Deck 2: Business Ethics and Social Responsibility

Question 1

List and briefly describe the three stages of moral and ethical development.

Answer 1

The three stages of moral and ethical development are preconventional, conventional, and postconventional. In the preconventional stage, individuals primarily consider their own needs and desires in making decisions. They obey rules only because they are afraid of the consequences. 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.

Question 2

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
A person in the _____ of ethical development is able to move beyond self-interest and take into account the larger needs of society.

Answer 2

l

Question 3

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
A strategy that emphasizes a firm's commitment to environmentally friendly products and production is _____.

Answer 3

o

Question 4

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
Having _____ means adhering to deeply felt ethical principles in all business situations.

Question 5

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
When a publicly traded firm is suspected of unethical or illegal behavior, the _____ will conduct an investigation.

Question 6

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
The main federal regulatory agency in setting workplace safety and health standards is the _____.

Question 7

What are business ethics and why are they important?

Question 8

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
The _____ is a law that protects whistle-blowers who file a lawsuit on behalf of the government if they believe that a company has somehow defrauded the government.

Question 9

List and describe three possible guidelines for business etiquette.

Question 10

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
A situation where a business decision may be influenced by the potential for personal gain is a(n) _____.

Question 11

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
Some companies measure social performance by conducting a(n)_____ that identifies and evaluates the company's activities that relate to social issues.

Question 12

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
A formal statement that defines how an organization expects and requires employees to resolve ethical questions is a(n) _____.

Question 13

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
_____ is an employee's disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices of his or her employer.

Question 14

Describe the factors that influence an individual's business ethics.

Question 15

Describe examples of honesty and integrity violations in the workforce.

Question 16

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
Inappropriate actions of a sexual nature in the workplace is _____.

Question 17

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
_____ refers to the responsibility of manufacturers for injuries and damages caused by their goods.

Question 18

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
_____ requires publicly traded companies to announce major information to the general public, rather than first disclosing the information to selected investors.

Question 19

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
The standards of conduct and moral values governing actions and decisions in the work environment are _____.

Question 20

MATCHING
Complete the following using the terms listed.
a.Securities and Exchange Commission (SEC)
b.Occupational Safety and Health Administration (OSHA)
c.False Claims Act
d.integrity
e.social audit
f.social responsibility
g.business ethics
h.sexual harassment
i.code of conduct
j.conflict of interest
k.Product liability
l.postconventional stage
m.Regulation FD
n.Whistle-blowing
o.green marketing
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 _____.

Question 21

How could loyalty versus truth create an ethical dilemma for a businessperson?

Question 22

Explain how state and federal agencies carry out their responsibilities of protecting investors from financial misdeeds. Include examples of specific organizations and agencies.

Question 23

Businesses have responsibilities to _____.

A) investors and customers only
B) investors, customers, employees, and society
C) investors, customers, and government
D) investors only

Question 24

When management considers social and economic issues in decision making, the company is practicing _____.

A) gatekeeping
B) consumerism
C) social responsibility
D) altruism

Question 25

Explain product liability and briefly describe what this means in terms of social responsibility.

Question 26

Why is ethical leadership so important?

Question 27

What might a company's code of conduct include?

Question 28

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

A) The government will take action if a firm fails to act ethically.
B) Acting ethically always maximizes profits in the immediate future.
C) Acting ethically will help a company to prosper in the long run.
D) The right thing to do is always the least expensive alternative.

Question 29

Explain how the Food and Drug Administration (FDA) promotes the consumers' right to be informed.

Question 30

Which of the following statements is correct?

A) Ethical conflicts usually arise in trying to serve the needs of separate constituents.
B) Setting ethical standards is always clear-cut.
C) The ethical values of individual employees have no influence on the decisions and actions a business takes.
D) Setting ethical standards is easy.

Question 31

Explain social responsibility.

Question 32

Business ethics begins with _____.

A) a firm's investors
B) the individual employee
C) the government
D) a firm's customers

Question 33

In today's business environment, who can make the difference in ethical expectations and behavior?

