Business and Society Study Guide
Questions
Course Introduction
Business and Society explores the dynamic relationship between businesses and the broader social environment in which they operate. The course examines how organizations influence and are influenced by social, ethical, legal, and environmental factors. Topics include corporate social responsibility, stakeholder management, sustainable business practices, the role of government and non-governmental organizations, and the impact of global trends on business decisions. Through case studies and critical discussions, students gain an understanding of how businesses can balance profitability with social accountability while navigating complex societal expectations.
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Business Ethics Ethical Decision Making Cases 12th Edition by O. C. Ferrell
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12 Chapters
619 Verified Questions
619 Flashcards
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Chapter 1: The Importance of Business Ethics
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Sample Questions
Q1) Why is the public more tolerant of consumer misconductthan business misconduct?
A)Businesses are expected to have a better idea of right and wrong.
B)The decisions of individuals have little to do with ethics in the business world.
C)There are big differences in wealth and success between businesses and consumers.
D)More organizations commit misconduct than individual consumers.
E)There is a large income disparity among professional businesspeople.
Answer: C
Q2) Which of the following statements is true about business ethics?
A)A firm that has ethical management will succeed financially.
B)Codes of ethics should cover every business ethics issue.
C)Business ethics focuses more on laws over values.
D)Individuals apply the same ethical rules in business as they do at home.
E)There is no conflict between profits and business ethics.
Answer: E
Q3) Many consumers are willing to pay more money for socially responsible products.
A)True
B)False
Answer: True
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Chapter 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
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50 Flashcards
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Sample Questions
Q1) The board of directors' fiduciary duty to a company means they have assumed a position of trust and confidence that entails certain responsibilities.
A)True
B)False
Answer: True
Q2) Why is it important for businesses to recognize secondary stakeholder groups?
A)They are absolutely necessary for the firm's survival.
B)They include the employees necessary for the firm's success.
C)They usually have more power than primary stakeholders.
D)They provide vital resources that companies need.
E)They have legitimacy and can exert power.
Answer: E
Q3) Social responsibility rests on a stakeholder orientation.
A)True
B)False Answer: True
Q4) Ethics and social responsibility can be used interchangeably.
A)True
B)False
Answer: False
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Chapter 3: Emerging Business Ethics Issues
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52 Flashcards
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Sample Questions
Q1) ________ means the message has a tendency to mislead, confuse, or deceive the public.
A)Implied falsity
B)Marketing fraud
C)Literally false
D)Puffery
E)Collusion
Answer: A
Q2) What type of fraudulent activity involves an employee who assists a consumer in fraud?
A)Whacking
B)Duplicity
C)Guile
D)Defamation
E)Collusion
Answer: E
Q3) Examples of consumer fraud include shoplifting, collusion, guile, and duplicity.
A)True
B)False
Answer: True
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Chapter 4: The Institutionalization of Business Ethics
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Sample Questions
Q1) _____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.
A)Social responsibility
B)Business ethics
C)Corporate philanthropy
D)Strategic philanthropy
E)Cause-related marketing
Q2) Which is not one of the four sources of criminal and civil laws?
A)Judicial law
B)Common law
C)Constitutional law
D)Administrative law
E)Statutory law
Q3) In 2005 the Supreme Court ruled that the federal sentencing guidelines were not mandatory but should serve only as recommendations judges should use in their decisions.
A)True
B)False
Q4) Why do you think the costs of compliance with Sarbanes Oxley go down over time?
Page 6
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Chapter 5: Ethical Decision Making
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Sample Questions
Q1) Research concerning nationality and the ability to make ethical decisions
A)shows no relationship between the two.
B)is hard to interpret in a business context because of cultural differences.
C)suggests that organizations should be very concerned about an employee's nationality.
D)suggests that corporations pay a lot of attention to such research.
E)suggests that the influence of nationality on corporate culture is growing.
Q2) Which of the following is the first step in the ethical decision making process?
A)Being socialized into the firm's corporate culture
B)Applying a personal moral philosophy in order to individualize the ethical decision making process
C)Recognizing that an ethical issue exists
D)Soliciting the opinions of others in a work group or in the overall business in order to gain feedback
E)Enforcing the firm's ethical standards with rewards and punishment
Q3) Discuss how the three categories of institutions (political, economic, and social) are important in establishing a foundation for normative values.
Q4) Discuss, with examples, at least three ways that opportunity can affect the decision making process.
