GEB Chapter 4

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Encouraged by the new Sarbanes-Oxley law, individuals who report unethical or illegal behavior within an organization are referred to as ____________.

a) compliance police

b) whistleblowers

c) corporate raiders

d) vigilantes


The most basic question in an ethics-based management system is asking the question:
a) Is it balanced?
b) Is it legal?
c) Who will know?
d) Has it been done before?


Progressive companies today use __________ to communicate their CSR efforts with the public. Toyota, for example, ran a contest where it donated 100 cars to nonprofit organizations, voted on by Facebook™ and Twitter™ participants.
a) free magazine, newspaper, and TV ads
b) government-supported direct mail campaigns
c) social media
d) employees and internal public relations


Which of the following is not included as one of the questions we must ask when faced with an ethical dilemma?
a) Is it legal?
b) How will it make me feel about myself?
c) Is it acceptable if everyone else is doing it?
d) Is it balanced?


Which of the following is not a part of an integrity-based ethics code?

a) Defines an organization’s guiding principles

b) Supports ethically sound behavior

c) Emphasizes strong penalties for wrong-doers

d) Stresses shared accountability


A few months ago, Pedro’s Pizza House, a large nationwide chain of restaurants, purchased one of its competitors, Italian Stallion Pizza Stations, for $800 million. Italian Stallion stockholders got a very fair deal for their stock they owned in the company. However, the purchase was not without its problems. An issue arose when it was disclosed that somehow a member of Pedro’s management team mentioned the deal to a person he sat next to on a flight from LA to Seattle. That person called five of his relatives and several friends. They quickly bought shares of Italian Stallion and purchased the stock before the acquisition became public. These actions are called _________.

a) acquisition stalking

b) pro-current procurement

c) insider trading

d) moral impropriety


When it comes to ethical behavior:
a) many Americans decide what’s ethical based upon the situation in which they find themselves.
b) most Americans have an absolute sense of what is moral.
c) most Americans give a considerable amount of time to helping their communities.
d) employees rarely violate safety standards or "goof off" at work.


When an F5 (category 5) tornado hit a town in southern Missouri, the people that lived there needed the basics: food, water, and shelter. The owners of Boccardi’s Ristorante in St. Louis drove several hours with a van of employees, equipment, and food to donate what they could to help the storm victims. The business term we use to describe this philanthropic action is ___________________, where a company donates what it does best to help make a situation better.
a) social impact program
b) corporate beneficial management
c) corporate social initiative
d) corporate inclusion policy


Ethics are the standards of right and wrong set for us by society, whereas the law is __________.

a) a higher calling where society acknowledges that we must take a higher level of action against what may be perceived as a wrongful act

b) the specific and certain way of solving right and wrong that goes beyond what we consider good ethical behavior

c) the minimum protection a society enacts toward behavior that is harmful to many

d) obeyed strictly out of compliance, whereas ethical behavior is in complianc


Which of the following statements reflects upon the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms?
a) It’s the age-old reality: "Out-of-sight, out-of-mind." U.S. companies tend to overlook and forget human rights abuses abroad.
b) Multinational corporations are committed to operating within the legal limits of U.S. law. U.S. law does not require U.S. firms to comply because of competitive advantage concerns.
c) U.S. companies follow the lead of consumers, and at this time, there is no evidence of a trend toward concern for better human rights and environmental standards.
d) Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.


Besides environmental groups, unions, and investors, a relatively new type of watchdog organization that reports on corporate social responsibility efforts is _____________.

a) corporate raider divisions

b) secondary market companies

c) internal search and occupy organizations

d) socially conscious research organizations


If your supervisor directed you to enter false information into a sales order book and told you if you refused that you would lose your opportunity for promotion, you would probably consider this situation to be a(n) ________.

a) win-win situation

b) corporate accountability issue

c) ethical dilemma

d) important act of self-interest


American businesses are:
a) demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues.
b) holding international suppliers to different standards than American companies must adhere to in the United States.
c) demanding that international suppliers adhere to higher, more costly standards than their American counterparts.
d) not concerned with the ethical or socially responsible behavior of their international suppliers.


