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Many Americans define ethical behavior according to the situation in which they find themselves. This way of thinking suggests that there may be situations where ________ to cheat, steal, or lie.


A) it is absolutely wrong
B) it might be okay
C) business people are expected
D) capitalism forces people

E) A) and C)
F) All of the above

Correct Answer

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Legal behavior is directly related to our relationships with others, while ethical behavior is not.

A) True
B) False

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People should look at each situation individually and decide for themselves if it is right or wrong.

A) True
B) False

Correct Answer

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One factor causing businesses to vigorously enforce ethical standards is the


A) desire to eliminate employee turnover.
B) fear of negative publicity.
C) focus on criminal penalties.
D) evasion of social audit measurements.

E) None of the above
F) B) and C)

Correct Answer

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Ethical behavior focuses on treating others fairly.

A) True
B) False

Correct Answer

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Businesses are under more and more pressure from society to be socially responsible. However, even the strongest advocates for corporate responsibility can't seem to agree


A) on what social responsibility involves.
B) who should be policing businesses' behavior.
C) if all businesses, large and small, should be held to the same standards.
D) if politicians should be held to the same standards of behavior.

E) None of the above
F) A) and B)

Correct Answer

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Employees observe behavior and adopt standards of right and wrong.

A) True
B) False

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U.S. businesses consider the Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

A) True
B) False

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Enrollment at Bayside College keeps going up, despite tuition and fee hikes to help cover the cost of new wind turbines installed on campus. These turbines generate enough power to serve the campus buildings and to sell to local business establishments. After reading about corporate social responsibility, you conclude


A) new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs.
B) although it is a trendy social cause, this effort is not showing good long-term social responsibility toward the students who will end up with sizeable future debt.
C) this is a demonstration of corporate philanthropy.
D) students are willing to pay the extra tuition in the short term because they believe that the means (the use of innovative technology) will justify the end (a better environment) .

E) A) and B)
F) C) and D)

Correct Answer

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Compliance-based ethics codes are based on preventing unlawful behavior.

A) True
B) False

Correct Answer

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Dewey Cheatsum urges his employees to find and use legal loopholes to gain a competitive advantage whenever they can. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.

A) True
B) False

Correct Answer

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Some experts feel that corporate social responsibility means solely making money for stockholders.

A) True
B) False

Correct Answer

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Compliance-based ethics codes typically


A) rely on laws and regulations outside the firm for guidance.
B) have a strong affinity for shared accountability among employees.
C) promote a "do-it-right" climate.
D) enable responsible employee conduct.

E) B) and C)
F) A) and D)

Correct Answer

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Corporate social responsibility refers to the concern businesses have for the welfare of society.

A) True
B) False

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Fresh Coats Paint Co. promotes its products as nontoxic and made from natural, organic substances. The paints are safe for all persons, including those with asthma and other lung conditions. If consumers learn that Fresh Coats' paints do not meet their expectations, their reaction is likely to tarnish the company's image.

A) True
B) False

Correct Answer

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The Irish Plastering Corporation recently instituted a corporate ethics code. The president of the company, Seamus McHale, realized that ethical relationships are based on


A) fairness and honesty.
B) strict penalties for illegal activities.
C) a full-time compliance officer monitoring employee behavior.
D) watchdogs and whistleblowers.

E) A) and B)
F) A) and C)

Correct Answer

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An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

A) True
B) False

Correct Answer

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Top leaders in government and business today are


A) held to higher ethical standards than in the past.
B) held to less strict moral standards than in the past.
C) less interested in social responsibility than in the past.
D) at odds with the general public in regard to ethical issues.

E) B) and C)
F) A) and D)

Correct Answer

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Although the green movement is a social trend, it is difficult to predict its future contributions to society.

A) True
B) False

Correct Answer

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Many U.S. companies are demanding socially responsible behavior from their international suppliers.

A) True
B) False

Correct Answer

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