BUSN101 – Chapter 4 Quiz

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Determining what is involved for a firm to be socially responsible

varies even among those who are interested in corporate responsibility

Many individuals today believe that ethical behavior is determined by what is best for them at the time. This is an example of

Situational ethics

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

Illegal behavior

Compliance-based ethics codes

conform to laws and regulations

One factor causing businesses to vigorously enforce ethical standards is the:

fear of negative publicity

Establishing a formal code of ethics is:

growing in popularity.

An ethical dilemma refers to a situation where you must

choose between equally unsatisfactory alternatives

When Bagel Works employs in-store recycling, composting, and uses nontoxic cleaners, Bagel Works is participating in

corporate responsibility

A(n) _______ -based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.


Some critics of corporate social responsibility view spending money on CSR as:

stealing from investors.

Business relationships often present ethical dilemmas that are:

not easily resolved.

Ethical behavior at work is learned by:

Observing the actions of others.

The danger in writing new laws to correct behavior is that:

People may begin to think that any behavior that is legal is acceptable.

A(n) _______ -based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.


When a firm undertakes corporate social initiatives it is:

Making donations that are directly related to a firm’s corporate competency.

A phone call to a government official by an employee of the Enron Corporation disclosed the deception and dishonesty of the firm’s accounting records. This employee played the role of a:


Which of the following statements describes ethical behavior in the U.S.?

We can find common moral values that many Americans uphold, including respect for human life, self-control, honesty, integrity, and courage.

The first step when facing an ethical dilemma is to ask:

"Is it legal?"

The position a firm takes on issues that affect the corporation as well as society is known as its:

corporate policy

A whistleblower is a person who

reports illegal or unethical behavior in the corporation

The social audit is:

a company report that measures the firm’s social contributions inside and outside of the firm.

The majority of CEOs blame unethical employee conduct on

a failure of leadership to establish ethical standards.

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

trust and cooperation.

Which of the following is a characteristic of an effective ethics officer?

(S)he has a capacity to serve as a counselor and an investigator.

Creating competition between employees within the corporation:

can encourage employees to deceive customers.

Corporate social responsibility describes the firm’s:

concern for the welfare of society.

A recent study revealed that most Americans have:

few moral absolutes.

In order to avoid insider trading, the SEC (Securities and Exchange Commission) has adopted a new rule called _____________ that requires publicly traded companies to release information to everyone in a timely manner, rather than just to a few persons.

Regulation FD (Fair Disclosure)

Ethical behavior will result in which of the following?

Improved self-esteem – makes us feel good about our decision

Which of the following is an unresolved ethical issue that surrounds global trade?

Labor standards

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