A) Everyone
B) No one
C) Only top-level managers
D) Only the CEO

Question 34

The development of a corporate culture to support business ethics happens on four levels. Explain each of the four levels.

Question 35

Why do investors expect a firm to act ethically and exhibit social responsibility?

Question 36

What are the objectives of the consumerism?

Question 37

What is a social audit? Who conducts it?

Question 38

Explain how state and federal laws protect whistle-blowers.

Question 39

Businesses should _____.

A) do what is right regardless of profits
B) find the balance between doing what is right and doing what is profitable
C) invest only in sectors that are profitable
D) do whatever is in the company's best interests

Question 40

What is green marketing?

Question 41

Many people rationalize unethical acts at work because they _____.

A) feel pressured on their jobs to meet performance goals
B) know they can always get away with it
C) have no personal or moral values
D) are fundamentally unethical

Question 42

Brianna focuses on her duty to family and work and bases her actions on the expectations of various groups in her life. Brianna is in _____ stage of ethical development.

A) postconventional
B) traditional
C) conventional
D) preconventional

Question 43

Technology has _____ ethical issues.

A) expanded the range of
B) further complicated
C) made little difference on the range of
D) eliminated most

Question 44

Hemi is a reckless driver and always jumps the red light in the absence of any patrol officers, but he refrains from speeding on highways as he is fearful of paying up hefty fines to patrol officers. Hemi is most likely to be in the _____ stage of ethical development.

A) preconventional
B) postconventional
C) conventional
D) unconventional

Question 45

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.

A) preconventional
B) conventional
C) postconventional
D) concentrations

Question 46

How should a businessperson deal with a conflict of interest?

A) Ignore it
B) Send an email to the superior
C) Disclose it or avoid it
D) Report it only to close friends

Question 47

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

A) preconventional
B) unconventional
C) postconventional
D) conventional

Question 48

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

A) Misreporting time on the job
B) Internet abuse
C) Whistle-blowing
D) Safety violations

Question 49

Alezae does not make personal long-distance phone calls at work because it will cost her employer money. Alezae is in the _____ stage of ethical developement.

A) conventional
B) traditional
C) postconventional
D) preconventional

Question 50

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

A) Department supervisors
B) Ethics compliance officers
C) Human Resource managers
D) Social behaviorists

Question 51

Individuals who focus only on their own interests when making decisions are at the _____ stage of ethical development.

A) preconventional
B) conventional
C) postconventional
D) unconventional

Question 52

Which of the following is not a factor in determining an individual's ethical development?

A) Experiences
B) Religion
C) Culture
D) Social audit

Question 53

Arwan decides not to cheat on his exam because he fears he will be caught and receive no credit if he is caught. Arwan is in the _____ stage of his ethical development.

A) postconventional
B) preconventional
C) traditional
D) conventional

Question 54

External auditors are examining Benito's company's financial records. Benito knows there may be an error and will tell them about it but only if they ask. They do not ask. In this scenario, Benito's _____ is most likely to be questioned.

A) integrity
B) social responsibility
C) truthfulness
D) loyalty

Question 55

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

A) High-level personnel responsible for compliance
B) Government regulation
C) Consistent enforcement
D) Consistent improvement

Question 56

Glafira is an investment advisor and wants to recommend a stock she happens to own. How should Glafira best deal with this potential conflict of interest?

A) She should not make the recommendation.
B) She should make a negative recommendation.
C) She should make a positive recommendation and then sell the stock.
D) She should disclose the fact that she owns the stock while making the recommendation.

Question 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?

A) preconventional
B) postconventional
C) unconventional
D) conventional

Question 58

Branka 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. Branka declined the gift. Which ethical challenge did she face?

A) Whistle-blowing
B) Honesty and integrity
C) Culture shock
D) Conflict of interest

Question 59

Aimon makes a point of turning off the lights in his office when he is not using it because it saves his company money and saves energy for the environment. Aimon is in the _____ stage of ethical development.

A) conventional
B) postconventional
C) preconventional
D) traditional

Question 60

When an individual moves beyond his or her own needs and desires and takes the needs of society into consideration when making decisions, in which stage of ethical development is this individual?

