, CHAPTER 1: AN OVERVIEW OF ETHICS
1. An organization’s mission statement highlights its key ethical issues and identifies the overarching values and
principles that are important to the organization and its decision making.
a. True
b. False
ANSWER: False
2. Line operations personnel can be appointed as corporate ethics officers.
a. True
b. False
ANSWER: True
3. In a nonprofit organization, the board of directors reports to the local community that it serves.
a. True
b. False
ANSWER: True
4. Consistency means that shareholders, customers, suppliers, and the community know what they can expect of an
organization—that it will behave in the future much as it has in the past.
a. True
b. False
ANSWER: True
5. The greater reliance of information systems in all aspects of life has decreased the risk that information technology
will be used unethically.
a. True
b. False
ANSWER: False
6. Increasingly, managers are including ethical conduct as part of an employee’s performance appraisal.
a. True
b. False
ANSWER: True
7. Employees may suppress their tendency to act in a manner that seems ethical to them and instead act in a manner
that will protect them against anticipated punishment.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: An Overview of Ethics
8. The term morality refers to social conventions about right and wrong that are so widely shared that they become the
basis for an established consensus.
a. True
b. False
ANSWER: True
9. Laws can proclaim an act as legal, although many people may consider the act immoral.
a. True
b. False
ANSWER: True
10. Fairness and generosity are examples of virtues.
a. True
b. False
ANSWER: True
11. Lawrence Kohlberg found that the most crucial factor that stimulates a person’s moral development is monetary
reward for good behavior.
a. True
b. False
ANSWER: False
12. Multinational and global organizations must not present a consistent face to their shareholders, customers, and
suppliers but instead must operate with a different value system in each country they do business in.
a. True
b. False
ANSWER: False
13. Legal acts conform to what an individual believes to be the right thing to do.
a. True
b. False
ANSWER: False
14. Ethics has risen to the top of the business agenda because risks associated with inappropriate behavior have
increased, both in their likelihood and in their potential negative impact.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chaptera11:a 1 Ana1Overviewa1ofa1
Ethics
15. Settinga1corporatea1sociala1responsibilitya1(CSR)a1goalsa1encouragesa1ana1organizationa1toa1achievea1highera1moral
a1anda1ethicala1standards.
a. True
b. False
ANSWER:a 1 True
16. Thea1fairnessa1approacha1toa1ethicala1decisiona1makinga1statesa1thata1onea1shoulda1choosea1thea1actiona1ora1policya
1thata1hasa1thea1besta1overalla1consequencesa1fora1alla1peoplea1whoa1area1directlya1ora1indirectlya1affected.
a. True
b. False
ANSWER:a 1 False
17. Thea1boarda1ofa1directorsa1ofa1ana1organizationa1isa1normallya1responsiblea1fora1day-to-
daya1managementa1anda1operationsa1ofa1thea1organization.
a. True
b. False
ANSWER:a 1 False
18. Ana1individual’sa1managera1hasa1verya1littlea1impacta1ona1hisa1ora1hera1ethicala1behavior.
a. True
b. False
ANSWER:a 1 False
19. Ina1thea1businessa1world,a1importanta1decisionsa1area1tooa1oftena1lefta1toa1thea1technicala1experts;a1generala1bus
inessa1managersa1musta1assumea1greatera1responsibilitya1fora1thesea1decisions.
a. True
b. False
ANSWER:a 1 True
20. Thea1goala1ofa1thea1SarbanesOxleya1Acta1wasa1toa1renewa1investor’sa1trusta1ina1corporatea1executivesa1anda1their
a1firm’sa1financiala1reportsa1followinga1numerousa1financiala1scandalsa1ina1thea1earlya12000s.
a. True
b. False
ANSWER:a 1 True
21. Individuala1viewsa1ona1whata1isa1morala1area1soa1stronglya1helda1thata1therea1isa1nearlya1universala1agree
menta1ina1spitea1ofa1differencesa1ina1age,a1culturala1group,a1ethnica1background,a1religion,a1lifea1experie
nce,a1education,a1anda1gender.
a. True
b. False
ANSWER:a 1 False
©a12015a1Cengagea1Learning.a1Alla1Rightsa1Reserved.a1Maya1nota1bea1scanned,a1copieda1ora1duplicated,a1ora1posteda1toa1aa1publiclya1accessible
a1website,a1ina1wholea1ora1ina1part.
