Title: Business Ethics
Course: Demo 1

Q: ________ are a set of standards that govern the conduct of a person, especially a member of a profession. A good example is the medical profession’s oath to "do no harm."
- Legal behaviors
- Morals
- Ethics
A: Ethics

Q: ________ are concerned with, or come from, an unwritten code of behavior concerning what is right or acceptable in a particular society. This traditionally comes from religious or cultural groups.
- Ethics
- Legal behaviors
- Morals
A: Morals

Q: ________ follow(s) the dictates of laws, which are written down and interpreted by the courts.
- Morals
- Ethics
- Legal behavior
A: Legal behavior

Q: Joseph works at a local hospital in the billing department. He is processing a bill for a patient who was recently released after being hospitalized for anxiety associated with a chronic mood disorder. Joseph recognizes the name and realizes the patient is one of his son’s schoolteachers. Joseph’s son is happy at school and Joseph can’t violate patient confidentiality by telling the school of the teacher’s illness. He is however, uncomfortable with a potentially unstable person supervising his nine year old son. What type of issue(s) does Joseph wrestle with in this situation?
- ethical
- legal behaviors
- moral
A: ethical; legal behaviors; moral

Q: Kathy comes from a culture where viewing adult intimacy and nudity is considered wrong. She works for a company that provides media services to hotels and conference centers. Recently the company decided they would turn a huge profit by adding adult channels to their media offering. Kathy is now faced with a(n) ________ dilemma.
- legal behavior
- ethical
- moral
A: moral

Q: Rick is a middle manager at a technology company. This week he is hosting a group of businesspeople who are considering a strategic partnership with the company. As the week progresses, some of the visitors ask Rick for access to sensitive information about the company’s newest technology. He knows that the partnership is of great importance to the company and if he can solidify the deal, it could lead to a VP position in the company for himself. He is now faced with a(n) ________ issue.
- legal behavior
- ethical
- moral
A: legal behavior; ethical

Q: Mega Mining operates mining facilities around the world and as a result controls a large portion of the Can’tGetItAnywhereium market. When they opened a new mineral extraction facility on the tiny island nation of Candyland they realized they would immediately become the largest private contributor to the nations GDP thus giving them a great deal of power. Much to the delight of investors, Candyland’s government has enacted almost no regulations to protect the safety of workers or preserve the environment. The CEO of Mega Mining made several decisions regarding their operations in Candyland. Which of the following are examples of the company’s business ethics?
- Mega Mining installs scrubbers on the smoke stacks of their smelting facility to protect the environment of Candyland.
- Mega Mining discovers that their parking lot will cover a native burial ground and decides to abandon the location and move the lot to the opposite side of the facility.
- Mega Mining declares that they will pay a dividend to all investors and shareholders within 6 months of opening the facility in Candyland.
A: Mega Mining installs scrubbers on the smoke stacks of their smelting facility to protect the environment of Candyland.; Mega Mining discovers that their parking lot will cover a native burial ground and decides to abandon the location and move the lot to the opposite side of the facility.

Q: If a company is operating in an ethical manner, then it ________.
- discloses when mistakes have been made
- follows hiring and firing practices that are legal
- changes accounting books to be favorable for the company regardless of the real numbers
A: discloses when mistakes have been made; follows hiring and firing practices that are legal

Q: If a company exhibits lax ethical behavior it ________.
- uses employee retirement funds to cover daily operating expenses
- makes changes to how financial information is presented so that it is always favorable for the company regardless of actual performance
- discloses safety information to the public that may harm their profitability or reputation
A: uses employee retirement funds to cover daily operating expenses; makes changes to how financial information is presented so that it is always favorable for the company regardless of actual performance

Q: Moon, Inc. is a company that sells night vision equipment to the public. When it first launched its website, some of the equipment was incorrectly offered for sale at the company’s wholesale price. The company received one hundred orders for the mispriced items before the mistake was corrected and the price changed. If Moon, Inc. follows good business and ethical practices, it will:
- charge the one hundred customers the correct retail price of equipment
- delete the one hundred customers’ orders, hoping they will reorder at the correct price
- charge the one hundred customers the posted wholesale price of the equipment
A: charge the one hundred customers the posted wholesale price of the equipment

Q: It is in a business’s best interest to act in an ethical manner. Businesses that establish a reputation for acting ethically can be rewarded for this behavior by ________.:
- attracting and keeping customers
- attracting and keeping talented employees
- attracting capital or investors
A: attracting and keeping customers; attracting and keeping talented employees; attracting capital or investors

Q: What can individuals, organizations, and government agencies do to foster an environment of ethical and socially responsible behavior in business?
- treat employees, customers, investors and the public fairly
- make fairness a top priority
- demand and reward integrity from all members in all situations
A: treat employees, customers, investors and the public fairly; make fairness a top priority; demand and reward integrity from all members in all situations

Q: What are indicators that an employee may be working for an unethical company?
- They are uncomfortable about the way coworkers are treated.
- They consistently feel uneasy about the work they do.
- They are comfortable with management directives and policies.
A: They are uncomfortable about the way coworkers are treated.; They consistently feel uneasy about the work they do.

