Question 1

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.

Accepted Answer

A) True 
 B)False

Question 2

Abby is a stockbroker for a large financial services company. A client who works at Sixth Generation Software, Ltd., just called to purchase several thousand shares of his company's stock. He reveals to her that the company is about to announce the appointment of a new CEO. Abby asks her client if this information is public knowledge. The reason she asks is to make certain that her client, her company, and she remain in compliance with Regulation FD, the Fair Disclosure rule.

Accepted Answer

A) True 
 B)False

Question 3

Although college graduates would prefer to work for socially responsible companies,

Accepted Answer

A)   they would not consider less pay to do so.
B)   they are not interested in companies that spend resources for corporate social initiatives.
C)   they are not in agreement as to what it means to be socially responsible.
D)   they favor Milton Friedman's philosophy on the subject.E) All of the above
F) A) and C)

Question 4

Environmental quality is considered to be a public good. This means that:

Accepted Answer

A)   ultimately it is the public that pays for environmental clean-up.
B)   businesses have a responsibility to minimize their environmental pollution.
C)   everyone enjoys a cleaner environment regardless of who pays for it.
D)   society places a higher value on private goods and services.E) A) and D)
F) None of the above

Question 5

The majority of CEOs blame unethical employee conduct on:

Accepted Answer

A)   the breakdown of traditional religious institutions.
B)   a failure of leadership to establish ethical standards.
C)   the increase in lawsuits used to avoid personal responsibility.
D)   the nation's business schools that tolerate unethical behavior in students.E) B) and D)
F) All of the above

Question 6

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

Accepted Answer

A) True 
 B)False

Question 7

U.S. businesses consider The Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Accepted Answer

A) True 
 B)False

Question 8

Ethical behavior focuses on treating others fairly.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following questions can help us avoid a decision that would injure our self-esteem?

Accepted Answer

A)   Is it legal?
B)   Is it balanced?
C)   How will it make me feel about myself?
D)   How can I avoid taking the blame?E) B) and C)
F) A) and D)

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were:

Accepted Answer

A)   acting really smart.
B)   engaging in insider trading.
C)   stealing from IBM.
D)   acting fairly.E) None of the above
F) A) and B)

Question 12

The Foreign Corrupt Practices Act deals with:

Accepted Answer

A)   prison labor involved in international trade.
B)   high seas piracy that has had a resurgence in the past five years.
C)   bribery to obtain business.
D)   product safety concerns such as the dog food scare of 2008.E) All of the above
F) A) and D)

Question 13

International issues of social responsibility and ethical behavior are:

Accepted Answer

A)   the result of greed found in capitalist countries.
B)   found primarily in countries with a low standard of living.
C)   a concern only of business professors.
D)   difficult and not as clear-cut as U.S. firms would like them to be.E) B) and C)
F) B) and D)

Question 14

As the number of multinational corporations increases, we are experiencing international ethical dilemmas. One very real concern during the past decade is the human rights abuses in sweatshops where several multinationals contract manufacture their products, in exchange for cheap labor. Several retailers have banned together to set ethical standards in foreign factories. Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?

Accepted Answer

A)   Multinationals must subjectively determine the local "living wage," which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops.
B)   Economically sensitive customers want companies to pass along cost savings to them, at all costs, even if the products are made through offshore outsourcing. Companies want to please customers, first!
C)   Most multinational corporations have made no attempt to improve working standards at sweatshop factories. They will turn a blind eye to the problem unless U.S. law is passed to force the issue. Customers understand that legal limits come before ethical standards.
D)   Multinationals cannot be expected to demand socially responsible behavior from their supplier, including foreign sweatshops. When doing business abroad, the U.S. company need not comply with U.S. law when its supplier(s)  is not in the U.S. or on U.S. territory.E) None of the above
F) A) and D)

Question 15

Which of the following statements is not one of the six steps recommended by experts for improving ethical behavior at work?

