Deck 4: Demanding Ethical and Socially Responsible Behavior

Question 1

Moral behavior refers to behavior that is accepted by society as right versus wrong.

Answer 1

True

Question 2

The Enron scandal illustrates the difference between unethical behavior and illegal behavior.

Answer 2

False

Question 3

People should look at each situation individually and decide for themselves if it is right or wrong.

Answer 3

False

Question 4

According to the Legal Briefcase box, "Paying the Price", corporate executives who commit fraud, securities fraud, and other business crimes are sentenced to fines, but not to jail because these acts are not considered to be criminal convictions.

Question 5

Ethical behavior requires more than following the law.

Question 6

Ethical behavior refers to the standards that are accepted by society as right or wrong.

Question 7

Legal behavior and ethical behavior are basically the same.

Question 8

People involved in business may be tempted to do something unethical in order to increase sales and profits, but rarely do because if they are caught, our legal system will deal harshly with them.

Question 9

Legal behavior is a first step toward ethical behavior.

Question 10

Making accounting records more transparent may help restore trust in the free-market system and leaders in general.

Question 11

An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

Question 12

Ethical behavior focuses on treating others fairly.

Question 13

Jake and his college friends frequent a small pub on weekends. Last weekend, after a few beers, one of his friends decided to take the salt and pepper shaker from their table because they needed a set at their apartment. In this situation, this was not a particularly questionable activity because it was a restaurant where one pays for these extras.

Question 14

Punishing business leaders who have broken the law may help restore trust in the free-market system and leaders in general.

Question 15

Making businesspeople more accountable for company actions may help restore trust in the free-market system and leaders in general.

Question 16

Given the level of diversity within the United States, agreement on common standards of ethical behavior is unachievable.

Question 17

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

Question 18

According to the Legal Briefcase box, "Paying the Price", the Enron case demonstrates the need for more accounting transparency.

Question 19

Laws that protect us from fraud, theft and violence determine ethical behavior.

Question 20

According to the Legal Briefcase box, "Paying the Price", the Enron case was a landmark because it demonstrated clearly that company regulations and policies always represent the best interests of all employees, and not only those employees holding the highest company positions.

Question 21

A common form of cheating in schools today is plagiarizing material from the Internet.

Question 22

Ethical behavior involves the clear and easy choice of right and wrong actions towards others.

Question 23

Two recent studies found a strong correlation between academic dishonesty among undergraduates and dishonesty at work.

Question 24

Both managers and workers cite low managerial ethics as a major cause of American businesses' competitive woes. Learning Goal: 04-2 Level of Learning 1: Knowledge of key terms Nickels - Chapter 04 #25 Topic: Ethics Begins with Each of Us

Question 25

The question "Is it legal?" establishes ethical behavior.

Question 26

Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone for unauthorized personal phone calls. Fred misrepresents his product to a potential customer. All of these are examples of unethical behavior.

Question 27

Making ethical choices is always easy.

Question 28

When facing an ethical dilemma, it is often helpful to discuss the situation with your supervisor because ethical decisions will always withstand scrutiny.

Question 29

Behavior that is in conflict with your values and sense of right and wrong can damage your self esteem.

Question 30

An ethical manager's decisions are based only on the following questions: "Is it legal?" and "Is it profitable?"

Question 31

Business behavior determines the ethics of society. We can improve society's moral and ethical behavior by first making a commitment to improving business's moral and ethical behavior.

Question 32

Trying to make decisions that will benefit all parties involved is consistent with the question "How will it make me feel about myself?"

Question 33

According to the Legal Briefcase box, "Paying the Price", the fate of Arthur Anderson demonstrates that the law will protect your firm from problems due to the wrong-doings of other firms that you do business with.

Question 34

The Legal Briefcase box, "Paying the Price" talks about illegal acts committed by executives at Enron, WorldCom, and Tyco International. This discussion demonstrates that business crimes are clearly illegal according to law, but seldom do they affect the operations of firms.

Question 35

You are in a business meeting at work that requires your group to make an ethical decision. Your willingness to post the final decision on the bulletin board in the break room for all to see passes the test: "How will it make me feel about myself?"

Question 36

In reality, ethical behavior depends on the situation. For example, in negotiating a contract with your employees, the way they win higher wages is by your losing the fight to hold down labor costs. You realize it is a win-lose relationship.

Question 37

It can be very difficult to maintain a balance between ethics and goals such as pleasing stakeholders.

Question 38

While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.

Question 39

Over two-thirds of the American population report never giving any time to the community.

