The concept of social responsibility is applicable to

businesses around the world, but adaptations of

implementation and other details on the local level are
needed.
True statement

Since there were few formal governance procedures to

restrain management during the 1950s and 1960s,
managers did not use their company's resources to address
broader concerns than self interest.
False statement

Strategic social responsibility occurs when a company has

integrated:
stakeholder expectations and social responsibility into its
strategic direction and planning processes.

________ is the glue that holds organizations together and

allows them to focus on efficiency, productivity, and profits.
Trust.

The ________ dimension of social responsibility refers to a

business's societal contribution of time, money, and other
resources.
philanthropic.

The four types of social responsibility include:

legal, philanthropic, economic, and ethical.

The economic well-being of a society or nation is partly

dependent on its social institutions, particularly those that
promote trust.
True statement.

Minimal social responsibility focuses on contractual

stakeholders and mainly takes economic and legal
considerations into account.
True statement.

Developing effective ethics programs in business does not

lead to economic advantage.
False statement.

The text's philosophy of social responsibility applies only to

very large, global business organizations.
False statement.

Strategic social responsibility occurs when a company has

integrated:

stakeholder expectations and social responsibility into its

strategic direction and planning processes.

Which of the following is not an example of a primary

stakeholder?
Media.

A stakeholder orientation includes all of the following

activities except:
minimizing the influence of stakeholder information on the
firm.

Governance is the control and accountability process for

achieving social responsibility.
True statement

The stakeholder model of corporate governance is more

narrow and restrictive than the shareholder approach.
False statement

Over the last century, a number of justifiable regulations

have been passed to "level the playing field" on which
businesses operate.
True statement.

Justifications for business regulation can be categorized as

economic or social.
True statement.

Business ethics comprises the principles and standards that

guide behavior of individuals and groups in the world of
business.
True statement.

The majority of workplace bullies are supervisors.

True statement.

Front-line employees have the ultimate responsibility of

establishing the ethical tone of the entire organization.
False statement.

Employees much prefer to deal with ethical issues through:

their supervisors or managers.

Workforce reduction of the 1990s effectively ended the

loyalty- and commitment-based contract that employees had
developed with employers.
True statement.

A psychological contract is a written, formal, and signed

agreement between an employee and employer that states
expectations and obligations in the workplace.
False statement.

The consumer rights have been mandated through law.

False statement.

Antitrust activities that reduce competition may jeopardize a

consumer's:
right to choose.

In the U.S. during the early part of the 1900s, the caveat "Let
the buyer beware" typified the power that business wielded
in most exchange relationships.
True statement.

Cause-related marketing has an organizational focus, while

strategic philanthropy has a product or product line focus.
False statement

The community relations function should develop community

mission statements, assess opportunities, and identify
priorities for the types of contributions a business will make
by:
...

Identity theft occurs when:

criminals obtain personal information that allows them to
impersonate someone else, use their credit, and/or make
purchases.

Bioethics refers to the study of ethical issues in the fields of

medical treatment and research.
True statement.

In a cap-and-trade program, companies that do not release

as much carbon emissions as are allowed buy permits from
companies that release more carbon emissions than are
allowed.
False statement.

The use of traditional fossil fuels reduces global carbon

emissions.
False statement.

If a company is accused of closing a manufacturing plant in

response to efforts made by labor to organize, it may be
investigated by a:
corporate accountability partnership.

A major goal of the United Nations is to realize

improvements in the development of countries around the
world.
True statement.

A strong organizationsal ethical culture usually focuses on

the core values of?
placing cusomers' interests first.

Employers' perception of their firm as having an ethical

climate leads to?
performance-enhancing outcomes.

The Consumers' Bill of Rights decrees by JFK did NOT

specify?
the right to freedom.

The current trend in business ethics has moved away from

legally based ethical initiatives in organizations.
cultural or integrity-based initiatives that make ethics a part of
core organizational values.

RElative to business ethics what is true?

The values learned from family, religion, & school may not
provide specific guidelines of complex business decisions.