The last recession changed the way many companies offer support to people and communities in need. Many companies ______________.

a) increased financial donations to local areas but pulled away from national and global contributions

b) decreased financial donations and eliminated support in almost every way

c) decreased financial donations but encouraged their employees to volunteer their time to corporate social initiatives and projects

d) increased their financial donations because they understood how badly society needed a helping hand


Jake served on a committee of employees who were charged with selecting three co-workers to honor at the holiday banquet. One employee whose name was at the top of everybody’s list was instrumental in helping another employee who failed to wear his protective headgear to avoid suffering a serious head injury. Although this was a noble act, Jake knew that the hero was frequently negligent about wearing his own headgear. Jake knew that several other employees followed strict company policy every day and always wore their headgear; yet, they were not being acknowledged for their compliance. According to Norman Vincent Peale, which of the following questions should Jake refer to as he proceeds to make an ethical decision?
a) Is the action I am proposing to take something the boss would like to promote among workers?
b) How does the action I am proposing to take make me feel about myself?
c) Does the action I am about to take follow universal business practices?
d) How can my decision help elevate my own status within the firm?


According to the text, ethical behavior begins with:
a) religious and community leaders.
b) government regulations and laws.
c) top corporate leaders.
d) ourselves.


Organizational ethics begins:
a) at the top levels of management.
b) only with full-time employees.
c) with the labor unions and employee groups.
d) with mid-level and supervisory managers.


Which of these actions is least likely to restore the trust of the American public in the free-market system?
a) Passing stricter accounting and financial reporting laws.
b) Punishing those who have broken the law.
c) Define the concept of ethics more narrowly, and make the definition closer to the definition of legality.
d) Passing new laws making business, religious and government leaders more accountable for their actions.


Government and business leaders are being held to:
a) lower ethical standards than in the past.
b) ethical standards in the U.S., but unfortunately foreign leaders are not being subjected to ethical scrutiny.
c) ethical standards are often unreasonable and cannot be met by most leaders.
d) higher ethical standards than in the past.


The Pak-It-Your-Way Company makes custom packaging of all kinds. The firm has evolved into a big business due to quality and innovative work. Recently, top management asked company departments to list and evaluate the kinds of socially responsible efforts conducted internally and externally in the business and also to list negative occurrences that supervisors observed. Top management is essentially conducting a(n)_____________.

a) social audit

b) aggregate independent appraisal

c) 360-review

d) internal investigation


U.S. companies that operate abroad, particularly those who contract with foreign companies, are now ________ human rights and environmental standards followed by U.S. law.
a) separating themselves from suppliers who violate
b) asking suppliers to lower their standards to be in compliance with
c) free from the concern of

d) requiring suppliers to be evaluated monthly concerning


Which of the following is the best reason for a business to be managed ethically?
a) So that government regulators will not be able to complain about the ethical behavior of the company.
b) If the company is engaged in a lawsuit, the ethics code can be used as a legal defense.
c) An ethically managed business helps to reduce employee turnover.
d) Business leaders don’t want to get caught behaving unethically.


The first day on the job waiting tables at a popular restaurant, Ashley noticed that when one member of the wait staff was serving a very large party, the other waiters would help with carrying food to the tables and even checking to make sure water glasses were filled. Although these actions were not part of the mandatory wait staff training, Ashley perceived that wait staff members who were not attentive in helping out were not viewed as team players by the majority of employees. Ashley was observing an example of the ___________ followed at this organization.
a)social order ethics
b) integrity-based ethics
c) compliance-based ethics
d) actual ethics


A legal provision known as the _______________ now provides an award for whistleblowers whose actions result in a legal conviction. The monetary award may total as high as 30% of the amount collected for violations, above the first $1 million.
a) Sarbanes-Oxley Ruling
b) Internal Audit Company Protection Act
c) Dodd-Frank Wall Street Reform and Consumer Protection Act
d) Sherman Act


Proponents of corporate social responsibility strongly believe in benevolence; however, they still want their businesses to be profitable. In the long run, they believe ______________.

a) benevolence can lead to a vote of no confidence by company stakeholders

b) CSR can lead to even more profits

c) the fastest way to demoralize your stakeholders is to spend too much money supporting social issues, such as having employees assist in community efforts

d) firms should take added caution not to support government programs that protect the environment


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