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In the absence of ethics programs, employees are likely to make decisions based on a. their observations of how their coworkers and superiors behave. b. how they and their family members behave at home. c. their conscience. d. their religious […]

Those who have influence in a work group are referred to as significant others and include a. peers, managers, coworkers, and subordinates. b. family members, peers, and coworkers. c. spouses and friends. d. employees in similar job situations. e. employees […]

A stakeholder orientation can be viewed as a(n) a. necessity for business success. b. continuum. c. polarizing concept. d. good marketing ploy. e. expensive proposition. Which of the following is nota benefit of ethics auditing? a. It can improve a […]

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by a. codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct. b. forcing all organizations to develop […]

Ethical culture is defined as a. rules, standards, and moral principles regarding what is right or wrong in specific situations. b. the establishment and enforcement of ethical codes throughout the organization. c. the development of rules and norms that are […]

23. is essential in building long-term relationships between businesses and consumers. a. Profits b. Dividends c. Trust d. Hubris e. Codes of ethics 24. The Dodd-Frank Wall Street Reform and Consumer Protection Act a. was very popular among Wall Street […]

1. Principles are a. laws and regulations that guide behavior in the world of business. b. mores, values, and customs that guide behavior in general. c. specific and pervasive boundaries for behavior that are universal and absolute. d. the obligations […]

1. identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity. a. Milton Friedman b. Abraham Maslow c. Adam Smith d. Geert Hofstede e. John Maynard Keynes 2. products […]

24. refers to how members of a society respond to ambiguity. A high score means that a culture tends to minimize risk–taking. a. Rational economics b. National culture c. Bimodal wealth distribution d. Power distance e. Uncertainty avoidance 25. The […]

25. Leaders with a(n) conflict management style desire to meet the needs of stakeholders and strongly adhere to organizational values and principles. a. Avoiding b. Competing c. Compromising d. Accommodating e. Collaborating 26. A -based culture encourages employees to express […]

1. The leader demands instantaneous obedience and focuses on achievement, initiative, and self-control. a. democratic b. coaching c. affiliative d. coercive e. pacesetting 2. Which of the following types of leaders attempts to create employee satisfaction through bartering or negotiating […]

1. All of the following are facts about water pollution, except: a. Projected increases in fertilizer use suggest there will be a 10% – 20% global increase in nitrogen water contamination. b. Up to 90% of wastewater in developing countries […]

1. Those who have a claim in some aspect of a firm’s products, operations, markets, industry, and outcomes are known as a. shareholders. b. stockholders. c. stakeholders. d. claimholders. e. special-interest groups. 2. Stakeholders’ power over businesses stems from their […]

1. An ethical issue is a problem, situation, or opportunity a. that has no correct answer. b. that harms the environment. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. […]

23. Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred? a. Is your boss treating you well and compensating you adequately? b. Is your boss asking obviously impossible things […]

1. Which of the following is not an aspect of the institutionalization of social responsibility? a. Voluntary practices b. Legal responsibilities c. Core practices d. Familial responsibilities e. Strategic philanthropy 2. Which of the following acts can be classified as […]

23. responsibilities relate to a business’s contributions to stakeholders. a. Economic b. Legal c. Ethical d. Voluntary e. Social responsiveness 24. Passed by Congress in 1991, the compliance programs. a. Sarbanes-Oxley Act created incentives for organizations to develop and implement […]

1. Which of the following is the first step in the ethical decision making process? a. Being socialized into the firm’s corporate culture b. Applying a personal moral philosophy in order to individualize the ethical decision making process c. Recognizing […]

25. The relationship between business ethics and age a. shows a negative correlation. b. is simple. Greater experience leads to better ethical decision making. c. is complex, although experience helps older employees make ethical decisions. d. suggests that employees with […]

1. Moral philosophy refers to a. a subject that most businesspeople do not consider very important. b. the morality of business activities. c. the principles or rules that people use to decide what is right and wrong. d. the legality […]

23. When a foreman orders an assembly-line employee to carry out a task, which the employee perceives as unethical yet the employee feels compelled to complete, the foreman is exercising a. legitimate power. b. expert power. c. reward power. d. […]

1. Expert power usually stems from a. a superior’s credibility with his or her subordinates. b. the belief that a certain person has the right to exert influence and that certain others have an obligation to accept it. c. a […]

1. Fostering ethical decision making within an organization requires improving the firm‘s ethical standards and a. not doing business with suppliers. b. implementing a hiring freeze. c. training the “bad apples” so they are not bad anymore. d. terminating ethical […]

