94. (p. 104) In the long run, a firm’s loyalty to their employees can pay off financially.
95. (p. 104) Getting even is one of the most powerful incentives for good people to do bad things.
96. (p. 104) A recent study revealed that employee theft costs U.S. businesses about $660 billion each year.
97. (p. 107) Environmentalists and union officials can both serve as “watchdog” groups regarding how well
companies enforce their ethical and social responsibility policies.
98. (p. 106) A social audit is a systematic evaluation of an organization’s progress toward implementing programs
that are profitable.
99. (p. 107) A firm’s net social contribution is the difference between their positive contributions and their negative
social impacts.
100. (p. 106) A public good is one that everyone gets to enjoy regardless of who pays for it.
101. (p. 107) When it comes to ethics and social responsibility, the public’s perception of a firm is as important as
what the firm does.
102. (p. 106) A social audit attempts to measure a firm’s progress in the area of worker-management relations.
103. (p. 100) A business that takes a public position on a political issue is exercising corporate social
responsibility.
104. (p. 100) Defining a socially responsible company is complicated. We can’t seem to agree on what being
socially responsible involves.
105. (p. 101) A firm’s admission of a product deficiency should be done as a last resort.
106. (p. 105) A decline in stock market prices helps nonprofit organizations.
107. (p. 99) Some experts feel that corporate social responsibility means solely making money for stockholders.
108. (p. 107) As a response to the Enron scandal, the federal government now requires social audits of all U.S.
businesses.
109. (p. 99) “My only social responsibility is to make a profit. I will show my concern for society by providing my
customers with a product that they need and desire.” These statements are consistent with the concept of
corporate social responsibility.
110. (p. 101) Out-Tel, a computer chip manufacturer, knowingly sold defective chips and failed to notify
customers of the potential problems. When the problem became public knowledge, the firm’s stock price fell
dramatically. This illustrates the value that investors place on the ethical behavior of businesses.
111. (p. 108) Often it is the threat of negative publicity that pressures businesses to enforce their corporate code of
ethics.
112. (p. 99) At a recent town hall meeting, citizens expressed concern regarding the impact of a proposed new
gambling casino. The owner of the proposed casino responds, “I don’t know what all of this fuss is about. I’m
just a businessman trying to earn a profit, provide new jobs, and pay taxes.” His response reflects a commitment
to corporate social responsibility.
113. (p. 100) A law requiring businesses to give 90 day notice of their plans to close an office or factory was
enacted in the late 1990s. This action indicates the public’s desire for businesses to behave in a socially
responsible manner.
114. (p. 108) Charges of unethical business practices are common outside the U.S.
115. (p. 108) The ethical standards by which international political leaders are judged are less strict today than they
were in years past.
116. (p. 108) Many U.S. companies are demanding socially responsible behavior from their international
suppliers.
117. (p. 109) The justness of requiring international suppliers to adhere to American ethical standards is clear-cut.
118. (p. 109) The objective of the Inter-American Convention Against Corruption is to identify some form of
common global ethic.
119. (p. 109) The Joint Initiative on Corporate Accountability and Workers’ Rights is a project that has as an
outcome a set of common labor standards guidelines.
120. (p. 108) American businesses are demanding socially responsible behavior from their international suppliers.
121. (p. 108) The economic power of large multinational firms allows them to ignore the ethical standards of a
society without consequences.
122. (p. 108) U.S. businesses have little influence over the behavior of businesses from other countries.
123. (p. 109) Applying the ethical standards of the U.S. to foreign firms is more difficult than judging the behavior
of U.S firms.
124. (p. 108) “Hear no evil, see no evil, speak no evil” is the best policy for U.S. firms to follow in their dealings
with corrupt foreign suppliers.
125. (p. 109) While “doing the right thing” is an admirable code of ethics, there are no international organizations
dealing with global ethics and corruption.”
126. (p. 91; Legal Briefcase box) The Enron scandal revealed ________ corporate behavior.
A. legal but unethical
127. (p. 90) Obeying the law is ________ ethical behavior.
D. unlikely to lead to
128. (p. 90) ________ refers to standards of moral behavior.
A. Legality
129. (p. 90) A recent study revealed that most Americans have:
A. strong moral values.
130. (p. 90) The danger in writing new laws to correct behavior is that:
D. there will not be enough jails to house those who break the law.
131. (p. 90) Given the ethical lapses that are so prevalent today, which of the following can be done to restore trust
in the free-market system and leaders in general?
