Chapter 02 Business Ethics and Social Responsibility Answer Key Part 1

Chapter 02 Business Ethics and Social Responsibility Answer Key True / False Questions 1. (p. 36)Business ethics refers to principles and standards that define acceptable conduct in business organizations. TRUE Business ethics are principles and standards that define acceptable behavior for individuals within an organization as well as the organization at large. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility 2. (p. 36-37)Ethics and social responsibility mean the same thing. FALSE Business ethics are the principles and standards that determine acceptable conduct in businesses. Social responsibility is a broader concept. It is a businesss obligation to maximize its positive impact and minimize its negative impact on society. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility 3. (p. 39)Nearly all business decisions may be judged as right or wrong, ethical or unethical. TRUE Business decisions, either by law or by society, will be deemed an acceptable practice or not. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 4. (p. 37)The most basic ethical concerns have been formalized through laws and regulations that encourage conformity to societys values and norms. TRUE The Sarbanes-Oxley Act was passed in 2002 by Congress to criminalize securities fraud as well as stiffen corporate fraud. This was a response to public outcry regarding accounting scandals in the early 2000s and to restore confidence in Corporate America. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility 5. (p. 37, 39)All a business has to do to maintain ethical conduct is to follow the law. FALSE Business ethics goes beyond legal issues by building trust among individuals and in business relationships which validates and promotes confidence among those relationships. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 6. (p. 39)Only corporations have to worry about ethics scandals and social responsibility issues. FALSE Ethical issues are not limited to for-profit corporations but include government, non-profits such as universities, sports and individuals. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business Multiple Choice Questions 7. (p. 36)The principles and standards that determine acceptable conduct in business are referred to as: A. norms B. strategies C. ethics D. laws E. rules Business ethics is defined as the principles and standards that determine acceptable conduct in business. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 8. (p. 37)Social ______ relates to a businesss impact on society. A. responsibility B. strategy C. ethics D. law E. rule Social responsibility is a businesss obligation to maximize its positive impact and minimize its negative impact on society. AACSB: Reflective Thinking Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 9. (p. 37)The __ Act criminalized securities fraud and stiffened penalties for corporate fraud. A. EEOC B. Ethical Standards C. Internet Standards D. Sarbanes-Oxley E. SCF Congress passed the Sarbanes-Oxley Act in response to several prominent accounting scandals. The Act criminalized securities fraud and stiffened penalties for corporate fraud. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 10. (p. 40-41)What is considered ethical may differ depending on the __ in which a business operates. A. country B. culture C. trade bloc D. hemisphere E. industry The acceptability of behavior in business varies in part depending on local values, moral principles, and customs. AACSB: Ethics Blooms: Comprehension Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 11. (p. 36-37)Which of the following statements about business ethics is false? A. It concerns the impact of a businesss activities on society. B. It refers to principles and standards that define acceptable behavior in business organizations. C. It relates to an individuals values and moral standards and the resulting business decisions he or she makes. D. What is ethical is determined by the public, government regulators, interest groups, competitors, and each individuals personal moral values. E. Studying it can help you recognize ethical issues and understand how others make unethical decisions. Social responsibility concerns the impact of a businesss activities on society. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility 12. (p. 39)Studying business ethics will not necessarily A. help you recognize ethical issues. B. help you understand the importance of ethical decisions. C. inform you concerning the impact of the work group on ethical decisions. D. describe the ethical decision-making process. E. tell you what you ought to do. Others such as your peers, family, and co-workers will judge your actions and decisions to be ethical or unethical. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 13. (p. 39)Ethical violations destroy A. nothing. B. jobs. C. trust. D. profits. E. morale. Ethical conduct builds trust and credibility therefore when ethical violations are committed, it is very difficult, to restore trust and confidence. AACSB: Ethics Blooms: Knowledge Difficulty: Hard Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 14. (p. 37)The Sarbanes-Oxley Act was passed to A. punish those who committed accounting fraud in the late 1990s. B. improve corporate profits. C. help laid-off employees get their jobs back. D. help investors recoup their losses. E. help restore confidence in Corporate America. The Sarbanes-Oxley Act was passed in 2002 by Congress to criminalize securities fraud as well as stiffen corporate fraud. This was a response to public outcry regarding accounting scandals in the early 2000s and to restore confidence in Corporate America. