Question 1

Business issues such as treating employees fairly and ethically are part of corporate responsibility.

Accepted Answer

A) True 
 B)False

Question 2

Insider trading involves

Accepted Answer

A)  an online activity that establishes a barter exchange system between businesses. 
B)  investors using private company information to further their own fortunes. 
C)  the exchange of assets between companies in the same industry. 
D)  a payment or reward for socially conscious behavior. 
A)  an online activity that establishes a barter exchange system between businesses. 
B)  investors using private company information to further their own fortunes. 
C)  the exchange of assets between companies in the same industry. 
D)  a payment or reward for socially conscious behavior.

Question 3

At Fisher Financial Services, clients have a right to do business with whichever consultant they choose. It is not out of the ordinary for a financial consultant to lose a client to another consultant in the same office. If it is a high-net worth client, with the potential for high commissions on sales, the incentive to steal a fellow worker's client exists because the firm's culture has not established integrity-based ethics to deter this activity.

Accepted Answer

A) True 
 B)False

Question 4

As the number of multinational corporations continues to grow, we are experiencing a greater number of international ethical dilemmas. One very real concern has been the human rights abuses in sweatshops in exchange for cheap labor. Several retailers have now banded together to set ethical standards in foreign factories. Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?

Accepted Answer

A)  Multinationals must subjectively determine the local living wage, which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops. 
B)  Economically sensitive customers want companies to pass along cost savings to them, at all costs, even if the products are made through offshore outsourcing. Companies want to please customers, first! 
C)  Most multinational corporations have made no attempt to improve working standards at sweatshop factories. They will turn a blind eye to the problem unless U.S. law is passed to force the issue. Customers understand that legal limits come before ethical standards. 
D)  Multinationals cannot be expected to demand socially responsible behavior from their supplier, including foreign sweatshops. When doing business abroad, the U.S. company need not comply with U.S. law when its supplier(s) is not in the U.S. or on U.S. territory. 
A)  Multinationals must subjectively determine the local living wage, which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops. 
B)  Economically sensitive customers want companies to pass along cost savings to them, at all costs, even if the products are made through offshore outsourcing. Companies want to please customers, first! 
C)  Most multinational corporations have made no attempt to improve working standards at sweatshop factories. They will turn a blind eye to the problem unless U.S. law is passed to force the issue. Customers understand that legal limits come before ethical standards. 
D)  Multinationals cannot be expected to demand socially responsible behavior from their supplier, including foreign sweatshops. When doing business abroad, the U.S. company need not comply with U.S. law when its supplier(s) is not in the U.S. or on U.S. territory.

Question 5

"Hear no evil, see no evil, speak no evil" is the best policy for U.S. firms to follow in their dealings with corrupt foreign suppliers.

Accepted Answer

A) True 
 B)False

Question 6

The green movement

Accepted Answer

A)  is not a good strategic consideration for contemporary firms. 
B)  will never benefit a firm financially. 
C)  is benefiting all firms financially. 
D)  has created jobs. 
A)  is not a good strategic consideration for contemporary firms. 
B)  will never benefit a firm financially. 
C)  is benefiting all firms financially. 
D)  has created jobs.

Question 7

The Foreign Corrupt Practices Act deals with

Accepted Answer

A)  prison labor involved in international trade. 
B)  high seas piracy that has had a resurgence in the past five years. 
C)  bribery to obtain business. 
D)  product safety concerns. 
A)  prison labor involved in international trade. 
B)  high seas piracy that has had a resurgence in the past five years. 
C)  bribery to obtain business. 
D)  product safety concerns.

Question 8

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

Accepted Answer

A) True 
 B)False

Question 9

A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws. Which of the following "ethics check questions" would you consider first?

Accepted Answer

A)  Is it legal? 
B)  Is it fair and balanced? 
C)  How will it make me feel about myself? 
D)  Is it a generous amount? 
A)  Is it legal? 
B)  Is it fair and balanced? 
C)  How will it make me feel about myself? 
D)  Is it a generous amount?

