What is the study of ethical issues in the fields of medical treatment and
research—including medicine, nursing, law, philosophy, and theology—called?
a. Medical ethics
b. Genome project
c. Bioethics
d. Biotechnology
e. Genetic ethics
Which of the following is not one of the components of the reputation management
process?
a. Organizational identity
b. Performance
c. Image
d. Impression
e. Reputation
Which of the following was not an action taken by Green Mountain Coffee in an effort
to manage its reputation?
a. Utilizing high-quality Arabica coffees
b. Building a corporate culture open to employee ideas and concerns
c. Implementing roasting standards that maximize taste and flavor differences between
coffees
d. Publicly ridiculing other coffee manufacturers for poor quality and unethical
harvesting procedures
e. Using fair trade certification on qualified coffees
The process of working to persuade public and/or government officials to favor a
particular position in decision making is known as
a. special-interest pleading.
b. bribery.
c. lobbying.
d. influencing.
e. PAC.
If a doctor exaggerates the condition of a patient in order for it to be a condition
covered by insurance, the doctor is most likely applying which moral philosophy?
a. Egoism
b. Consequentialism
c. Illegal behavior
d. Utilitarianism
e. Ethical formalism
Overall, evidence supports that social responsibility
a. is unrelated to the performance of a business.
b. is good for a firm’s reputation, but has little effect on performance.
c. negatively affects a firm’s performance because it increases costs and reduces profits.
d. is positively associated with return on investment, return on assets, and sales growth.
e. works well in theory, but is hard to implement in business.
What does the saying “technology has a self-sustaining nature” mean?
a. People begin to rely on technology and cannot function without it.
b. Technology acts as a catalyst to spur even faster development.
c. Technology helps companies meet stakeholders’ needs more efficiently.
d. The money received from new technologies will fund additional future advances.
e. Technology has become an indispensable aspect of life and society.
Which of the following is the best way for a stakeholder to gain legitimacy?
a. Committing acts of violence to show the company and the community that you are
serious
b. Making claims that you feel are reasonable, regardless of the view of other
stakeholders
c. Exploring the issue from a variety of perspectives and then communicating your
desires for change in a respectful manner
d. Insisting that your group’s interests are extremely important to society in general
e. Informing the media of the horrible things the company has done so that the rest of
the world will know
Which of the following foreshadowed the movement to write and implement widely
accepted codes of conduct?
a. The Fair Trade Certification Label
b. The Sullivan Principles
c. Rabobank
d. The United Nations’ Global Compact
e. The United Nations’ Millenium Development Goals
The outcomes associated with positive stakeholder relationships are
a. always long-term in nature.
b. mostly short-term in nature.
c. both long-term and short-term in nature.
d. unlikely to have an effect on the firm’s reputation.
e. of minimal importance to the operation of the firm.
What is the psychological contract between an employee and his or her employer?
a. Terms of employment including the salary and benefits associated with an employee’s
position
b. Employee’s perception about how the company should treat him or her as an
employee
c. Beliefs, perceptions, expectations, and obligations that comprise an agreement
between individuals and their organizations
d. Formal contract between individuals and their employer that details the beliefs and
obligations of both parties
e. Contract an employee signs to verify that he or she is of sound mind to serve in the
capacity outlined by his or her job title
For a local beauty shop that is a privately owned business, which of the following is not
likely to be a stakeholder?
a. Tax authorities
b. Customers
c. Suppliers of hair coloring solutions
d. The New York Stock Exchange (NYSE)
e. Other businesses in the same neighborhood and shopping center
How is corporate governance best defined?
a. The extent to which the content of workplace decisions is aligned with a firm’s stated
strategic direction
b. The formal system of oversight, accountability, and control for organizational
decisions and resources
c. The philosophy that a board or CEO holds regarding accounting methods
d. The exercise of control and authority by those in mid-management positions
e. A system of decentralized mechanisms that assists a firm in meeting its goals
Which of the following best describes how businesses should manage the regulatory
environment?
a. Top managers must take responsibility and be accountable for assessing legal risks
and developing corporate programs that promote and reward acceptable conduct.
b. Businesses should try to follow all of the laws that apply to doing business and
should also consider the economic implications of their actions.
c. Companies should maintain their primary focus of making a profit, and then try to
operate in the regulatory environment.
d. Businesses should hesitate to punish employees who have committed an illegal or
unethical act in order to protect the reputation of the company.
e. The company should hire a consulting group to deal with compliance with laws and
regulations since managers have more important matters to address.
