Deck 4: Demanding Ethical and Socially Responsible Behavior

Question 1

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

Answer 1

True

Question 2

Laws that protect us from fraud,theft and violence determine ethical behavior.
Ethical behavior requires more than following the law,but following the law is an important first step.Legality is narrower.

Answer 2

False

Question 3

Legal behavior is directly related to our relationships with others,while ethical behavior is not.
Legal behavior and ethical behavior are directly related to our relationships with others.

Answer 3

False

Question 4

Making businesspeople more accountable for company actions may help restore trust in the free-market system and leaders in general.
Given the ethical lapses that are so prevalent today,several things can be done to restore trust in the free-market system and leaders in general: (1)those who have broken the law need to be punished accordingly including religious people,government people,and businesspeople; (2)new laws making accounting records more transparent should be passed;and (3)making businesspeople and others more accountable may help.

Question 5

Making accounting records more transparent may help restore trust in the free-market system and leaders in general.
Given the ethical lapses that are so prevalent today,several things can be done to restore trust in the free-market system and leaders in general: (1)those who have broken the law need to be punished accordingly including religious people,government people,and businesspeople; (2)new laws making accounting records more transparent should be passed;and (3)making businesspeople and others more accountable may help.

Question 6

An accurate statement regarding this chapter is: "Business law establishes ethical behavior."
The most basic step in ethical behavior is the law,but ethics go far beyond legality.

Question 7

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.
Enron's pension regulations prohibited regular employees from selling their stock,but executives had the privilege of selling whenever they saw fit.Clearly,this regulation did not benefit all employees.

Question 8

Legal behavior and ethical behavior are basically the same.

Question 9

Ethical behavior focuses on treating others fairly.
Ethical behavior focuses on proper relations with other people.An ethical person will treat others with honesty and sincerity.Perhaps the essence of this behavior is The Golden Rule,"do unto to others as you would have them do unto you."

Question 10

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.
Many immoral and unethical acts fall well within our laws,but "white collar" crime has not always been harshly punished.

Question 11

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

Question 12

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.
Many business leaders who have run afoul of the law are serving long sentences in prison.The most recent was Bernie Madoff who was sentenced to 150 years in prison for his illegal Ponzi scheme that bilked investors out of billions of dollars.

Question 13

Legal behavior is a first step toward ethical behavior.
Ethical behavior requires more than following the law,but following the law is an important first step.

Question 14

Ethical behavior requires more than following the law.

Question 15

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

Question 16

Punishing business leaders who have broken the law may help restore trust in the free-market system and leaders in general.
Given the ethical lapses that are so prevalent today,several things can be done to restore trust in the free-market system and leaders in general: (1)those who have broken the law need to be punished accordingly including religious people,government people,and businesspeople; (2)new laws making accounting records more transparent should be passed;and (3)making businesspeople and others more accountable may help.

Question 17

Moral behavior refers to behavior that is accepted by society as right versus wrong.
Ethics defines the standards of moral behavior,or the attempt to live by certain values and standards of conduct accepted by society as right rather than wrong.

Question 18

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.
Ethical behavior should not be situationally based.If the act is appropriate behavior,then it is probably appropriate all of the time.This situation however is clearly inappropriate behavior.

Question 19

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

Question 20

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

Question 21

An ethical manager's decisions are based only on the following questions: "Is it legal?" and "Is it profitable?"
Ethics-based managers ask themselves the following questions when faced with a potentially ethical dilemma: "Is it legal?","Is it balanced?",and "How will it make me feel about myself?"

Question 22

Both managers and workers cite low managerial ethics as a major cause of American businesses' competitive woes.

Question 23

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.
Ethical behavior begins with you and me.We cannot expect society to become more moral and ethical unless we as individuals commit to becoming more moral and ethical ourselves.

Question 24

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

Question 25

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

Question 26

Making ethical choices is always easy.

Question 27

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.
Every situation cannot be completely balanced,but it is important to the health of our relationships that we avoid major imbalances over time.An ethics-based manager has a win-win attitude.

Question 28

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.
All three situations violate the ethics-check questions of "Is it legal?","Is it balanced?",and "How will it make me feel about myself?"

Question 29

According to the Legal Briefcase box,"Paying the Price",the Enron case demonstrates the need for more accounting transparency.
Top executives at Enron approved the removal of several billion dollars in debt from the company balance sheet in order to make the return on equity investment appear to be a higher percentage.Arthur Andersen,Enron's outside accounting firm that should have been providing company audits,did not appear to be serving the company in an honest,forthright,and transparent way.

Question 30

While telling an abusive joke about an ethnic group may not be unlawful,it is unethical.
Humor at someone else's expense is an example of unfair treatment of others.

