Business Ethics: Decision Making for Personal Integrity & Social Responsibility 3rd Edition

Which of the following is a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders? a. Procuring b. Branding c. Marketing d. Copywriting Answer: cFeedback: The American Marketing Association defines marketing in a way that also suggests that

Values-based cultures are also known as _____ cultures. Answer: ANS :integrity-basedFeedback: In the 1990s, a distinction came to be recognized in types of corporate culture: some firms were classified as compliance-based cultures (the traditional approach) while others were considered to be values-based or integrity-based cultures. Answer: ANS :integrity-basedFeedback: In the 1990s, a

How does a compliance-based structure work? Answer: ANS :A compliance-based culture emphasizes obedience to the rules as the primary responsibility of ethics. A compliance-based culture will empower legal and audits offices to mandate and monitor compliance with the law and with internal codes. Answer: ANS :A compliance-based culture emphasizes obedience to

It is discriminatory to refuse to hire someone about whom you simply have a 'bad feeling,' even if that bad feeling is not based on their difference in race or gender. Answer: FalseFeedback: It is not discriminatory to refuse to hire someone about whom you simply have a 'bad feeling,'

In selling a product, a business offers tacit assurances that the product is reasonably suitable for its purpose. The law refers to this as the: a. doctrine of caveat emptor. b. implied warranty of merchantability. c. doctrine of caveat lector. d. implied warranty of productivity. Answer: bFeedback: Implied warranty of merchantability holds that in

The well-being promoted by ethical values is not a personal and selfish well-being. Answer: TrueFeedback: It is important to know two elements of ethical values. First, ethical values serve the ends of human well-being. Second, the well-being promoted by ethical values is not a personal and selfish well-being. Thus, ethical

Which provision of the Sarbanes-Oxley Act prohibits various forms of professional services that are determined to be consulting rather than auditing? a. Section 201 b. Section 301 c. Section 307 d. Section 404 Answer: aFeedback: Section 201of the Sarbanes-Oxley Act prohibits services outside the scope of auditors'it prohibits various forms of professional services that

Which of the following exemplifies insider trading? a. Underreporting income b. Falsifying account documents c. Misappropriation of proprietary knowledge d. Illegally evading income taxes Answer: cFeedback: Insider trading may be based on a claim of unethical misappropriation of proprietary knowledge, that is, knowledge only those in the firm should have, knowledge owned by the

It is not always easy to determine if someone is being treated with respect in marketing situations. A condition for respect requires that customer consent be not only voluntary, but also _____. Answer: informedFeedback: It is not always easy to determine if someone is being treated with respect in marketing

Monitoring allows the manager to ensure effective, productive performance by preventing the loss of productivity to inappropriate technology use. Answer: TrueFeedback: Monitoring allows the manager to ensure effective, productive performance by preventing the loss of productivity to inappropriate technology use. Answer: TrueFeedback: Monitoring allows the manager to ensure effective, productive performance

One way to distinguish the various types of values is in terms of the ends they serve. _____ values serve the end of beauty. Answer: AestheticFeedback: One way to distinguish various types of values is in terms of the ends they serve. Financial values serve monetary ends; religious values serve

One of the key manifestations of ethical leadership is the articulation of _____ for the organization. Answer: ANS :valuesFeedback: One of the key manifestations of ethical leadership is the articulation of values for the organization. Answer: ANS :valuesFeedback: One of the key manifestations of ethical leadership is the articulation of values

A narrow view of corporate social responsibility is expressed by the: a. social web model of corporate social responsibility. b. integrative model of corporate social responsibility. c. economic model of corporate social responsibility. d. philanthropic model of corporate social responsibility. Answer: cFeedback: As alternatives to the narrow view expressed by the economic model, we

Which of the following is true about tort law? a. Tort law holds that the only duties that a person owes are those that have been explicitly promised to another party. b. Tort law holds manufacturers accountable in cases when consumers are injured by products and no one is at fault. c. Tort

The conservation movement advocated a more restrained and prudent approach to the natural world. Answer: TrueFeedback: The conservation movement, the first phase of modern environmentalism, advocated a more restrained and prudent approach to the natural world. Answer: TrueFeedback: The conservation movement, the first phase of modern environmentalism, advocated a more

If one joins a firm with a culture that supports values other than those with which one is comfortable, there will be a _____. Answer: ANS :values conflictFeedback: If you join a firm with a culture that supports other values than those with which you are comfortable, there will be values

Which of the following is true of normative myopia? a. It occurs when decision makers fail to notice gradual changes over time. b. It refers to the shortsightedness about values. c. It occurs only in business. d. It results from only from focusing failures. Answer: bFeedback: Some writers have called the inability to recognize

Discuss the conflicts surrounding accounting practices. Answer: Linking public accounting activities to those conducted by investment banks and securitiesanalysts creates tremendous conflicts between one component's duty to audit and certify information with the other's responsibility to provide guidance on future prospects of an investment.The ethical issues and potential for conflicts

