Deck 1: The Importance of Business Ethics

Question 1

The term business ethics is best described by the following statement:

A) It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.
B) It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct."
C) It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession."
D) It is an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
E) It comprises the principles and standards that guide behavior in the world of business.

Answer 1

It comprises the principles and standards that guide behavior in the world of business.

Question 2

Business ethics was acknowledged as a field of study by business academics and practitioners in the

A) 1990s.
B) 1980s.
C) 1970s.
D) 1960s.
E) years prior to 1960.

Answer 2

1980s.

Question 3

Before the 1960s, ethical issues related to business were often discussed

A) theologically and philosophically.
B) economically.
C) politically.
D) sociologically.
E) psychologically.

Answer 3

theologically and philosophically.

Question 4

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 experience 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 arising in the business world.

Question 5

Individuals' personal ethics play a major role in the evaluation of business decisions only when their preferences or values

A) differ from those of their employer.
B) influence their performance in the workplace.
C) are unethical.
D) are ethical.
E) result in negative publicity for their employer.

Question 6

The ability of a business organization to achieve its business goals is directly affected by whether its behavior is judged to be right or wrong by

A) society.
B) its union members.
C) its employees.
D) Congress.
E) its competitors.

Question 7

The study of business ethics in North America has evolved through ____ distinct stages.

A) five
B) four
C) three
D) ten
E) nine

Question 8

Business professors began to teach and write about social responsibility during the

A) 1960s.
B) 1970s.
C) 1980s.
D) 1990s.
E) 2000s

Question 9

In the 1920s, the "living wage" was

A) opposed by the Progressive Movement.
B) developed for the benefit of businesses.
C) used to improve the state of the elderly.
D) income sufficient for education, recreation, health, and retirement.
E) intended to check the rapid increase in wages.

Question 10

According to the Millennium Poll, ____ percent of respondents focus on social responsibility ahead of brand reputation or financial factors when forming impressions of companies.

A) 100
B) 0
C) 20
D) 40
E) 60

Question 11

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by

A) codifying into law incentives for organizations to take action such as developing effective internal legal and ethical compliance programs to prevent misconduct.
B) establishing required ethical compliance programs and a systematic reporting system to obtain guaranteed protection from organizational fines.
C) eliminating most of the federal legislation that created inefficient and time-consuming activities by businesses.
D) providing a study of moral philosophies.
E) providing an examination of company codes of ethics.

Question 12

Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?

A) They use a mechanical approach with legalistic logic to avert serious penalties.
B) They strive to prevent misconduct.
C) They encourage companies to develop standards and procedures capable of detecting and preventing misconduct.
D) They take advantage of the carrot and stick approach by taking preventive action against misconduct.
E) They encourage appointment of high-level personnel responsible for oversight of the compliance program.

Question 13

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.

Question 14

According to the text, disaster-relief programs, like those at Home Depot, help foster

A) government regulation.
B) customer dissatisfaction.
C) employee commitment
D) employee turnover.
E) profitability.

Question 15

Discuss the financial meltdown's causes and what could have been done to avoid it.