Deck 4: The Institutionalization of Business Ethics

Question 1

The disposal of computer hardware is an ethical issue related to laws

A) promoting equity and safety.
B) protecting consumers.
C) protecting the environment.
D) regulating competition.
E) protecting business.

Answer 1

protecting the environment.

Question 2

Corporate espionage is an ethical issue encountered in the

A) technological dimension.
B) legal dimension.
C) philanthropic dimension.
D) economic dimension.
E) competitive dimension.

Answer 2

competitive dimension.

Question 3

Of the laws promoting equity and safety in the workplace, which is probably the most important to business?

A) Equal Pay Act
B) Americans with Disabilities Act
C) Title VII of the Civil Rights Act
D) Age Discrimination in Employment Act
E) Pregnancy Discrimination Act

Answer 3

Title VII of the Civil Rights Act

Question 4

The primary methods for resolving conflicts and serious business ethics disputes is through

A) criminal law.
B) a Federal Trade Commission arbitration panel.
C) lawsuits using civil laws.
D) the Resolution Panel of the Department of Justice.
E) Better Business Bureaus.

Question 5

Which of the following dimensions of business ethics involves business's contributions to the local community and to society?

A) The philanthropic dimension
B) The economic dimension
C) The competitive dimension
D) The ethical dimension
E) The moral dimension

Question 6

What is a primary reason why some communities resist the opening of large chain retailers like Walmart or Home Depot?

A) Because large size creates economies of scale that all large retailers to charge lower prices than small businesses
B) Because consumers do not like these stores
C) Because large retailers create too much traffic
D) Because they do not like the top management.

Question 7

Improving the quality of life, reducing government involvement, development of staff leadership skills, and building staff morale are benefits provided by the ____ dimension.

A) economic
B) legal
C) ethical
D) philanthropic
E) social responsiveness

Question 8

The majority of executives and board members want to measure nonfinancial performance, but

A) employees do not want to sacrifice their work hours for this research.
B) no standards currently exist.
C) no company has enough resources to do so.
D) legislation prevents them from it
E) None of these statements is correct.

Question 9

The White-Collar Crime Penalty Enhancements Act of 2002

A) doubled the maximum amount of jail time for mail and wire fraud.
B) only penalizes the top executives in an organization.
C) is basically the same as the Sarbanes-Oxley Act.
D) discourages whistleblowers from reporting misconduct.
E) has been deemed largely ineffective.

Question 10

Which of the following is not considered a gatekeeper as it relates to the financial meltdown of 2008-2009?

A) Accountants
B) Lawyers
C) Financial rating companies
D) Financial reporting agencies
E) All of these are gatekeepers.

Question 11

A critical group of gatekeepers that bear responsibility for the 2008-2009 financial meltdown were the

A) risk assessors of financial products.
B) Republican party.
C) stock brokers.
D) bank tellers.
E) journalists.

Question 12

Years before the 2008 financial meltdown, a major risk assessor realized there was a profound problem with the financial markets risk decisions

A) because the risk assessment algorithms were flawed.
B) because of SEC investigations.
C) from watching television news financial experts.
D) because he did not trust Bernard Madoff .
E) no one realized there was a problem before 2008.

Question 13

The key elements of an organizational culture include

A) values.
B) norms.
C) artifacts.
D) organizational behavior.
E) All of these are key elements of an organizational culture.

Question 14

Laws and regulations change over time; however, in the U.S. the thrust of most business legislation can be summed up as

A) any practice is permitted.
B) any practice is permitted that does not substantially lessen or reduce competition and harm consumers or society.
C) any practice is permitted that does not substantially harm consumers or society, but only within the U.S.
D) any practice that does not harm the environment.
E) any practice is permitted that does not break the law.

Question 15

Discuss several economic or other business ethical issues that may arise during a crisis or disaster, such as the crisis on Wall Street of 2008, or some political or business disaster that has occurred in your area.