Question 40

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.

Question 41

Overly ambitious business goals and employee incentives can lead to unethical behavior.

Question 42

On her company website, Ali asks customers who fill orders to place a check-mark in a box if they are willing to let her share their information with her suppliers. By asking this question, Ali is addressing privacy issues, and covering her actions in case someone should try to sue her for sharing private information. She is responding to the question, "Are my proposed actions legal?"

Question 43

An ethic of care is based on principles like justice, fairness, equality, or authority.

Question 44

Trust between workers and managers must be based on a foundation of fairness, honesty, openness, and moral integrity.

Question 45

Management can create an environment in which unethical behavior can develop.

Question 46

In the Making Ethical Decisions box, "To Tube or Not to Tube?" about loading videos onto YouTube, the author makes the point that the dilemma facing all parties involved is legal, but not ethical.

Question 47

A business should be managed ethically to keep existing customers and attract new customers.

Question 48

An ethic of care is based on a sense of responsibility to reduce actual harm or suffering.

Question 49

Corporate values, like personal values, are learned by observing what others do.

Question 50

An ethic of justice is based on a sense of responsibility to reduce actual harm or suffering.

Question 51

In order to maintain a good reputation, it is good strategy to manage your business ethically.

Question 52

Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales.

Question 53

The Making Ethical Decisions box titled, "To Tube or Not to Tube?" demonstrates how new technology can change the landscape, and people's perspectives on what is legal and what is ethical.

Question 54

In order to do the right thing for all stakeholders, a business should be managed ethically.

Question 55

"Do what I say, not what I do" can be an effective code of conduct to instill corporate values.

Question 56

Effective corporate values start with employees and develop throughout the organization to include top management.

Question 57

The majority of CEOs believe that employee misconduct results from the failure of organizational leadership to establish ethical standards.

Question 58

A growing number of people feel that an employee's ethics are a personal matter, and have nothing to do with management.

Question 59

As the human resources director for your company, it is your job to evaluate the company's benefits plan. Although several workers utilize the company day care facility, the facility costs the firm considerably more than another benefit might cost, such as having an on-site physician. The on-site physician services are supported by insurance, and the physician actually rents space from the company. Under these circumstances, eliminating the day care is a balanced decision.

Question 60

One good reason for managing a business ethically is to help reduce employee turnover.

Question 61

When faced with slow sales and low profits, even managers with strong ethical values may feel pressured to compromise those values.

Question 62

Businesses with a formal code of ethics are less common now than in the past.

Question 63

Compliance-based ethics codes are based on preventing unlawful behavior.

Question 64

Compliance-based ethics codes focus on preventing unlawful behavior by increasing control and by penalizing wrongdoers.

Question 65

The job of an ethics officer is to serve as a counselor for employees and as an investigator for the company.

Question 66

Enforcement is perhaps the most important step in an effective code of ethics.

Question 67

Businesses recognize that pressure to violate ethical standards can come from either inside or outside of the firm.

Question 68

As a manager, you have a responsibility for the unethical behavior of your employees.

Question 69

Several years ago, the garment and soft goods industry agreed to adopt higher ethical standards with respect to contract manufacturers that produce their goods. The leadership agreed that this was a good approach in order to avoid the U.S. government from intervening and creating new laws to force the industry to only work with foreign manufacturers who operated with high ethical standards. This was sensible strategy on the part of the garment and soft goods industry.

Question 70

As a result of pressure from business lobbyists, Congress failed to pass legislation protecting whistleblowers.

Question 71

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code. Topic: Setting Corporate Ethical Standards

Question 72

Using the phrase: "Quality is job #1", as part of a corporate mission statement, can influence the ethical behavior of employees.

Question 73

Integrity-based ethics codes are based on avoiding legal punishment. Level of Learning 3: Application of principles Nickels - Chapter 04 #68 Topic: Managing Businesses Ethically and Responsibly

Question 74

"Actions speak louder than words!", is an old saying that refers to the fact that people's actions - how they act as opposed to what they say - are often testament to their true ethical values.

Question 75

In order to be successful, efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate code of conduct.

Question 76

Employees, just like children, can observe behavior and adopt standards of right and wrong.

Question 77

People who report illegal or unethical behavior are called whistleblowers.

Question 78

In order to avoid the costly act of being sued in court, it makes good sense to manage your business ethically.

Question 79

To be effective, an organization's code of ethics needs to be communicated to outsiders such as suppliers, subcontractors, and customers.

Question 80

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.