Q: Althea works for the Sunnyvale Tax Department in the collections department. She knows that the owner of the vacant lot next door to her home owes almost 5 years back taxes and the property will soon be auctioned off at a bargain price. If the lot is sold and someone builds on it, she will no longer have a view of the lake. On a Monday morning, her supervisor asks her to contact the local newspaper and place the notice of sale in the weekend edition. Althea knows that once the notice goes into the paper, dozens of investors will show up to bid on the lot. If she “forgets” to put the notice in the paper, no one outside of the few people in the tax office will know the sale is occurring and she and her husband could purchase the lot for ¼ of its actual market value. In this situation, Althea is facing a decision that involves:
- a conflict of interest.
- an issue of honesty and integrity.
- Bribe.
A: a conflict of interest.; an issue of honesty and integrity.

Q: When you enter the business world, you’ll find yourself in situations in which you’ll have to choose the appropriate behavior. Some of the basic categories for situations you may encounter include:
- issues of honesty and integrity
- conflicts of loyalty
- conflicts of interest
A: issues of honesty and integrity; conflicts of loyalty; conflicts of interest

Q: To assist you in distinguishing the difference between a gift and a bribe you should:
- refer to company policy regarding the acceptance of gifts
- ask questions to help determine how a gift will be interpreted
- accept gifts that are offered in the course of your business dealings without questioning the intent of the gift giver
A: refer to company policy regarding the acceptance of gifts; ask questions to help determine how a gift will be interpreted

Q: You work for a company that manages apartment buildings. The company did not renew their contract with a local landscaping company and are now looking for a new company to provide landscaping services to the apartment complex. You are asked by management to locate a new landscaping company. Your son runs his own lawn care business, and if he gets the contract for the apartment complex you will no longer have to make his car payments for him and he might even start paying you rent. This situation brings up a potential ________ for you.
- issue of honesty and integrity
- conflict of interest
- whistle-blowing situation
A: issue of honesty and integrity; conflict of interest

Q: ________ occur(s) when individuals find themselves in a situation where they have to choose between being supportive to an employer or to a friend or family member.
- Whistle-blowing
- Conflicts of time
- Conflicts of loyalty
A: Conflicts of loyalty

Q: If you work for a company where you are being asked to deceive customers about the value or quality of your product, you should ________.
- ignore your concerns and strive to be a loyal employee
- align your own ethical views with those of your employer
- explore options for finding another company in which to work
A: explore options for finding another company in which to work

Q: Brenda loves animals. She works for a company that makes dog food. She started working in the customer service department a month ago and is fresh out of training. She follows the company’s official training policies and scripts on her customer service calls. One day she notices that the quality of ingredients in the food is very poor. She then sees that her phone script avoids mentioning this, and if a customer questions the quality she is directed to follow a script that lies about the ingredients. She is now in a position where she has a(n) ________.
- whistle-blowing opportunity
- issue of honesty and integrity
- issue with a bribe
A: whistle-blowing opportunity; issue of honesty and integrity

Q: A(n) ________ is an individual who exposes illegal or unethical behavior in an organization.
- employee
- executive
- whistle-blower
A: whistle-blower

Q: What rationalizations do some people use to justify their unethical conduct?
- The action is in everyone's best interest.
- No one will find out what I’ve done.
- The behavior really isn’t illegal or immoral.
A: The action is in everyone's best interest.; No one will find out what I’ve done.; The behavior really isn’t illegal or immoral.

Q: Max is a loan processor for a large mortgage company where his job is to verify the information home buyers enter on their loan applications. The mortgage business is very competitive and Max is eager to do a good job and advance in the company. Max’s boss comes to him with several applications Max has recommended be rejected and asks him to “adjust” the statements of income on the applications saying, “these people really deserve a home, don’t they?” The following month, Max’s boss asks him to make the “adjustment” to the income for all of the applicants who have low incomes. Max is not really comfortable with the idea of falsifying the incomes, but he rationalizes that his boss knows what he is doing and in the end the company will protect him because he is just following his boss’s instructions. The following year an audit of the mortgage company’s loan portfolio uncovers the fraud, and when confronted his boss denies knowing anything about it and in the end Max is fired. Instead of rationalizing the original decision to follow his boss’s instructions, what should Max have done?
- Follow his own personal code of conduct about avoiding things that seem improper or wrong.
- Maintain a policy of honesty with customers, his employer and other stakeholders.
- Fulfill his boss’s instructions to falsify statements, but only after receiving the instructions them in writing.
A: Follow his own personal code of conduct about avoiding things that seem improper or wrong.; Maintain a policy of honesty with customers, his employer and other stakeholders.