Which of the following are beliefs and principles that provide the ultimate guide to a company's decision making? a. Mission statement b. Core values c. Historical milestones d. Vision statement Answer: b Feedback: A company's core values are those beliefs and principles that provide the ultimate guide to its decision making. Answer: b Feedback: A

Which of the following statements about the Genetic Information Non-Discrimination Act of 2009 (GINA) is true? a. Under GINA, an employer can collect genetic information in order to monitor the biological effects of toxic substances in the workplace. b. Under GINA, an employer is subject to the same conditions as under the

Which of the following is an internal mechanism that seeks to ensure ethical corporate governance? a. European Union 8th Directive b. The Sarbanes-Oxley Act c. The COSO framework d. European Union 7th directive Answer: cFeedback: The Committee of Sponsoring Organizations (COSO) is an internal mechanism that seeks to ensure ethical corporate governance. Answer: cFeedback: The

Identify the approach that allows the Occupational Safety and Health Administration (OSHA) to make tradeoffs between health and economics. a. Sustainability approach b. Integrative approach c. Market controlled approach d. Feasibility approach Answer: dFeedback: When OSHA was first established, regulations were aimed at achieving the safest feasible standards. This 'feasibility' approach allows OSHA to

Outline the business reasons to limiting monitoring. Answer: First, there is a concern that monitoring may create a suspicious and hostile workplace. By reducing the level of worker autonomy and respect, as well as workers' right to control their environment, the employer has neglected to consider the key stakeholder critical

Standards are fundamentally a social approach that can address public policy questions ignored by markets. Answer: TrueFeedback: Standards can be set according to the best available scientific knowledge and thus overcome market failures that result from insufficient information. Standards prevent employees from having to face the fundamentally coercive choice between

Which of the following is true of the conservation movement? a. It advocated that the natural world should not be used as a capital resource. b. It regarded natural resources as being able to provide an inexhaustible supply of material. c. It recommended a more restrained and prudent approach to the natural world. d.

Briefly outline the challenges of technology discussed in the text. Answer: Technology allows for access to information that was never before possible. However, it is not always possible to determine whether the information has been accessed by someone or not. Access can take place unintentionally as well. Also, because technology

In economic terms, all resources are '_____,' that is, they can be replaced by substitutes, and in this sense resources are infinite. Answer: fungibleFeedback: In economic terms, all resources are 'fungible.' They can be replaced by substitutes, and in this sense resources are infinite. Answer: fungibleFeedback: In economic terms, all resources are

Explain with an example, how eco-efficiency can be implemented on an individual and a business scale. Answer: 'Doing more with less' has been an environmental guideline for decades. On an individual scale, it is environmentally better to ride a bike than to ride in a bus, to ride in a

Discuss the duties of care and good faith. Answer: The duty of care involves the exercise of reasonable care by a board member to ensure thatthe corporate executives with whom she or he works carry out their management responsibilities and comply with the law in the best interests of the

In a strict liability case, if it can be proved that a business was as careful as possible about its product or service, it is not held liable for the harm that results from its use. Answer: FalseFeedback: In a strict liability case, no matter how careful the business is

The _____ tradition reminds us that we are as likely to act out of habit and based on character as we are to act after careful deliberations. Answer: ANS :virtue ethicsFeedback: When we talk about decision making, it is easy to think in terms of a rational, deliberative process in which

Principle-based ethics direct us to consider the moral character of individuals and how various character traits can contribute to, or obstruct a happy and meaningful human life. Answer: FalseFeedback: Virtue ethics directs us to consider the moral character of individuals and how various character traits can contribute to, or obstruct

The concept of a human or moral right is central to the utilitarian ethical tradition. Answer: FalseFeedback: The concept of a human or moral right is central to the principle-based ethical tradition. Answer: FalseFeedback: The concept of a human or moral right is central to the principle-based ethical tradition. Answer: False Feedback: The

Identify one of the implications of the 'dependence effect.' a. Unless a seller explicitly warrants a product as safe, buyers are liable for any harm they suffer. b. Advertising and marketing create consumer wants that support the entire economy. c. The court's ruling on product liability cases is dependent on the extent of

The _____ requires employers to make reasonable accommodations for employees with disabilities. Answer: Americans with Disabilities ActFeedback: The Americans with Disabilities Act (ADA) requires employers to make reasonable accommodations for employees with disabilities. Answer: Americans with Disabilities ActFeedback: The Americans with Disabilities Act (ADA) requires employers to make reasonable accommodations for

The _____ standards for internal controls moved audit, compliance, and governance from a numbers orientation to concern for the organizational environment. Answer: COSOFeedback: The COSO standards for internal controls moved audit, compliance, and governance from a numbers orientation to concern for the organizational environment. Answer: COSOFeedback: The COSO standards for internal

Which of the following is an advantage of monitoring? a. Monitoring tends to promote effective performance since it reduces employees' stress and pressure. b. Monitoring tends to create a friendly workplace without any suspicions. c. Monitoring increases the level of worker autonomy and respect, as well as workers' right to control their environment. d. Monitoring