Question 31

Behavior that is in conflict with your values and sense of right and wrong can damage your self esteem.
Ethics-based managers do what is proper as well as what is profitable.Decisions that go against their sense of right and wrong corrode their self-esteem.

Question 32

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

Question 33

When facing an ethical dilemma,it is often helpful to discuss the situation with your supervisor because ethical decisions will always withstand scrutiny.
The ethics check question "How will it make me feel about myself?" focuses our attention on the impact of decisions that go against our sense of right and wrong.Decisions that corrode our self-esteem will ultimately injure the organization.

Question 34

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

Question 35

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.
Although the conviction against Arthur Andersen was overturned,the company image was tarnished beyond repair.The company ceased to exist.

Question 36

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.
In a recent study,both managers and workers cited low managerial ethics as a major cause of our competitive woes.Employees reported that they often violate safety standards and goof off as much as seven hours a week.

Question 37

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

Question 38

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

Question 39

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.
Enron and WorldCom are no longer in business.Tyco International suffered a severe image problem.Investors pounded the stock price of all three companies.CEOs and other top executives that commit grievous acts can permanently affect the firm's operations and future.

Question 40

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

Question 41

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

Question 42

Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales.
Increased pressure on employees to meet sales quotas can create an environment where management is insensitive to ethical considerations.The text presents an example of this issue with Sears,Roebuck & Company.

Question 43

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.
YouTube is a relatively new concept.It permits individuals to upload user-generated content such as videos that individuals create on their own.Unfortunately,some persons illegally upload copyrighted material.The question becomes: Who is responsible and who should be held accountable for breaching the law? Is it the individual who loads the copyrighted material,or the website that accepts it;or,both?

Question 44

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

Question 45

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?"
By posting the decision on the company bulletin board,you are demonstrating that you stand behind the decision that was made;that you believe it is an ethical decision,and you do not need to hide your actions from your coworkers.

Question 46

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

Question 47

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.
The box discusses the copyright violation that occurs when unauthorized individuals upload video streams from movies,TV shows,and even sporting events.The discussion centers around "who" is legally responsible - the individuals who are uploading the material or the website that is accepting the material? The real question is: Why do so many individuals continue to provide You Tube with copyrighted content when they know it is illegal to do so?

Question 48

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

Question 49

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?"
Asking the question,"Are my proposed actions legal?" is the first step toward addressing ethical concerns.By asking and answering this question,the business owner takes the first step in determining if the action is acceptable behavior.

Question 50

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.
Winning at the expense of others is not a balanced decision.The health of our relationships with our co-workers is very important.We should avoid major imbalances and strive to make decisions that benefit all employees.

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

"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.
People adopt values from observing what others do,not particularly from hearing what they say;making the actions of others more important in framing ethical behavior,than what people say.

Question 62

Using the phrase: "Quality is job #1",as part of a corporate mission statement,can influence the ethical behavior of employees.
Firms with strong,effective,and ethical leadership can create a high value system.A corporate mission statement that is socially beneficial can favorably impact the value system of the firm's employees.

Question 63

Integrity-based ethics codes are based on avoiding legal punishment.

Question 64

In order to avoid the costly act of being sued in court,it makes good sense to manage your business ethically.
There are many reasons why a business should be managed ethically: (1)to maintain a good reputation; (2)to keep existing customers; (3)to attract new customers; (4)to avoid lawsuits; (5)to reduce turnover; (6)to avoid government intervention; (7)to please customers,employees,and society;and (8)because it is the right thing to do.

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

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

Question 67

When faced with slow sales and low profits,even managers with strong ethical values may feel pressured to compromise those values.
When business is good,ethical decisions are less of a dilemma.When under pressure,however,managers may face more difficult decisions.

Question 68

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

Question 69

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

Question 70

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.
An integrity-based ethics code emphasizes ethically sound behavior,and shared accountability among employees.

Question 71

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.
A business should manage ethically for many reasons.Managers will often evaluate the cost of ignoring poor ethical behavior in light of the fact that government will often create laws that punish companies that misbehave.

Question 72

As a manager,you have a responsibility for the unethical behavior of your employees.
Individuals do not usually act alone.They need the implied,if not the direct,cooperation of others to behave unethically in a corporation.

Question 73

People who report illegal or unethical behavior are called whistleblowers.

Question 74

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

Question 75

"Do what I say,not what I do" can be an effective code of conduct to instill corporate values.
People learn their standards and values from observing what others do.They seldom adopt values strictly from what others say.

Question 76

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 77

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

Question 78

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code.
Compliance-based ethics codes emphasize the prevention of unlawful behavior by increasing control and by penalizing wrongdoers.

Question 79

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

Question 80

Employees,just like children,can observe behavior and adopt standards of right and wrong.
People learn their standards of values from observing what others do,but not particularly from hearing what they say.