Accepted Answer

A)   Management should be trained to always consider the ethical implications of decisions.
B)   Top management should unconditionally support a company's corporate code of ethics.
C)   Whistleblowers should be protected from retaliation.
D)   Outsiders should be kept outside. There is no reason to share your firm's corporate code of ethics. It is an internal and private document.E) None of the above
F) A) and B)

Question 16

The brewers of Budweiser beer encourage their customers to drink responsibly. This reflects a compliance-based approach to ethics.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements describes ethical behavior in the U.S.?

Accepted Answer

A)   Due to the diverse cultures that make up the U.S. it is difficult to identify common standards of ethical behavior.
B)   The only common standards of ethical behavior in the U.S. are reflected in religious teachings.
C)   We can find common moral values that many Americans uphold, including respect for human life, self-control, honesty, integrity, and courage.
D)   Americans will generally describe the golden rule as the only statement of value that they uphold.E) A) and D)
F) None of the above

Question 18

Ethical behavior at work is learned by:

Accepted Answer

A)   attending corporate responsibility seminars.
B)   tracking the failures of those who are caught in business scandals.
C)   reading about why others were fired from the job.
D)   observing the actions of others.E) A) and C)
F) All of the above

Question 19

To improve America's business ethics:

Accepted Answer

A)   Congress must pass an ethics bill.
B)   ethics must be taught in every business school around the globe.
C)   a company's suppliers must be thoroughly investigated for ethical violations.
D)   company leaders should adopt and support a corporate code of ethics.E) All of the above
F) None of the above

Question 20

Some investors believe it makes financial as well as moral sense to invest in companies whose practices promote sensitivity toward the environment.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Ethical behavior focuses on treating others fairly.

Correct Answer
verified

Environmental quality is considered to be a public good. This means that:

Correct Answer
verified

Which of the following statements is not one of the six steps recommended by experts for improving ethical behavior at work?

Correct Answer
verified

International issues of social responsibility and ethical behavior are:

Correct Answer
verified

Correct Answer
verified

The majority of CEOs blame unethical employee conduct on:

Correct Answer
verified

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.

Correct Answer
verified

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

Correct Answer
verified

Ethical behavior at work is learned by:

Correct Answer
verified

Some investors believe it makes financial as well as moral sense to invest in companies whose practices promote sensitivity toward the environment.

Correct Answer
verified

Correct Answer
verified

The Foreign Corrupt Practices Act deals with:

Correct Answer
verified

Which of the following statements describes ethical behavior in the U.S.?

Correct Answer
verified

Although college graduates would prefer to work for socially responsible companies,

Correct Answer
verified

To improve America's business ethics:

Correct Answer
verified

Correct Answer
verified

The brewers of Budweiser beer encourage their customers to drink responsibly. This reflects a compliance-based approach to ethics.

Correct Answer
verified

Which of the following questions can help us avoid a decision that would injure our self-esteem?

Correct Answer
verified

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.

Correct Answer
verified

U.S. businesses consider The Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Correct Answer
verified

Exam 4: Demanding Ethical and Socially Responsible Behavior

Ethical behavior focuses on treating others fairly.

Correct AnswerverifiedShow Answer

Environmental quality is considered to be a public good. This means that:

Correct AnswerverifiedShow Answer

Which of the following statements is not one of the six steps recommended by experts for improving ethical behavior at work?

Correct AnswerverifiedShow Answer

International issues of social responsibility and ethical behavior are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The majority of CEOs blame unethical employee conduct on:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

Correct AnswerverifiedShow Answer

Ethical behavior at work is learned by:

Correct AnswerverifiedShow Answer

Some investors believe it makes financial as well as moral sense to invest in companies whose practices promote sensitivity toward the environment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act deals with:

Correct AnswerverifiedShow Answer

Which of the following statements describes ethical behavior in the U.S.?

Correct AnswerverifiedShow Answer

Although college graduates would prefer to work for socially responsible companies,

Correct AnswerverifiedShow Answer

To improve America's business ethics:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The brewers of Budweiser beer encourage their customers to drink responsibly. This reflects a compliance-based approach to ethics.

Correct AnswerverifiedShow Answer

Which of the following questions can help us avoid a decision that would injure our self-esteem?

Correct AnswerverifiedShow Answer

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.

Correct AnswerverifiedShow Answer

U.S. businesses consider The Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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