A set of formalized rules and standards that describe what a company expects

7. An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical. True False 8. The best way to judge the ethics of a decision is to look at it from a manager's or employee's point of view. True False 9. The size of the transaction, the history of personal relationships within the particular company, and many other factors may determine whether a customer gift will be judged as ethical. The size of the transaction, the history of personal relationships within the particular company, and many other factors may determine whether a customer gift will be judged as ethical.

Chapter 02 Business Ethics and Social Responsibility Answer Key

True / False Questions

1.(p. 36)Business ethics refers to principles and standards that define acceptable conduct in business

organizations.

TRUE

Business ethics are principles and standards that define acceptable behavior for individuals within an organization as

well as the organization at large.

AACSB: Ethics

Blooms: Knowledge

Difficulty: Easy

Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance.

Topic: Business Ethics and Social Responsibility

2.(p. 36-37)Ethics and social responsibility mean the same thing.

FALSE

Business ethics are the principles and standards that determine acceptable conduct in businesses. Social

responsibility is a broader concept. It is a businesss obligation to maximize its positive impact and minimize its

negative impact on society.

AACSB: Ethics

Blooms: Knowledge

Difficulty: Easy

Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance.

Topic: Business Ethics and Social Responsibility

3.(p. 39)Nearly all business decisions may be judged as right or wrong, ethical or unethical.

TRUE

Business decisions, either by law or by society, will be deemed an acceptable practice or not.

AACSB: Ethics

Blooms: Knowledge

Difficulty: Medium

Learning Objective: 02-01 Define business ethics and social responsibility; and examine their importance.

Topic: The Role of Ethics in Business

4.(p. 37)The most basic ethical concerns have been formalized through laws and regulations that encourage

conformity to societys values and norms.

TRUE

Related Questions

• Q51:

  If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source,the employee would be involved in: A)keeping a secret. B)misuse of resources. C)plagiarism. D)bullying. E)bribery.

• Q52:

  Which of the following is one of the most common factors that executives give for why turnover increases? A)A lack of transparency among company leaders B)An absence of unfair employee treatment C)A decrease in attrition rate in a company D)An increase in employee engagement E)An absence of employee dissatisfaction

• Q53:

  If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical,such as engaging in accounting fraud or stealing a competitor's secrets,this would be an ethical issue related to: A)plagiarism. B)business relationships. C)communications. D)fairness and honesty. E)conflicts of interest.

• Q54:

  Which of the following is true of professional codes of ethics? A)They are informal rules of ethics followed by employees. B)They do not have to provide any guidelines and principles. C)They do not have to be too detailed. D)They should only be developed by the board of directors of a firm. E)They should take into account every ethical situation possible.

• Q55:

  Which of the following acts includes a whistleblower bounty program? A)The Clayton Act B)The Sherman Antitrust Legislation C)The Celler-Kefauver Act D)The Hobbs Act E)The Dodd-Frank Act

• Q57:

  A manager attempting to take credit for a subordinate's ideas is engaging in a type of_____. A)conflict of interest B)plagiarism C)whistleblowing D)misplaced loyalty E)capture bonding

• Q58:

  According to the National Business Ethics Survey (NBES),_____ is the greatest determinant of future misconduct. A)a company's workforce B)the external environment C)the universal business overview D)a company's ethical culture E)a company's stakeholders

• Q59:

  Being profitable relates to the _____ dimension of social responsibility. A)corporate citizenship B)voluntary C)ethical D)legal E)economic

• Q60:

  Codes of ethics,policies on ethics,and ethics training programs advance ethical behavior because they: A)do not limit the opportunity for misconduct. B)result in expensive litigation. C)infringe on consumers' rights to be informed. D)prescribe which activities are acceptable and which are not. E)are strictly voluntary in nature.

• Q61:

  Identify an argument that supports social responsibility. A)Some people question whether business has the expertise needed to assess and make decisions about social problems. B)Instances of whistleblowing causes significant damage to employees. C)As members of society,businesses should do their fair share to help others. D)Participation in social programs gives businesses greater power,perhaps at the expense of particular segments of society. E)Social responsibility sidetracks managers from earning profits.

What is a set of formalized rules and standards that describe what a company expects of its employees?

What are ethical standards in a company?

What is a formal written set of ethical standards guiding an organization's actions?

What is the difference between social responsibility and ethics?