1. An organization’s mission statement highlights its key ethical issues and identifies the overarching values and
principles that are important to the organization and its decision making.
a. True
b. False
ANSWER: False
2. Line operations personnel can be appointed as corporate ethics officers.
a. True
b. False
ANSWER: True
3. In a nonprofit organization, the board of directors reports to the local community that it serves.
a. True
b. False
ANSWER: True
4. Consistency means that shareholders, customers, suppliers, and the community know what they can expect of an
organization—that it will behave in the future much as it has in the past.
a. True
b. False
ANSWER: True
5. The greater reliance of information systems in all aspects of life has decreased the risk that information technology
will be used unethically.
a. True
b. False
ANSWER: False
6. Increasingly, managers are including ethical conduct as part of an employee’s performance appraisal.
a. True
b. False
ANSWER: True
7. Employees may suppress their tendency to act in a manner that seems ethical to them and instead act in a manner
that will protect them against anticipated punishment.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: An Overview of Ethics
8. The term morality refers to social conventions about right and wrong that are so widely shared that they become the
basis for an established consensus.
a. True
b. False
ANSWER: True
9. Laws can proclaim an act as legal, although many people may consider the act immoral.
a. True
b. False
ANSWER: True
10. Fairness and generosity are examples of virtues.
a. True
b. False
ANSWER: True
11. Lawrence Kohlberg found that the most crucial factor that stimulates a person’s moral development is monetary
reward for good behavior.
a. True
b. False
ANSWER: False
12. Multinational and global organizations must not present a consistent face to their shareholders, customers, and
suppliers but instead must operate with a different value system in each country they do business in.
a. True
b. False
ANSWER: False
13. Legal acts conform to what an individual believes to be the right thing to do.
a. True
b. False
ANSWER: False
14. Ethics has risen to the top of the business agenda because risks associated with inappropriate behavior have
increased, both in their likelihood and in their potential negative impact.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chaptera11:a 1 Ana1Overviewa1ofa1
Ethics
15. Settinga1corporatea1sociala1responsibilitya1(CSR)a1goalsa1encouragesa1ana1organizationa1toa1achievea1highera1moral
a1anda1ethicala1standards.
a. True
b. False
ANSWER:a 1 True
16. Thea1fairnessa1approacha1toa1ethicala1decisiona1makinga1statesa1thata1onea1shoulda1choosea1thea1actiona1ora1policya
1thata1hasa1thea1besta1overalla1consequencesa1fora1alla1peoplea1whoa1area1directlya1ora1indirectlya1affected.
a. True
b. False
ANSWER:a 1 False
17. Thea1boarda1ofa1directorsa1ofa1ana1organizationa1isa1normallya1responsiblea1fora1day-to-
daya1managementa1anda1operationsa1ofa1thea1organization.
a. True
b. False
ANSWER:a 1 False
18. Ana1individual’sa1managera1hasa1verya1littlea1impacta1ona1hisa1ora1hera1ethicala1behavior.
a. True
b. False
ANSWER:a 1 False
19. Ina1thea1businessa1world,a1importanta1decisionsa1area1tooa1oftena1lefta1toa1thea1technicala1experts;a1generala1bus
inessa1managersa1musta1assumea1greatera1responsibilitya1fora1thesea1decisions.
a. True
b. False
ANSWER:a 1 True
20. Thea1goala1ofa1thea1SarbanesOxleya1Acta1wasa1toa1renewa1investor’sa1trusta1ina1corporatea1executivesa1anda1their
a1firm’sa1financiala1reportsa1followinga1numerousa1financiala1scandalsa1ina1thea1earlya12000s.
a. True
b. False
ANSWER:a 1 True
21. Individuala1viewsa1ona1whata1isa1morala1area1soa1stronglya1helda1thata1therea1isa1nearlya1universala1agree
menta1ina1spitea1ofa1differencesa1ina1age,a1culturala1group,a1ethnica1background,a1religion,a1lifea1experie
nce,a1education,a1anda1gender.
a. True
b. False
ANSWER:a 1 False
©a12015a1Cengagea1Learning.a1Alla1Rightsa1Reserved.a1Maya1nota1bea1scanned,a1copieda1ora1duplicated,a1ora1posteda1toa1aa1publiclya1accessible
a1website,a1ina1wholea1ora1ina1part.