Which of the following is not one of the responsibilities that will affect boards of
directors in the future?
a. The selection of board members will become increasingly formalized.
b. Boards will need to work more effectively as teams.
c. Serving on boards will require less of a commitment than in the past.
d. Annual reports and other company documents will include more nonfinancial
information.
e. Boards will be responsible for developing company purpose statements that cover a
range of aims and stakeholder concerns.
Which of the following statements best reflects a strategic approach to creating and
maintaining an ethical corporate culture?
a. “Our code of conduct is window-dressing.”
b. “People are raised with strong personal values and should use them at work to
resolve ethical conflict.”
c. “A decentralized approach to decision making produces the most ethical corporate
culture.”
d. “Hiring and promoting good, ethical managers will automatically produce an ethical
organization.”
e. “Reducing unethical behavior is a business goal no different from increasing profits.”
Which of the following statements is false concerning how a company should
communicate after a crisis?
a. Crisis events are often chaotic, so management may begin the crisis response with a
degree of ambiguity.
b. If a company is slow to respond, stakeholders may feel as though the company does
not care about their needs or is not remorseful about the crisis.
c. It is better to wait until the company has a complete understanding of the crisis so
that stakeholders will not be led astray by partial information.
d. The company should communicate how it plans to resolve the crisis.
e. The communication after a crisis is usually not handled in a completely effective or
ineffective manner.
The organizational function dedicated to building and maintaining relationships and
trust with the community is known as
a. the social activity department.
b. the marketing department.
c. customer service.
d. community relations.
e. stakeholder management group.
Self-regulation is an effort to
a. develop industry standards for pricing.
b. enhance governmental authority in overseeing business practice.
c. train executives in ethics and leadership so they are more skilled in the workplace.
d. decrease the role and status of the Better Business Bureau and similar organizations.
e. demonstrate social responsibility and preclude further governmental regulation.
Which of the following best describes social responsibility?
a. A corporation’s rights, such as due process in a court of law, freedom of speech, and
privacy
b. Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical,
and philanthropic responsibilities expected of it by its stakeholders
c. A company’s attempt to maximize its profits in order to benefit stockholders
d. All the policies of a company that promote ethical business practices
e. All businesses except those with less than 50 employees
What is the main problem associated with genetically modified plants and genetic
engineering of animal cells?
a. They are too expensive to be practical.
b. The long-term effects cannot be predicted.
c. They are almost impossible to create and produce.
d. They do not seem to improve the short-term outcome.
e. They fail to increase the yield of crops.
One of most common fraudulent activities reported by employees about their coworkers
is
a. lowering quality standards to cut costs.
b. discriminating in the hiring process.
c. using dishonest messages in advertising campaigns.
d. claiming to have worked extra hours.
e. giving bribes to foreign officials.
Which of the following best describes the importance of corporate philanthropy in the
1980s?
a. The cost-cutting nature of businesses in this decade left corporate philanthropy as a
low priority for most organizations.
b. Many firms began to establish separate foundations to make donations to charitable
causes during the 1980s.
c. Most business leaders understood the benefits of well-managed corporate
philanthropy initiatives and implemented formal programs.
d. The public first began to question the role of business in society, and many
individuals called for corporations to give back to society.
e. Most companies took a haphazard approach to corporate philanthropy causing little
good to come as a result.
Which of the following statements about codes of conduct is false?
a. They are formal statements of what an organization expects in the way of ethical
behavior.
b. They guarantee an ethical business climate.
c. They help employees determine what behaviors are acceptable.
d. They provide rules and guidelines for employees to follow.
e. They should be specific enough to be reasonably capable of preventing misconduct.
Which of the following examples best aligns a company’s competencies and strategic
goals with philanthropic activity?
a. A local gas station has a program in which its employees are partnered with
disadvantaged youths as mentors.
b. Ben and Jerry’s Homemade ice cream company donates a percentage of its pretax
profits to support peace initiatives.
c. The local telephone company donates money to the Youth Soccer Foundation to help
pay for the upkeep of soccer fields and equipment.
d. A hair salon donates one dollar of every haircut to support the local food bank’s
annual holiday food drive.
e. Merck uses its pharmaceutical expertise to develop a drug to combat river blindness
and donates millions of doses to poor countries.
