Business Ethics

Corporate social responsibility is defined as which of the following?

  An organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders

 After the accounting scandals of the early 2000s, which of the following was/were enacted to restore confidence in financial reporting and business ethics?

  Sarbanes-Oxley Act

The Sarbanes-Oxley Act resulted in which of the following?

  It created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting.

To survive and contribute to society, which of the following is true?

  Businesses must earn a profit.

When building long-term relationships between businesses and consumers, which of the following is essential for success? 

Trust

Which of the following statements about the Dodd-Frank Wall Street Reform and Consumer Protection Act is true?

  It was designed to make the financial services industry more responsible.

 Specific and pervasive boundaries for behavior that should not be violated are known as ____.

  Morals 

The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guides individual and group behavior in business is defined as _______.

business ethics

A situation where a person is faced with multiple choices, all of which are undesirable as defined by that person, is known as a(n) _______.

 moral dilemma

Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as _______.

  stakeholders

 The degree to which a firm understands and addresses stakeholder demands refers to _______.

  a stakeholder orientation

Which of the following would typically be considered a primary stakeholder group?

  Community

What do critics of high compensation for boards of directors point to as being problematic?

 High compensation could cause a conflict of interest.

Board members being linked to more than one company is defined as which of the following?

  An interlocking directorate

A stakeholder orientation is not complete unless it includes which of the following?

  Activities that address stakeholder issues

A broader view of social responsibility is one that _______.

considers the long-term welfare of society

Evidence suggests that caring about the well-being of stakeholders leads to increased profits. t or f

  True 

Ethics and social responsibility can be used interchangeably. t ot f

false

 Government regulatory agencies are considered a secondary stakeholder group. t or f

false

Fiduciaries are persons placed in positions of trust that act on behalf of the best interests of the organization. Both directors and officers of corporations are fiduciaries for their shareholders, tasked with making informed and prudent decisions, referred to as a _______.

  duty of care or a duty of diligence

Sustainable development is best defined as which of the following?

  Meeting the needs of the present without compromising the ability of future generations to meet their own needs, with an emphasis on the natural environment

 One of the biggest factors in land pollution is the dumping of waste into landfills. By far the world’s biggest wasters are consumers in _______.

  the United States

 Which of the following is a comprehensive set of environmental standards developed by the International Organization for Standardization to encourage a cleaner, safer, healthier world?

  ISO 14000

   Which of the following does a cap-and-trade program reduce?

Waste

Created in 1997, the Kyoto Protocol was an international treaty meant to curb global _______.

  greenhouse gas emissions

 Because ethanol is created from corn in the United States, there are concerns that the increased use of ethanol will decrease food supplies. t or f

true

Acid rain, waste management, urban sprawl, and deforestation are all environmental issues related to land. t or f

false

Recycling is the reprocessing of materials—especially steel, aluminum, paper, glass, rubber, and some plastics—for reuse. t or f 

true 

The long-term variation in average weather patterns is referred to as _______.

climate change

Many businesses can benefit from urban renewal movements that reduce sprawl, but it can create disadvantages for _______.

 car and oil companies

Farmers cannot keep harvested seed from genetically modified crops, but must purchase them each year from companies such as Bayer, due to the fact that such seeds are _______.

  Patented

Documented best practices that are not enforced but carry consequences for misconduct that results from ignoring them are known as _______.

  core practices

Which of the following acts can be classified as procompetitive legislation?

 Sherman Antitrust Act of 1890

Which of the following acts exempted the insurance industry from antitrust legislation?

  McCarran-Ferguson Act of 1944

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

  Pure Food and Drug Act of 1906

The Dodd–Frank Act established which of the following as an independent agency within the Federal Reserve System?

  Consumer Financial Protection Bureau

Which of the following is a provision of the Sarbanes–Oxley Act?

  Requires greater transparency in financial reporting

The desire to find a solution to a social problem rather than to simply earn profits is a characteristic of which of the following?

  Social entrepreneurs

  Regulation of tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products is the responsibility of which of the following?

The Food and Drug Administration

 Which of the following is an example of special legal protections for groups of people with specific vulnerabilities?

  Children’s Online Privacy Protection Act

Which of the following was called “a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression”?

  Dodd–Frank Wall Street Reform and Consumer Protection Act

The rights and duties of individuals and organizations (including businesses) are defined by _______ law.

  civil

An ethical issue is defined as a problem, situation, or opportunity that _______.

requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

  Insider trading can be defined as which of the following?

The buying or selling of stocks by insiders who possess information that is not yet public

Which of the following is an important element of virtue and is defined as being whole, sound, and in an unimpaired condition?

  Integrity

 A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as _______.

collusion 

When an employee sorts through a competing business's trash to see if there are any documents that could reveal secret information, this is an example of a misuse of which of the following?

  Corporate intelligence

Issues related to fairness and honesty may arise because business is often regarded as which of the following?

  A game governed by its own rules rather than those of society

War metaphors are common in business. Why can this kind of mindset be dangerous for business leaders?

  Because it may foster the idea that anything is acceptable in business

Conflicts of interest arise when an individual must choose between which of the following?

  To advance their own personal interests, those of the organization, or those of some other group

The offering of something of value in order to gain an illicit advantage is known as _______.

bribery

 The process of handling a high-impact event characterized by ambiguity and the need for swift action to assess and respond to potential damage is known as which of the following?

  Crisis management

Any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression is known as which of the following?

  Fraud