Q: Ethics are a matter of an individual’s or employee’s personal values; however, they are also influenced by ________.
- business or organizational culture
- organizational behavior
- other members of the organization
A: business or organizational culture; organizational behavior; other members of the organization

Q: An organization’s culture is strongly influenced by ________.
- entry level employees
- retired employees
- top managers
A: top managers

Q: You are in a leadership position at your company. You know that as a leader, you are able to promote an ethical culture within the organization by ________
- communicate with employees about the company’s expectations regarding ethical behavior
- always do what’s best for the financial welfare of the company
- be a visible, positive role model
A: be a visible, positive role model

Q: You are a upper level manager at your company. In order to foster a culture of ethical actions you should________.
- hold subordinates accountable for their conduct and take appropriate action
- hold yourself accountable for mistakes and make appropriate changes
- identify unethical conduct but do not dismiss or reprimand employees for the behavior if it benefits the company
A: hold subordinates accountable for their conduct and take appropriate action; hold yourself accountable for mistakes and make appropriate changes

Q: A ________ is a formalized guide that describes the principles and guidelines that all members must follow in the course of job-related activities.
- business plan
- balance sheet
- code of conduct
A: code of conduct

Q: Companies today are held to higher standards than ever before. Consumer and other groups consider not only the quality and price of a company's products but also its ________.
- marketing
- production process
- character
A: character

Q: Companies are responsible for providing ________ .
- a safe and healthy work environment
- a work environment free of sexual harassment
- equal opportunity for all employees
A: a safe and healthy work environment; a work environment free of sexual harassment; equal opportunity for all employees

Q: Companies are socially responsibility to their stakeholders, who include:
- owners and employees.
- suppliers and customers.
- the communities in which they conduct business.
A: owners and employees.; suppliers and customers.; the communities in which they conduct business.

Q: The purpose of aligning corporate ethics and social responsibility is to:
- make people responsible for their actions
- teach others how to fit into society
- build trust and create community between employees and stakeholders across all levels
A: build trust and create community between employees and stakeholders across all levels

Q: The foundation of a company’s corporate social responsibility is its relationship with its stakeholders. In a manager-based model for corporate social responsibility, managers are responsible for:
- operating a company so that it increases the value of the owners’ investments
- providing owners with accurate, reliable information about the businesses’ performance
- making decisions regardless of the impact on the owners’ investments
A: operating a company so that it increases the value of the owners’ investments; providing owners with accurate, reliable information about the businesses’ performance

Q: Managers have a ________ responsibility to owners to safeguard the company’s assets and handle its funds in a trustworthy manner.
- social
- constitutional
- fiduciary
A: fiduciary

Q: If a company recruits employees who have been underrepresented in the workforce in order to build a more diverse workforce, it can realize a competitive advantage because people from diverse backgrounds:
- reflect more accurately the changing demographics of the marketplace
- bring new talents and fresh perspectives to enhance creativity in developing new products
- improve a company’s ability to serve an ethnically diverse population
A: reflect more accurately the changing demographics of the marketplace; bring new talents and fresh perspectives to enhance creativity in developing new products; improve a company’s ability to serve an ethnically diverse population

Q: Company’s have legal and ethical obligations to customers that go beyond just providing goods and services that consumers demand. In 1962, President Kennedy identified a set of rights to which he believed all consumers were entitled. These rights include:
- the right to be heard
- the right to safe products
- the right to know the cost to produce the product
A: the right to be heard; the right to safe products

Q: In recent years, shareholders have put increasing pressure on companies to exhibit ________.
- exploitative behaviors
- illegal behaviors
- corporate social responsibility
A: corporate social responsibility

Q: Corporate Social Responsibility (CSR) is now more prominent on the board of directors’ agenda than in the past. Some of the reasons CSR is now more important is because of ________.
- globalization
- loss of corporate trust
- civil society activism
A: globalization; loss of corporate trust; civil society activism

Q: With more than 60,000 multinational corporations in the world, perceptions of how corporations impact society, the environment and economies have grown. Stakeholders now expect corporations to take responsibility for ________ society, the environment and economies.
- limiting the harm on
- actively seeking to improve
- using as many resources as possible of the
A: limiting the harm on; actively seeking to improve

Q: ________ is sometimes described as the part of society that exists between the state and the market or as the voluntary association of citizens, promoting their values and interests in the public domain.
- Counter Culture
- Non-profit
- Civil Society
A: Civil Society

Q: Many non-profit organizations have grown in recognition and popularity, like Greenpeace or Amnesty International. With the help of the internet, these types of organizations have grown in influence by ________.
- monitoring corporate behavior
- mobilizing public opinion
- keeping information from the public
A: monitoring corporate behavior; mobilizing public opinion

Q: ________ has created institutional demand for equity in corporations that demonstrate a commitment to corporate social responsibility (CSR).
- Profit-focused investing
- Large asset investing
- Socially responsible investing
A: Socially responsible investing

Q: The increased scrutiny of a corporation's social responsibility signals that corporate governance and boards in the near future will have to deal with ________ .
- an increasing level of compulsory regulation related to elements of corporate activity
- pressure to disclose more quality information about management of social, environmental and economic issues
- a growing pressure to provide stakeholders with a role in corporate governance
A: an increasing level of compulsory regulation related to elements of corporate activity; pressure to disclose more quality information about management of social, environmental and economic issues; a growing pressure to provide stakeholders with a role in corporate governance