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility 15. (p. 37)Which of the following have not been cited as incidents of unethical business activity recently? A. Unfair competitive practices in the computer industry B. Deceptive advertising of medicines and toys C. Accounting fraud D. Deceptive advertising of food products E. Corporate charitable giving is high National newspapers such as USA Today or Wall Street Journal regularly cover examples of ethical issues across industries. Corporate charitable giving is not an incidence of unethical conduct. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business 16. (p. 39)Which of the following statements is false? A. Ethical issues are limited to for-profit organizations. B. Business ethics goes beyond legal issues. C. Ethical conduct builds trust among individuals and in business relationships. D. Ethical conflicts may evolve into legal disputes. E. Regardless of what an individual feels about a particular action, if society judges it to be unethical, that judgment affects the organizations ability to achieve its objectives. Ethical issues are not limited to for-profit corporations but include government, non-profits such as universities, sports and individuals. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: The Role of Ethics in Business Essay Questions 17. (p. 24)What is business ethics? Business ethics refers to principles and standards that define acceptable behavior in business organizations. Within the context of an organization, ethics relates to an individuals or work groups decisions that society evaluates as right or wrong. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility 18. (p. 363-39)Choose an issue that has been prominently featured in the news and discuss the ethical implications of this issue. Make sure to define any key terms that you use in your response. Students answers will vary, but they should aim to use and define key terms such as business ethics and social responsibility. They may also want to define and discuss the term ethical issue. Pay careful attention that students truly understand what business ethics is and that they are using the terms properly. AACSB: Ethics Blooms: Knowledge Difficulty: Hard Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance. Topic: Business Ethics and Social Responsibility True / False Questions 19. (p. 39)An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical. TRUE In business, this choice usually involves weighing monetary gain against what a person considers appropriate conduct. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 20. (p. 40)The best way to judge the ethics of a decision is to look at it from a managers or employees point of view. FALSE The best way to judge the ethics of a decision is to look at it from a customers or competitors point of view. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 21. (p. 40)The size of the transaction, the history of personal relationships within the particular company, and many other factors may determine whether a customer gift will be judged as ethical. TRUE This explains why a person needs several years experience in identifying what constitutes an ethical and unethical decision due to its complex nature. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 22. (p. 43)Conflicts of interest are payments, gifts, or special favors intended to influence the outcome of a decision. FALSE Conflicts of interest exist when a person must choose between advancing his or her own personal interests or those of others. Bribes are payments, gifts, or special favors intended to influence the outcome of a decision. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 23. (p. 40)Ethics is related to the culture in which a business operates. TRUE Different cultures adhere to different ethical standards such as in the U.S. it could be viewed as a bribe to bring a gift to a business meeting but in Japan it is considered impolite to not bring a gift to a business meeting. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 24. (p. 42-43)Workplace bullying is an increasing problem. TRUE The Workplace Bullying Institutes latest survey found that 37% of U.S. workers have been bullied, that is 54 million Americans. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business Multiple Choice Questions 25. (p. 43)The most common ethical issue identified by employees is ____. A. bullying B. bribery C. conflict of interest D. cheating E. lying Observed instances of conflict of interest among fellow employees is the form of ethical misconduct most frequently reported by employees. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 26. (p. 48)Managers use the ______ of their position to influence employees actions. A. authority B. power C. scope D. responsibility E. acceptance Because of the inherent authority of their position, managers have the opportunity to influence employees actions. AACSB: Ethics Blooms: Comprehension Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 27. (p. 48)__ involves taking someone elses work and presenting it as your own. A. Copyright B. Photosynthesis C. Forecasting D. Acceptance E. Plagiarism In business, the ethical issue of plagiarism arises when an employee copies reports or takes the work or ideas of others and presents it as his or her own. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business