employee acting ethically will have little influence on his or her coworkers

118 Technology has helped decrease the amount of unethical behavior exhibited by businesses

119 Some employees rationalize questionable or unethical behavior by saying, “Everyone does it.”

120 The highest level of ethical and moral behavior is known as the postconventional stage

123 Preconventional behavior is the term used to describe an employee’s disclosure to the media or government authorities of illegal, immoral, or unethical practices of the organization.

127 On-the-job ethical dilemmas are common

ANS: F DIF: MEDIUM LO: 2.2 The Contemporary Ethical Environment

132 Truthfulness is more significant than integrity

133 Adhering to deeply felt ethical principles in business situations is known as loyalty

134 Employers expect employees to generally act in the best interests of the organization

135 Loyalty and honest often conflict with one another in the business world

136 Employees should always be loyal, regardless of the situation

138 Whistle-blowing can be effective with the cooperation of higher level managers

139 Loyal employees would never be whistle-blowers

ANS: F DIF: EASY LO: 2.3 How Organizations Shape Ethical

Conduct

142 A code of conduct is a formal document that must be printed

Conduct

143 If companies provide a code of conduct and ethical training, there is no need to hire a compliance officer or to provide an anonymous employee hotline to report unethical behavior they have witnessed

146 ”Maintaining an atmosphere of cultural integrity” is an example of something that might be found

in a company’s code of conduct

Conduct

147 A code of conduct is part of the ethical awareness stage of ethical development

Conduct

148 Many ethical dilemmas involve gray areas that may require individuals to sort through several courses of actions, each with its own set of consequences

ANS: T DIF: EASY LO: 2.3 How Organizations Shape Ethical Conduct

150 Starbucks’ efforts to go green with recyclable cups is an example of social responsibility

152 There are times when managers and supervisors will be unable to practice the behaviors outlined

in the code of conduct

Conduct

153 A company’s CEO alone determines the ethical climate of the business

155 The primary social responsibility of a company is to its customers

156 Corporations often neglect to consider that electric products are extremely recyclable

ANS: F DIF: EASY LO: 2.4 Acting Responsibly to Satisfy Society

157 Social audits measure the level of volunteer work conducted in communities

164 Environmental issues are more of a social concern for government organizations

165 Hewlett-Packard’s use of new and recycled plastics in the manufacture of its scanners is an example of acting responsibly to satisfy societal demands

ANS: T DIF: EASY LO: 2.4 Acting Responsibly to Satisfy Society

167 Most job positions in developed countries prefer to hire applicants with college degrees

168 Paying corporate taxes is an example of corporate philanthropy

170 Product liability protects the reputation of consumers against consumer allegations

171 Employers have a responsibility to their employees to provide a safe working environment

ANS: F DIF: EASY LO: 2.4 Acting Responsibly to Satisfy Society

179 Ethical standards are not proven to affect a company’s stock prices

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