,Chapter 1: The Importance of Business Ethics
Section A: Multiple Choice Questions (1–30)
1. Business ethics is best defined as:
A) Laws and regulations that guide behavior in the world of business
B) Organizational principles, values, and norms that may originate from individuals, organizational
statements, or the legal system that primarily guide individual and group behavior in business
C) A business's responsibility not to pollute the environment
D) Charitable contributions made by a business to enhance its image
Answer: B
Rationale: Business ethics comprises organizational principles, values, and norms that may originate
from individuals, organizational statements, or the legal system and primarily guide individual and group
behavior in business .
2. Morals refer to:
A) An individual's personal philosophies about what is right or wrong
B) Specific and pervasive boundaries for behavior that should not be violated
C) Enduring beliefs and ideals that are socially enforced
D) Organizational principles that guide group behavior
Answer: A
Rationale: Morals refer to an individual's personal philosophies about what is right or wrong. When one
speaks of morals, it is personal or singular .
3. Principles are best defined as:
A) An individual's personal philosophies about what is right or wrong
B) Specific and pervasive boundaries for behavior that should not be violated
C) Enduring beliefs and ideals that are socially enforced
D) Organizational statements that guide behavior
Answer: B
Rationale: Principles are specific and pervasive boundaries for behavior that should not be violated and
often become the basis for rules .
4. Values are best defined as:
A) An individual's personal philosophies about what is right or wrong
B) Specific and pervasive boundaries for behavior that should not be violated
C) Enduring beliefs and ideals that are socially enforced
,D) Laws that guide behavior in business
Answer: C
Rationale: Values are enduring beliefs and ideals that are socially enforced .
5. Corporate culture is defined as:
A) A set of values, norms, and artifacts, including ways of solving problems that members of an
organization share
B) Laws and regulations that guide business behavior
C) An individual's personal philosophies about right and wrong
D) Specific boundaries for behavior that should not be violated
Answer: A
Rationale: Corporate culture can be defined as a set of values, norms, and artifacts, including ways of
solving problems that members (employees) of an organization share .
6. The difference between an ordinary decision and an ethical one lies in:
A) The legal consequences of the decision
B) The point where accepted rules no longer serve, and the decision maker must weigh values and reach
a judgment
C) The financial impact of the decision
D) The number of stakeholders affected
Answer: B
Rationale: A difference between an ordinary decision and an ethical one lies in the point where the
accepted rules no longer serve, and the decision maker is faced with the responsibility for weighing
values and reaching a judgment in a situation which is not quite the same as any he or she has faced
before .
7. The Global Business Ethics Survey (GBES) measures all of the following EXCEPT:
A) Pressure to compromise organizational standards
B) Observed misconduct
C) Reporting of misconduct when observed
D) Employee salaries
Answer: D
Rationale: The GBES measures workplace integrity as the pressure to compromise organizational
standards, observed misconduct, reporting of misconduct when observed, and retaliation against
reports .
8. According to the text, which industries have some of the lowest ratings for business ethics?
A) Agriculture and mining
, B) Social media and financial services
C) Healthcare and education
D) Manufacturing and retail
Answer: B
Rationale: Social media and financial services have some of the lowest ratings, indicating that
organizations in these sectors face significant ethical challenges .
9. The Sarbanes-Oxley Act was enacted to:
A) Regulate environmental pollution
B) Restore confidence in financial reporting and business ethics after the accounting scandals of the
early 2000s
C) Establish minimum wage requirements
D) Protect consumer privacy
Answer: B
Rationale: The Sarbanes-Oxley Act was enacted to restore confidence in financial reporting and business
ethics after the accounting scandals of the early 2000s .
10. The Federal Sentencing Guidelines for Organizations:
A) Codified into law incentives to reward organizations for taking action to prevent misconduct
B) Regulated environmental standards
C) Established consumer protection laws
D) Created the Securities and Exchange Commission
Answer: A
Rationale: The Federal Sentencing Guidelines for Organizations codified into law incentives to reward
organizations for taking action to prevent misconduct .
11. The Defense Industry Initiative on Business Ethics and Conduct was developed to:
A) Guide corporate support for ethical conduct
B) Regulate defense spending
C) Protect consumer rights
D) Establish environmental standards
Answer: A
Rationale: The Defense Industry Initiative on Business Ethics and Conduct was an organization developed
to guide corporate support for ethical conduct .
