1. What is ethics?
standards of behavior for professional and personal lives
standards of behavior for business only
someone who is acting empathetic
setting norms for ways one interacts only with coworkers
1. Positive goodwill ________. (Select all that apply.)
is generated by ethical business practices
is separate from profitability
yields better public relations
generates long-term business success
1. What is the best reason for a universal ethical standard?
It is good business practice.
It is easier to apply for business leaders.
It provides transparency in application.
Having different rules is confusing to employees.
1. Which elements constitute corporate culture?
shared focus on the environment
shared profit of stakeholders
how the CEO interacts with his or her employees and managers
how the CEO compensates his or her employees and managers
1. What does deontology mean?
Conduct is determined by a philosophical process focused on Kantian religious teaching.
Ethics is a duty we owe to others.
Means justify the ends.
The means are the process driver for ancient Roman analytical thinking.
1. What did Milton Friedman believe?
A business should promote social consciousness.
The responsibility of a business is to decrease profits.
The only responsibility of a business is to increase profits.
One of the drivers of a business is to increase publicity.
1. How was management in the Equifax data breach case held accountable?
The chief information officer resigned.
Hackers accessed information because of insider trading.
Customers were offered free Equifax services.
The chief executive officer left the firm after he testified before Congress.
1. Why do businesses care about ethics?
to gain greater wealth and power
to follow fiduciary duty
to uphold honorable standards of behavior
to receive status and recognition
1. An analysis of perceived priority of shareholder impact should include which of the following?
stakeholders in reverse order of perceived priority
largest stakeholders by affiliation
interests and goals of shareholders
impact of action or decision of management
1. What is the golden mean?
treating every person the same
the aim of ethical behavior
a middle ground value between deficiency and excess
justice as fairness
1. Are ethical and legal responsibilities the same?
Yes, they are the same standards of behavior and must be followed.
No, legal standards are necessary for a properly functioning society, and ethics deals with voluntary business conduct in accordance with laws, statutes, regulations, and policies.
No, because law is always superior to ethics.
Yes, because companies have duties of legal and ethical responsibility to assert right or wrong.
1. Which personal philosophical approach does Warren Buffet believe in?
You can lose money for your firm.
Think short term.
Invest in yourself.
What matters is how much money you make.
1. Which of the following companies is considered ethical, according to the chapter?
Au Bon Pain
1. Which of the following most likely contributes to a corporation’s positive work atmosphere over the long term?
having remote working policies for employees
treating suppliers fairly
engaging in cross-border business
being committed to ethical business practices
1. Which of the following is the best description for what it means to be a professional of integrity?
following the investment style of Warren Buffet
thinking long term when investing
having an ethical mindset in business
ensuring employee happiness
1. Which are the universal principles of behavior?
honesty and integrity
virtue ethics and utilitarianism
loyalty to management
respect for business diversity
1. Why is ethical relativism a good concept to adopt? (Select all that apply.)
We should use different standards for different contexts.
Friends and family should be treated differently than coworkers.
One does not want an inconsistent outcome.
Our reputation could increase.
1. An ethical financial advisor must ________.
donate to charitable causes
be truthful about all fees
focus only on potential profit to clients
have the same fees as other financial advisors
1. What characteristics contribute to the bottom line? (Select all that apply.)
funding philanthropy and charitable endeavors
sustainability, also known as “going green”
always giving a dividend to your shareholders
taking an interest in employees’ personal lives
1. Which is a characteristic of successful corporate leaders?
They will not take pride in their company unless it is profitable.
They are focused on short-term results.
They treat customers fairly.
They take a competitive, though not always fair, approach to business.
1. Which of the following is an example of demonstrating ethical standards?
1. How does Patagonia exemplify ethics?
being a market leader in outdoor gear
caring about its employees by giving them a large discount for friends and family
supporting sustainability with a recycling initiative in all retail stores and warehouses
instituting a “1% for the Planet” program that promotes environmentalism
1. Adopting a consistent ethical standard is ________.
not in a manager’s best interests
in a government’s best interest
1. Which of the following best describes the role of ethics in a business environment?
guiding the conduct by which companies abide by the law
respecting the right of shareholders
guiding the conduct by which companies and their agents abide by the law
respecting the community
1. Normative ethics means ________.
discovering right and not focusing on wrong
discovering right and delineating it from wrong
developing rules and norms for corporate decision-making only
developing rules or norms for the greatest good for the greatest number