REVIEW CHAPTER 2: Business Ethics

_____ is the application of standards of moral behavior to business situations.

• Business structuralism

• Business contingence

• Business ethics

• Business sourcing

Which of the following statements best describes business ethics?

• It involves applying ethical and moral standards to business behavior.

• It should be applied as a separate set of moral standards from general ethics.

• It deals exclusively with the ethical behavior of creditors and shareholders.

• It can by understood from two perspectives-consequentialism and constitutivism.

A _____ is defined as someone with a share or interest in a business enterprise.

• stakeholder

• moderator

• mediator

• crossholder

GeoTransmit, a large multinational telecommunications company, hid from its investors the extensive debt and losses it had accumulated. Its fraudulent accounting behavior was eventually discovered, and the company went bankrupt. Which of the following statements is true of the future of GeoTransmit and its stakeholders?

• The different stakeholders of GeoTransmit will be affected in different ways.

• The decision of GeoTransmit to hide its losses from its investors will not have any impact on its market value.

• The stakeholders of GeoTransmit will not be affected by its fraudulent practices.

• The decision of GeoTransmit to hide its losses from its investors is considered to be ethical.

The system that directs and controls business organizations is termed _____.

• business ethics

• organizational culture

• retail optimization

• corporate governance

The main function of a code of ethics is to _____.

• encourage managers and employees to make unsupervised decisions

• guide managers and employees in making sound decisions and choices every day

• liberate chief executive officers from any constraints placed by boards of directors

• decrease the independence of boards of directors and increases the power of investors

One of the changes that have occurred in a business environment over the last five decades is that _____.

• a code of ethics has developed from a quality-measurement document to a document related to human resources

• a company no longer requires senior executives to be accountable to the board of directors and their stakeholders

• corporate ethics has moved from the organizational mainstream into the domain of legal and human resource departments

• corporate social responsibility has advanced from an abstract debate to a core performance-assessment issue

Over the last five decades, corporate ethics has moved from the domain of human resource departments into the _____.

• legal department

• finance and accounting department

• talent management portfolio

• organizational mainstream

Over the last five decades, codes of ethics:

• have matured from performance-measurement documents into cosmetic public relations documents.

• have been adopted by a decreasing number of corporations because employees and managers no longer need guidance.

• have been adopted by an increasing number of organizations who share them with all their stakeholders.

• have relieved chief executive officers from the control mechanisms used by boards of directors.

A situation in which there is no obvious right or wrong decision, but rather a right or right answer, is termed _____.

• status paradox

• absence paradox

• discursive dilemma

• ethical dilemma