1. Which of the following does not have a significant impact on the success of an ethics program? a. Senior management’s ability to successfully incorporate ethics into the organization b. The quality of communication c. The size of the company […]

_____________responsibilities relate to a business’s contributions to stakeholders. a. Economic b. Legal c. Ethical d. Voluntary e. Social responsiveness Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for […]

Under the________,CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financia statements. a. Sherman Antitrust Act b. Ethical Compliance Act c. Robinson-Patman Act d. Sarbanes-Oxley Act e. Sherman Antitrust Act Which of the following are nottypically secondary […]

A person uncomfortable with his employer’s unspoken policy of hiring only white men is experiencing a. a conflict of interest. b. an ethical issue. c. a feeling of guilt. d. cognitive dissonance. e. a moral attribute. Which of the following […]

Through_________,it is possible to quantify the trade-offs to determine whether to acce pt or reject environmentally-related activities and programs. a. risk management b. management voting c. board directives d. legal requirements e. customer input The model is founded in classic […]

Which of the following cultures combines high levels of concern for people and performance? a. Apathetic culture b. Caring culture c. Integrative culture d. Exacting culture e. Cooperative culture Companies that will most likely be found in violation of procompetitive […]

The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is a. they will encourage too many employees to attempt to blow the whistle on firms, even those that have […]

CASE 14 Apple Inc.’s Ethical Success and Challenges CASE NOTE FOR INSTRUCTORS The Apple Inc. case examines the ethical successes and challenges that the company faces in the highly competitive technology industry. Because Apple is so admired for its products—and […]

190 Supplemental Case 1: Great State Wheat Flakes Can’t Be Beat SUPPLEMENTAL CASE 1 Great State Wheat Flakes Can’t Be Beat* Betty, who has been employed for three years as a copywriter for HK&M, a small advertising agency specializing in […]

CHAPTER 1 The Importance of Business Ethics SUMMARY This chapter provides an overview of business ethics. It develops a definition of business ethics and discusses why it has become an important topic in business education. Next, it examines the evolution […]

SIMULATIONS WHY USE SIMULATIONS? The behavioral simulation is an exercise in which the class is divided into teams of five to six students each. The students read a short case situation and are then assigned roles in the organization portrayed […]

CHAPTER 10 Globalization of Ethical Decision Making SUMMARY Advances in communication, technology, and transportation have further minimized the world’s borders, creating an ever more interconnected global economy. This chapter discusses how transactions across international boundaries define global business, and how […]

CASE 10 Home Depot Implements Stakeholder Orientation CASE NOTES FOR INSTRUCTORS The objective of this case is to familiarize students with the concept of stakeholder orientation. Home Depot is a large retail chain and therefore must consider a number of […]

CASE 11 Frauds of the Century CASE NOTES FOR INSTRUCTORS This case will help students understand the nature of Ponzi schemes and pyramid schemes. The line of distinction between each scheme is often blurred because they resemble one another so […]

CHAPTER 11 Ethical Leadership SUMMARY This chapter demonstrates the importance of leadership in creating an ethical culture. We first provide a definition of ethical leadership and explore its relationship to ethical decision making. Next, requirements of ethical leadership are provided, […]

CASE 12 Insider Trading at the Galleon Group CASE NOTES FOR INSTRUCTORS The federal investigation and prosecution of members of the Galleon Group is the largest insider trading case in U.S. history. Over two dozen people were implicated, and Raj […]

CHAPTER 12 Sustainability: Ethical and Social Responsibility Dimensions SUMMARY It is now normal for businesses to practice environmental responsibility and sustainability. The reality is that environmental global issues have business consequences. Businesses must ethically lead in places where government provides […]

CASE 13 Whole Foods Strives to Be an Ethical Corporate Citizen CASE NOTES FOR INSTRUCTORS This Whole Foods case examines how Whole Foods has applied a set of core values to create strong relationships with a variety of stakeholders. Whole […]

CASE 17 Better Business Bureau: Protecting Consumers and Dealing with Organizational Ethics Challenges CASE NOTES FOR INSTRUCTORS This case asks the question: Who does the Better Business Bureau (BBB) represent? As students may know by now, this is a question […]

CASE 19 Mattel Responds to Ethical Challenges CASE NOTES FOR INSTRUCTORS Mattel Inc. is a well-known brand known for iconic toys such as Barbie, Hot Wheels, Cabbage Patch Kids, and Matchbox Cars. The company is worth billions in annual revenues […]

