TEST BANK Business Ethics Ethical Decision Making and Cases, 13th Edition By O. C. Ferrell, John Fraedrich, All Chapters 1 - 12

TABLE OF CONTENTS Part 1: An Overview of Business Ethics 1: The Importance of Business Ethics 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance 3: Sustainability: Ethical and Social Responsibility Dimensions Part 2: Ethical Issues and the Institutionalization of Business Ethics 4: The Institutionalization of Business Ethics 5: Emerging Business Ethics Issues Part 3: The Decision-Making Process 6: Ethical Decision Making 7: Individual Factors: Moral Philosophies and Values 8: Organizational Factors: The Role of Ethical Culture and Relationships Part 4: Implementing Business Ethics in a Global Economy 9: Developing and Implementing an Effective Ethics Program 10: Global Business Ethics Issues 11: Ethical Leadership 12: Technology: Ethics and Social Responsibility Issues 1: The Importance of Business Ethics 1. Principles are a. laws and regulations that guide behavior in the world of business. b. mores, values, and customs that guide behavior in general. c. specific and pervasive boundaries for behavior that are universal and absolute. d. the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders. e. the mores, values, and customs that parents teach their children. ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 5 LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension 2. Social responsibility is a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. b. principles and standards that guide behavior in the world of business. c. a business's responsibility not to pollute the environment. d. a business's responsibility to manufacture products that function properly. e. charitable contributions made by a business to enhance its image. ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 23 LEARNING OBJECTIVES: LO: 1-4 - Gain insight into the extent of ethical misconduct in the workplace and the pressures for unethical behavior. NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 3. The was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s. a. Defense Industry Initiative on Business Ethics and Conduct b. Sarbanes-Oxley Act c. Federal Sentencing Guidelines for Organizations d. Foreign Corrupt Practices Act e. Dodd-Frank Wall Street Reform and Consumer Protection Act ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 13 LEARNING OBJECTIVES: LO: 1-2 - Examine the historical foundations and evolution of business ethics. NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 4. The term business ethics is best described by the following statement: a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong. b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct." c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession." d. It is an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. e. It comprises the principles, values, and standards that guide behavior in the world of business. ANSWER: e POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 5 LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 5. Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"? a. The right to choose b. The right to safety c. The right to be informed d. The right to be ethical e. The right to be heard ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 10 LEARNING OBJECTIVES: LO: 1-2 - Examine the historical foundations and evolution of business ethics. NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 6. During the 1990sthe institutionalization of business ethics waslargely driven by which piece of legislation? a. Sarbanes-Oxley Act b. Federal Sentencing Guidelines for Organizations c. Dodd-Frank Wall Street Reform and Consumer Protection Act d. Foreign Corrupt Practices Act e. Global Sullivan Principles ANSWER: b