Question 10

Compliance-based ethics codes

Accepted Answer

A)  conform to U.S. laws and regulations. 
B)  enable responsible employee conduct. 
C)  use education, leadership, and accountability to reinforce the code. 
D)  create a "do-it-right" climate that emphasizes core values. 
A)  conform to U.S. laws and regulations. 
B)  enable responsible employee conduct. 
C)  use education, leadership, and accountability to reinforce the code. 
D)  create a "do-it-right" climate that emphasizes core values.

Question 11

The danger in writing new laws to correct behavior is that

Accepted Answer

A)  people may begin to think that any behavior that is legal is ethically acceptable. 
B)  people will see the difference between ethics and legality. 
C)  legal behavior will reflect the totality of people's relations with one another. 
D)  there will not be enough jails to house those who break the law. 
A)  people may begin to think that any behavior that is legal is ethically acceptable. 
B)  people will see the difference between ethics and legality. 
C)  legal behavior will reflect the totality of people's relations with one another. 
D)  there will not be enough jails to house those who break the law.

Question 12

A whistleblower is a person who

Accepted Answer

A)  monitors employees who work overtime. 
B)  reports illegal or unethical behavior in the corporation. 
C)  reports health or other corporate emergencies to 911. 
D)  works in the human resource department. 
A)  monitors employees who work overtime. 
B)  reports illegal or unethical behavior in the corporation. 
C)  reports health or other corporate emergencies to 911. 
D)  works in the human resource department.

Question 13

A firm's net social contribution is a company report that measures the difference between its positive social contributions and its negative social impact.

Accepted Answer

A) True 
 B)False

Question 14

Two recent studies found no correlation between academic dishonesty among undergraduates and dishonesty at work.

Accepted Answer

A) True 
 B)False

Question 15

When working with international firms, U.S. businesses

Accepted Answer

A)  tend to ignore the ethics of their international partners. 
B)  expect socially responsible behavior from their business partners. 
C)  feel that their responsibility is limited to the United States. 
D)  try to avoid judging our international business partners by U.S. standards. 
A)  tend to ignore the ethics of their international partners. 
B)  expect socially responsible behavior from their business partners. 
C)  feel that their responsibility is limited to the United States. 
D)  try to avoid judging our international business partners by U.S. standards.

Question 16

Following an ethics-based approach to decision making will normally lead to higher

Accepted Answer

A)  profits. 
B)  trust and cooperation. 
C)  prices. 
D)  employee turnover. 
A)  profits. 
B)  trust and cooperation. 
C)  prices. 
D)  employee turnover.

Question 17

While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.

Accepted Answer

A) True 
 B)False

Question 18

Anna is a stockbroker for Bank of Bux. A client who works at Game Guys, Ltd., just called to purchase thousands of shares of Game Guys' company's stock. He reveals to her that the company is soon announcing the appointment of a new superstar CEO. Anna asks her client if this information is public knowledge. The reason she asks is to make certain that her client, her company, and she remain in compliance with Regulation FD, the fair disclosure rule.

Accepted Answer

A) True 
 B)False

Question 19

Business relationships often present ethical dilemmas that are

Accepted Answer

A)  not easily resolved. 
B)  easily resolved by following the relevant laws. 
C)  best resolved by creating a win-lose situation. 
D)  irrelevant and therefore require no action. 
A)  not easily resolved. 
B)  easily resolved by following the relevant laws. 
C)  best resolved by creating a win-lose situation. 
D)  irrelevant and therefore require no action.

Question 20

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Business issues such as treating employees fairly and ethically are part of corporate responsibility.

Insider trading involves

"Hear no evil, see no evil, speak no evil" is the best policy for U.S. firms to follow in their dealings with corrupt foreign suppliers.

The green movement

The Foreign Corrupt Practices Act deals with

According to the Reaching Beyond Our Borders box, corporate ethics can clash with cultural ethics, especially in global business.

A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company's apparent violation of several antipollution laws. Which of the following "ethics check questions" would you consider first?

Compliance-based ethics codes

The danger in writing new laws to correct behavior is that

A whistleblower is a person who

A firm's net social contribution is a company report that measures the difference between its positive social contributions and its negative social impact.

Two recent studies found no correlation between academic dishonesty among undergraduates and dishonesty at work.

When working with international firms, U.S. businesses

Following an ethics-based approach to decision making will normally lead to higher

While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.

Business relationships often present ethical dilemmas that are

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.

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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