Chap 2 - Business Ethics & Social Responsibility

Which of the following should be the first step in assessing ethical behavior in a certain situation?

• Seek the advice of managers.

• Make a judgment based on the outcome of the activity.

• Collect facts related to the situation.

• Gather a range of opinions on the effectiveness of the policy.

What is likely the single MOST effective step that a company can take to set ethical standards?

• Suggest that employees take ethics training.

• Post ethical rules on bulletin boards.

• State that the workplace values diversity.

• Demonstrate support from top management.

How do top managers BEST demonstrate a commitment to ethical business practices?

• By adopting and enforcing written codes of ethics

• By decentralized decision-making practices

• By cooperating with other companies

• By monitoring employees' web searches

When an activity benefits an individual but not the employer, what ethical dilemma has been created?

• Lack of social responsibility

• Conflict of interest

• Violation of the code of conduct

• Conflict of morals

Standards that help to shape behaviors towards employees, the organization, and other economic agents are

• social responsibilities.

• values.

• managerial ethics.

• morals.

What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?

• Social responsibility

• Business ethics

• Socialization

• Corporatization

Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?

• Identity theft

• A guarantee

• Insider trading

• Collusion

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

• Prevent insider trading

• Guarantee the accuracy of financial reporting

• Engage in strategic management

• Oversee the implementation of ethical standards

When working to protect the environment, what type of pollution is created by carbon monoxide and other chemicals produced by manufacturing plants?

• Noise

• Land

• Water

• Air

When a firm modifies a production process to limit the consumption of valuable resources, and promotes the product produced as environmentally friendly, what business practice are they engaging in?

• Consumerism

• Recycling

• Green marketing

• Collusion