Question 1

The term business ethics is best described by the following statement:
1. It is the study and philosophy of human conduct with an emphasis on determining right and wrong.
2. 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."
3. 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."
4. It is an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
5. It comprises the principles, values, and standards that guide behavior in the world of business.

Question 2

Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"?
1. The right to choose
2. The right to safety
3. The right to be informed
4. The right to be ethical
5. The right to be heard

Question 3

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
1. Sarbanes-Oxley Act
2. Federal Sentencing Guidelines for Organizations
3. Dodd-Frank Wall Street Reform and Consumer Protection Act
4. Foreign Corrupt Practices Act
5. Global Sullivan Principles

Question 4

The 1960s saw a rise of consumerism. What is consumerism?
1. An increase in consumer rights by organizations and governments
2. The growth of international retail chain stores
3. Activities undertaken by independent individuals and groups to protect their rights as consumers.
4. The widespread adoption of consumer oriented marketing strategies among businesses
5. Organizations' tendency to seek ways to take advantage of consumers

Question 5

Which of the following industries tends to generate a high level of trust fro consumers and stakeholders?
1. Insurance
2. Technology
3. Banks
4. Mortgage lenders
5. Financial services

Question 6

Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
1. Supplies of capital and resources
2. Expertise and leadership
3. Word-of-mouth promotion
4. Infrastructure
5. Pro-bono bookkeeping

Question 7

A stakeholder group that is absolutely necessary for a firm's survival is defined as:
1. direct
2. tertiary
3. secondary
4. special-interest
5. primary

Question 8

When unethical acts are discovered in a firm, in most instances
1. they are caused by unwilling participants
2. the cause is due to external stakeholders
3. the perpetrators are caught and prosecuted
4. there was knowing cooperation or complicity from within the company
5. the cause is a corrupt Board of Directors

Question 9

Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
1. Surveys
2. Focus groups
3. Internet searches
4. Press reviews
5. Guessing

Question 10

A stakeholder orientation can be viewed as a(n)
1. necessity for business success
2. continuum
3. polarizing concept
4. good marketing ploy
5. expensive proposition

Question 11

Shareholders provide resources to an organization that are critical to long term success. Which of the following does the textbook suggest that suppliers offer?
1. The promise of customer loyalty
2. Material resources and/or intangible knowledge
3. Infrastructure
4. Revenue
5. Leadership skills

Question 12

____________ is an important element of virtue and means being whole, sound, and in unimpaired condition.
Answers:
1. Ethical issue
2. Honesty
3. Trust
4. Integrity
5. Optimization

Question 13

A court found an oil company guilty of placing profits over th safety and well-being of its employees. This situation can be classified as:
1. ethical
2. unethical
3. an ethical issue
4. a dilemma
5. a justice issue

Question 14

A person uncomfortable with his employer's unspoken policy of hiring only white men is experiencing
1. a conflict of interest
2. an ethical issue
3. a feeling of guilt
4. cognitive dissonance
5. a moral attribute

Question 15

Issues related to fairness and honesty may arise because business is sometimes regarded as a
1. legal case, where everything must be done to the letter of the law
2. contest, with the most ethical firm "winning."
3. guerrilla war where anything goes in the fight for consumers' dollars
4. game governed by its own rules rather than those of society
5. game governed by the rules of society

Question 16

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because
1. it may lead executives to become violent
2. it may foster the idea that honesty is unnecessary in business
3. it may lead organizations to be excessively aggressive
4. business is not like warfare and the metaphors are not appropriate
5. business is more like a game than a war

Question 17

Conflicts of interest exist when employees must choose whether to
1. advance their own personal interests, those of the organization, or those of some other group
2. advance the interests of the organization or those of society
3. accept bribes or not
4. carry out an assignment they perceive to be unethical
5. report an unethical coworker

Question 18

______________ is the offering of something of value in order to gain an illicit advantage
Answers:
1. Shoulder surfing
2. Hacking
3. Gift exchange
4. Conflicts of interest
5. Bribery

Question 19

Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct?
1. Council on Economic Priorities Social Accountability 8000
2. Ethical Trading Initiative
3. U.S. Apparel Industry Partnership
4. United States Sentencing Commission
5. World Trade Organization

Question 20

_______________ is essential in building long-term relationships between businesses and consumers.
1. Profits
2. Dividends
3. Trust
4. Hubris
5. Code of ethics

Question 21

The Dodd-Frank Wall street Reform and Consumer Protection Act
1. was very popular among Wall Street bankers
2. represented only modest reform
3. came out of theological discussions in the 1920s
4. was designed to make the financial services industry more responsible
5. made it mandatory for public corporations to ire ethics officers

Question 22

In the Reagan/Bush eras, the major focus of the business world was on
1. self-regulation rather than regulation by government
2. decreasing the number of mergers
3. decreasing the multinational presence in the U.S. marketplace
4. increasing government influence on the economic arena
5. improving business ethics

Question 23

The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
1. Better business Bureau ethical guidelines
2. the Federal Sentencing Guidelines for Organizations
3. the Ethical Trading Initiative
4. the Federal Trade Commission compliance requirements
5. the Sarbanes-Oxley Act

Question 24

Ethical culture is defined as
1. rules, standards, and moral principles regarding what is right or wrong in specific situations
2. the establishment and enforcement of ethical codes throughout the organization
3. the development of rule and norms that are socially enforced
4. the codification of laws to reward organizations for taking action to prevent misconduct
5. the character of the decision-making process that employees use to determine whether their responses to ethical issues are right or wrong based on values and norms

Question 25

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by
1. codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct
2. forcing all organizations to develop mandatory reporting systems
3. eliminating most of the federal legislation that created inefficient and time-consuming activities for businesses
4. providing a study of moral philosophies
5. providing an examination of company codes of ethics