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Which of the following is a possible unintended consequence of an organization’s focusing more on ethics planning that on implementation?
Unethical conduct is viewed as acceptable behavior.
The government implements its own audits.
The ethics program is poorly designed
Employees become annoyed.
The implementation process incurs large costs for the organization.
A(n) _________ is a tool that companies can employ to indentify and measure their ethical commitment to stakeholders.
Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to
In ascending Order, Caroll’s four levels of social responsibility are:
ethical, legal, economic, philanthropic
economic, ethical, philanthropic, legal
economic, legal, ethical, philanthropic
legal, ethical, economic, philanthropic
ethical, legal, moral, economic
Which ISO guideline pertains to environmental regulation standards and was designed to help reduce a firm’s pollution, waster and carbon footprint?
The term used to express how a firm meets its stakeholder exprectations of its economic, legal, ethical and philanthropic responsibilities is:
corporate ethical audit
Which economist espoused a kind of Darwinian or “wild west” version of capitalism?
What type of fraudulent activity could involve a comsumer staging an accident to seek damages?
Prior to the 2008 financial meltdown, bond ratings agencies were accused of having _____ because they were paid by the organizations that they rated. The organizations would shop around for the agency that gave them the best rating.
high ethical standards
excessively complicated systems
a hostile workplace
conflicts of interest
a good business model
_____ are used to obtain or retain business and are not generally considered illegal in the U.S.
Which of the following is not a step in the ethics auditing process?
Secure commitment of top executives and directors.
Review organizational mission, goals, values and policies, and define ethical priorities.
Report the results to the U.S. Sentencing Commission.
Collect and analyze relevant information.
verify the result.
The word _____ implies a balanced organization that makes ethical financial decisions and also is ethical in more subjective matters of corporate culture.
Which of the following is not a measure of ethical climate?
Collective ethical sensitivity
Collective moral motivation
During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility?
Secure commitment of top managers and directors.
Establish a committee to oversee the audit.
Define the scope of the audit process
Review organizational mission, goals, values, and policies.
verify the results.
A(n) _____ is a financial accounting firm that offers social auditing services or a nonprofit special interest group with auditing experience that verifies the results of ethics auditing data analysis
ethics audit consultant
best practices expert
board of directors
_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the “invisible hand
Bimmodal wealth distribution
______ assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb.
Which of the following is not a criticism of or charge against multinational corporations (MNCs)?
They transfer jobs overseas, where wage rates are lower
They increase the gap between rich and poor nations
They pay excessively high taxes everywhere
They exploit the labor markets of host countries
They have an unfair advantage when competing with local businesses
Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?
Levying import taxes to lower the prices MNCs charge for their products
Halting the establishment of minimum wage laws
Avoiding the United Nations’ monitoring efforts
Preventing the formation of labor unions
Imposing export taxes to force MNCs to share more of their profits
An unconscious reference to one’s own cultural values, experiences, and knowledge is referred to as the
cultural reference criterion
unconscious cultural criterion
unconscious cultural-self criterion
Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually?
Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?
The relativist perspective
_____ typically focuses on the end result of actions and happiness created by them, whereas _____ emphasizes the means and motives by which actions are justified.
Utilitarianism; a goodness theory
A goodness theory; an obligation theory
is when an individual puts spiritual feelings above all others.
centers completely on the short-term well-being of others.
centers on one’s short-term self-interest.
centers on one’s long-term self-interest but takes others’ well-being into account.
centers on the long-term well-being of others
_____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.
Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations?
Disclaimer of opinion
Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.
Sherman Antitrust Act
Ethical Compliance Act
Sherman Antitrust Act
During which of the following steps of the ethics auditing process does an organization identify the tools or methods for measuring progress in improving employees’ ethical decisions and conduct?
Secure commitment of top managers and directors
Establish a committee to oversee the audit
Define the scope of the audit
Collect and analyze relevant information
Verify the results
_____ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization’s success.
Special interest groups
The concept of ethics auditing emerged from the movement to audit and report on companies’ broader _____ initiatives.
Which of the following is probably the best way for a manager to provide good ethics leadership?
Hire an ethics officer
Write a code of conduct
Conduct ethics audits
Set a good example
Only hire good employees
Which of the following statements about multinational corporations (MNCs) is false?
MNCs are corporate organizations that operate on a global scale without significant ties to any one nation or region.
MNCs are inherently unethical and always do harm in the countries in which they operate.
MNCs are characterized by a global strategy of focusing on opportunities throughout the world.
Some MNCs are so large and powerful that their revenues are greater than the gross domestic products of many countries.
Because of their size and power, MNCs have been the subject of much criticism and the source of a number of ethical issues.
When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad. This practice is called
country cultural values
_____ involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards.
Country cultural values
Bimodal wealth distribution
Risk compartmentalization occurs when
companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically
all profit centers within a corporation are aware of the code of ethics.
all profit centers within an organization become aware of the consequences of competitors’ actions.
various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.
ethics and compliance programs reduce the risk of misconduct.
_____ has been codified in a United Nations document and is defined as an inherent dignity with equal and inalienable rights as the foundation of freedom, justice, and peace in the world.
Strong ethical leaders have a passion for all of the following except to
do the right thing.
consider stakeholder interests.
be role models for the organization and its employees.
satisfy shareholders before other stakeholder groups.
Leaders whose decisions and actions are contrary to the firm’s values send a signal
that the firm’s values are trivial or irrelevant.
that they are providing a good example of what not to do.
that the firm’s corporate culture is highly important.
that they are working toward improving the ethical culture of the firm.
that they care about the environment.
Which attribute of ethical leaders will not be effective unless the leader is personally involved in the organization’s key ethical decisions?
Which is not considered a white collar crime?
Corporate tax evasion
Credit card fraud
An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg’s stages of development?
Universal ethical principles (6th stage)
Mutual interpersonal expectations, relationships, and conformity (3rd stage)
Social system and conscience maintenance (4th stage)
Punishment and obedience (1st stage)
Prior rights, social contract, or utility (5th stage)
Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint?
In Kohlberg’s model, the stage of mutual interpersonal expectations, relationships, and conformity (Stage 3) differs from the stage of individual instrumental purpose and exchange (Stage 2) in terms of the individual’s motives in
considering fairness to others.
maintaining the social order.
considering duty to society
upholding the basic values of society
maintaining obedience to authority
_____ justice considers the processes and activities that produce the outcome or results.
The _____ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control.
Melinda is a very popular executive. She inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Melinda has helped to create a(n) _____ culture.
_____ are satisfied by social and interpersonal relationships, and _____ are satisfied by creative or productive activities.
Growth needs; relatedness needs
Personal needs,; group needs
Coercive needs, ethical needs
Relatedness needs, growth needs
Group needs, personal needs.
Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements:
Culture is shared, relatively stable, and is formed over a long period of time.
Culture is not shared, stable, and is formed over a long period of time.
Culture is shared, not stable, and is formed over a long period of time.
Culture is shared, stable, and is formed over a short period of time.
Culture is man-made, shared, not stable, and is formed over a short period of time.
The elements of ______ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness.
The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role sets is referred to as
cognitive memory dissonance
How can business leaders use Motivation to improve ethical job performance? How does the hierarchy of needs play into a leader’s ability to improve ethical job performance?
Explain the benefits and risks of ethics auditing? 50 word minimum
What is whistle blowing and what are the concerns about this practice?
What is dumping and why is it considered anti competitive? Does the United States allow dumping?
How can differences in two countries’ culture create ethical issue in business?
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