Business ethics was institutionalized thru the Federal

Sentencing Guidelines for organizations during what period?
The 1970's1

Business ethics related to rules principles that guide

individuals & work group decisions, whereas social
responsibility?
concerns the effect of organizational decisons on society

Within business ethics the issue of a living wage was a key

issue?
before 1960.

The difference between an ordinary decision & an ethical

one?
Responsibility for weighing the accepted rules do not apply &
the decisions maker is faced with the responsibility for
weighint values & reaching a judgement in a situation that is
not quite the same as any they have faced before.

Many pollution control efforts have?

Relatively short payback & long-term positive effects on
profitability.

What prohibits the US corporatins from offering or providing

paymetns to officials of foreign governments for the purpose
of obtaining or retaining business abroad?
Foreign Corrupt Practices Act

Cutlure is definied by?

everything in our surrounding made by people, both tangible
items & intangible concepts & values

What is NOT a criticism of multinational corporations?

Their help in establishing minimum wage laws.

Statement that is correct?

When companies charge high prices for products sold in their
home markets while selling the same products in foreign
markets at lower prices that do not cover all the costs of
exporting the products the practice is known as dumping.

Racial & sexual discrimination?

Are not limited to the US

What statement is NOT one of the cultural differences that

may create ethical issues in international business?
Age

Advances in telecommunications have intensifies such

ethical issues?
Copyright infringement & unauthorized duplications of fashion
designs.

According to the concept of cutlural relativism what is

correct?
Morality varies from one culture to another.

What provides legally binding grounding for international

commerce & trade policy?
World Trade Organization

For public corporations, boards of directors hold the ultimate

responsibility for their firms success or failure.
True statement.

Not an example of primary stakeholder?

Media

Groups that influence and/or are affected by the company

that neither engage in economic exchanges with the firm not
are fundamental to its dailyr survival are collectively called?
Secondary stakeholders

What activity is NOT part if stakeholder orientation?

The practice of providing loans to company officials

A survey of USA Today found coporate boards have

considerable?
Overlap

the shareholders model of corporate governance is based

on?
Maximization of wealth of investors & owners

What is NOT one of the classes of corpirate goverance

issues?
conflicts of interst

What statement is correct?

The degree to which a firm understands & addresses a
stakeholder demands can be referred to as a stakeholder
orientation.

Business ethics issues, conflicts, & success resolve around?

Relationships

The Sarbanes-Oxley Act was established to address?

accounting fraud

To avoid sexual misconduct charges a company should do all

EXCEPT?
prevent dual relationships

What branch made the decision that helped lay the

groundword for intellectual property rules?
FCO

What statement is true?

Insider tradeing can be legal or illegal.

In sexual harassment cases the definition of ? behaviors

varies from state to state?
Reasonable

The Kyoto Protocol is an international treaty related to the

worlds growing concern about?
Global warming

What is NOT a popular method of obtaining valuable

corporate information?
Blocking

What creates a perception or belief by words that

intentionally deceive the receiver of a message?
commission lying

Optomization is the tradeoff between equity and?

Efficiency

What behavior rankes as the most observed misconduct

since 2000?
Abusive or intimidating behavior

What is a consumer protection law?

Wool Products Labeling Acts of 1939

The three dimensions of institutionalization are?

voluntary, core, and mandated practices

What is NOT a law regulating competition?

Pure Food & Drug Act of 1906

What dimension of social responsibility refers to a business's

contribution to society?
Philanthropic

What is derived from precedent established by judges?

Common law

What is NOT a law promoting equility & safety?

Clayton Act of 1814

Strategic philanthropy is best defined by?

lying philanthropic giving to overall strategy & objectives.

Ethical issue intensity is defined as?

The perceived relevance or importances of an ethical issue to
the individual, work group, and/or organization.

What is NOT ibe if the six leadership styles identified by

Daniel Goleman?
Transformational

What is NOT a compound of immediate job context that may

relate to opportunity?
Bribes

What is NOT a significant other influencing ethical decision

making in the workplace?
Children

A corporate culture can be defined as?

...

What is the term that refers to the conditoins that limit or

permit ethical or unethical behavior?
Opportunity

What key componenbt is NOT included in the ethical

decision-making framework?
Corporate culture

The most important laws & regulations that have been

passed to encourage ethical conduct are the sarbanes-Oxley
Act and?
FSGO

The Sarbanes-oxley Act was passed to provide oversight to?

corporate accounting practices

What is NOT a law protecting the environment?