D. Congress should pass laws requiring ethical behavior of all leaders, business and otherwise.
D. socially responsible
133. (p. 90) Ethical behavior covers a ________ range of conduct than does legal behavior.
D. less demanding
134. (p. 90) Many individuals today believe that ethical behavior is determined by what is best for them at the
time. This is an example of:
D. new age realism.
135. (p. 90) Considering the potential impact on others prior to making a decision is consistent with ________
behavior.
A. legal
136. (p. 90) Many Americans define ethical behavior according to the situation in which they find themselves.
This suggests that ________ to cheat, steal, or lie.
D. capitalism creates situations
137. (p. 90) Purposefully understating your firm’s income to avoid paying higher taxes is an example of:
A. an accepted business practice.
138. (p. 91; Legal Briefcase box) When WorldCom used intentional accounting irregularities to make the company look
more profitable than it actually was, it:
139. (p. 91) Cigarette producers had refused to voluntarily place health warnings on their packages. In response,
the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical
behavior, this sequence of events is:
A. the intended approach.
140. (p. 92–94) Which of the following questions will often help individuals and organizations in deciding if their
D. Is there a desirable alternative?
141. (p. 91) When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with:
A. schools.
142. (p. 92) The first step when facing an ethical dilemma is to ask:
D. “Is it ethical?”
143. (p. 92–93) Which of the following questions reflects the desire of an ethical manager to achieve a “win-win”
relationship with others?
D. How can I benefit at the expense of others?
144. (p. 94) Which of the following questions can help us avoid a decision that would injure our self-esteem?
A. Is it legal?
145. (p. 92–93) Treating others unfairly can result in retaliation from the injured party. This will likely create a :
A. lose-win situation.
146. (p. 92–94) Ethical behavior will result in which of the following?
A. mistrust between employees and managers
147. (p. 92) Business relationships often present ethical dilemmas that are:
D. irrelevant and therefore require no action.
148. (p. 91) While it is easy to criticize business for moral and ethical shortcomings, it is important to remember
D. the ends justify the means.
149. (p. 92) An ethical dilemma refers to a situation where you must:
D. balance the concerns of profit and legality.
150. (p. 93) Which of the following describes the debate regarding Napster in the boxed material “Making Ethical
Decisions” in Chapter 4?
A. Using the Internet, Napster enabled recording artists to distribute their music without using the traditional
retail outlets.
151. (p. 92) A U.S. government official has indicated that for a generous contribution to his reelection fund, he
would ignore your firm’s apparent violation of several anti-pollution laws. Which of the following “ethics check
questions” would you consider first?
D. How much do you want?
152. (p. 92) A friend offers to share with you a term paper she prepared for her Introduction to Business class last
semester. When you tell her that it wouldn’t be fair, she reminds you of your habit of reading an entire Harry
Potter book at the local bookstore without paying for the book. Which ethics-based question would be the most
helpful in evaluating these situations?
D. Will I get caught?
153. (p. 94) The majority of CEOs blame unethical employee conduct on:
D. the nation’s business schools that tolerate unethical behavior in students.
154. (p. 94) Organizational ethics are learned by:
A. attending corporate responsibility seminars.
155. (p. 94) Which of the following is a reason why a business should be managed ethically?
D. Employees demand it.
Nickels – Chapter 04 #155
156. (p. 94) Corporate values are:
A. a personal matter to be determined by each employee.
157. (p. 94) When managers appear to disregard ethical concerns, the likely results would include:
A. reduced employee turnover.
158. (p. 95 – 96) A competitive corporate environment:
D. can best define ethical behavior based on current circumstances.
159. (p. 94) Following an ethics-based approach to decision making will normally lead to higher:
D. employee turnover.
160. (p. 94) Following an ethics-based approach to decision making will normally lead to:
D. more competition.
161. (p. 94) The Hummer Corporation has recently instituted a corporate ethics code. The president of the
company realizes that ethical relationships are based on:
D. watchdogs and whistleblowers.
162. (p. 94–96) Which of the following would most likely involve ethical concerns?
D. improving working conditions
163. (p. 94–95) With respect to business ethics, it can be said that “it takes two to tango.” This indicates that:
D. management is insensitive to ethical issues.
164. (p. 96) Establishing a formal code of ethics is:
165. (p. 96) A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing
control and penalizing wrongdoers.
A. legal
166. (p. 97) Which of the following terms describes someone who reports illegal or unethical behavior?
D. integrity watchdog