167. (p. 96) A(n) ________-based ethics code defines corporate values, creates a supportive environment, and
stresses shared accountability among employees.
A. social
168. (p. 97; figure 4.3) Compliance-based ethics codes:
D. create a “do-it-right” climate that emphasizes core values.
169. (p. 96) To improve America’s business ethics:
170. (p. 97) After developing a code of ethics, it should be communicated to:
D. stockholders.
171. (p. 97) A whistleblower is a person who:
D. works in the human resource department.
172. (p. 97) Which of the following is a characteristic of an effective ethics officer?
A. (S)he has a background in human resource management.
D. chosen internal standards
174. (p. 97) Which of the following is the most important step to help improve America’s business ethics?
A. middle management support
175. (p. 96) Which of the following would be a unique focus of an integrity-based ethics code?
D. improved awareness of the relevant laws
176. (p. 96) As a new employee, Vanessa has heard her boss say, “Do whatever it takes to meet your sales quota.
However, anyone caught violating a law will be immediately fired”. Vanessa recognizes this as a
________-based code of ethics.
A. Internet
177. (p. 97) In an effort to help employees resist the pressure to make an unethical decision, the Johnston
Petroleum Company has communicated their code of ethics statement to their suppliers, subcontractors,
distributors, and customers. This approach is consistent with:
D. a personal responsibility commitment.
178. (p. 97-98; Legal Briefcase box) Sharon, who works in accounting, noticed that the accounting records of her firm
drastically overstated the amount of inventory on hand, which led to overstating the assets of the firm. She
thought carefully about calling a government official to report this and in the end decided to do it because she
would be protected by the:
D. Sherman Act.
179. (p. 97) A phone call to a government official by an employee of the Enron Corporation disclosed the
deception and dishonesty of the firm’s accounting records. This employee played the role of a(n):
D. moral policeman.
180. (p. 99) Corporate social responsibility describes the firm’s:
A. responsibility to their stockholders.
181. (p. 99) All else held equal, socially responsible firms:
D. fail to earn sufficient profits for their owners.
182. (p. 99) Which of the following describes charitable donations by corporations to nonprofit organizations?
D. structural commitment
D. structural positioning.
184. (p. 100) Corporate ________ encompasses various issues such as setting minority hiring practices,
D. structure and strategy
185. (p. 100) Determining what is involved for a firm to be socially responsible:
D. varies from industry to industry due to different laws.
186. (p. 101; Spotlight on Small Business box) According to the boxed material entitled “Spotlight on Small Business” in
Chapter 4, which of the following is true?
A. Small businesses are not able to participate in philanthropy.
187. (p. 101) One strategy guaranteed to displease your customers is to:
A. provide a quality product at a fair price.
188. (p. 102) Businesses can best meet their responsibility to society by:
A. creating markets for domestic products.
189. (p. 102) Insider trading involves:
D. a payment or reward for socially conscious behavior.
190. (p. 104) If a business fails in meeting its responsibilities to its employees which of the following is likely to
occur?
191. (p. 105) One of business’s major responsibilities to society is:
A. to invent new products.
192. (p. 107) The difference between an organization’s positive social contributions and its negative social impacts
is called their:
193. (p. 106) The purpose of a(n) ________ is to evaluate an organization’s progress towards implementing
programs that are socially responsible and responsive.
D. annual report
194. (p. 101; Spotlight on Small Business box) Which of the following is among the myths regarding small business
philanthropy as identified by the boxed material “Spotlight on Small Business” in Chapter 4?
D. Charities realize small businesses are not able to make a significant difference.
195. (p. 99) Top management at Lancer Distributing is convinced that they have a social responsibility to their
community. They believe that they can have the greatest impact in this area through cash contributions to
nonprofit organizations. This is an example of corporate:
D. short run profit maximization.
196. (p. 100) Business is under pressure from society to be more socially responsible. However, even the strongest
advocates for corporate responsibility can’t seem to agree:
D. if politicians should be held to the same standards of behavior.
197. (p. 99) When it comes to social responsibility, some people feel that “before you can do good, you must do
well.” This reflects a firm’s primary responsibility to their:
D. community.
198. (p. 99) Critics of corporate social responsibility view spending money on CSR as:
D. moving toward capitalism.
199. (p. 99–100) Which of the following people would be most in favor of CSR?
A. Milton Friedman
200. (p. 100) Strategic philanthropy involves:
D. making safe products.
201. (p. 100) When Bagel Works employs in-store recycling, composting, and uses nontoxic cleaners, Bagel
Works is participating in:
A. corporate philanthropy.
202. (p. 104) A recent report reveals that employee theft amounts to approximately:
A. $105 million annually.
203. (p. 103; Dealing with Change box) The legal case against Martha Stewart alleges that she:
A. used illegal immigrant labor.
204. (p. 102-103) Before it was publicly known that IBM was going to take over Lotus Development, an IBM
secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a
pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These
people were:
D. acting fairly.
205. (p. 106) Environmental quality is considered to be a public good. This means that:
A. ultimately it is the public that pays for environmental clean up.