Nutrirional labeling & Education Act of 1990

Teleogy refers to moral philisophies in which an act is

considered?
Morally right or acceptable if it produces a desired result.

The types of moral philisophy include?

teleology, dentology, relativist perspective, virtue ethics, &
justice

Moral philisophy refers in particular to?

The principles or rules that people use what is right or wrong.

Ethical leaders are tranparent leaders.

True statement

Thomas Whgite, a leading authority on charater

development believes being a moral person does not
necessarily involve intellectual skills.
False statement

Ethical leaders are reactive.

False statement

Types of justice include?

distributive, procedural, & interactional.

According to Kohlberg's model of cognitive moral

development, different individuals make different decision in
similar ethical situation because?
They are in different stages of cognitive moral development.

Denotologists believe indivduals have certain absolute rights

including?
freedom of conscience, freedom of consent, freedom of
privacy, freedom of speech, and due process.

What statement is NOT correct?

Utilitarianism defines right or acceptable actions as those that
maximize total utility, or the greatest good for the most
powerful people

What defines rights or acceptable behavior in terms of the

consequences for the individual?
Egosim

According to the relativist perspective, definitions, of ethical

behavior are derived?
subjectively from the experience of individuals & groups.

What statement is correct?

A moral virtue represents an acquired disposition that is
valued as a part of an individuals character

The idea that people learn ethichal or unethical behavior

while interacting with others who are part of their role-sets
or other intimate personal groups is called?
Differential association.

Standards of behavior groups expect from their members are

called?
Group norms

This tool can be used to classify & identify values, norms,

beliefs, & customs?
Corporate cultural audit

What statement is true?

The caring culture exhibits high concern for people but
minimal concern for performance issues.

With regard to a decentralized organization what is correct?

There are few & informal rules & procedures.

What is a FALSE staement about power?

Expert power is derived from a person's authority

What is satisfied by creative or productive activities?

Growth needs

What organizational cultures demonstrates high concern for

people & high concern for performance?
Integrative

Corporate culture may be expressed informally thru?

legends

With regard to a centralized organization what is correct?

Flexibility is low.

What is NOT suggested as being included as being desirable

for codes of ethics?
Compliance

The Sarbanes-Oxley Act put more pressure on ethics officers

to monitor?
Financial reporting.

To be effectie ethics training must first start with a

foundation that includes?
A code of ethics

A major mistake in designing & implementing an ethis

program is?
Senior managments failure to take ownership

Values orientation strives to develop?

shared values

A compliance orientation uses?

Contracts, rules, & penalties.

The primary impication of bad apple bad barrel theory is?

organizations CAN influence ethical behavior by hiring people
with high ethical standards & developing an ethical corporate
culture.

What is NOT one of the keys to successfule ethics training?

Rewarding employees for unethical behaviors.

What is NOT a responsibility of an ethics officer?

Developing & implementing marketing strategy

What statement is correct?

An organizational ethics programs should help reduce the

possibility of legally enforced penalties & negatively public
reactions to misconduct.

An ethics audits is?

a major component of an ethics program.

An ideal person or group to oversee the ethics audit would

be?
The board of directors

The strategic importance of ethics auditing includes all

EXCEPT?
Avoidance of fines in cases of an infraction

The Better Business Bureau Internatinal Torch Award for

marketplace ethics may be usefule to hlep what type of
companies with their ethics audit?
Companies with fewer resources

A major risk of ethics auditing is?

Discovering a serious ethical problem tha the company would
prefer not to disclose.

the similarity between ethics auditing & financial auditing is

both employ?
Objective reporting.

The ethics auditing process can do all EXCEPT?

Provide ethical disaster recovery.

an ethics audit is best described as a?

Systematic evaluation of an organizations ethics program
and/or performance to determine its effectiveness

Verificaion of audit results involves?

An independent assessment of the quality, accuracy, &
completeness of a companys corporate citizenship report.

The first step in conducting any audit is to?

Secure the commitment of top management and/or board of
directors.