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

A) True
B) False

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An important step in improving U.S.business ethics is for companies to hire whistleblowers.

A) True
B) False

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Laws represent the standards of ________ behavior.


A) ethical
B) legal
C) moral
D) socially responsible

E) A) and D)
F) B) and C)

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We describe charitable donations by corporations to nonprofit organizations as _________.


A) corporate philanthropy
B) corporate responsibility
C) corporate strategy
D) structural commitment

E) None of the above
F) A) and B)

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A friend offers to share with you a term paper previously prepared for her Introduction to Business class last semester.When you tell her that it wouldn't be fair,she reminds you of your habit of reading an entire Harry Potter book at the local bookstore without paying for the book.Which ethics-based question would be most helpful in evaluating these situations?


A) Is it legal?
B) Is it balanced?
C) Who wins and who loses?
D) Will I get caught?

E) All of the above
F) A) and B)

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Often it is the threat of negative publicity that pressures businesses to enforce their corporate code of ethics.

A) True
B) False

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After a few years of being in business,employees who worked for a start-up software company noticed that the owner overlooked certain questionable actions of high billing associates,versus other employees who worked hard but only brought in an average number of new clients each month.With respect to what you learned in this chapter about the ethical behavior of many Americans,which of the following statements applies here?


A) This story indicates that moral absolutes are very prevalent today in business settings.
B) The owner will continue to operate this way until someone blows the whistle.
C) We cannot expect people in the U.S.to all follow similar ethical patterns because there are too many cultures to deal with.Businesses are no different.
D) As is often the case today,some leaders will look at each situation individually when making value judgments.

E) B) and C)
F) All of the above

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In an effort to promote the importance of a valuable education,the faculty and staff at the local community college are trained to ask each student about their career preferences,rather than suggest courses that may not benefit the student's future goals.Although it would be tempting to suggest courses just to increase the College's enrollment,employees know that it is more important to serve each student well,even if it means suggesting courses and/or degrees offered at other institutions.This approach is consistent with:


A) an integrity-based ethics code.
B) a compliance-based ethics code.
C) a response to a government mandate.
D) a personal responsibility commitment.

E) None of the above
F) A) and C)

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Following an ethics-based approach to decision making will normally lead to:


A) higher profits.
B) lower employee turnover.
C) lower prices.
D) more competition.

E) None of the above
F) All of the above

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During the 2010 Gulf Oil Spill,former BP CEO,Tony Hayward,was quoted as saying: "I want my life back!" Although he apologized for this remark in a later statement,the original message remained in the thoughts of many,particularly under the circumstances that 11 persons lost their lives;several communities experienced extreme devastation;many fishing industry businesses lost their livelihood;and dead sea life washed up on the shores of several southern states and Mexico.In terms of corporate social responsibility,which of the following statements would you like to share with Tony Hayward?


A) We should repeat well-known economist Milton Friedman's statement that the only social responsibility of business is to make money for stockholders.
B) The company's CSR (corporate social responsibility) approach lacked whistleblowers that would expose exactly who was responsible for the crisis,most likely,the company that made the oil rig.
C) Ethical standards begin with a company's management and the messages they send.CSR takes into account investors,employees,and society and the environment.
D) The best CSR approach to deter bad publicity would be to quickly list all the good things this company has done for society over the past five years.

E) B) and C)
F) A) and C)

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Determining what is involved for a firm to be socially responsible:


A) is easy.
B) varies even among those who are interested in corporate responsibility.
C) helps government officials develop appropriate legislation.
D) varies from industry to industry due to different laws.

E) B) and C)
F) C) and D)

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

A) True
B) False

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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?"

A) True
B) False

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

A) True
B) False

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When Bagel Works employs in-store recycling,composting,and uses nontoxic cleaners,Bagel Works is participating in:


A) corporate philanthropy.
B) corporate social initiatives.
C) corporate responsibility.
D) corporate policy.

E) All of the above
F) A) and D)

Correct Answer

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________ refers to standards of moral behavior.


A) Legality
B) Responsibility
C) Integrity
D) Ethics

E) None of the above
F) C) and D)

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

A) True
B) False

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To be effective,an organization's code of ethics needs to be communicated to outsiders such as suppliers,subcontractors,and customers.

A) True
B) False

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Following an ethics-based approach to decision making will normally lead to higher:


A) profits.
B) trust and cooperation.
C) prices.
D) employee turnover.

E) A) and C)
F) B) and C)

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People need to make a living.Under this circumstance,one of the best social programs a firm can offer is:


A) a job.
B) a commitment to programs that promote green living.
C) a high-end product line.
D) flexible work hours.

E) A) and C)
F) A) and B)

Correct Answer

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