A) Preconventional
B) Conventional
C) Postconventional
D) Traditional

Question 61

_____ requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud.

A) Americans with Disabilities Act
B) Sarbanes-Oxley Act
C) Consumer Rights Act
D) Genetic Information Nondiscrimination Act of 2008

Question 62

Kanai learns that her company is secretly dumping untreated waste into the city sewer systems, and she informs the local EPA office. Which of the following does NOT describe Kanai's ethical situation?

A) She is acting as a whistle-blower.
B) She has a conflict of interest.
C) She is showing integrity.
D) She is showing loyalty.

Question 63

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

A) action
B) reasoning
C) awareness
D) leadership

Question 64

During a meeting with government regulators, Nicole voluntarily points out a potential problem with a new product her company is testing. Nicole has shown _____.

A) honesty
B) loyalty
C) truthfulness
D) integrity

Question 65

Which of the following would be LEAST likely to be a factor in evaluating a firm's social performance?

A) Providing a safe, healthy workplace
B) Respecting the cultural diversity of employees
C) Holding company-sponsored social events
D) Producing safe, high-quality products

Question 66

Macrozine Inc. provides support for employees faced with ethical dilemmas. An ethics compliance officer is available in the Human Resources office or through an employee hotline. This is an example of ethical _____.

A) reasoning
B) awareness
C) whistle-blowing
D) action

Question 67

_____ goes beyond truthfulness.

A) Honesty
B) Loyalty
C) Integrity
D) Competence

Question 68

Horus is a new employee at an IT firm. Soon he learns of the unethical practices done by his superiors and other employees at the firm. He immediately informs such instances and behaviors to the upper management and other officials at the firm. This act by Horus is known as _____.

A) whistle-blowing
B) scaremongering
C) auditing
D) fear mongering

Question 69

Veata's supervisor asks her to conceal information from external auditors examining the company's financial records. What is Veata's ethical challenge?

A) Loyalty versus truth
B) Conflict of interest
C) Honesty and integrity
D) No ethical challenge

Question 70

Daichi takes responsibility for an error made by his assistant on a project. Daichi has shown _____.

A) loyalty
B) honesty
C) integrity
D) truthfulness

Question 71

Online simulation training such as the Ethics Challenge can help to improve ethical _____.

A) awareness
B) reasoning
C) leadership
D) action

Question 72

A formal statement that defines how the organization expects and requires employees to resolve ethical questions is _____.

A) social responsibility statement
B) an organizational culture
C) a code of conduct
D) an ethical environmental statement

Question 73

Development of a corporate culture to support business ethics occurs on each of the following levels EXCEPT ethical _____.

A) success
B) awareness
C) reasoning
D) leadership

Question 74

Which of the following can improve ethical reasoning in a company?

A) Whistle-blowing
B) Practical training sessions
C) Mission statement
D) Organizational culture

Question 75

Embellishing one's résumé shows a lack of ______ and ______.

A) honesty and loyalty
B) honesty and integrity
C) integrity and loyalty
D) competence and loyalty

Question 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?

A) It will stay about the same.
B) It will improve.
C) It will create uncertainty among employees.
D) It will deteriorate.

Question 77

Rangsey was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Rangsey was worried about his family's financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Rangsey's action is called _____.

A) ethical compliance
B) whistle-blowing
C) ethical allegations
D) fear mongering

Question 78

Ethical _______ changes each employee personally to uphold the company's core values and be willing to base their actions on them.

A) leadership
B) awareness
C) action
D) reasoning

Question 79

Bente knows of a defect in a product his company sells. He will disclose the defect but only if the customer specifically asks about it. Bente's _____ could be called into question.

A) altruism
B) integrity
C) loyalty
D) truthfulness

Question 80

The sales manager decides to double each salesperson's monthly quota. What impact is this action likely to have on the company's ethical climate?

A) It will improve.
B) It will remain the same.
C) It will deteriorate.
D) It will generate healthy competition.