12. Corporate social responsibility (CSR) is best defined as:
A) An organization's obligation to maximize its positive impact on stakeholders and minimize its negative
impact
Section A: Multiple Choice Questions (1–30)
1. Business ethics is best defined as:
A) Laws and regulations that guide behavior in the world of business
B) Organizational principles, values, and norms that may originate from individuals, organizational
statements, or the legal system that primarily guide individual and group behavior in business
C) A business's responsibility not to pollute the environment
D) Charitable contributions made by a business to enhance its image
Answer: B
Rationale: Business ethics comprises organizational principles, values, and norms that may originate
from individuals, organizational statements, or the legal system and primarily guide individual and group
behavior in business .
2. Morals refer to:
A) An individual's personal philosophies about what is right or wrong
B) Specific and pervasive boundaries for behavior that should not be violated
C) Enduring beliefs and ideals that are socially enforced
D) Organizational principles that guide group behavior
Answer: A
Rationale: Morals refer to an individual's personal philosophies about what is right or wrong. When one
speaks of morals, it is personal or singular .
3. Principles are best defined as:
A) An individual's personal philosophies about what is right or wrong
B) Specific and pervasive boundaries for behavior that should not be violated
C) Enduring beliefs and ideals that are socially enforced
D) Organizational statements that guide behavior
Answer: B
Rationale: Principles are specific and pervasive boundaries for behavior that should not be violated and
often become the basis for rules .
4. Values are best defined as:
A) An individual's personal philosophies about what is right or wrong
B) Specific and pervasive boundaries for behavior that should not be violated
C) Enduring beliefs and ideals that are socially enforced
,D) Laws that guide behavior in business
Answer: C
Rationale: Values are enduring beliefs and ideals that are socially enforced .
5. Corporate culture is defined as:
A) A set of values, norms, and artifacts, including ways of solving problems that members of an
organization share
B) Laws and regulations that guide business behavior
C) An individual's personal philosophies about right and wrong
D) Specific boundaries for behavior that should not be violated
Answer: A
Rationale: Corporate culture can be defined as a set of values, norms, and artifacts, including ways of
solving problems that members (employees) of an organization share .
6. The difference between an ordinary decision and an ethical one lies in:
A) The legal consequences of the decision
B) The point where accepted rules no longer serve, and the decision maker must weigh values and reach
a judgment
C) The financial impact of the decision
D) The number of stakeholders affected
Answer: B
Rationale: A difference between an ordinary decision and an ethical one lies in the point where the
accepted rules no longer serve, and the decision maker is faced with the responsibility for weighing
values and reaching a judgment in a situation which is not quite the same as any he or she has faced
before .
7. The Global Business Ethics Survey (GBES) measures all of the following EXCEPT:
A) Pressure to compromise organizational standards
B) Observed misconduct
C) Reporting of misconduct when observed
D) Employee salaries
Answer: D
Rationale: The GBES measures workplace integrity as the pressure to compromise organizational
standards, observed misconduct, reporting of misconduct when observed, and retaliation against
reports .
8. According to the text, which industries have some of the lowest ratings for business ethics?
A) Agriculture and mining
, B) Social media and financial services
C) Healthcare and education
D) Manufacturing and retail
Answer: B
Rationale: Social media and financial services have some of the lowest ratings, indicating that
organizations in these sectors face significant ethical challenges .
9. The Sarbanes-Oxley Act was enacted to:
A) Regulate environmental pollution
B) Restore confidence in financial reporting and business ethics after the accounting scandals of the
early 2000s
C) Establish minimum wage requirements
D) Protect consumer privacy
Answer: B
Rationale: The Sarbanes-Oxley Act was enacted to restore confidence in financial reporting and business
ethics after the accounting scandals of the early 2000s .
10. The Federal Sentencing Guidelines for Organizations:
A) Codified into law incentives to reward organizations for taking action to prevent misconduct
B) Regulated environmental standards
C) Established consumer protection laws
D) Created the Securities and Exchange Commission
Answer: A
Rationale: The Federal Sentencing Guidelines for Organizations codified into law incentives to reward
organizations for taking action to prevent misconduct .
11. The Defense Industry Initiative on Business Ethics and Conduct was developed to:
A) Guide corporate support for ethical conduct
B) Regulate defense spending
C) Protect consumer rights
D) Establish environmental standards
Answer: A
Rationale: The Defense Industry Initiative on Business Ethics and Conduct was an organization developed
to guide corporate support for ethical conduct .
12. Corporate social responsibility (CSR) is best defined as:
A) An organization's obligation to maximize its positive impact on stakeholders and minimize its negative
impact
