Answer Key for Business Ethics and Social Responsibility: Chapter 2

28. (p. 44)That businesspeople are expected not to harm customers, clients, and competitors knowingly through deception, misrepresentation, coercion, or discrimination is part of A. fairness and honesty. B. communications. C. conflict of interest. D. business relationships. E. consumerism. Fairness and honesty are at the heart of ethics and relate to values of decision makers such as not pilfering office supplies or engaging in collusive behavior. 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 29. (p. 44)If the video game marketer Playstation were investigated for allegedly raising prices excessively during the Christmas buying season and thereby manipulating the supply of games available at that time, this was an ethical issue concerned primarily with A. conflict of interest. B. communications. C. fairness and honesty. D. cost control. E. game rules. One aspect of fairness related to competition and sometimes a company can gain control over markets, such as manipulating the supply of products, by using questionable practices that harm competition. AACSB: Ethics Blooms: Comprehension Difficulty: Hard Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 30. (p. 46-47)Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to: A. conflict of interest. B. communications. C. product design. D. business relationships. E. financing. Truthfulness about product quality and effectiveness is important to consumers. Many supplements make claims that they will help the consumer lose weight, gain muscle, or improve their overall health that have not been proven, or may even be false. AACSB: Ethics Blooms: Comprehension Difficulty: Hard Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 31. (p. 46-47)The warning on cigarette packages about the health implications of smoking is an example of which of the following ethical issues? A. Conflict of interest B. Fairness and honesty C. Communications D. Relationships within a business E. Environmental issues An important aspect of communications regarding an ethical issue is product labeling such as the Surgeon Generals warning on cigarette packages. AACSB: Ethics Blooms: Knowledge Difficulty: Hard Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 32. (p. 48)The following behavior is an example of ethical consideration within business relationships: A. keeping company secrets. B. avoiding obligations. C. shirking responsibilities. D. setting a poor example for others. E. offering a bribe. Ethical behavior within a business involves keeping company secrets, meeting obligations and responsibilities, and avoiding undue pressure that may force others to act unethically. 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 33. (p. 48)If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical, such as accounting fraud or stealing a competitors secrets, there exists an ethical issue related to A. plagiarism. B. business relationships. C. communications. D. fairness and honesty. E. conflicts of interest. Ethical issues related to business relationships include the responsibility of managers to help an organization achieve its goals without compromising employee rights. AACSB: Ethics Blooms: Comprehension Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business 34. (p. 31)If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in A. keeping a secret. B. career advancement. C. plagiarism. D. socialism. E. egalitarianism. Plagiarism is taking someone elses work or idea and presenting it as your own without mentioning its source. AACSB: Ethics Blooms: Comprehension Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business. Topic: The Role of Ethics in Business Essay Questions 35. (p. 39-48)What are some of the general ethical issues in business? General ethical issues include conflicts of interest that exist when people must choose whether to advance their own interest or those of others. Fairness and honesty relate to the general values of decision makers. Communication is another area in which ethical concerns may arise. Businesspeoples behavior toward customers, suppliers, and others in their workplaces may also generate ethical concerns. 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 36. (p. 26-31)How do you recognize an ethical issue in business? An ethical issue is an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. In business, such a choice often involves weighing monetary profit against what a person considers appropriate conduct. The best way to judge the ethics of a decision is to look at a situation from a customers or competitors viewpoint. 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 True / False Questions 37. (p. 48)It is almost always easy to recognize specific ethical issues. FALSE It is usually difficult to recognize specific ethical issues in practice. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 38. (p. 49)Establishing and enforcing ethical standards and policies within business can help reduce unethical behavior by prescribing which activities are acceptable and which are not and by removing the opportunity to act unethically. TRUE Ethics codes and compliance requirements reduce the opportunity to act unethically and consistently enforcing repercussions for unethical behavior reduces unethical acts by individuals within an organization. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 39. (p. 49)Without a code of ethics or formal policy on ethics, employees are likely to base their decisions on how their peers and superiors behave. TRUE A code of ethics ensures all employees, including senior level executives, are clear on what ethical standards are expected of them. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 40. (p. 50)Codes of ethics foster ethical behavior because they expand the opportunity to behave unethically. FALSE Codes of ethics foster ethical behavior because they reduce the opportunity to behave unethically. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 41. (p. 49)Ethical decisions in an organization are influenced by three key factors. TRUE Ethical decisions in an organization are influenced by three key factors: individual moral standards, the influence of managers and co-workers, and the opportunity to engage in misconduct. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 42. (p. 49)Codes of ethics are formalized rules and standards that describe what the company expects of its employees. TRUE Codes of ethics do not take into consideration every situation but it should provide a clear means of appropriate behavior and steps to take in addressing ethical issues and/or concerns. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business Multiple Choice Questions 43. (p. 49)Many employees utilize different _____ at work than they do at home. A. ethical standards B. codes of ethics C. conflicts of interest D. communication skills E. body language Many employees utilize different ethical standards at work than they do at home. At work, people are influenced by corporate culture, co-workers, and rules and policies that may all conflict with their own personal moral standards. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 44. (p. 50)A large number of ____ cases result in dismissal of the employee, even though the government has tried to take steps to protect workers and to encourage reporting of misconduct. A. executive B. white collar crime C. whistleblower D. petty theft E. federal The government seeks to reward firms that report misconduct, however many whistleblowers are terminated. A legislative loophole has resulted in the dismissal of many whistleblower complaints. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 45. (p. 51)__________________ is the extent to which businesses meet the legal, ethical, economic and voluntary responsibilities placed on them by their stakeholders. A. A code of conduct B. A code of ethics C. Egalitarianism D. Corporate citizenship E. Whistleblowing Corporate citizenship is the extent to which businesses meet the legal, ethical, economic and voluntary responsibilities placed on them by their stakeholders AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 46. (p. 49)A set of formalized rules and standards that describe what a company expects of its employees is called a(n) A. code of ethics. B. opportunity. C. moral philosophy. D. guideline. E. law. Codes of ethics are formalized rules and standards that describe what the company expects of its employees. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 47. (p. 50)What is the act of an employee exposing an employers wrongdoing to outsiders? A. Fraud B. Whistleblowing C. Plagiarism D. Mayhem E. A criminal lawsuit Whistleblowing occurs when a lack of anonymous reporting mechanisms exists in a company and therefore an employee may expose an employers wrongdoing to the government or media. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 48. (p. 50)Codes of ethics foster ethical behavior by all of the following except A. expanding the opportunity to behave ethically by providing rewards for following the rules. B. limiting the opportunity to behave unethically by providing punishments for violations of the rules and standards. C. limiting the opportunity to behave unethically by providing rewards for violations of the rules and standards. D. expanding the opportunity to behave ethically by providing punishments for following the rules. E. encouraging employees to bend the rules. Codes of ethics sets clear guidelines for employees regarding what ethical behavior is expected of them. It also creates a formal procedure for infractions committed by employees related to ethical issues. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 49. (p. 49-50)Unethical behavior in business can be reduced if management does all of the following except A. establish clear policies on unethical behavior. B. limit opportunities for unethical behavior. C. establish formal rules and procedures. D. punish unethical behavior firmly. E. depend totally on employees personal ethics. A company should never rely on an employees personal ethics to guide ethical standards due to the wide array or lack thereof moral standards that an individual maintains. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 50. (p. 49)According to the text, ethical decisions in an organization are influenced by (1) individual moral standards, (2) the influence of managers and co-workers, and (3) A. religious values. B. informal ethical policies or rules. C. opportunity codes and compliance requirements. D. family influence. E. the founders values. Three factors that influence business ethics are individual moral standards, the influence of managers and coworkers and the opportunity to engage in misconduct which is determined by ethics codes and compliance requirements. AACSB: Ethics Blooms: Knowledge Difficulty: Easy Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 51. (p. 31-32)Which of the following should help reduce the incidence of unethical behavior in an organization? A. Understanding that individual moral standards, the influence of managers and coworkers, and opportunity influence ethical behavior B. Maximizing ethical conflict in work groups C. Expanding opportunity by providing punishments for violations of the rules D. Overlooking violations of codes of ethics E. All of the above Understanding the influences of business ethics leads to establishing codes of ethics and compliance requirements that reduce unethical behavior in an organization. AACSB: Ethics Blooms: Knowledge Difficulty: Hard Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business 52. (p. 49)A code of ethics represents ____________ rules and standards of what a company expects of its employees. A. team B. impoverished C. authority-obedience D. formalized E. situational A code of ethics establishes what types of behavior are acceptable and which are not, and limits the opportunity for misconduct by clearly defining violations and establishing punishment. AACSB: Ethics Blooms: Comprehension Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in Business Essay Questions 53. (p. 49-51)How can an organization improve ethical behavior? Understanding how people choose their ethical standards and what prompts them to engage in unethical behavior may reverse the current trend toward unethical behavior in business. Establishing and enforcing ethical standards and policies within a business can reduce unethical behavior by describing which activities are acceptable and which are not and removing the opportunity to act unethically. Codes of ethics and training programs can help the business create a corporate culture that encourages ethical behavior. AACSB: Ethics Blooms: Knowledge Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior. Topic: The Role of Ethics in