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Business Ethics, 13th Edition By Ferrell/Fraedrich
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Business Ethics: Ethical Decision Making and Cases
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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 1990s the institutionalization of business ethics was largely 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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 12
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
,7. Business ethics, as a field, has passed through which of the following states?
a. A field of study to theological discussion to recognition of social issues
b. Recognition of social issues to a field of study to theological discussion
c. A field of study to recognition of social issues to theological discussion
d. Recognition of social issues to theological discussion to a field of study
e. Theological discussion to recognition of social issues to a field of study
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 9-12
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: Comprehension
8. The 1960s saw a rise of consumerism. What is consumerism?
a. An increase in consumer rights by organizations and governments
b. The growth of international retail chain stores
c. Activities undertaken by independent individuals, and groups to protect their rights as consumers
d. The widespread adoption of consumer oriented marketing strategies among businesses
e. Organizations’ tendency to seek ways to take advantage of consumers
ANSWER: c
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
, 9. Ethics is a part of decision making
a. at all levels of work and management.
b. primarily at the upper management levels of an organization.
c. mostly for policy makers.
d. that is less important than other decision making processes.
e. only at that lower levels of organizational management.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 3
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
10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a
method for discussing best practices?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Corporate codes of conduct
d. United States Sentencing Commission
e. MERCOSUR
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 12
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
,11. The focus(es) on firms taking action to prevent and detect business misconduct in cooperation with
government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. United Nations Global Compact
e. Federal Sentencing Guidelines for Organizations
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 12
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
12. The study of business ethics is important to better understand all of the following except
a. that a person's own moral philosophies and decision-making experience may not be sufficient to guide him or
her in the business world.
b. how and why people make ethical or unethical decisions.
c. how to cope with conflicts between a person's own values and those of the organization in which he or she
works.
d. that business ethics is entirely an extension of an individual's own personal ethics.
e. how to identify ethical issues arising in the business world.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 8-9
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
,13. According to the role of ethical culture in performance, all of these are drivers of profit except
a. trust.
b. investor loyalty.
c. employee commitment.
d. customer satisfaction.
e. opportunity for misconduct.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 16
LEARNING OBJECTIVES: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Blooms: Knowledge
14. More than a compliance program, business ethics is becoming
a. a management issue to achieve competitive advantage.
b. less accepted by society.
c. mainly a government regulatory issue.
d. an initiative led by nonprofit organizations.
e. a program that decreases profits but increases societal benefits.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 19
LEARNING OBJECTIVES: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Blooms: Knowledge
, 15. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues
when an individual has
a. family concerns.
b. an unethical boss.
c. limited business experience.
d. financial training.
e. a marketing background.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 8
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
16. One of the major ethical issues President Obama’s administration focused on was
a. decreasing environmental legislation.
b. deregulation.
c. tax decreases.
d. incentives to oil companies.
e. health care and consumer protection.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 14
LEARNING OBJECTIVES: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Blooms: Knowledge
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