CHAPTER 2 Stakeholder Relationships, Social Responsibility, and Corporate Governance SUMMARY In this chapter, first we identify stakeholders’ different roles in business ethics. We examine the relationships between businesses and various stakeholder groups and examine how a stakeholder framework can help […]

SUPPLEMENTAL CASE 2 Acme Title Pawn* Joe reflected on his situation at Acme Title Pawn while mowing his lawn. He had been working there for about a year, but was having ever-greater reservations about his job. During all of those […]

CASE 2 Starbucks’ Mission: Social Responsibility and Brand Strength CASE NOTES FOR INSTRUCTORS: Students will likely have strong opinions regarding Starbucks. Many may be committed patrons who view Starbucks as a socially responsible company committed to green practices and free-trade […]

148 Simulations SIMULATION TWO National Farm and Garden, Inc.* Background (Everyone reads) National Farm and Garden, Inc. (NFG) was incorporated in Nebraska in 1935 and has been a leading supplier of farming equipment for more than 60 years. Over the […]

CASE 20 Best Buy Fights against Electronic Waste CASE NOTES FOR INSTRUCTORS The Best Buy case encourages students to contemplate the important ethical issues of stakeholder relationships and sustainability. Best Buy, a major electronics and entertainment retailer, has become known […]

Supplemental Case 3: The Playskool Travel-Lite Crib 209 After the Recall On May 12, 1998, during naptime at his childcare provider, 16-month-old Danny Keysar was found unconscious in the “V” of a Travel-Lite. He was rushed to the emergency room […]

SUPPLEMENTAL CASE 3 The Playskool Travel-Lite Crib* PART A Sanfred Koltun sat in his office in the Chicago headquarters of his company, Kolcraft Enterprises, reading a letter. Addressed to Bernard Greenberg, president of Kolcraft, the February 1, 1993, letter had […]

CHAPTER 3 Emerging Business Ethics Issues SUMMARY In this chapter, we consider some of the ethical issues emerging in business today, including how they arise from the demands of specific stakeholder groups. In the first half of the chapter, we […]

Simulations 159 SIMULATION THREE Videopolis* Background (Everyone reads) Videopolis was founded as VideoNow in 1993 by two former employees of RCA, where they had learned television broadcasting, electrical engineering, satellite downlinking, and telephone networking applications. Today, Videopolis is a communications […]

SUPPLEMENTAL CASE 4 Multilevel Marketing Under Fire: Herbalife Defends Its Business Model Introduction History © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a […]

CASE 4 Sustainability Challenges in the Gas and Oil Industry CASE NOTES FOR INSTRUCTORS This case highlights the environmental and ethical risks of the oil industry by examining specific annual revenue. Later tests revealed Captain Hazelwood had a blood-alcohol content […]

CHAPTER 4 The Institutionalization of Business Ethics SUMMARY In this chapter, we examine the boundaries of ethical conduct and focus on the voluntary, core practices, and mandated requirements for legal compliance—three important areas in developing an ethical culture. In particular, […]

Simulations 169 SIMULATION FOUR Sexual Harassment: Cordoza v. Foodservice, Inc., Creative Marketing Solutions, and Harrison* JURY INSTRUCTIONS (Everyone reads) This exercise examines the issue of sexual harassment in the workplace through a simulated jury deliberation on a case brought before […]

CASE 5 NEW BELGIUM BREWING: ETHICAL AND ENVIRONMENTAL RESPONSIBILITY CASE NOTES FOR INSTRUCTORS This case is an example of a socially responsible company—Fort Collins, Colorado’s New Belgium Brewing Co. (NBB). Small companies sometimes make big contributions to surrounding communities and […]

Simulations 177 SIMULATION FIVE Deer Lake Marina: Forever Proud? Background (Everyone reads) Deer Lake Marina has been in existence since the late 1960s. The marina is located on Deer Lake, which connects to the Tennessee River. Residents of Alabama, Mississippi, […]

CASE 6 National Collegiate Athletic Association Ethics and Compliance Program CASE NOTE FOR INSTRUCTORS This case examines the role of the National Collegiate Athletic Association (NCAA) as the ethical conscience of college football. Students will see how vital this oversight […]

CHAPTER 6 Individual Factors: Moral Philosophies and Values SUMMARY This chapter provides a description and analysis of how individuals’ background and philosophies influence their decisions. It is important to determine when one action is considered right and when another is […]

