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Chapter 5—Business Ethics and Ethical Decision Making
MULTIPLE CHOICE
1. Which of the following best describes ethics?
a.
Rules about how one should act in a business situation
b.
Balancing the ever-changing and complex needs of society with the desire for profit
c.
Choices and judgments about acceptable standards of conduct that guide the behavior of
individuals and groups
d.
Guidelines that a company provides its employees to ensure that they will act in the best
interest of society
e.
Beliefs held by all people
2. The most basic of business ethical standards
a.
have been uniformly implemented through every firm's ethics code.
b.
are centered around the mutual desire to protect the environment.
c.
demonstrate a company's desires to address the needs of society.
d.
have been codified as laws and regulations.
e.
include developing trust in all business relationships.
3. Because it can be difficult to draw a boundary between some legal issues and ethical issues in the
workplace, it is important to
a.
realize that ethical issues rarely become so important that they reach the courtroom for
resolution.
b.
recognize that the most cost-effective way to resolve disputes is through the court system.
c.
have an organizational mechanism for resolving all questionable issues.
d.
ensure that legal issues brought by stakeholders outside of the organization are resolved
within the organization.
e.
develop a code of conduct to cover every possible issue.
4. An ethical issue is a problem, situation, or opportunity
a.
that harms consumers.
b.
that harms the environment.
c.
that requires society to choose among several actions that must be evaluated as right or
wrong.
d.
that requires an individual or organization to choose among several actions that must be
evaluated as right or wrong, ethical or unethical.
e.
that requires an individual or organization to choose between harming consumers or the
environment and earning more profits.
5. An employee for Acme, Inc., has been asked to carry out an assignment that she believes is
questionable. This situation can best be classified as
a.
typical.
b.
misconduct.
c.
an ethical issue.
d.
a real-life dilemma.
e.
a violation of law.
6. Which of the following actions is not usually associated with bullying in the workplace?
a.
Spreading rumors to damage others
b.
Insulting, yelling, and shouting
c.
Taking credit for others' work or ideas
d.
Using discriminatory terminology
e.
Providing constructive criticism
7. 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."
8. Issues related to fairness and honesty may arise because business is sometimes regarded as a
a.
contest, with the most profitable firm "winning."
b.
contest, with the most ethical firm "winning."
c.
war, requiring surprise attacks, guerrilla warfare, and other warlike tactics to win the battle
for consumers' dollars.
d.
game governed by its own rules, rather than those of society.
e.
game governed by the rules of society.
9. Conflicts of interest exist when employees must choose whether to
a.
advance their own interests, those of the organization, or those of some other group.
b.
advance the interests of the organization or those of society.
c.
accept bribes.
d.
carry out an assignment they perceive as unethical.
e.
report an unethical coworker.
10. Bribery is associated with which of the following?
a.
Organizational relationships
b.
Marketing
c.
Communications
d.
Honesty and fairness
e.
Conflicts of interest
11. 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.
12. Which of the following is not an ethical issue in the area of communications?
a.
Concealed facts in advertising
b.
Bribery
c.
False or deceptive advertising
d.
Ambiguous statements in advertising
e.
Lying
13. ____ prohibit(s) employment discrimination on the basis of race, national origin, color, religion and
gender.
a.
The International Employment Rights Treaty
b.
Title VII of the Civil Rights Act of 1964
c.
The Americans with Disabilities Act
d.
Affirmative Action programs
e.
The Equal Employment Opportunity Commission
14. Concerns involving consumer privacy, website development, and online marketing relate to which
classification of ethical issue?
a.
Conflict of interest
b.
Honesty
c.
Communications
d.
Discrimination
e.
Technology
15. What are the three primary factors that together influence the ethical decision-making process?
a.
Values, norms, and regulations
b.
Opportunity, individual factors, and organizational relationships
c.
Stakeholder relationships, trust, and corporate culture
d.
Society, profits, and longevity
e.
Personal ethics, group ethics, and business ethics
16. Which moral classification considers a decision right or acceptable if it accomplishes a desired result
such as pleasure, knowledge, career growth, or utility?
a.
Ethical formalism
b.
Consequentialism
c.
Justice
d.
Results theory
e.
Egoism
17. 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
18. If employees believe that salary decisions are fair and consistent for all job categories, what type of
justice exists?
a.
Interactional
b.
Procedural
c.
Utilitary
d.
Distributive
e.
Ethical
19. In which of Kohlberg's stages of moral development does an individual emphasize others over himself
or herself?
a.
Stage of individual instrumental purpose and exchange
b.
Stage of punishment and obedience
c.
Stage of mutual interpersonal expectation, relationships, and conformity
d.
Stage of prior rights, social contract, or utility
e.
Stage of social justice and conscience maintenance
20. According to Kohlberg's model, moral development
a.
is accelerated by gaining education and experience in resolving conflicts.
b.
can be defined as six unrelated stages that a person progresses through.
c.
depends mostly on the first few years of a person's life.
d.
differs for each individual, resulting in no universal values.
e.
is focused primarily on each individual's needs.
21. Mary steals office supplies from her employer. Mary's unethical behavior may be attributed to all of
the following except
a.
her individual background along with her associations with others at her place of work.
b.
the availability of unmonitored office supplies.
c.
her personal values alone.
d.
her coworkers' tendencies to steal office supplies.
e.
a lax ethical climate at her place of work.
22. What aspect of corporate culture relates to an organization's expectations about appropriate conduct?
a.
Organizational climate
b.
Regulations
c.
Significant others
d.
Ethical climate
e.
Values
23. Who establishes the ethical tone for the entire firm?
a.
Mid-level managers
b.
Board of directors
c.
Ethics officer
d.
Employees
e.
Chief Executive Officer
24. Which of the following most closely exemplifies "groupthink"?
a.
The CEO of a company is a strong supporter of family values, so the department managers
allow employees time off one day a week to attend a special event for their children.
b.
Two employees get together and come up with a scheme to cheat their company out of a
substantial amount of money by charging clients more for products than what is recorded.
c.
At a company meeting, a possible safety issue with one of the company's products is
discussed, and the employees decide not to recall the item since the possibility of the
problem is probably slim.
d.
An employee believes that her company's newly proposed advertising campaign is
insulting to certain groups of people but decides not to discuss it with anyone.
e.
An employee follows his own ethical principles in making business decisions because he
strongly believes in the source of those principles---his family and his religion.
25. What is the set of conditions that limits barriers or provides rewards?
a.
Opportunity
b.
Circumstances
c.
Motivation
d.
Reinforcement
e.
Influence
5-6
ESSAY
26. What is corporate culture, and how is it conveyed in an organizational setting?
27. Describe two moral philosophies and how each would impact an employee's decision in a business
situation.
28. What is an ethical issue? Describe four categories of ethical issues and provide examples of specific
situations that may occur within each category.
29. According to results from the National Business Ethics Survey, what are the types of misconduct
commonly found in the workplace?
30. Describe the three factors that influence ethical decisions in business, and provide an explanation of
how they affect employees in the workplace.
31. What can a company do to influence its employees' opportunity for unethical behavior?
32. Define fraud and describe three types of fraud relevant to business.
