Question 1

Management can create an environment in which unethical behavior can develop.

Accepted Answer

A) True 
 B)False

Question 2

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is

Accepted Answer

A)  a job. 
B)  a commitment to programs that promote green living. 
C)  a high-end product line. 
D)  flexible work hours. 
A)  a job. 
B)  a commitment to programs that promote green living. 
C)  a high-end product line. 
D)  flexible work hours.

Question 3

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a reason why a business should be managed ethically?

Accepted Answer

A)  It's the right thing to do. 
B)  There are strict global regulations require it. 
C)  It's the law in the U.S. 
D)  Your employees demand it. 
A)  It's the right thing to do. 
B)  There are strict global regulations require it. 
C)  It's the law in the U.S. 
D)  Your employees demand it.

Question 5

When stating a firm position on various social and political issues, corporate policies often commit company profits to back these positions.

Accepted Answer

A) True 
 B)False

Question 6

Corporate philanthropy refers to the position a firm takes on issues that affect society.

Accepted Answer

A) True 
 B)False

Question 7

Andrea owns a small online retail business. On her company website, she asks customers who fill orders to mark a box if they are willing to let her share their personal information with her suppliers. By asking this question, Andrea is addressing privacy issues, and covering her actions in case someone should try to sue her for sharing private information. She is responding to the question, "Are my proposed actions legal?"

Accepted Answer

A) True 
 B)False

Question 8

People involved in business may be tempted to do something unethical in order to increase sales and profits, but rarely do because if they are caught, our legal system will deal harshly with them.

Accepted Answer

A) True 
 B)False

Question 9

In the long run, a firm's loyalty to their employees can pay off financially.

Accepted Answer

A) True 
 B)False

Question 10

Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

Accepted Answer

A) True 
 B)False

Question 11

It can be very difficult to maintain a balance between ethics and goals such as pleasing stakeholders.

Accepted Answer

A) True 
 B)False

Question 12

In the discussion of corporate social responsibility, stakeholders and stockholders refer to the same group.

Accepted Answer

A) True 
 B)False

Question 13

In order to avoid the costly act of being sued in court, it makes good sense to manage your business ethically.

Accepted Answer

A) True 
 B)False

Question 14

Getting even is one of the most powerful incentives for good people to do bad things.

Accepted Answer

A) True 
 B)False

Question 15

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Accepted Answer

Compliance-based ethics codes emphasize

Question 16

Recently, Silky Soft Inc., a clothing and soft goods company agreed to adopt higher ethical standards with respect to contract manufacturers producing their goods. Company leadership agreed this was a good approach to avoid the U.S. government's intervening and creating new laws to force the entire industry to work only with foreign manufacturers who operate with high ethical standards. This was sensible strategy on the part of the clothing and soft goods industry.

Accepted Answer

A) True 
 B)False

Question 17

The ethical standards by which international political leaders are judged are more lenient today than they were in years past.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements best describes a firm's commitment to its customers?

Accepted Answer

A)  The firm is responsible for offering domestic products to foreign customer markets. 
B)  One's social responsibility to customers is clear-cut. 
C)  Customers will only support companies who make a visible effort to keep prices low. 
D)  Firms that offer real value will develop a competitive advantage and gain customer trust. 
A)  The firm is responsible for offering domestic products to foreign customer markets. 
B)  One's social responsibility to customers is clear-cut. 
C)  Customers will only support companies who make a visible effort to keep prices low. 
D)  Firms that offer real value will develop a competitive advantage and gain customer trust.

Question 19

Purposefully understating your firm's income to avoid paying higher taxes is an example of

Accepted Answer

A)  an accepted business practice. 
B)  tax accountants doing their job. 
C)  illegal behavior. 
D)  a firm's responsibility to its owners. 
A)  an accepted business practice. 
B)  tax accountants doing their job. 
C)  illegal behavior. 
D)  a firm's responsibility to its owners.

Question 20

A very critical last step in the process of establishing an ethics code is

Accepted Answer

A)  middle management support. 
B)  training. 
C)  enforcement. 
D)  identification of the organizational ethics officer. 
A)  middle management support. 
B)  training. 
C)  enforcement. 
D)  identification of the organizational ethics officer.

Exam 4: Demanding Ethical and Socially Responsible Behavior

Management can create an environment in which unethical behavior can develop.

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

Which of the following is a reason why a business should be managed ethically?

When stating a firm position on various social and political issues, corporate policies often commit company profits to back these positions.

Corporate philanthropy refers to the position a firm takes on issues that affect society.

People involved in business may be tempted to do something unethical in order to increase sales and profits, but rarely do because if they are caught, our legal system will deal harshly with them.

In the long run, a firm's loyalty to their employees can pay off financially.

Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

It can be very difficult to maintain a balance between ethics and goals such as pleasing stakeholders.

In the discussion of corporate social responsibility, stakeholders and stockholders refer to the same group.

In order to avoid the costly act of being sued in court, it makes good sense to manage your business ethically.

Getting even is one of the most powerful incentives for good people to do bad things.

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

The ethical standards by which international political leaders are judged are more lenient today than they were in years past.

Which of the following statements best describes a firm's commitment to its customers?

Purposefully understating your firm's income to avoid paying higher taxes is an example of

A very critical last step in the process of establishing an ethics code is

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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