Exam 2: Business Ethics and Social Responsibility

Developing a close personal relationship with a client or supplier is only a conflict of interest if others find out about the relationship.

Social audits conducted internally are of no value because they are always biased in favor of the company.

According to _____ standards, when a drug company purchases a television ad, the company is required to describe potential side effects of the drug, or at least provide a phone number or Web site address for additional information.

Most job positions in developed countries prefer to hire applicants with college degrees.

A company's CEO alone determines the ethical climate of the business.

_____ goes beyond truthfulness.

A strategy that promotes environmentally friendly products and production methods is called _____.

If companies provide a code of conduct and ethical training, there is no need to hire a compliance officer or to provide an anonymous employee hotline to report unethical behavior they have witnessed.

Businesses should _____.

Preconventional behavior is the term used to describe an employee's disclosure to the media or government authorities of illegal, immoral, or unethical practices of the organization.

To demonstrate their social responsibility, many corporations highlight charitable contributions and community service in their annual reports and on their websites.

Social audits are informal business surveys that report customer satisfaction with a company's products.

Which federal agency is responsible for ensuring the safety of prescription drugs?

A conflict of interest exists when a person is faced with a decision in which an action will harm one individual or group while benefiting another.

When an individual moves beyond his or her own needs and desires and takes the needs of society into consideration when making decisions, in which stage of ethical development is this individual?

During the Olympics, several Nike ads were aired that demonstrated the company's sponsorship of various events. Nike was using _____ to align their marketing efforts with charitable giving.

_____ are responsible for conducting employee training programs that help spot potential fraud and abuse within a firm.

Ethical standards are not proven to affect a company's stock prices.

Alezae does not make personal long-distance phone calls at work because it will cost her employer money. Alezae is in the _____ stage of ethical developement.

MATCHING Complete the following using the terms listed. -When a publicly traded firm is suspected of unethical or illegal behavior, the _____ will conduct an investigation.