Business Ethics

1. A stakeholder orientation includes all of the following activities except:

a) generating data about stakeholder groups

b) assessing the firm's effects on stakeholder groups

c) distributing stakeholder information throughout the firm

d) minimizing the influence of stakeholder information on the firm

2. Stakeholders are considered more important to an organization when:

a) they can make use of their power on the organization

b) they do not emphasize the urgency of their issues

c) their issues are not legitimate

d) they can express themselves articulately

3. A (n) ________ is a problem, situation, or opportunity requiring an individual, group, or organization

to choose among several actions that must be evaluated as right or wrong.
a) Crisis

b) ethical issue

c) indictment

d) fraud

4. What type of justice exists if employees are being open, honest, and truthful in their communications
at work?
a) Procedural

b) Distributive

c) Ethical

d) Interactional

5. A high-commitment approach to environmental issues may include all of the following except:
a) risk analysis

b) stakeholder analysis

c) green-washing

d) strategic sustainability auditing

6. Better access to certain markets, differentiation of products, and the sale of pollution-control
technology are ways in which better environmental performance can:
a) increase revenue

b) increase costs

c) decrease revenue
d) decrease costs

7. Atmospheric issues include all of the following except:

a) acid rain

b) global warming

c) air pollution

d) water quantity

8. To be successful, business ethics training programs need to:

a) focus on personal opinions of employees.

b) be limited to upper executives.

c) educate employees on formal ethical frameworks and models of ethical decision making.

d) promote the use of emotions in making tough ethical decisions.

9. Most companies begin the process of establishing organizational ethics programs by developing:
a) ethics training programs.

b) codes of conduct.

c) ethics enforcement mechanisms.

d) hidden agendas.

10. For referent power to be effective, what must exist between individuals in the relationship?
a) Antipathy

b) Rivalry

c) History

d) Empathy

11. When a firm charges different prices to different groups of customers, it may be accused of:
a) cultural relativism

b) money laundering

c) facilitating payments

d) price discrimination

12. The ability to interpret and adapt successfully to different national, organizational, and professional
cultures is called:
a) national competitiveness.

b) global development.

c) cultural intelligence.

d) stakeholder sensitivity
13. Successful global initiatives addressing standards for business must begin and end with:
a) the role of corporate governance and shareholder power in corporate decision making.

b) social activism

c) the implementation of standardized ethics programs.

d) the consolidation of economic and environmental efforts.

14. The social economy partnership philosophy emphasizes:

a) cooperation and assistance.

b) profit maximization.

c) competition.

d) restricting resources and support.

15. Which of the following is not a driver of responsible competitiveness?

a) Policy drivers

b) Development drivers

c) Business action

d) Social enablers

16. Which of the following is a problem presented by ethics audits?

a) They may be used to reallocate resources.

b) They identify practices that need improvement.

c) Selecting auditors may be difficult.

d) They may pinpoint problems with stakeholder relationships.

17. The first step in the auditing process should be to secure the commitment of:
a) employees.

b) top executives and directors.

c) stockholders.

d) customers.

18. Codes of conduct and codes of ethics

a) are formal statements that describe what an organization expects of its employees.

b) become necessary only after a company has been in legal trouble.

c) are designed for top executives and managers, not regular employees.

d) rarely become an effective component of the ethics and compliance program.

19. Which of the following is NOT one of the primary elements of a strong organizational compliance
program?
a) A written code of conduct
b) An ethics officer

c) Significant financial expenditures

d) A formal ethics training program

20. The hand-of-government refers to the

a) ability of the government to interfere in business negotiations

b) role of corporations to be profitable within the law

c) effect of national politics on business decisions

d) impact of changing government regulations

21. An organisation's obligation to act to protect and improve society's welfare as well as its own
interests is referred to as
a) organisational social responsibility

b) organisational social responsiveness

c) corporate obligation

d) business ethics

22. The view that business exists at society's pleasure and businesses should meet public expectations of
social responsibility is the
a) iron law of responsibility argument

b) enlightened self-interest argument

c) capacity argument

d) anti-freeloader argument

23. Managerial ethics can be characterised by all of the following levels except
a) immoral management

b) amoral management

c) demoral management

d) moral management

24. Which of the following is not one the underlying principles of the corporate governance Combined
Code of Practice?
a) Openness

b) Integrity

c) Accountability

d) acceptability

25. External audit of the accounts of a limited company is required

a) because it is demanded by the company’s bankers

b) by the Companies Act 2006

c) at the discretion of the shareholders

d) to detect fraud