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Dewy Cheatum encourages his employees to create and use legal loopholes to gain a competitive advantage. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.

A) True
B) False

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Overly ambitious business goals and employee incentives can lead to unethical behavior.

A) True
B) False

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When it comes to ethics and social responsibility, the public's perception of a firm is as important as what the firm does.

A) True
B) False

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According to the Reaching Beyond Our Borders box, titled "Ethical Culture Clash", which of the following is true?


A) Corporate ethics are intended to be consistent with cultural ethics.
B) Corporate ethics have priority over corporate profit.
C) Corporate profits have priority over corporate ethics.
D) Corporate ethics can clash with cultural ethics.

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

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If a business fails to meet its responsibilities to its employees, which of the following is likely to occur?


A) There is reduced employee turnover.
B) Employees believe it is easier to get ahead.
C) More jobs are created.
D) Employees do the minimum needed to get by.

E) None of the above
F) All of the above

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America's business ethics can improve simply by requiring written contracts with employees, customers, and owners. This alone will do the job!

A) True
B) False

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Abby is a stock broker for a large financial services company. A client who works at Sixth Generation Software, Ltd., just called to purchase several thousand shares of his company's stock. He reveals to her that the company is about to announce the appointment of a new CEO. Abby asks her client if this information is public knowledge. The reason she asks is to make certain that her client, her company, and she remain in compliance with Regulation FD, the Fair Disclosure rule.

A) True
B) False

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"Do what I say, not what I do" can be an effective code of conduct to instill corporate values.

A) True
B) False

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Laws represent the standards of behavior.


A) ethical
B) legal
C) moral
D) socially responsible

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

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Behavior that is in conflict with your values and sense of right and wrong can damage your self esteem.

A) True
B) False

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In order to maintain a good reputation, it is good strategy to manage your business ethically.

A) True
B) False

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The International Organization for Standardization (ISO) plans to publish a standard on social responsibility called ISO 26000.

A) True
B) False

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When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with .


A) schools
B) religious institutions
C) law enforcement officers
D) each of us

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

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Which of the following describes the debate regarding video sharing in the boxed material Making Ethical Decisions, "To Tube or Not to Tube?"?


A) The debate is over whether it is legal and/or ethical for individuals to upload videos onto YouTube that they themselves did not create.
B) The debate involves the unfair advantage that Viacom and other large corporations have when uploading videos onto YouTube, even though they are operating within the law.
C) The debate is over whether the Digital Millennium Copyright Act (DMCA) has outgrown its usefulness.
D) The debate is about why Viacom is complaining to YouTube about illegal uploads when they have no support from other organizations.

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

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Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?


A) Can I do this without getting caught?
B) Is it balanced?
C) Has it been done before?
D) Is there a desirable alternative?

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

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"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

A) True
B) False

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Management's philosophy at Apple, Inc. has often stated that a fit body contributes to more productivity at work. Apple provides exercise facilities at most of its sites across America, and permits employees to use a half-hour of work time each day to relieve stress through exercise. This serious position on physical fitness is part of Apple's .


A) corporate philanthropy
B) corporate policy
C) community mediation services
D) participative funding

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

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Cigarette producers refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is:


A) The intended approach.
B) The desired approach.
C) Not the desired approach.
D) Not really a concern.

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

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Following an ethics-based approach to decision making will normally lead to:


A) higher profits.
B) lower employee turnover.
C) lower prices.
D) more competition.

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

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When facing an ethical dilemma, it is often helpful to discuss the situation with your supervisor because ethical decisions will always withstand scrutiny.

A) True
B) False

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