182 Simulations SIMULATION SIX Parcel International Express Background Information (Everybody Reads) Parcel International Express (PIE) located in Europe provides international shipping of documents and freight as well as contract logistics. PIE’s global headquarters are located in Paris and Brussels in […]

CASE 7 Google: The Quest to Balance Privacy with Profits CASE NOTES FOR INSTRUCTORS Google started off as an Internet search engine that found its success in the use of an algorithm that ranked searches according to relevance. Since then […]

CHAPTER 7 Organizational Factors: The Role of Ethical Culture and Relationships SUMMARY In this chapter, we take a closer look at corporate culture and the ways a company’s values and traditions can affect employees’ ethical behavior. We also discuss the […]

CASE 8 Zappos: Delivering Customer Satisfaction CASE NOTE FOR INSTRUCTORS This case discusses Zappos’ unique management style of focusing upon employee happiness as the key to the firm’s success. According to Tony Hsieh, CEO of Zappos, the company’s emphasis on […]

CHAPTER 8 Developing an Effective Ethics Program SUMMARY This chapter first provides an assessment of the corporation as an entity in society, and then gives an overview of why businesses need to develop an organizational ethics program. It covers the […]

CASE 9 Enron: Questionable Accounting Leads to Collapse CASE NOTES FOR INSTRUCTORS The purpose of this case is to show how it is possible for a well-known and respected company to become swept up in unethical and illegal business practices, […]

CHAPTER 9 Managing and Controlling Ethics Programs SUMMARY This chapter examines the concept of an ethics audit as a way to help implement an effective ethics program. The chapter begins by discussing the implementation of ethics programs. We define the […]

SUPPLEMENTAL/EXAMINATION CASES Using teaching cases for examination purposes can help the instructor gauge a student’s depth of understanding of the material. The instructor should deduct points if the student fails to identify the key ethical issues and important stakeholders or […]

We all learn values from sources such as family, religion, and school. Why might these sources of individual values not prove very helpful when making complex business decisions? Which two developing countries are expected to generate some of the largest […]

______________is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused. a. A code of conduct b. Sexual harassment c. Coercive power d. Bullying e. Rewards Some economists believe that if companies address […]

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to a. cultural differences. b. multinational corporations. c. consumerism. d. legal differences. e. international negotiations. Which of the following do nottypically engage in […]

Which of the following is nota characteristic of an ethical corporate culture? a. Management and the board demonstrate their commitment to strong controls through their communications and actions. b. Every employee is encouraged and required to have hands-on involvement in […]

Enlightened egoism a. is when an individual puts spiritual feelings above all others. b. centers completely on the short-term well-being of others. c. centers on one’s short-term self-interest. d. centers on one’s longterm selfinterest but takes others€ wellbeing into account. […]

Which of the following is nota question you need to ask when you suspect that workplace bullying has occurred? a. Is your boss treating you well and compensating you adequately? b. Is your boss asking obviously impossible things from you […]

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as a. price discrimination. b. price gouging. […]

All of the following are true regarding institutions except a. Stakeholders closely align with institutions. b. The regulatory system aligns with political institutions. c. There is no clear link between institutional theory and the stakeholder orientation of management. d. Competition […]

The thought experiment used by John Rawls that examined how individuals would formulate principles if they did not know what their future position in society would be is called a. Equality principle b. Utilitarian veil c. Liberty principle d. Universal […]

Accountability, oversight, and control all fall under the definition and implementation of corporate a. profit. b. loyalty. c. care. d. governance. e. diligence. Some economists believe that if companies address economic and legal issues, they are satisfying the demands of […]

This step of the RADAR model involves responding to the discovery of an ethical dilemma through communication both internally and externally. a. answer b. recover c. recognize d. avoid e. detect While social reports often discuss issues related to a […]

31.The_____leader demands instantaneouos bedience and focuse on punishing wrong behavior, achievement, initiative, and self-control. a. democratic b. coaching c. affiliative d. coercive e. pacesetting When a foreman orders an assembly-line employee to carry out a task, which the employee perceives […]

The Clean Air Act: a. Allowed the EPA to track industrial chemicals b. Focuses on promoting alternative forms of energy c. Established national air quality standards d. Provides tax benefits to consumers who purchase hybrid cars e. Focuses on reducing […]

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate a. conflicts of interest. b. cronyism. c. reporting transparency. d. corporate espionage. e. dual reporting. […]