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Chapter 6: Individual Factors: Moral Philosophies and Values
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Sample Questions
Q1) _____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.
A)Relativists
B)Hedonists
C)Pragmatists
D)Deontologists
E)Teleologists
Q2) The elements of _____ important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness.
A)egoism
B)utilitarianism
C)deontology
D)moral philosophy
E)virtue
Q3) Compare and contrast the two teleological philosophies: egoism and utilitarianism. Include a discussion of the bases that each type uses to evaluate the morality of activities.
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Chapter 7: Organizational Factors: the Role of Ethical
Culture and Relationships
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Sample Questions
Q1) _______ includes a requirement that management assess the effectiveness of an organization's internal controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial statements.
A)An ethics audit
B)The Dodd-Frank Act
C)Sarbanes-Oxley 404
D)Title VII of the Civil Rights Act
E)The Whistle-blower Protection Act
Q2) The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent.
A)10-30-40-20
B)20-30-30-20
C)40-10-10-40
D)10-40-40-10
E)80-20
Q3) Committees, work groups, and teams are all types of formal groups.
A)True
B)False
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Chapter 8: Developing an Effective Ethics Program
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Sample Questions
Q1) Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead.
A)stock market
B)board of directors
C)middle managers
D)customers
E)stakeholders
Q2) Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?
A)Sarbanes-Oxley Act
B)Robinson-Patman Act
C)Ethics Officer Responsibility Act
D)Sherman Antitrust Act
E)Enron Financial Responsibility Act
Q3) How can ethical dilemmas and behavioral simulations help employees make more ethical decisions?
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Chapter 9: Managing and Controlling Ethics Programs
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Sample Questions
Q1) A(n) _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders.
A)ethics audit
B)social audit
C)financial audit
D)performance audit
E)external audit
Q2) _____ are a primary stakeholder group and should be included in the ethics-auditing process because their loyalty determines an organization's success.
A)Customers
B)Suppliers
C)Special interest groups
D)Competitors
E)Legislators
Q3) What is the Global Reporting Initiative? What is its goal? Why has it grown in importance?
Q4) How can companies secure stakeholder input during an ethics audit? Why is it important to do so?
Q5) Explain the benefits and risks of ethics auditing.
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Chapter 10: Globalization of Ethical Decision Making
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Sample Questions
Q1) Which of the following is not a criticism of or charge against multinational corporations (MNCs)?
A)They transfer jobs overseas, where wage rates are lower
B)They increase the gap between rich and poor nations
C)They usually avoid paying any taxes
D)They exploit the labor markets of host countries
E)They have an unfair advantage when competing with local businesses
Q2) Facilitation payments are not allowed under the Foreign Corrupt Practices Act.
A)True
B)False
Q3) _____ products encourage consumers to return and buy more. This approach is also known as planned obsolescence.
A)Laissez-faire
B)Dumping
C)Collectivistic
D)Made-to-break
E)Multinational
Q4) How can differences in two countries' cultures create ethical issues in business?
Q5) Discuss the ethical issues associated with multinational corporations.
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Chapter 11: Ethical Leadership
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Sample Questions
Q1) This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company.
A)Groupthink
B)Leader-follower congruence
C)Group polarization
D)Values-based culture
E)Ethical leadership
Q2) Unlike transformational leaders, transactional leaders do not positively influence the corporate culture.
A)True
B)False
Q3) The acronym RADAR stands for
A)Recognize, Answer, Discourage, Avoid, and Recover
B)Recognize, Answer, Detect, Avoid, and Recover
C)Recover, Answer, Discourage, Avoid, and Recognize
D)Recognize, Avoid, Discover, Answer, and Recover
E)Recover, Avoid, Detect, Answer, and Recognize
Q4) Apathetic leaders are not necessarily unethical.
A)True
B)False
Page 13
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Chapter 12: Sustainability: Ethical and Social Responsibility
Dimensions
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Sample Questions
Q1) Why is the Environmental Protection Agency (EPA) said to be the most influential regulatory agency?
Q2) _____ can cause markedly shorter life spans, along with chronic respiratory problems in humans and animals.
A)Water pollution
B)Air pollution
C)Global warming
D)Deforestation
E)Acid rain
Q3) Recycling is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse.
A)True
B)False
Q4) Discuss the benefits of green marketing and the long-term pitfalls of greenwashing.
Q5) Acid rain, waste management, urban sprawl, and deforestation are all environmental issues related to land.
A)True
B)False
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