“Corporations are bound by the law, and by the rules of what you might call ordinary
decency. Beyond this however, they have no duty to pursue the collective goals of
society.” This statement exemplifies which approach?
a. Stakeholder model of corporate governance
b. Ethical approach of corporate governance
c. Shareholder model of corporate governance
d. Efficiency maximization goal of the firm
e. Broader conceptualization of corporate governance
The framework to understand how businesses meet their economic, legal, ethical, and
philanthropic responsibilities is developed around the assumption that social
responsibility is a
a. process.
b. specific set of rules and guidelines.
c. result that does not need further attention.
d. theory, with little relevance to business practice.
e. requirement by federal law.
When sellers bid on their own items in order to heighten interest in an online auction,
this is known as ____ bidding.
a. competitive
b. illegal
c. shill
d. fraudulent
e. owner’s
Which of the following is a widely known certification corporate accountability
partnership?
a. Grameen Bank
b. Self Employed Women’s Association
c. Russell Corporation
d. Fair Labor Association
e. AccountAbility
Initiatives in workplace diversity focus on
a. meeting the legal guidelines of equal opportunity.
b. developing a workforce that is 50 percent men and 50 percent women.
c. understanding the ways in which people from different generations communicate and
make decisions.
d. reducing lawsuits related to affirmative action.
e. recruiting and retaining a diverse workforce as a business imperative.
Lying by omission involves intentionally
a. withholding material facts.
b. creating “noise” within the communication that knowingly confuses or deceives the
receiver.
c. using highly technical language that the receiver does not understand.
d. trying to not hurt someone’s feelings.
e. telling “white lies.”
Which of the following statements best describes the current trends in corporate
governance?
a. Most companies are already using a shareholder orientation with formal governance.
b. Businesses are moving towards a stakeholder orientation with looser corporate
governance.
c. Forces are driving businesses toward the stakeholder orientation and more formal
governance.
d. Companies are turning to a shareholder orientation with a more informal corporate
governance system.
e. Businesses are gravitating toward the stakeholder orientation because the costs
involved are decreasing.
Which of the following statements is not true of someone with a high level of cultural
intelligence?
a. Plans carefully before meeting with someone who is from a different cultural
background
b. Generally understands other cultures, cultural values, and similarities and differences
between cultures
c. Is very interested in other cultures and enjoys meeting people who have different
cultural backgrounds
d. Modifies behavior to make others more comfortable and follows local conventions
e. Believes members of other cultures need to be educated so that they understand what
is appropriate
What are some of the benefits a company receives by encouraging its employees to
participate in volunteer programs?
Answer:
Answers will vary.
Describe the importance of codes of conduct to organizations. What aspects of the
Texas Instruments’ code of ethics are most useful and effective?
Answer:
Answers will vary.
What are the key responsibilities of ethics officers? How would the employment
background, personality, and reputation of an ethics officer affect his or her
performance on the job?
Answer:
Answers will vary.
Name the three attributes of stakeholders, and explain how these attributes may affect
the development of a relationship between a stakeholder and a company.
Answer:
Answers will vary.
How can a strong compliance program act as a buffer to keep employees from
committing crimes and protect the company’s reputation? What are the key elements of
the program?
Answer:
Answers will vary.
What are three of the duties of the Environmental Protection Agency?
Answer:
Answers will vary.
Define ethical misconduct disaster (EMD). Provide two examples of ethical misconduct
disasters that have occurred in business over the past several years.
Answer:
Answers will vary.
How has the Internet and other technology affected productivity and trust in the
workplace?
Answer:
Answers will vary.
What is reputation management? Describe the four components of the reputation
management process, and explain how these components work together.
Answer:
Answers will vary.
Why does Southwest Airlines formalize its commitment to customer service?
Answer:
Answers will vary.
What is cloning and what are its possible applications?
Answer:
Answers will vary.
Describe how the return on corporate governance goes beyond enhanced organizational
performance to include the competitiveness of nations.
Answer:
Answers will vary.
What are some of the characteristics of the best boards of directors?
Answer:
Answers will vary.
Discuss the United Nations’ efforts toward realizing improvements in the development
of countries around the world.
Answer:
Answers will vary.
What is corporate culture, and how is it conveyed in an organizational setting?
Answer:
Answers will vary.
How does social responsibility reporting benefit a firm?
Answer:
Answers will vary.