Chapter 2: Being Ethical and Socially Responsible

Business Ethics

• is laws and regulations that govern business.

• is the application of moral standards to business situations

• do not vary from one person to another.

• is most important for advertising agencies

Customers expect a firm's products to

• boost sales

• be profitable

• be available everywhere

• be safe, reliable, and reasonably priced

Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning

• fairness and honesty

• organizational relationships

• conflict of interest

• communications

You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Chicago Bears if you help him out. This tactic is

• a corporate discount

• a common business practice

• a bribe

• personal selling

All of the following are factors that affect the level of ethical behavior in an organizaiton except

• individual factors

• social factors

• opportunity

• demographic factors

What are the three sets of factors that influence the standards of behavior in an organization?

• Organizational norms, circumstances, morals

• Peer pressure, attitudes, social factors

• Historical factors, management attitudes, opportunity

• Opportunity, individual factors, social factors

If a company deals with violations of its ethical code ______, the opportunity to be unethical will be reduced.

• leisurely and lightly

• firmly and consistently

• on a case-by-case base

• quietly and erratically

What is probably the most effective way for a company to encourage ethical behavior?

• Hire employees who are ethical and in agreement with the company's views.

• Have ethics training sessions for interested employees

• Threaten employees with immediate termination for unethical behavior

• Develop and enforce a written code of ethics for the organization

Informing the press or government official about unethical practices within one's organization is called

• unethical behavior

• whistling

• whistle-blowing

• trumpeting

The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as

• business ethics

• corporate ethics

• code of ethics

• social responsibility