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 bankers.
b. represented only modest reform.
c. came out of theological discussions in the 1920s.
d. was designed to make the financial services industry more responsible.
e. made it mandatory for public corporations to hire ethics officers.
25. In the Reagan/Bush eras, the major focus of the business world was on
a. self-regulation rather than regulation by government.
b. decreasing the number of mergers.
c. decreasing the multinational presence in the U.S. marketplace.
d. increasing government influence on the economic arena.
e. improving business ethics.
26. The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
a. Better Business Bureau ethical guidelines.
b. the Federal Sentencing Guidelines for Organizations.
c. the Ethical Trading Initiative.
d. the Federal Trade Commission compliance requirements.
e. the Sarbanes-Oxley Act.
27. 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 socially enforced.
d. the codification of laws to reward organizations for taking action to prevent misconduct.
e. acceptable behavior as defined by the company and industry.
28. 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 mandatory reporting systems.
c. eliminating most of the federal legislation that created inefficient and time-consuming activities for businesses.
d. providing a study of moral philosophies.
e. providing an examination of company codes of ethics.
29. Which of the following statements about the Federal Sentencing Guidelines for Organizations is false?
a. They use a routine mechanical approach that forces all firms to use the same means to avert serious
penalties.
b. They strive to prevent misconduct.
c. They encourage companies to develop standards and procedures capable of detecting and preventing
misconduct.
d. They utilize a carrot and stick approach by taking preventive action against misconduct.
e. They encourage the appointment of high-level personnel responsible for oversight of the compliance program.
30. Which of the following is not one of the benefits of being ethical and socially responsible in business?
a. Greater employee commitment
b. A high degree of employee dissent
c. Improved customer trust and satisfaction
d. Increased investor loyalty
e. Better financial performance
31. Employees’ perceptions of their firm as having an ethical climate leads to
a. lack of focus on goals.
b. greater focus on education.
c. increased community involvement.
d. improved relationships with competitors.
e. enhanced performance.
32. Employees feel less pressure to compromise ethically, observe less misconduct, are more satisfied with their
organizations, and feel more valued when
a. they are new at their jobs.
b. they are paid to ignore problems in the workplace.
c. they do not agree with an organization’s values.
d. they have very high compensation.
e. they see honesty, respect, and trust applied in the workplace.
33. Investors are concerned about business ethics because they know that misconduct can
a. foster stability.
b. improve employee commitment.
c. improve customer loyalty.
d. lower stock value and prices.
e. complicate business financial reporting.
34. Most organizations with strong ethical climates usually focus on the core value of placing interests first.
a. customers’
b. employees’
c. stockholders’
d. suppliers’
e. distributors‘
35. Which of the following is not something a firm might do to encourage organizational ethics and compliance?
a. Employee ethics training
b. Hiring a compliance officer
c. Ignoring potential ethical issues
d. Writing a code of ethics
e. Conducting an ethics and compliance audit.
36. How does ethics contribute to customer satisfaction?
37. Discuss the evolution of business ethics as a field of study from before 1960 to the present.
38. Why is it important that businesspeople study business ethics?
39. 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?
40. Discuss the current state of business ethics in the twenty-first century.
41. How do values and judgments play a critical role when we make ethical decisions?