125) The United States Supreme Court changed the nature of an employer’s liability for sexual
harassment, rejecting the previous standard that the employer had to be negligent somehow to be
liable for a supervisor’s improper behavior toward employees.
Topic: Sexual Harassment
AACSB: Multicultural and Diversity
126) An employer can be held liable for third parties who engage in sexual harassment if the
employer has the ability to stop the improper behavior.
Topic: Sexual Harassment
AACSB: Multicultural and Diversity
127) Employers should not keep employees’ medical records strictly confidential.
Topic: HIV/AIDS
AACSB: Ethical Reasoning
128) Despite the fact that AIDS is becoming more common in the workplace, few businesses are
prepared to deal with it.
Topic: HIV/AIDS
AACSB: Ethical Reasoning
129) Decisions based on assumptions are bound to be flawless.
Topic: Cultural Diversity in the Workplace
AACSB: Multicultural and Diversity
130) One of the best ways to identify your own cultural biases is to get exposure to people who
are like you.
Topic: Cultural Diversity in the Workplace
AACSB: Multicultural and Diversity
131) Progressive companies are taking their environmental policies a step further, creating
redesigned, “clean” manufacturing systems that focus on avoiding waste and pollution.
Topic: Businesses’ Responsibility to the Environment
AACSB: Ethical Reasoning
27
132) Social responsibility is the awareness by a company’s managers of the social,
environmental, political, human, and financial consequences their actions produce.
Topic: Social Responsibility
AACSB: Ethical Reasoning
133) One of the best ways to evaluate the effectiveness of an ethics system is to perform periodic
audits.
Topic: Establishing and Maintaining Ethical Standards
AACSB: Ethical Reasoning
134) A code of ethics is a written statement of the standards of behavior and ethical principles a
company expects from its employees.
Topic: Maintaining Ethical Standards
AACSB: Ethical Reasoning
135) Business ethics consist of the fundamental moral values and behavioral standards that form
the foundation for the people of an organization as they make decisions and interact with
stakeholders.
Topic: An Ethical Perspective
AACSB: Ethical Reasoning
136) Entrepreneurs can do whatever they want and that conflictive action taken by entrepreneurs
against society’s ethical standards does not incur a price.
Topic: An Ethical Perspective
AACSB: Ethical Reasoning
137) Stockholders are the various groups and individuals who affect and are affected by a
business.
Topic: Introduction
AACSB: Ethical Reasoning
28
138) Ethical behavior is concerned with doing things “right.”
Topic: Introduction
AACSB: Ethical Reasoning
139) To cope successfully with the myriad ethical decisions they face, entrepreneurs must
develop a workable ethical framework to guide themselves and the organization.
Topic: Establishing an Ethical Framework
AACSB: Ethical Reasoning
140) When there does not exist a positive organizational culture which stresses ethical behavior
regardless of consequences, employees may respond to feelings of pressure and compromise
personal ethical standards to ensure that a contract is not lost or that a project is completed on
time.
Topic: Competitive Pressures
AACSB: Ethical Reasoning
141) Competitive pressures assumes that the greater the reward or the smaller the penalty for
unethical acts, the greater is the probability that such behavior will occur.
Topic: Opportunity Pressures
AACSB: Ethical Reasoning
142) When customers shop for “value,” they also consider the company’s stance on social
responsibility.
Topic: Social Responsibility
AACSB: Ethical Reasoning
143) Entrepreneurs must create an environment in which all types of workers—men, women,
Hispanic, African American, white, disabled, homosexual, elderly, and others—can flourish and
can give top performances to their companies.
Topic: Cultural Diversity in the Workplace
AACSB: Multicultural and Diversity
29
144) The United States Supreme Court changed the nature of an employer’s liability for sexual
harassment, accepting the previous standard that the employer had to be negligent somehow to
be liable for a supervisor’s improper behavior toward employees.
Topic: Sexual Harassment
AACSB: Multicultural and Diversity
145) Define the key terms: stakeholders and business ethics.
Topic: Introduction
AACSB: Reflective Thinking
146) Describe the three levels of ethical standards.
Topic: Establishing Ethical Standards
AACSB: Reflective Thinking
147) Your authors suggest a five-step process for developing an ethical framework. Identify and
explain each of the five steps.
Topic: Establishing an Ethical Framework
AACSB: Reflective Thinking
148) What are the benefits of moral management?
Topic: The Benefits of Moral Management
AACSB: Analytic Skills
30
149) What causes ethical lapses?
Topic: Why Ethical Lapses Occur
AACSB: Analytic Skills
150) How can managers establish and maintain ethical principles into their companies?
Topic: Establishing and Maintaining Ethical Standards
AACSB: Reflective Thinking
151) What are a business’s responsibilities to its employees? Briefly outline and explain each.
Topic: Business’s Responsibility to Employees
AACSB: Analytic Skills
152) What can the small business owner do to develop an effective drug prevention program?
Topic: Drug Testing
AACSB: Analytic Skills
31
153) What is the small business’s responsibility to employees in terms of coping with AIDS in
the workplace and having a legal and humane AIDS policy?
Topic: HIV/AIDS
AACSB: Analytic Skills
154) What is sexual harassment? What can a small business owner do to minimize the likelihood
of sexual harassment?
Topic: Sexual Harassment
AACSB: Analytic Skills
155) What are the small business’s responsibilities to its customers?
Topic: Businesses’ Responsibility to the Customers
AACSB: Analytic Skills
156) What are the small business owner’s responsibilities to his/her investors and community?
Topic: Businesses’ Responsibility to Investors
AACSB: Analytic Skills
32