Business Ethics Comprises

NOTE: 1. CASE 2, p316~324

1. Business ethics comprises

• A) the laws and regulations that guide behavior in the world of business.
• B) the morals, values, and customs that guide behavior in general.
• C) the principles and standards that guide behavior in the world of business.
• D) the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.
• E) the morals, values, and customs that parents teach their children.

2. Social responsibility is

• A) an organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders.
• B) principles and standards that guide behavior in the world of business.
• C) a business’s responsibility not to pollute the environment.
• D) a business’s responsibility to manufacture products that function properly without harming consumers.
• E) charitable contributions made by a business to enhance its image.

3. Which of the following is not one of the rights spelled out by John F.Kennedy in his Consumers’ Bill of Rights? .

• A) The right to choose
• B) The right to safety
• C) The right to be informed
• D) The right to be ethical
• E) The right to be heard

4. Business ethics was acknowledged as a field of study by business academics and practitioners in the .

• A) 1990s.
• B) 1980s.
• C) 1970s.
• D) 1960s.
• E) years prior to 1960.

5. Which statement best describes the evolution of business ethics?

• A) From a field of study to theological discussion to recognition of social issues
• B) From recognition of social issues to a field of study to theological discussion
• C) From a field of study to recognition of social issues to theological discussion
• D) From recognition of social issues to theological discussion to a field of study
• E) From theological discussion to recognition of social issues to a field of study

6. Before the 1960s, ethical issues related to business were often discussed

• A) theologically.
• B) economically.
• C) politically.
• D) sociologically.
• E) psychologically.

7. The study of business ethics is important to better understand all of the following except

• A) that a person’s own moral philosophies and decision-making experiences may not be sufficient to guide him or her in the business world.
• B) how and why people make ethical or unethical decisions.
• C) how to cope with conflicts between a person’s own values and those of the organization in which he or she works.
• D) that business ethics is merely an extension of an individual’s own personal ethics.
• E) how to identify ethical issues that arise in the business world.

8. Individuals’ personal ethics play a major role in the evaluation of business decisions only when their preferences or values

• A) differ from those of their employer.
• B) influence their performance in the workplace.
• C) are unethical.
• D) are ethical.
• E) result in negative publicity for their employer.

9. The ability of a business organization to achieve its business goals is directly affected by whether its behavior is judged to be right or wrong by

• A) society.
• B) its union members.
• C) its employees.
• D) Congress.
• E) its competitors.

10. An individual with acceptable personal ethics may not be able to handle complex business ethical issues if the individual has

• A) family concerns.
• B) an unethical boss.
• C) limited business experience.
• D) financial concerns.
• E) a marketing background.

11. The study of business ethics in North America has evolved through _____ distinct stages.

• A) five
• B) four
• C) three
• D) ten
• E) nine

12. Business professors began to teach and write about social responsibility during the

• A) 1960s.
• B) 1970s.
• C) 1980s.
• D) 1990s.
• E) 2000s.

13. To be successful, relationships with investors must rest on dependability, _____, and commitment.

• A) Profits
• B) Dividends
• C) Trust
• D) Confidence
• E) codes of ethics

14. Recently, what type of unethical behavior within business has resulted in a significant reduction of trust among the general public?

• A) Accounting fraud
• B) Environmentally unsafe practices
• C) Employee discrimination and harassment
• D) Defective products
• E) Bribery

15. Which of the following is not one of the rewards for being ethical and socially responsible in business?

• A) Greater employee commitment
• B) Greater employee turnover
• C) Improved customer trust and satisfaction
• D) Increased investor willingness to entrust funds
• E) Better financial performance

16. Employees’ perceptions of their firm as having an ethical climate lead to

• A) lack of focus on goals.
• B) negative performance.
• C) social responsibility.
• D) improved relationships with competitors.
• E) performance-enhancing outcomes.

17. When employees see honesty, respect, and trust applied frequently in the workplace, they

• A) feel less pressure to compromise ethical standards.
• B) observe less misconduct.
• C) are more satisfied with their organizations overall.
• D) feel more valued as employees.
• E) All of these

18. Investors are concerned about business ethics because they know that misconduct can

• A) foster stability.
• B) improve employee commitment.
• C) improve customer loyalty.
• D) lower stock prices.
• E) raise stock prices.

19. Most strong organizational climates focus on the core value of placing ________ interests first.

• A) customers’
• B) employees’
• C) stockholders’
• D) suppliers’
• E) distributors’

Ans:  A Format:  Multiple Choice Page:  21

20. In the history of business ethics, the 1990s can best be described as a time when business ethics was

• A) formalized.
• B) consolidated.
• C) institutionalized.
• D) popularized.
• E) marginalized.

21. An ethical issue is a problem, situation, or opportunity

• A) that harms consumers.
• B) that harms the environment.
• C) that requires society to choose among several actions that must be evaluated as right or wrong.
• D) that requires an individual, group, or organization to choose among several actions that must be evaluated as ethical or unethical.
• E) that requires an individual, group, or organization to choose between harming consumers or the environment and earning more profits.

22. Ethical issues in business are defined by

• A) customers.
• B) government regulators.
• C) employees.
• D) shareholders.
• E) stakeholders.

23. Which of the following statements about stakeholders is correct?

• A) None of the external stakeholders are primary stakeholders.
• B) External stakeholders cannot be primary stakeholders.
• C) All internal stakeholders are primary stakeholders.
• D) Coop stakeholders cannot be secondary.
• E) Secondary stakeholders can be tertiary.

24. Which of the following does not represent the set of primary stakeholders of a business?

• A) Employees, customers, and investors
• B) Shareholders, the community, and the media
• C) Customers, investors, and government
• D) Employees, investors, and shareholders
• E) The community, employees, and government

25. The primary responsibility of ensuring that ethical, legal, and social standards are adhered to within a business rests with

• A) the investors.
• B) the government.
• C) the management board.
• D) the employees.
• E) the customers.